How can they sell burners for $15 and make a profit?

[The Sauce]

I was just checking out the deals and noticed the 52x burner for $15 AR. Can someone explain to me how a 52x burner with all of the technology, electronics, parts, labor and shipping to a vendor can cost me less than a pizza and still result in a profit to the manufacturer (who is not even the company selling the drive as it is rebadged and marked up)????????

 

[Ionizer86]

Well, Cendyne went bankrupt since they had too many $10 AR or FAR burners at places like Omax.

 

[Macro2]

They figure only 25% of the people will send in the rebate.

 

[The Sauce]

Originally posted by: Macro2
They figure only 25% of the people will send in the rebate.

Is there evidence to show that that is the case? I always send in every rebate (>$5). Can't imagine someone throwing away ~$50 or so out of sheer laziness.

 

[Ionizer86]

Supposedly, in the past, when rebates 1st came out, about 30-35% of the rebates were mailed out since people didn't trust them then. Supposedly, now, the rebate mail-out percent is in the 90's somewhere.

Personally, I do the rebates for those little Omax items too: microphones, jewel cases, etc 🙂 Even the little checks coming back are nice to see, though if they get denied, it won't be too important. (I had a $7 CD-R rebate denied once).

 

[Tom]

It's like a pyramid scheme, they have to keep selling more of them and then they use that money to pay the rebates. Eventually though chances are they go bankrupt and the last rebates don't get paid.

 

[jimmyl930]

They assume most people forget to send in the rebate forms.

 

[ArmchairAthlete]

Is there evidence to show that that is the case? I always send in every rebate (>$5). Can't imagine someone throwing away ~$50 or so out of sheer laziness.

I'm quite sure these companies have the evidence to show that most are lazy and won't send in rebates.

 

[Stalker]

I believe I read it on UsaToday only 20% rebate is being mail in. On tech product it is about 50%.So $40 - 40MIR = average price of $20

 

[onlyCOpunk]

That and I'm sure the cost to make them isn't that expensive either.