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DPChallenge Forums >> Rant >> What's up with REBATES ?
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 02/15/2006 02:11:56 PM · #1
I'm having trouble understanding how a store profits by rebates such as my example below:

I wanted to pick up a new computer for my wife the other day. Best Buy is close by, so I went there, found a salesman, pointed to a PC and said I'd like to buy this one for its advertised price here (pointing to the big price sticker showing the price after subtracting rebates), but I don't want to deal with the rebates, I hate filling out and mailing cards. He acknowledged me, filled up a cart, and totalled up the bill. He didn't take off the rebates ($300 worth), so I told him again I didn't want to deal with them, I wanted him to knock them off the price. He said he couldn't, they were manufacturer's rebates. I said I didn't care, and I left.

So they lost at least one sale because of it.

I went down the street and bought a PC at a shop where the don't play the rebate game.

Why do stores do this? It's not like people are going to neglect a $300 rebate. I'm baffled. Don't most people prefer to just buy something and be done with it?

Screw them!
 02/15/2006 02:12:54 PM · #2
something like 90 percent of rebates are never submitted. it's a good scam.
 02/15/2006 02:14:44 PM · #3
Originally posted by muckpond:
something like 90 percent of rebates are never submitted. it's a good scam.

But who's going to ignore $300 worth of rebates on a single purchase? It seems to me they've lost sight of the scam.
 02/15/2006 02:16:36 PM · #4
People who are notoriously bad at remembering to mail things. Like...oh...me? I'd probably remember for $300 but I've done my fair share of forgetting so I try not to buy things with rebates anymore. I wouldn't expect the store to knock down the price for a manufacturer's rebate, though.
 02/15/2006 02:18:46 PM · #5
The thing with rebates is that you have to follow the Manufactures rebate directions to the letter or they will not give you the rebate.

Thats the scam.

So if you do send it in follow the directions perfectly.
 02/15/2006 02:20:14 PM · #6
Originally posted by Strikeslip:
Originally posted by muckpond:
something like 90 percent of rebates are never submitted. it's a good scam.

But who's going to ignore $300 worth of rebates on a single purchase? It seems to me they've lost sight of the scam.

Besides deliberately not submitting them, you can ...

-forget to mail them before the deadline
-lose the receipt you need to send in
-forget to include the UPC code from the box
-fill out the forms wrong
-throw out the check when it arrives because it looks like advertising

The manufacurer also gets you on their direct mailing list -- otherwise they don't know who's using their equipment.

The stores benefit because they can advertise the lower overall price to lure in customers. The manufacturers benefit from the overall sales boost and store-sponsored advertising and access to more detailed information at a lower cost than it appears.
 02/15/2006 02:23:16 PM · #7
When you do remember to send them in, they make it hard for you to actually collect. I had to resubmit all the same info 3 times. They kept coming up with a different reason each time to say I didn't qualify. I think it's a scam for sure. They figure you'll just get fed up and give up. Funny, each time I sent in the exact same info and after finally talking to someone in person, they admitted everything needed was there. Long post, still annoyed with the whole episode and will avoid rebates!
 02/15/2006 02:26:11 PM · #8
or the specify the rebate is in USD and the bank will take a 10$ charge to cash the *()&^)!! check ..

i don't deal with it any more ...
02/15/2006 02:26:31 PM · #9
I try to avoid them unless it's so substantial I can't pass it up, like 40% off a hard drive (check should be in the mail!) or 100% off a couple of Photoshop books (got the checks!).
 02/15/2006 02:50:12 PM · #10
O OH! I see another American idea stretching across the pond! We don;t have rebates yet like this but it sounds too god a scam for our manufacturers to ignore for long!
P
 02/15/2006 02:51:54 PM · #11
Originally posted by Riponlady:
O OH! I see another American idea stretching across the pond! We don;t have rebates yet like this but it sounds too god a scam for our manufacturers to ignore for long!
P

Now that you're on the alert, maybe you can get the very first one!

Maybe I should start offering rebates on my prints ...
 02/15/2006 05:48:50 PM · #12
I was actually going to post a rebate topic, so sorry to hijack but..

I've always had good luck with rebates except for a few Apple rebates during the instable times during Steve Job's absence. I've been a Nikon user since the 80s and after literally dozens of rebates I received every penny.

I semi-converted from Nikon to Olympus and purchased the Olympus 50-200mm f2.8-3.5, and 11-22mm f2.8-3.5 back in November. I properly sent off their rebates (carefully following directions) on November 7th yet but no $$ yet. Does anyone know if Olympus is known for this? Have I been shafted or am just impatient?
02/15/2006 07:07:47 PM · #13
While i would prefer a world without rebates, I have used them and plan to do again this week. You can get a lexar 2Gb CF card for $75 after rebate.

I have always gotten every rebate i have sent in, never had to resubmit one. Only once did i not get to send in - no UPC, well, no box. I got a no box discount so it was kind of a wash.

I am currently awaiting $100 on a printer.

The best rebate company? Tamron. 2 weeks from sending till getting. Killer!
 02/16/2006 03:28:50 PM · #14
Originally posted by Prof_Fate:
The best rebate company? Tamron. 2 weeks from sending till getting. Killer!


Agree completely - Mine was less than 10 days from mail to cheque for me last year :-)

I wish they would just be illegal because they are clearly a scam. The companies farm the work out to insurance companies (not exactly know as the best pay out sorts).

