What's the deal with mail in rebates? Why don't companies that are offering these rebates just take the price off when we go to buy the product.

I was looking at buying a new phone that is $50 after a $100 rebate, but I don't feel like waiting around the three plus months it takes to get my money back.

 

Here's a thread I started a while back.

https://www.ford-trucks.com/forums/s...d.php?t=442971

 

cause X amount of people never send them in

 

BINGO!!! in fact when when companies figure the cost of a promotion they have stats of how many people in a given demographic for that product actually , on average, mail the rebates in and that is figured into the budget.

 

It's kind of like a person working a drive-through window intentionally dropping change as the hand it to the customer. A fair percentage will crawl out of the car to retrieve it. Some will try but won't find it. And others will not go to the effort for a few coins. Whatever the percentages, it is highly likely the person working the window could be a little better off than if they never dropped it

 

I agree and there is a precentage that send them in and the companies hope that the buyer forgets that they sent one in in the first place. $50.00 times 10,000 rebates times 3 months intrest is an extra profit for the company and if it is forgotten about it means more money for them.

 

i send mine in. Knock on wood, i have yet to not get my money from one either. Of course, i read and follow all the direction, so they dont have a reason. I mean, many times you can find products much cheaper at the store than online when you use rebates. As a matter of fact, i scan the weekly ads from best buy, circuit city, etc, for products i need that have rebates. Usually anything that comes from those places are not items that i HAVE TO GAVE RIGHT NOW!

 

I send mine in about 75% of the time. For me it seems like "free money" when the check finally arrives! Hubby and I usually go on a date then

But then...I am horrible with budgeting and finances

 

yea, cause you have forgotten about it when thecheck shows up months later

 

A penny saved is a penny earned...so yeah, it is free money.

 

A good friend of mine is a marketing / financial executive at a large telecom electronics manufacturer, and he sums up these "rebate" deals in 3 words: Short Term Investments.

Let's take a phone, for instance, and I'll use the numbers in the above example. You pay 150 bucks for a phone, and later get 100 back; you end up paying 50 bucks. Seems like a good deal, but notice that they sit on your 100 bucks for quite a while.

The 100 bucks you're getting back, is more than likely coming partially from the group of people who 'donated' their 100 bucks to the company 3, 6 or more months ago. The company invests this money in short and medium term investments and can recoup some of the loss for selling $200 phones for 50 bucks, all the while insuring a nice, fat profit margin after charging a handsome monthly bill for your phone calls during the next 2 years while you wait for your contract to expire.

Not to mention, the "gimmick" factor which is pure, simple Marketing 101.
People get a warm, fuzzy feeling thinking, "Wow, I just saved $100."
Not to worry, though, you never saved anything. It's in the billing, and if you decide to cancel early, be prepared for the $150 "early termination fee" (that's when you pay for the rest of your "$50 phone").

 

I knew that, ans tht'as one reason I want the retail store (with all the clout) to cover any rebates.
They already have their own Instant Rebates to deal with,it wouldn't take any more paperwork to handle the rebates for other companies but then they would still have the money to invest from the retailer forking it over

 

Baja, has it right.

Not to mention the companies that never send your money at all, so to go after $3 worth of rebates is not worth it. PLUS, they sell your name and address to other companies.

 

That doesnt exactly apply to something at best buy for instance. Explain how those mail in rebates work? I purchased a compact flash card for 45 bucks, including the rebate. Normally it sells for 80+ bucks...i purchased it, mail in the rebate, and it comes to me, no questions asked, no strings attached. I dont care if it comes back in 1 day or 2 months, as long as it comes back, i ONLY PAID 45 bucks for it in the end. Its free money, a discount, 50% off...no matter how you slice it, its a good deal. Its cheaper than anything you could find on line too.