Arbitrage
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I think the formal concept is called tiered pricing. Oh, graduated or something like that. Basically, they're taking away as much of the consumer surplus as possible by taking advantage of people's laziness of not sending in the rebates. It's the same deal with those normal coupons that people like to clip.
They also get to keep your money for a little longer which helps them lower ARs. |
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banana_bean01
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You send them what they want, receipt, copy of this copy of that, pay postage and guess what? few weeks later you get your $$$ back! try it! |
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anniejan
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you mail in what's required...labels,receipts etc.keep copies for self. then you wait and wait and wait but eventually check will be in the mail. |
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JRob
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usually you purchase something that qualifies for a rebate - fill in the rebate form - send the form with your receipt and some kind of "proof of purchase" like the top of the box or the back panel (read the rebate form) - wait anywhere from several weeks to forever to get the rebate check.
The deal is that the company you bought the thing from gets to ring up the full price of the sale and everybody gets to use your money for a couple months until they get around to sending you the rebate. Of course you might throw the box out and not save the proof of purchase portion - so no rebate. Or you might wait too long - no rebate. Or send it to the wrong address - no rebate. Or it might get lost in the mail. |
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pffff
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you mail in your proof of purchace and whatever rebate form you have then theyll mail you a check... |
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IWasWondering
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I'm not sure about the GST in your question, but basically I mail in the rebate form along with the proper bar codes and eventually I get my rebate.
I think companies do it for several reasons:
1) they can advertise lower prices
2) a certain percentage of people will not go through the trouble of getting the rebate, therefore this 'un-rebated' money stays with the company.
3) The company can compile a pretty good list of customers who have bought their products, which is useful for marketing research.
I really don't think they get any tax benefit. It seems you should be able to get a partial GST refund once you get you rebate. |
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parkview000000
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send it in(some products rebates are on the box) the rebate to wherever it says than they will send u a check |
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Ozky
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First, Companies know that a great percentage of the people will not take the time to send all the info required to get the rebate, yet customers are intrigued by it and will buy the product with the menatlity that it is cheaper for their pocket, but once the person gets it he/she starts to play with it, install it, put it together or whatever else the person can do his/her new product and forget all bout the rebate.
For those whom take the time to get the rebate, well companies use that money to invest it therefore they dont lose any money, contrary so, they make money with your money. |
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