I try to ignore them but some are too much to ignore and I play the game for the large ones.
 02/17/2006 08:02:11 AM · #15
Originally posted by Riponlady:
O OH! I see another American idea stretching across the pond! We don;t have rebates yet like this but it sounds too god a scam for our manufacturers to ignore for long!
P


I think Nikon and Canon have been playing the rebate game over here for a couple of years. I'm sure I've seen fifty quid rebates quoted for models from both manufacturers.

Roger
 02/17/2006 11:05:13 AM · #16
I got a $100 rebate from Pentax for my Ds in less than 2 weeks, but I agree that most of the time it's a huge scam.

Still, if I'm buying something *anyway*, and there's a rebate on it, I go out of my way to claim that rebate.. even if it's for $10 like the one on my Memory Card Pro Duo for the PSP recently. hehe.
 02/17/2006 11:09:17 AM · #17
I heard a report recently that says something like 70% of shoppers will buy an item because there is a rebate offered over a similar item with no rebate, but only about 50% of people actually send off for the rebate/do everything correctly and actually get it.
 02/17/2006 11:21:42 AM · #18
The rebate trick is attractive to companies for more reasons than the obvious "sale and forget" effect. For example, it can be used to increase corporate turnover at the expense of profit, which can be useful for a variety of reasons (mostly tax related). If a company is clever, it may be able to increase turnover and move the contingent liability represented by the outstanding rebates off balance sheet, making the company look both more profitable with higher turnover in the short term. Hard to spot if you are looking over the accounts to credit score the company in question for investment or lending purposes, or to decide how much of a bonus to pay the senior management!

There are other subtle forms of "sale and forget" penalties, like the "interest free periods" you sometimes get, where if you miss paying the loan back before the end of the interest free period (and there is no reminder) you are locked in to a fixed high interest rate loan.

Some of these offers may be limited in scope in the UK due to different consumer protection regulation, and may be limited in attractiveness due to different accounting standards.

Message edited by author 2006-02-17 11:46:30.
 02/17/2006 11:45:29 AM · #19
I think we should all band together, rise up against the paper-pushing corporate beast.

BOYCOTT PRODUCTS WITH REBATES!

If you buy products with rebates, you're perpetuating them, just like the lonely seniors who buy stuff from telemarketers, and the misguided, kindly folks who give their spare change to pan-handlers.

STOP THE INSANITY!

:-P
 02/17/2006 11:58:02 AM · #20
another thing, most rebates require you to send the original upc.

without that, you can't return it to the store.
 02/17/2006 12:03:37 PM · #21
I don't like dealing with rebates either. But when the deal is good enough, I'll go thru the hassle. I know that Staples now offers what they call a Smart Rebate (or something like that.) It's pretty easy. They print out a special receipt, and all you have to do is go to a special web site and enter the numbers. Nothing to mail. I've used it 3 times now with no hassle.

I'm still mad at myself for "forgeting" to mail a $100 rebate on someting I bought. I had filled out the form, cut out the UPC off the box, put it in an envelope... and forgot to mail it. Found it about a month after the deadline. Made me feel very stupid.
 02/17/2006 12:09:58 PM · #22
ok here's the way rebates work I have to deal with them (and fustraited people all the time... I work at best buy)

there are 2 kinds of rebates
1- instant rebate- this is a rebated that is taken off at the register it is done like this becuase the store you are shopping at is offering the rebate.
2- manufactures rebates- these you have to mail in or do on line the reason is such. The store you are shopping at has Nothing to do with refunding the money to you. It is comming from the manufacture (canon, sandisk etc) it is money out of those companies pockets not the stores. If they are offering a manufactures rebate they can not (and will not) just take it off at the register for you.

I dont know about other stores but i know that best buy is trying to transfer all of their rebates to be able to do them online to make it eayser (no all of them are up and running on line yet as of now i think its about half) So i hope i shed a bit of light on this uhhhh lovely world of retail ;-)
 02/17/2006 12:15:26 PM · #23
IMO, there's nothing about a rebate that isn't a scam.

If it weren't a scam, here's a concept... simply lower the price.
 02/17/2006 12:19:45 PM · #24
Originally posted by karmat:
another thing, most rebates require you to send the original upc.

without that, you can't return it to the store.


Here's a concept - buy it and keep it! Why return it? So i can get your returns, an open box used item that i pay full price for? No thanks.

Yes, I have a problem with people that return things. It's a waste of everyones time - yours to buy it, return it and buy somethg else, the stores to take it back, and repack and restock it and possibly sell it as an open box for a lower price - so they lsoe money on it and have to raise prices overall to pay for this game some consumers wanna play.

Rebates don't bother me. If it works for 3 days, it'll likely work for a long time - send in the rebate.
 02/17/2006 12:24:27 PM · #25
Originally posted by Prof_Fate:
Originally posted by karmat:
another thing, most rebates require you to send the original upc.

without that, you can't return it to the store.


Here's a concept - buy it and keep it! Why return it? So i can get your returns, an open box used item that i pay full price for? No thanks.

Yes, I have a problem with people that return things. It's a waste of everyones time - yours to buy it, return it and buy somethg else, the stores to take it back, and repack and restock it and possibly sell it as an open box for a lower price - so they lsoe money on it and have to raise prices overall to pay for this game some consumers wanna play.

Rebates don't bother me. If it works for 3 days, it'll likely work for a long time - send in the rebate.


ummm, sometimes you have to return stuff 'cus it doesn't work/fit/wrong thing, etc. Returns aren't always a game.

I don't mind rebates either. When I can remember to send them in. ;)

Message edited by author 2006-02-17 12:27:33.
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