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Rebates are a Scam?
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Cody Dawg
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Aug 17, 2006, 09:42 AM
 
Why don't companies just sell you the item that they have a rebate on for the rebate sales-price immediately?

Seriously, are supposed rebates a scam? You buy the item and then the company is banking on you not sending in the forms and then they don't have to provide the rebate refund?

And what about people who never receive the rebate at all?



Seriously, sometimes I'm tempted to buy something at the supposed price - and then it shows the price is only after a rebate and I lose interest in buying that item at all.

Anyone else feel the same way?
     
Peter
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Aug 17, 2006, 09:46 AM
 
rebates are annoying, but they're better than the item just being full price and thats it.
its because most people forget/dont bother returning the coupons. Even then theres a 50/50 chance the company will bother sending you your money...
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Cody Dawg  (op)
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Aug 17, 2006, 09:57 AM
 
And the fact that you may never get a rebate doesn't bother you?



It bothers me a lot.

I simply won't have anything to do with any rebates, period.

Heck, I'm STILL waiting for a supposed rebate on a Visa Checkcard for $75 from Bellsouth from about 6 months ago!
     
Scotttheking
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Aug 17, 2006, 10:00 AM
 
No, they are not a scam.
Still, except for certain companies, I make sure the price is good without the rebate factored in. I've gotten all the rebates back that I've sent for. Which reminds me, I need to send one in soon.
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mitchell_pgh
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Aug 17, 2006, 10:00 AM
 
Originally Posted by Cody Dawg
Why don't companies just sell you the item that they have a rebate on for the rebate sales-price immediately?

Seriously, are supposed rebates a scam? You buy the item and then the company is banking on you not sending in the forms and then they don't have to provide the rebate refund?

And what about people who never receive the rebate at all?



Seriously, sometimes I'm tempted to buy something at the supposed price - and then it shows the price is only after a rebate and I lose interest in buying that item at all.

Anyone else feel the same way?
They aren't a scam, but they are annoying. The company wants you not to send them in... and something like 40% of people don't. Many companies are being forced to offer online tracking of rebates.
     
Cody Dawg  (op)
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Aug 17, 2006, 10:02 AM
 
So, it's not a purposeful scam...just an intended scam is what you're saying?

     
Millennium
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Aug 17, 2006, 10:08 AM
 
Rebates can be a scam, if the company does not fullfill every legitimate request for the rebate that it receives. However, as long as the company is completely honest about that, then it's not a scam. It's a gamble on human nature that tends to pay off.
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cybergoober
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Aug 17, 2006, 10:29 AM
 
I have received every rebate that I have sent off for.
     
TETENAL
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Aug 17, 2006, 10:44 AM
 
It seems to be a typical American thing. I have not seen this done like that elsewhere. And I think I wouldn't like it because I don't like data greed.
     
Peter
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Aug 17, 2006, 10:47 AM
 
same, never seen rebates in UK.
we don't have time to stop for gas
     
mitchell_pgh
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Aug 17, 2006, 11:27 AM
 
Originally Posted by Cody Dawg
So, it's not a purposeful scam...just an intended scam is what you're saying?

It's not a scam AT ALL if they deliver on their original offering. If they say one thing, and do another, it IS a scam... but if they tell you that you must mail in a rebate form to receive a rebate... it's not a scam if you are too lazy to send it in.

If you purchase a gym membership for 12 months, and don't go to the gym... it's not a scam. Why blame the coupon people for your inactivity?



Originally Posted by Millennium
Rebates can be a scam
Just about anything involving money can be a scam in one way or another.
     
mitchell_pgh
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Aug 17, 2006, 11:28 AM
 
Originally Posted by TETENAL
It seems to be a typical American thing.
How are mail in rebates a "typical American thing?"
     
torsoboy
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Aug 17, 2006, 11:31 AM
 
Not all rebates are this way. Try Staples "Easy Rebates", they're awsome. You just go online, punch in the codes on the box/receipt and they send you your rebate. Nothing to send in, you can see the status online, the rebate check arrives quickly. Very nice!

And yes, most companies have rebates because they know people will not bother sending them in. It is a great way for them to have a "Sale" but not actually have to give the sales price to everyone. I'm happy to get rebates, but a lot of times I skip the rebate items because I don't have the non-rebate amount of cash on hand and I don't want to wait 3 months to get my $40 back.
     
