How do MIRs work?

[Borealis7]

I dont live in the US so all those great deals i see after rebates mean nothing to me, I have to put up with prices that are between 30 and 50% higher than US prices (sometimes 100% on new parts) and that before sales taxes which are 15.5% where I live. yeah I know, sux to be me.

But i still dont understand the financial argument behind MIRs. the best thing i could think of is:

the product costs X$ from the maker. retailer puts it at 2X$ with a X$ MIR.

people buy the product at 2X$, the retailer "gambles" on 50% of them to mail in the rebate so:

0.5*2X + 0.5*X = 1.5X ==> retailer gains 50% per unit price while giving the appearance of a good deal for the end customer.

is this how it works?

 

[intogamer]

Its a discount giving by the manufacture or store, without actually lowering the price in wholesale form. So if sales are slow they can offer a MIR to boost sales.

 

[RallyMaster]

you ask too many questions. just know that most AT members hate having their rebates not coming back. we always want to see that check from Antec, Samsung or HP in our mailboxes. the retailer already earned the profit on the sale and therefore it does not matter too much to them (unless it's a retailer's rebate) if you mail it in or not.

 

[imported_elwood]

And i bet it's safe to say 40-60% don't send in the rebate or end up, for some reason, not getting the rebate back so they end up making the full price.

 

[RelaxTheMind]

Circuit City's business model = MIRs on everything.

Still waiting on my rebates from the trail mix i bought form their vending machine.

 

[Yossarian]

Originally posted by: elwood
And i bet it's safe to say 40-60% don't send in the rebate or end up, for some reason, not getting the rebate back so they end up making the full price.

I've read that it's more like 90% who don't send in rebates.

 

[Tsaico]

They are also hedging their bets that you are not going to buy just that, he Mail in Rebate will get you to buy all the other junk to support your purchase. Like a mail in rebate on a computer, but you then walk away with anti-virus, Office, and a new game.... Generally the mail in rebate often is the amount of profit the product costs, so they break even on that, but make better sales on non discounted items.

 

[wahoyaho]

so how come somtimes they don't send you the rebate? and what can you do about it?

 

[ColdFusion718]

Originally posted by: wahoyaho
so how come somtimes they don't send you the rebate? and what can you do about it?

That's why it's a good idea to keep photocopies of everything. This way, you can dispute it if they deny your rebate.

 

[Suspicious-Teach8788]

Originally posted by: ColdFusion718

Originally posted by: wahoyaho
so how come somtimes they don't send you the rebate? and what can you do about it?

That's why it's a good idea to keep photocopies of everything. This way, you can dispute it if they deny your rebate.

See, by then it's such a PITA I just forget. I've made a policy of NO REBATES now. I don't jump on all those MIR deals because it just kills you in the end when you buy 8 things and see 4 checks in the mail and you beam, but then later you remember you have 4 more that never came in..

 

[wahoyaho]

that's why you should expect the rebates to NOT come in then there will be no disappointment

but, how can you prove that the rebate never came in even with a photocopy?

 

[EagleKeeper]

Originally posted by: wahoyaho
that's why you should expect the rebates to NOT come in then there will be no disappointment

but, how can you prove that the rebate never came in even with a photocopy?

If you keep photcopies of all the paperwork that you sent; then you can then dispute the missing rebate by faxing the paperwork to an actual person after the time for rebate processing has completed.

Most rebates are stated to take 6-8 weeks.
So after 8 weeks and no rebate, you call the referenced phone number and have them check on the status.

If they can not locate you request; then get a fax number and fax the documentation to them showing that you filled in the paperwork properly and have copies of everything that was requested (receipt, UPC code, etc).

If the rebate is denies because of an error; by having copies you can determine if you slipped up or they did.
If it is their fault, then follow the steps above.

 

[Demon-Xanth]

The fulfillment rate for rebates is actually closer to 20-30%. Some rebate houses actually will guarentee that the fullfillment rate be below a certain level or they'll eat the cost.

...you are not the rebate house's customer.