Companies use rebates for one thing, to make money. Especially for computers, after rebates the products end up being well below cost. They use the origional rebate money to collect interest on short term investments, plus adding in the money they dont pay to people who dont file ends up making the retail store money. If the retail stores took the rebate money off at the register, then they'd have no way to combat the people that just walk in, buy a tower and nothing else, and leave. Trust me, computer retail can lose money very quickly on junkies like us who doesnt need anything other than the basics, and rebates are one way to help curb that. Think about that next time you go in to buy things without any of the extras. Everyone has to make thier money somehow.
Coming from someone who actually used to sell these computers with the rebates, I can give you a view from the sales side. First off why there is rebates technically is because of two reasons. The rebates from the manufacturer are there because retail stores actually buy the products before they sell them to you. Instead of changing huge amounts of money between the manufacturer and the retail stores on a weekly basis, they just give the consumer the rebate to mail in and get the money straight back.
For the "store" rebates, These are used to bring products to comparable prices to national competition. These are usually changed weekly to compete with other major retailers (ie best buy competing with compusa and so forth) and being a merchandising supervisor for best buy I can also say that they sometimes change midweek too to match local or national competition.
Now you may ask why rebates, why dont they just take the money off? Well other than the obvious that if you dont fill it out right you dont get paid, how many of you have ever been in other countries and looked at thier prices? I returned from a trip from nothern europe a couple months past and I found that the prices were comparative, however they dont get any rebates. So basically they just pay what we all pay at the registers, no rebates no chance for money back. Keep that in mind next time your getting a rebate, basically your getting a chance for cash back that a lot of other countries dont get.
Yea I agree, they're a pain. I work with them everyday so trust me I know:p
Morph
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Companies use rebates for one thing, to make money. Especially for computers, after rebates the products end up being well below cost. They use the origional rebate money to collect interest on short term investments, plus adding in the money they dont pay to people who dont file ends up making the retail store money. If the retail stores took the rebate money off at the register, then they'd have no way to combat the people that just walk in, buy a tower and nothing else, and leave. Trust me, computer retail can lose money very quickly on junkies like us who doesnt need anything other than the basics, and rebates are one way to help curb that. Think about that next time you go in to buy things without any of the extras. Everyone has to make thier money somehow.
Coming from someone who actually used to sell these computers with the rebates, I can give you a view from the sales side. First off why there is rebates technically is because of two reasons. The rebates from the manufacturer are there because retail stores actually buy the products before they sell them to you. Instead of changing huge amounts of money between the manufacturer and the retail stores on a weekly basis, they just give the consumer the rebate to mail in and get the money straight back. For the "store" rebates, These are used to bring products to comparable prices to national competition. These are usually changed weekly to compete with other major retailers (ie best buy competing with compusa and so forth) and being a merchandising supervisor for best buy I can also say that they sometimes change midweek too to match local or national competition. Now you may ask why rebates, why dont they just take the money off? Well other than the obvious that if you dont fill it out right you dont get paid, how many of you have ever been in other countries and looked at thier prices? I returned from a trip from nothern europe a couple months past and I found that the prices were comparative, however they dont get any rebates. So basically they just pay what we all pay at the registers, no rebates no chance for money back. Keep that in mind next time your getting a rebate, basically your getting a chance for cash back that a lot of other countries dont get. Yea I agree, they're a pain. I work with them everyday so trust me I know :p
Morph