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carpe diem

macrumors 6502
Original poster
Sep 18, 2005
452
0
I am wondering why do companies give rebates? Why can they not just give the discount instead of making life so complicated?

Sorry about my moaning.
 

rdowns

macrumors Penryn
Jul 11, 2003
27,397
12,521
Very simple. Rebates work to attract buyers and a very large percentage never bother to claim them. I've read as many as 70% don't bother.
 

snkTab

macrumors 6502a
Nov 13, 2004
580
1
Cincinnati, OH
Plus it allows them to push inventory and increase sales, without having the effect of lowering their price. Examine two scenarios.

1) Giving a $200 rebate on say a Cinema display for Christman special
2) Lowering the price of the Cinema displays $200 and then two months later, raising them

Both have the same effect, except one makes the company seem great (although excess discounting leads to brand degradation), and one makes the company look like a bastard. And as well, the one that makes the company look nice, and push inventory, is also the one that most people fail to claim.

Like me for example.
https://forums.macrumors.com/threads/151961/
 

yg17

macrumors Pentium
Aug 1, 2004
15,027
3,002
St. Louis, MO
Plus, this way, they can hold onto your money in a bank account and make interest before mailing out the checks. Thats why it takes like 3 months to get your rebate, it obviously doesnt take 3 months for them to receive it in the mail, print up a check and mail it to you
 

katchow

macrumors regular
Feb 14, 2002
157
0
Dayton, Ohio
yg17 said:
Plus, this way, they can hold onto your money in a bank account and make interest before mailing out the checks. Thats why it takes like 3 months to get your rebate, it obviously doesnt take 3 months for them to receive it in the mail, print up a check and mail it to you

i spent 5 months of hounding AcomData for a $25 rebate. by then it was more a matter of principle. ugh, drives me nuts because the delays feel intentional. :mad:
 

dmw007

macrumors G4
May 26, 2005
10,635
0
Working for MI-6
carpe diem said:
I am wondering why do companies give rebates? Why can they not just give the discount instead of making life so complicated?

Sorry about my moaning.

Same here, I hate rebates- just give me the cash off up front.

Oh well, its a nice marketing ploy for companies. :rolleyes:
 
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