Why Are Software Rebates Being Rejected?

Richie asks: "For the third time in as many months, I have had a rebate request rejected after having followed the instructions on the rebate form to the letter. This time it was a $35 rebate from Intuit for buying Quicken and Turbotax. I received a a letter from Intuit's rebate fulfillment company stating that my rebate is being rejected as I purchased the product directly from Intuit. This is after submitting the appropriate proof a purchase along with a receipt showing that product was clearly purchased from Egghead. After a call to the fulfillment company they apologize and ask that I re-submit the request. I'm still awaiting the rebate check." First it was Microsoft with their stubbornness to live up to the wording in their own EULA's regarding refunds. Now this. Why do software companies feel they are entitled to keep consumers' money after every sale, even though they may have promised to give some back?

"A month earlier, I bought a 128MB Kingston DIMM from buy.com and once again submit the rebate as instructed. A few weeks later I receive a postcard saying that my request was denied as I didn't submit the original purchase receipt showing the price of the item. After sending an e-mail to the fulfillment company stating that I submitted the only receipt that I had from buy.com which is the print out of the Web page after you complete your order, I receive a response stating that my rebate has been approved. This particuliar rebate was an offer only valid through buy.com and Kingston which makes it difficult for me to believe that the fulfillment company wouldn't know what a receipt from buy.com looks like. I'm also still awaiting the rebate check.

I'm beginning to wonder if this is just a case of bad luck or whether these rebates are only a scam by companies to get people to buy the products due to the advertised after-rebate prices, and then they figure that most people won't submit the rebate requests to begin with and for those that do, they will make it as difficult as possible to receive the promised rebate money."

Comments

Rebate handling often farmed out

[CarlPatten]

The worst temp job I ever worked was for a company (Company "T") handling a rebate program for a major PC manufacturer (Company "M"). If software/hardware companies are still farming this work out, no wonder the rebate programs are so bad!

There were about 16 of us were in the cubicle farm doing data entry and taking calls from irate people wondering why their rebates were late. I estimated the temp churn at 25% per week. It's very likely that the person handling your rebate was on his/her first day.

This company was handling about 12 different rebate programs, using a slower-than-molasses database that could be crashed by pressing a single wrong key and required 4 hours to rebuild.

Since we were answering the phone as "Company M", we were not allowed to say "our computers are down" and thus had to B.S. our way through the call.

As most of our callers were salespeople, they smelt the B.S. instantly and jumped into either sarcasm ("yeah, the check's in the mail, right?") or hostility ("let me speak to the manager, NOW!") The "manager" job rotated among the team.

This hell was not entirely Company T's fault. Company T had to cut and mail the checks, but Company M hadn't sent us the money to pay the rebates! We were sitting on thousands of checks we couldn't send out because they wouldn't have cleared the bank.

I lasted three weeks.

It's simple

[GuNgA-DiN]

The purpose of a rebate is to gather marketing information so the company can spam you and sell your data to other companies. You got mad because they didn't fulfill their end of the deal. But, you are probably one of the few. Most people would just forget about it and chalk it up as a loss. I hate rebates. I'd rather spend the extra $10 up front than sell my soul to the marketing department. So you saved a measly $10! Big fucking deal! Your personal info alone must be worth at least $50 to them! Here's a tip: if you *must* claim a rebate, purposely mispell your name and see how much junk mail you start getting addressed incorrectly. Rebates are a carrot on a stick - trying to get to do what they want you to. Those little-old ladies who clip coupons out of the Sunday paper are in the same category. They spend 4 hours clipping coupons, and save a total of $5 in the grocery store - but the company now knows what types of ad they respond to, and what newspaper they read. If this is used in association with the "preffered shopper" card that most stores use - they also know the little-old ladies name, address, phone number and age too.

Too many fraudulent submissions

[robl]

Apparently, rebate fraud is a real problem in the industry. It's not the fact that you did or did not purchase quicken. It's the fact that you may be one of those people who are making a rebate by scamming software companies.

It used to work like this. Buy a piece of hardware which was offering a rebate, cut out the UPC code, and send the rebate in with upc code from box. Return product to store, complaining that it doesn't work. Get refund, and wait for rebate check. That was until Best Buy and others refused to take back returns if the UPC was not attached.

Basically people started to figure out how to make a few hundred bucks by just cutting and sending UPC symbols. And that's why you have to go through the rebate center who's job is to make sure every rebate request follows the explicit rules of that particular rebate. And yes, they will just reject you if you didn't do everything exactly as they ask, like not highlighting the purchase on the receipt.

And that's also why I don't like rebates, and stores that aggressively market rebates (like Best Buy) unless the instant rebates are given to you instantly, and at the register.

Simple...

[glowingspleen]

It just furthers the Law of Rebates, that's why.

Why do manufacturers decide to give rebates instead of sale prices? Simple: Because nearly the same number of people will buy the product (with full intentions of sending in the rebate), then promptly forget or decide it isn't worth the hassle when they get home. I believe I recently read that only 30% of people ever fill out rebate forms and actually send them in, but maybe I'm wrong.

I send in a LOT of rebates, mostly because I check out deal websites and buy stuff that way. I've been keeping an Excel spreadsheet of them for about a year now, and I'd say that around 25% of my rebates arrive quickly, 50% arrive after several months, and 25% never arrive.

So why would they send them back to you with a lame excuse? Because I'm sure about 50% of the people out there would just get fed up and decide it isn't worth the effort and the hassle of calling customer service and bitching them out. Sure, they'll complain to their friends about how they got screwed, but they'll give up or set the envelope aside for too long or let it get lost in the shuffle.

Case in point: Western Digital had a 45gig HD for $190 with two rebates totalling $90. I bought two (one for the PC, one to upgrade my TIVO) and send in all four rebates. It took them 3 months to send my rebate form back with some minor note about how I had a UPC problem. I had to call, sit on hold for 30 minutes, and confirm that my UPC was good. Then it took them nearly another 3 months to send my checks. I got them yesterday, actually.

Moral of story: Keep a chart, always photocopy before you send em in, and complain a lot if they never come. I don't know about you guys, but $90 + $90 is not cash I don't worry about getting back...