Rebates Won't Help Unless You Use Them
A local chain store recently offered
two mail-in rebates on a PC I wanted to buy. One was from the retail
store chain itself for $150, the other was from the PC manufacturer
for $50. I wouldn't have purchased the PC without the rebates simply
because I wanted to wait for a competitive offer from another vendor.
The rebates would have expired before long, so I bought the unit.
After waiting the usual six weeks
without a response from either of the offers, I went online to check
the status of my rebates. Going on line to check the status of my
two PC rebates was as easy as signing in to each of the web sites and
following a few simple instructions. The results, however, were as
different as night and day. The rebate check from the retailer was
already on its way, in fact it came two days after I signed in. The
PC manufacturer, however, had no record of my rebate.
I had followed instructions explicitly,
making copies of everything from the instructions and the receipts
and the product proof of sale tags and had carefully submitted the
originals to the manufacturer. I haven't given up on that one yet,
copies are still being submitted.
Many savvy shoppers carefully watch for
rebates on products they purchase. Rebates can make almost any new
product price affordable when compared to the actual off-the-shelf
cost. Amazingly enough, according to the Federal Trade Commission,
about half of all rebates are never redeemed! In addition to that
astonishing fact, posted on TCA rebate fulfillment center's home page
at http://www.tcarebates.com/advantage.htm, is one almost as
incredible: 10 percent of all issued rebate checks are never cashed!
TCA is a leading rebate and fulfillment
center service organization in New Rochelle, New York, that handles
rebates for many manufacturers and retailers. They actually advertise
on the same page that they rejected 800,000 fraudulent or
non-compliant rebate requests. Making the rebate process complicated
of course is a great help to the manufacturers. The fewer rebates
submitted or approved is to their benefit.
Rebates are an interesting marketing
tool. Similar to a coupon to the consumer, the differences to the
manufacturers are great. With a coupon, the seller takes the price
off at the register, actually reducing collected sales tax on the
item. The seller then places claims against the manufacturer to
reclaim the lost credit or money at the register. In a rebate, the
buyer pays full sales tax on the item and the seller is usually not
involved in the process, except for supplying receipts and forms. The
manufacturer usually claims the financial loss of rebates against
advertising or product costs.
Following the exact rebate requirements
is the only way you can be sure you will get your rebate. Read the
rebate carefully and make sure your purchase is actually covered by
the time and conditions stated on the rebate.
One way to make money for the
manufacturers seems simple enough: throw away the rebate and pretend
it never got there.
George Mindling© 2004
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