For the record, I've done a variety of rebates and have never had a
problem getting my money back.

There are a few reasons for rebates, the major one being that the
manufacturer wants to move stock out of retailer inventory (to make
room for a surplus, to make room for the next model, etc).  Since the
retailer has already purchased the items, they either can disburse
money to the retailer for each item, or they can offer a rebate to the
end consumer.

Rebate redemption, I understand, is actually pretty high (80-90%
range), so the manufacturer doesn't make a lot of money on lost
rebates.  The rebate fulfillment centers cost quite a bit of money to
run (handwritten rebate forms, illegible receipts from different
retailers, scam artists, etc) so in general the "savings" of those
customers that never turn in rebates is lost in the cost of fulfilling
everyone else's rebates.

Another reason that I've wondered about, but never had verified is
that some rebates are essentially a 4-6 week 0% interest loan for the
retailer or manufacturer.  You can do a lot with a few million dollars
for a month.  But that's me being capitalist/cynical.

Many retailers in the US have heard the cry of the consumer against
rebates and most are making it as easy as possible to get rebate
fulfillment.  Due to the ease which these things can be scammed,
though, it's a non-trivial task.  Retailers also can't control whether
a manufacturer sets up a rebate for a product they carry, and if they
don't advertise the rebate when everyone else does they may end up
with dead stock that won't sell when the rebate is done - no one will
buy the now overpriced merchandise.

So it's a fairly complex system, driven mainly by the desire to move stock.

But no one really likes it.  Not the manufacturer, retailer, or consumer.

-Adam

On 7/25/06, Jinx <joecolquitt@clear.net.nz> wrote:
> I asked (before Googling for myself, tut tut)
>
> "What is a mail-in rebate" ?
>
> Don't believe that sort of marketing operates in NZ
>
> http://mysite.verizon.net/vze6l53f/confessionsofamailinrebatejunkie/
>
> Not sure if appeals to me anyway, I'm not big on consuming
>
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