🚀 go-pugleaf

Rebates are another type of target price marketing.

Studies show that people, even those who do not follow through with a 
rebate, either forgetting to file, or just deciding it's too much work, 
still quote the rebated price as what they paid for the item.  Of 
course, they actually often paid full price, but they don't recall it 
that way.

Everyone likes to feel they got a deal, but many people have limited 
patience in actually receiving the "deal", or their lives end up more 
time consumed than they had anticipated.  The majority of rebate 
failures are the result of people not sending them in.  They either 
forget, or intend to, but miss the deadline, or lose some of the paper 
work and give up.  The next group is worse still, because these are 
people who take the time to fill out the paperwork, but do not follow 
the instructions to the letter.  It is people who fail to read the often 
onerous requirements fully, including not providing the correct proof of 
purchase, or sending the refund request to the incorrect address, etc.

Then finally, there are those who get twarted by the rebate company, 
because the rebate is not forthcoming, or the fulfillment company claims 
the paperwork was not complete, etc.

All in all, a "good" response and ultimate pay out is %5 of the total 
purchases.  More typical they run 1-3% of successful rebate returns. 
That means 97-99% of the people who believe they bought a product at a 
rebated discount, in fact payed full, or at least a higher price.  That 
makes everyone happy, the buyer *thinks* he got a good deal, becuase he 
forgets what he really paid, the vendor and manufacturer sold more 
goods, the fulfillment company gets to hire people to work through the 
paper work, and gets their profit, and the manufacturer pays out 
considerably less than it would appear.  In most jurisdictions, the 
rebated amount is taxed at the standard federal and state sales tax, so 
the government is happy too.

Lastly, public companies that sell tangibles like them for yet another 
reason.  They can make their quarterly finacials look better by staging 
a large rebate on a product, clearing the channel, lowering inventories, 
and yet the liability to pay the money back is 6-12 or more weeks later 
into the beginning of the next quarte. making teh companies sales look 
much better.


Quite the little game, eh?

Art


Tony wrote:

> Gee wiz Art, (off topic I know).
> I have been following this post with great academic interest.
> Where I live there is no such thing as a rebate (at least not of the type that 
> you are discussing) and I am beginning to believe that we are better off, looks 
> like a potential minefield. We just discount at the time of sale. It's hard to 
> see what advantage the rebate scheme would have over advertised discounting, 
> but I guess you have to experience rebating before you know what advantages it 
> has.
> Tony
> 
> 
> Arthur Entlich <e-printerhelp@mvps.org> wrote:
> 
>>In the US, rebates are now under the jurisdiction of the Post Office 
>>fraud section, since both you and they use the mail as the conduit for 
>>communications.
>>
>>There have been so many complaints and so much fraud in this area, the 
>>US Post Office now has a website area devoted to dealing with rebate 
>>fraud and delays.
>>
>>Delays are being prosecuted with heavy fines in cases of large enough 
>>groups of cases.
>>
>>Further, in most cases, one's state Attorney General's office will 
>>intervene on your behalf is required to resolve a rebate issue.
>>
>>Don't let the fulfillment company (the company usually hired to 
>>distribute the rebates) get away with claiming you sent in wrong forms 
>>or they did not receive your request in time.
>>
>>Always keep accurate records of what you sent in when and how much is 
>>due you when.  Photocopy or at least scan the items you sent to them, 
>>including the filled in form, and any receipts or UPC symbols, etc.
>>
>>Don't be afraid to talk tough with the fulfillment company front-line 
>>people or supervisors  Tel them you will be sending in a complaint to 
>>the US Postal Service and State Attorney General's Office.  If they 
>>still don't come through FILE an official complaint.
>>
>>I have read the advertising these fulfillment companies  send to the 
>>companies that hire them.  They often mention is somewhat vague terms 
>>that they will help the manufacturer to pay out less rebate claims, but 
>>reducing the number of eligible claimant.
>>
>>I have participated in about 200 rebates over the last 5 years.  They 
>>have very rarely been early (one particular retailer was very good about 
>>that until they were bought out).  The vast majority are 2-4 weeks late, 
>>(over the 6, 8 10, or 12 weeks they express in the "contract") some as 
>>much as 8 months so, but I have never NOT received my rebate, however, I 
>>have had to threaten legal action on several occasions.  In some cases I 
>>have gone to the retailer and make them fulfill the obligations of the 
>>rebate. In Canada, they have some legal requirements at the retailer 
>>level to make sure rebates are fulfilled.
>>
>>Remind the fulfillment company that they have entered into a contract 
>>with you, and make sure you can prove you fulfilled that contract on 
>>your end (shipped on time, correct paperwork, etc).  Tell them you will 
>>begin charging them interest on the money after the due date.
>>
>>And remember, don't just threaten, if you don't get satisfaction, fill 
>>out the web form with the US Postal Services or the state attorney 
>>general of your state or both.
>>
>>Art
>>
>>
>>zmike6 wrote:
>>
>>
>>>On Fri, 03 Jun 2005 00:10:40 -0000, Mapanari <whosthat@anonmail.com>
>>>wrote:
>>>
>>>
>>>
>>>>I do rebates all the time, so I don't make mistakes.
>>>>
>>>>It's supposed to be 8 weeks.
>>>>
>>>>It's now 10weeks and counting.
>>>>
>>>>www.canon.rebatestatus.com
>>>>
>>>>No reply to my email from last week.
>>>>
>>>>That admit they have and it's being "processed".
>>>>
>>>>Wish some attorny general would slap a class action suit against these 
>>>>sonsofbitches and clean up the whole dirty rebate business.
>>>
>>>
>>>
>>>10 weeks and counting for mine too, and they are only sending me $20
>>>instead of the $70 I am eligible for.  They claim my receipt isn't
>>>good enough despite it clearly showing the digital camera and printer
>>>model numbers. (and I sent in both UPC codes from the boxes).  They
>>>are incredibly slow at responding to email, but eventually they did in
>>>my case.  Was yours for a digital camera + printer as well?
>>>
> 
>