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by Massey on March 16th, 2005

Massey

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Why do companies offer rebates instead of just selling something at a lower price?

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Answers. 6 helpful answers below.

  • by frankied on March 16th, 2005

    frankied

    Three reasons - FIRST is that the time between the purchase and the rebate can be several weeks, time in which the money is in the company's account gaining interest. This may seem insignificant, but to a company that may sell hundreds of thousands of units, this can be quite substantial. SECOND, to get your information for marketing purposes (very useful for large-capital purchasers). And most important, THIRD, most people do not bother with rebates under several dollars, allowing the advertisement to show a lower price than you actually pay.

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  • by Grandma Roses - my avatar is my real dog on September 6th, 2005

    Grandma Roses - my avatar is my real dog

    Besides the other reasons offered : the company offering the rebate is often the manufacturer, who doesn't set the retail price , in spite of MSRP. The retailer sets the price and if the manufacturer lowered the price, the retailer and not the consumer, might be the only one benefitting from the lowered price. It is a way for the manufacturer to drum up some good PR directly with the final purchaser.

    The same reasoning applies to grocery coupons, which is where I first became aware of this explanation.

    ------

    PR is 'public relations', the professional maintenance of a positive public image (Concise Oxford, ninth edition).

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  • by Anonymous on November 14th, 2006

    Anonymous

    It gives you something to look forward to in the mail. its psychological advertising.

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  • by Vincent on November 14th, 2006

    Vincent

    For about four real reasons:
    1. Since the reabte may not be paid by the actaul sales company that sold it to you, they don't lose a cent.
    2. They realize that the few that do not mail in the rebate will save them much valuable money.
    3. It is more economical to do this, as a complete record is kept and it implies csafisfaction with keeping the product, making it nearly non-returnable.
    4. Rebates are a more attractive advertising campaing. Rebates draw people as they assume they are getting alot off. In reality, by the time the rebate claim is processed the value will decrease dramatically, and the product will be close to gooing to sale for a LOWER amount. In other words, before their opponents launch a sales season, it is their time to rip you off!

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  • by Tajheeta_W on December 13th, 2010

    Tajheeta_W

    idk...but it gets on my nerves...i want a phone and my dad tells me ohhh u have to send in 100.00 for mail in rebate....wtf no!!!! but yet the deducted price says 49.99

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  • by Tajheeta_W on December 13th, 2010

    Tajheeta_W

    Share your answer...

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