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Aug 17, 2006, 11:35 AM
 
the purpose of a company offering a rebate is to market and sell their product. They do this to get rid of overstock, make room for new replacement of that certain item. They dont need to offer us (consumer) anything. If you were a company would you give someone money for mailing a piece of paper if you wanted to maximize profit? No. But usually rebates are legit on if you mail them in, the company gambles, and they are usually right, that you won't mail in the rebate. But as long as that rebate offer got you to buy their product in the first place...mission accompished.
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Zeeb
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Aug 17, 2006, 11:35 AM
 
I just don't have time for rebates. I never take a rebate into consideration when I buy something -- even though I look for other types of promotions and sales.
     
TETENAL
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Aug 17, 2006, 11:59 AM
 
Originally Posted by mitchell_pgh
How are mail in rebates a "typical American thing?"
I said how in the second sentence.
     
jckalen
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Aug 17, 2006, 12:08 PM
 
I had an annoying one for a pair of cell phones my ex and I had. It was designed to make sure you kept using their phones... we paid $100.00 for the phones which would be completly rebated if we sent in proof of purchase along with our latest bill, one YEAR after buying them. To make it even trickier, there was a 3 week window. You had to mail in your proofs, postmarked, and they had to receive it, within those 3 weeks.

It was a pain trying to track and remember all of that, but we did get the rebate.
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olePigeon
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Aug 17, 2006, 12:11 PM
 
That's the saving grace of Staples. They're usually overpriced, but they have a system where you get your mail-in rebate instantly. They do it for you. It's really cool.
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Aug 17, 2006, 12:35 PM
 
I don't think they are a scam. Annoying, absolutely. But a scam? No.

I've never not gotten a rebate back. Sometimes, I have had to track down the rebate company and yell at them to get my check, but I have always gotten it back in the end.
     
MacGallant
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Aug 17, 2006, 01:03 PM
 
This is what I experienced concerning rebates:

The larger reputable companies : Seagate, CompUSA, D-Link, etc usually honors rebates

While smaller no name companies don't.

When I bought electronics from larger reputable companies and I sent in my rebate form, I always get back a check in the mail.

2 years ago, I bought a pair of no-name walkie talkies from Fry's and I sent my rebate form, I never got back anything or even a reply from the no-name company. My uncle bought those same pair of walkie talkies from the no-name company around the same time as well and he too never got back anything from them. . . we still waiting for our rebate checks.
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Aug 17, 2006, 01:07 PM
 
I find them annoying, but I've gotten every single rebate I've sent in for. I even got a $2 cheque for one rebate on a $10 item. Probably wasn't worth the effort though, since it cost me 50 cents for the stamp.

I like Apple's rebates too. A free iPod isn't a bad deal for ordering a laptop.

The best though is when some survey company phoned me to ask me some questions. They said they'd pay me $100 for 15 minutes of my time. I didn't believe them but went along with it anyway, just in case. I got a $100 cheque a month later.
     
torsoboy
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Aug 17, 2006, 02:49 PM
 
Originally Posted by MacGallant
This is what I experienced concerning rebates:

The larger reputable companies : Seagate, CompUSA, D-Link, etc usually honors rebates

While smaller no name companies don't.

When I bought electronics from larger reputable companies and I sent in my rebate form, I always get back a check in the mail.

2 years ago, I bought a pair of no-name walkie talkies from Fry's and I sent my rebate form, I never got back anything or even a reply from the no-name company. My uncle bought those same pair of walkie talkies from the no-name company around the same time as well and he too never got back anything from them. . . we still waiting for our rebate checks.
You might want to stop waiting for those.
     
itai195
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Aug 17, 2006, 02:56 PM
 
I don't know if they're generally a scam, but I dislike them. They a scheme for companies to sell products at higher prices than consumers want to pay, hoping that most consumers will screw up their rebate form or not send it in.

Best Buy phased out mail-in rebates I believe. Think they only do instant rebates now. They win some brownie points from me there.
     
Cody Dawg  (op)
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Aug 17, 2006, 03:07 PM
 
That's right: It's a "scheme."

And like Millenium said, it's a gamble that the consumer takes. There is no risk on the behalf of the manufacturer or store.

And there is still the chance that you won't get your rebate check and then what do you do? What if they never send it?
     
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Aug 17, 2006, 03:20 PM
 
Originally Posted by Cody Dawg
That's right: It's a "scheme."

And like Millenium said, it's a gamble that the consumer takes. There is no risk on the behalf of the manufacturer or store.

And there is still the chance that you won't get your rebate check and then what do you do? What if they never send it?
What if the store sells you crap and won't give a refund?

What if the store will give you a refund, but charges a restocking fee?

What if a company won't repair your defective unit under warranty?

Etc.

