Why can't stores/sellers give the discount upfront instead of mailing it after 8 to 12 weeks? How does it benefit them other than the obvious fact that other buyers might not mail in the requirements for the rebate? Is there an accounting purpose for this?
2007-01-30 11:09:19 · 7 answers · asked by Paolo P 2 in Business & Finance ➔ Other - Business & Finance
There are a couple of reasons. Rebates are never given directly by a company but by fulfillment companies. The longer they hang on to the money, the more they earn in interest. Secondly, many people do not send in the rebates or submit incomplete requests. No money is paid in that case.
So instead of lowering the price by $10 they give a $20 rebate and it probably costs the same.
2007-01-30 11:19:55 · answer #1 · answered by Barkley Hound 7 · 2⤊ 0⤋
I'd say you've got the number one reason in your question. I've got a great friend who works for a credit card processing company (pretty high up). Those gift cards add an extra 10-20% to retailers bottom lines. I'm going to guess that is the same thing those cash rebate forms do. Also, If they can hold on to enough peoples money for 8 to 12 weeks - well, as they say cash is king.
Think of owning a business. If you could put off your suppliers for 60 or 90 days and you could hold extra money from your buyers for 60-90 days - wow - that is a pretty good chunk of money to be sitting on?
I'm sure there may be some other details and intricacies that I don't understand, but the above is my best educated guess.
Joe...
2007-01-30 19:17:35 · answer #2 · answered by Joe K 3 · 1⤊ 0⤋
Mail-in rebates really annoy me. I think it is for the benefit of the Sellers. They hope the Buyer will forget to, or not be bothered to, send the mail-in rebate. They also use it to get your personal details so they can send you useless annoying junk mail and sell on your details to other companies. They also have your extra money for longer.
2007-01-30 19:34:48 · answer #3 · answered by Alex 5 · 0⤊ 0⤋
It gives them a ready made mailing list for marketing purposes, plus, most people never send in their rebates.
2007-01-30 19:15:21 · answer #4 · answered by lavendergirl 4 · 1⤊ 1⤋
12 weeks = 3 months = 1 quarter. Business can make 1/4 earning of the whole years right?
2007-01-30 19:14:59 · answer #5 · answered by DP 1 · 0⤊ 1⤋
marketing.....pure and simple
2007-01-30 19:17:16 · answer #6 · answered by itsbob1 5 · 1⤊ 0⤋
i dunno man
2007-01-30 19:17:15 · answer #7 · answered by King Werewolf 4 · 0⤊ 1⤋