De'ville
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Rebates are used for several reasons: its easy to stop a rebate whenever you want. Its not as easy to raise prices and have customers accept it as readily. It can be used to quickly move products. They work in cooperation with the manufacturer or distributor to help defray cost and share in risks. And of course its all profit if someone forgets to send it in or does not do it correctly. |
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Maverick
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Yeah.. you pretty much hit the nail on the head with that assessment. Corporations hope that by telling customers to use "mail-in rebates" that they'll just lose any drive in trying to get some money back. They'll usually throw in something like "expect 6-8 weeks" which further dimishes the chance for a customer to send in the rebate forms. |
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daphne_florida
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And also having a rebate make more customers buy the products. If they didn't have a rebate on it most customers wouldn't even look at the product. Another reason is because rebate take a long time to come sometimes almost a year and by than the proce of the item already went down and they made lots of money from you. |
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Alan
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Some people care about price, others don't. If you lower the price, you give the reduction to everyone, regardless of whether they really care about it. Coupons and rebates are a way to charge different prices to different groups. The people who care about value will cash in the coupon or send in the rebate, those who don't, won't. You get the higher price from those who don't care, and the lower price from those who do. |
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Phoenix, Wise Guru
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This way they don't lose money on all the people that would have paid the regular price and on those who don't go to the trouble of sending in the rebate. It also makes it seem like a good deal. |
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samsosa2000
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It is an idea from economics called price discrimation. It ultimately allows you to charge different prices to different consumers to maximize your profits. Read more about it on the link below if you would like more information. |
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mom
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yep that is most likely the reason.. :o( |
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Shaggy
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You answered the question. |
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Bert H
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It guarantees registration to help the manufacturer in determining the consumers needs. They gather the info to help them decide on what age group, gender, demand by geographical location, etc.
Don't forget, the price is already marked up, so after the rebate, they have the info for free and the profit they need. |
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