I mean if you are uncomfortable with rebate "schemes" then don't buy things needing a rebate. However, there is nothing inherently illegal or even unsavoury about rebates. While annoying, any unsavouriness has to do with the company, not the rebate per se. Personally, I just stick with rebates from respected companies, like Canon, Apple, etc. I have so far never been burned with companies like these, in terms of rebates.

As for risk, of course there is "risk" for the manufacturer. In fact, that's the whole point of these. They offer big rebates because they KNOW that some people won't take advantage of them. That way they can move a lot of units, but don't have to drastically slash prices across the board. The persistent people get their cheap prices, and the not-so-persistent ones make up the difference. The risk they take is they don't know exactly how many people will actually make use of those rebates.
     
iREZ
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Aug 17, 2006, 03:50 PM
 
i too need to send one in soon...thanks for the thread.

oh and by the way, ive never not had a rebate sent back to me and ive saved a ton with em. i photocopy everything i send in, and make sure i dont cut it close with any due dates.
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Cody Dawg  (op)
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Aug 17, 2006, 03:56 PM
 
Well, that's good, iREZ.



Good for you.
     
mitchell_pgh
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Aug 17, 2006, 04:04 PM
 
Originally Posted by Cody Dawg
That's right: It's a "scheme."
Just like the postage stamp is a "scheme." You give them money UP FRONT, and they give you paper stamps.
- But what if you don't use the stamps!!!!
- But what if they don't deliver the letter!!!
- But what if they raise postage... then they FORCE you to buy another little stamp to go with the original stamp!

Originally Posted by Cody Dawg
And like Millenium said, it's a gamble that the consumer takes. There is no risk on the behalf of the manufacturer or store.
No risk to the manufacturer or store? What about customer loyalty? With Best Buy and Circuit City next to one another in most places, you better bet customer loyalty is a big deal. The same goes for the manufacturer.

Originally Posted by Cody Dawg
And there is still the chance that you won't get your rebate check and then what do you do? What if they never send it?
You can "what if" yourself blue in the face, but as many here have said, they haven't had issues with most refunds.
     
mitchell_pgh
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Aug 17, 2006, 04:10 PM
 
Originally Posted by TETENAL
I said how in the second sentence.
Actually, you didn't... it's a "typical American thing" because "I have not seen this done like that elsewhere. And I think I wouldn't like it because I don't like data greed?"
     
itai195
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Aug 17, 2006, 04:27 PM
 
Originally Posted by mitchell_pgh
You can "what if" yourself blue in the face, but as many here have said, they haven't had issues with most refunds.
From what I gather, the responses of many here are atypical.
     
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Aug 17, 2006, 04:28 PM
 
I kind of like it when rebates take a long time. It's like finding a $20 in your coat pocket.
     
tutelary
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Aug 17, 2006, 05:01 PM
 
Originally Posted by Cody Dawg

Seriously, are supposed rebates a scam? You buy the item and then the company is banking on you not sending in the forms and then they don't have to provide the rebate refund?
close. they are banking on you not sending in the forms. apparently enough people dont send in rebates once they buy something that the companies come out way ahead.
     
bradoesch
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Aug 17, 2006, 05:19 PM
 
I avoid rebates as much as I can. I find the prices at ncix.com are great even without rebates.
     
analogika
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Aug 17, 2006, 06:43 PM
 
Originally Posted by TETENAL
It seems to be a typical American thing. I have not seen this done like that elsewhere. And I think I wouldn't like it because I don't like data greed.
They're arriving here in Germany, too.

HP recently had a rebate promotion cooperation with Apple on their printers (cut out the serial number off the printer box and send it in with a copy of the receipt - only if you bought it with an Apple CPU).

Apple's been doing stuff on their student buy-a-Mac-get-a-nano-free things, too, I believe.
     
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Aug 17, 2006, 07:38 PM
 
Rebates along with not showing prices with tax are some of the most annoying things about shopping in America.

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milhous
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Aug 17, 2006, 08:13 PM
 
i was under the impression that most countries add tax that's separate from their prices. while traveling through europe, VAT is added in at checkout. are you talking about actual pricetags that list the tax?

at any rate, i've always thought of rebates as giving companies temporary loans because with turnaround times of 8-12 weeks, the company can take the money, invest it in low-risk money market-type accounts during the "processing time", disburse the principal(rebate) back to consumers, and keep the interest. So in theory, a $40 rebate to a consumer could potentially only be a fraction of that in losses because the interest accumulation would negate a portion of the rebate.

not a fan of rebates, but if the deal is good and worth the aggrevation, then there's no other choice .
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- - e r i k - -
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Aug 17, 2006, 08:45 PM
 
Originally Posted by milhous
i was under the impression that most countries add tax that's separate from their prices. while traveling through europe, VAT is added in at checkout. are you talking about actual pricetags that list the tax?
That is what I said. Listing the price without the tax added. Oh, and not adding a comparison price for similar products (price per 100 ml, or 100g).

