Rebates create more stupid paperwork for everyone, the consumer, the manufacturer. You're going to get the money back in the end anyway. Why don't they just lower the price from the beginning? What's the point?
enough with the stupid rebates, why not just lower the price?
- Thread starter supernova87a
- Start date
Because they know most people won't return the rebate. So, they suck people in with the thought of a rebate, but most forget to return it, and they have sold something at full price.
They're hoping that you either don't bother askign for the rebate or don't bother jumping through all the hoops. That way, they get the price they WANTED from the people who do it, and they get extra money from the people who don't.
Did you ever go to a time share info session? They'll offer you a price and if you say "It's too high," they'll offer you a lower price. And they'll keep sending people over and offering lower prices. They'll do it like 4 or 5 times.
Why not just offer it at the price they really want?
B/c If they can sucker someone into paying the first price, that's more for them.
Did you ever go to a time share info session? They'll offer you a price and if you say "It's too high," they'll offer you a lower price. And they'll keep sending people over and offering lower prices. They'll do it like 4 or 5 times.
Why not just offer it at the price they really want?
B/c If they can sucker someone into paying the first price, that's more for them.
because people are too lazy to try and figure out all the crap you have to do and send it in.
m00se
m00se
I worked for a big retail company, and let me tell you, the rate of actual rebates turned in is less than 50%, yet you get the sales increase from advertising the rebate...no brainer for companies to use...
Definitely because most people don't send in the rebates.
I also believe that many of them service the rebates that do get sent in horribly on purpose. Most people who do go to the trouble to send in the rebate and never get it either forget about it or chalk it up to being 'lost in the mail' and never follow through with it. I'm sure it's a very very small percentage of people who actually complain when they don't get their check.
I also believe that many of them service the rebates that do get sent in horribly on purpose. Most people who do go to the trouble to send in the rebate and never get it either forget about it or chalk it up to being 'lost in the mail' and never follow through with it. I'm sure it's a very very small percentage of people who actually complain when they don't get their check.
its for people like me...
I got a rio500 with $75 rebate...
but forgot about the rebate until after the expiry date
I got a rio500 with $75 rebate...
but forgot about the rebate until after the expiry date
Yeah, I guess that's true. I get annoyed that companies will take advantage of people's unwillingness to make the effort to return the receipt, etc etc. The same with the stupid BMG music service where you just get fed up and keep the CD (although I never did). But in that case, it was something you didn't want.
Its a fact that over 50% forget to send the thing. Also, the money that you spend they put in the stock market-tech stocks and try to make some cash. If they lose it, oh well, no rebate for you
and try to make some cash. If they lose it, oh well, no rebate for you The companies will sell more of the item b/c people see the lower 'after rebate' price, but like the others said, they'll forget to send it in... so the profit the company makes from the extra unit sales will far outweigh the amount they have to pay in rebates (usually...)
The companies can also make money from the price difference. They have YOUR money for at least a month, and can earn interest on it. If they sell 20,000 units with a $10 rebate, and only half of the people return the rebate, they get to keep $100,000 and earn interest on the other $100,000 for a month or two. If they see a 1% months return, they make $2,000. Not much when compared to the annual earnings of a company, but it is something.
Ryan
Ryan
StageLeft
No Lifer
- Sep 29, 2000
- 70,150
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Well don't those who are too lazy to do rebates know this and have that affect their purchase decision?
Personally I totally ignore rebates. Not because I'm too lazy to send them in but if you want me to buy something for $150 and then wait 8 weeks for my $50 to come in the mail you've got another thing coming.
$150 minus $50 mail in rebate? No thanks. To me that is $150, so will I pay $150 or not? Rebates take too long and frequently don't work anyway so a rebate price NEVER influences me in the least. I totally ignore it and base the purchase decision upon the price of the item before rebate, becase $50 in two months isn't something I will consider now. If I buy something with a rebate I"ll send that rebate in but I'll never base a purchase decision on the rebate.
Personally I totally ignore rebates. Not because I'm too lazy to send them in but if you want me to buy something for $150 and then wait 8 weeks for my $50 to come in the mail you've got another thing coming.
$150 minus $50 mail in rebate? No thanks. To me that is $150, so will I pay $150 or not? Rebates take too long and frequently don't work anyway so a rebate price NEVER influences me in the least. I totally ignore it and base the purchase decision upon the price of the item before rebate, becase $50 in two months isn't something I will consider now. If I buy something with a rebate I"ll send that rebate in but I'll never base a purchase decision on the rebate.
Skoorb, you are so right! Anyone else sick of these "awesome" deals AFTER rebate? I got in on the sweet Visiontek BB deal at Thanksgiving. Checked online and guess when my rebate is getting MAILED!? Friggin February 26th! I gave those fockers a free loan of $50 bucks for nearly 3 months! I still think its' a good deal but the damn delay has soured it quite a bit.
Those rebate companies must be RAKING in the dough with all the free money they are getting. Forget about stocks, even floating commercial paper, muni bonds or other relatively "safe" investments, they can pull in 4-6% interest, which adds up when you are talking about millions in rebate monies.
Add that to the fact that about 50% neglect to send in their rebates and it's no wonder companies use them so much.
Those rebate companies must be RAKING in the dough with all the free money they are getting. Forget about stocks, even floating commercial paper, muni bonds or other relatively "safe" investments, they can pull in 4-6% interest, which adds up when you are talking about millions in rebate monies.
Add that to the fact that about 50% neglect to send in their rebates and it's no wonder companies use them so much.
i dunno, guess depends on the person.. if i have the money, i'll let them have it for three months to give back to me later.
If you live in CT, don't they have to give you the cash equivalent of the rebate at the time of sale? Nice idea.
HaVoC: BB lost money on that deal. After all..retail Geforce3 Ti200's from reputable companies were going for around ~$200 Thanksgiving (not sure now). And we got it for half price (or $50 off if you dont count the MIR)! BB got more ppl in the store, upped total revenue - Visiontek got to hang on to our money for rebates...Visiontek probably sold them to BB at cost, knowing that some ppl wouldn't send it in
because if there were no rebates, then people would want rebates on top of those already lower prices. i read rebate return %age is like 20%. plus they can hold the money for interest for like 2-3 months also
It is very rare to see rebate offers in the UK, although I have seen one or two in the last couple of months. I buy 95% of my computer hardware OEM anyway so I guess even if rebates do become more frequent in retail stores, I'll never get them.
It's simple. The new trend is for a manufacturer to offer a rebate, but to not fulfill it. This is especially true with lower cost rebates, like $5 or so, because they know few people will try to hunt them down and fight it. CEOs can laugh their a** off by knowing inventory can be cleared out by offering a "rebate":disgust:
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