Posted: 11/15/2014 1:22:17 AM EDT
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Yeah, I understand how they work, my question is why are they even a thing?
They've just never made sense to me, and everyone from car manufacturers to cereals offer them. Why not just list the item to reflect the price it would be with rebate included? |
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people are dumb
Mail in rebates The number of folks who actually fill out the form and keep the required docs, etc is small therefore the companies "trick" many people into buying and then don't have to pay the rebate because they didn't save the UPC, or submit the documents on time or something. Car Rebates Again to "trick" most folks into thinking "I'll get $8000 off if I buy the car" but they don't qualify for loyalty discount or something else and very few people will back out of the deal. |
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Quoted:
Most rebates require some sort of mailing or checking boxes or waiting. They are betting, correctly, that most of us are too lazy to complete such actions. yup, but then there are cheapskate motherfucker's like myself that will mail in a rebate on anything that I purchase 
I've mailed in rebate forms on everything from a case of beer to guns or home appliances |
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I ignore mail in rebates. Like instant rebates though. Nothing wrong with a mail in rebate. Just need your rebate form, UPC, copy of receipt and a picture of my cock and in the mail she goes; and voila, three week later a check and a restraining order. |
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They are also a way for a manufacturer to increase sales without giving a retailer a break in price. Instead of giving a break in price and not knowing 100% how orders will spike, a rebate allows the manufacturer to have more control over their forecast for supplies and labor. This also reduces the likelihood that a retailer will request future price breaks or use the price reduction in future negotiations. Finally, it allows the manufacturer to advertise directly to the customer. Retailers will often be focused on something else (another product line) when a manufacturer wants to provide an incentive for purchase, rebates give the manufacturer more control over advertising and ensures the message is sent and recieved as needed without too much noise.
The previous posters were correct as well. Most do not like turning down incomplete rebates but we live in an FSA world, if all you needed was a signed letter saying you bought something, Detroit alone would bankrupt a company quickly. |
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Quoted:
They are also a way for a manufacturer to increase sales without giving a retailer a break in price. Instead of giving a break in price and not knowing 100% how orders will spike, a rebate allows the manufacturer to have more control over their forecast for supplies and labor. This also reduces the likelihood that a retailer will request future price breaks or use the price reduction in future negotiations. Finally, it allows the manufacturer to advertise directly to the customer. Retailers will often be focused on something else (another product line) when a manufacturer wants to provide an incentive for purchase, rebates give the manufacturer more control over advertising and ensures the message is sent and recieved as needed without too much noise. The previous posters were correct as well. Most do not like turning down incomplete rebates but we live in an FSA world, if all you needed was a signed letter saying you bought something, Detroit alone would bankrupt a company quickly. ^Ding ding ding |
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Quoted:
They are also a way for a manufacturer to increase sales without giving a retailer a break in price. Instead of giving a break in price and not knowing 100% how orders will spike, a rebate allows the manufacturer to have more control over their forecast for supplies and labor. This also reduces the likelihood that a retailer will request future price breaks or use the price reduction in future negotiations. Finally, it allows the manufacturer to advertise directly to the customer. Retailers will often be focused on something else (another product line) when a manufacturer wants to provide an incentive for purchase, rebates give the manufacturer more control over advertising and ensures the message is sent and recieved as needed without too much noise. The previous posters were correct as well. Most do not like turning down incomplete rebates but we live in an FSA world, if all you needed was a signed letter saying you bought something, Detroit alone would bankrupt a company quickly. +1 and to add that many manufacturers have a set retail price on the items they sell, like Husqvarna chain saws so the rebate helps to sell inventory but maintain the target price point and not devalue the brand. At my work we will put things on a long term sales promotion if our cost on the item drops and may increase. If we just lower the normal price people will complain that we are "raising all the prices" when the item has to go back up. |
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Because lots of lazy people go "oooh, rebate!" and then make the purchase and never send in the rebate. This. Also, if the manufacturer sells the product at a discount there's nothing to stop the retailer from taking that as extra profit and not passing it to the customer - at least with a rebate they know it's the customer getting the discount. |
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Yeah, I understand how they work, my question is why are they even a thing? They've just never made sense to me, and everyone from car manufacturers to cereals offer them. Why not just list the item to reflect the price it would be with rebate included? Because merchants have existing inventory that they bought at the regular wholesale price. Also, individual merchants are allowed to set their own prices. A rebate program is a way for a manufacturer to increase sales without dictating prices to merchants or hanging them out to dry by suddenly offering an identical product at a lower price. Imagine if independent gun dealers all had a bunch of Flashbang .387 automatic pistols in stock that they bought at $400 each and were trying to sell for $480. Suddenly the manufacturer drops the cost of the item to $350. Dealers with existing stock are fucked but dealers who didn't have existing stock buy the guns at the new lower cost and undercut the competition. The guys with the old stock have to accept less profit or look like a rip-off artist. On the other hand, if the manufacturer offers a mail-iin $50 rebate, there's a minor buzz about the product line and the manufacturer helps dealers move merchandise without forcing them to take a cut in profits. |
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Most rebates require some sort of mailing or checking boxes or waiting. They are betting, correctly, that most of us are too lazy to complete such actions. If your time is so valuable that you can't justify five minutes of effort and the cost of a postage stamp to earn $50-$75 (or more) then you don't need a rebate in the first place. I never would have thought that people would find fault with saving money (not you, Big W, but in general . . .). |
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I always send in mail-in rebates. I always get my money. Never had a problem. What's the big deal? Failure to follow instructions? Only ever missed one rebate . . . they sent a Visa gift card. My wife put the letter somewhere we don't normally put mail. I found it two years after the card expired. |
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If your time is so valuable that you can't justify five minutes of effort and the cost of a postage stamp to earn $50-$75 (or more) then you don't need a rebate in the first place. I never would have thought that people would find fault with saving money (not you, Big W, but in general . . .). Quoted:
Quoted:
Most rebates require some sort of mailing or checking boxes or waiting. They are betting, correctly, that most of us are too lazy to complete such actions. If your time is so valuable that you can't justify five minutes of effort and the cost of a postage stamp to earn $50-$75 (or more) then you don't need a rebate in the first place. I never would have thought that people would find fault with saving money (not you, Big W, but in general . . .). Getting sidetracked, missing the fine print that says that they rebate is only good if sent in a plaid envelope, etc. It can happen. |
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Waiting 11 weeks now on the last rebate I mailed out  It does suck that they always take their time. I'm waiting on one from Rock Island Armory. It's not as bad as giving a loan to the IRS all year long (I try not to do that), but it's similar. Still, a few bucks back in a few months is better than no bucks back at all. You know what they say about gift horses and mouths . . . |