All these schemes are made to confuse the consumer so that they have no real idea of what the price is compared to similar products or the real cost. The rebate thing is a calculated scheme where they can reduce the price based on the profit margin they make on people not taking advantage of the rebate. It puts an extra load on the consumer to do an unnecessary task which isn't really fair when they could have just taken the rebate (albeit maybe a slightly lesser one) out of the price to start with.

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milhous
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Aug 17, 2006, 09:27 PM
 
yeah it's a nuisance. the price usually has an asterisk with fineprint where only then you find out how much to pay out of pocket.
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Aug 17, 2006, 09:39 PM
 
Mail-in rebates are a very good thing. It is like having the dumb and lazy people paying for my discounts, which I ALWAYS get.
     
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Aug 17, 2006, 09:53 PM
 
Originally Posted by The Godfather
Mail-in rebates are a very good thing. It is like having the dumb and lazy people paying for my discounts, which I ALWAYS get.
Yes, after having to take out time of your life to fill it out, mail it in and then wait for it. Of course, if your time is worth nothing then that is absolutely super.

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Aug 17, 2006, 10:43 PM
 
Originally Posted by - - e r i k - -
Yes, after having to take out time of your life to fill it out, mail it in and then wait for it. Of course, if your time is worth nothing then that is absolutely super.
My time is worth money, but if the coupon is $20, it's worth the 5 minutes it takes to mail the thing.
     
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Aug 17, 2006, 11:24 PM
 
Originally Posted by cybergoober
I have received every rebate that I have sent off for.
me also, except for the three or four when I bought the stuff from "crapbuy"

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Aug 18, 2006, 12:02 AM
 
Intuit (makers of Quicken) are rebate scammers. I've never gotten their rebates back, even after multiple phone calls to customer service. Bastards!
     
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Aug 18, 2006, 12:12 AM
 
I've heard that only about 10% of mail in rebates are redeemed. (I assume that the redemption rate for $2 off a $5 pack of paper clips is lower than for $300 off a computer ones.)

But I've also heard a few real reasons for rebates:
- rebates can come out of the advertising budget, allowing sales to appear larger than by just giving a discount
- it prevents retailers from pocketing the discount.

And probably some others.

I remember only one time that I was denied a rebate. I still think they're a huge hassle, some of them bordering on scams because of the crazy requirements (and how some -- *cough* Roxio *cough* -- claim you didn't comply even when you clearly did).

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CharlesS
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Aug 18, 2006, 12:24 AM
 
Amazon.com's cell phone rebates are fun - you have to wait until about 60 days after you buy it to send in the refund, or it's not valid. However, you have to send in the rebate before 90 days after you buy it, or it's not valid. So in addition to not filling something out just right, you can lose the refund just by forgetting about it after two whole months.

In addition, I filled out mine exactly and also sent it in precisely when I was supposed to, and somewhere between 4-6 months later, what did I get in the mail? A letter claiming that I was not qualified for the rebate. I had done everything exactly right, so I called Amazon.com's customer service number (which is extremely difficult to find - they hide it from you to avoid your calling them) and asked them how I could possibly not qualify for the rebate. The guy on the phone apologized and said he'd resubmit my request. A couple of months later, I finally got my rebate.

So let's recap. They bank on people not getting the rebate by:

- being lazy
- sending it too early or too late
- forgetting about it by the time they're finally allowed to send it in
- filling out something on the form wrong
- forgetting to send in the proper UPCs
- either not finding their phone number or being too lazy to call and complain when they falsely claim you don't qualify

Scam? Or just a PITA? Well, that last one seems kind of scammish to me.

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Aug 18, 2006, 12:25 AM
 
Originally Posted by mitchell_pgh
My time is worth money, but if the coupon is $20, it's worth the 5 minutes it takes to mail the thing.
Exactly. It took me 10 minutes for my Apple rebate, and I got $200 back.
     
mitchell_pgh
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Aug 18, 2006, 02:15 AM
 
Originally Posted by CharlesS
Amazon.com's cell phone rebates are fun - you have to wait until about 60 days after you buy it to send in the refund, or it's not valid. However, you have to send in the rebate before 90 days after you buy it, or it's not valid. So in addition to not filling something out just right, you can lose the refund just by forgetting about it after two whole months.

In addition, I filled out mine exactly and also sent it in precisely when I was supposed to, and somewhere between 4-6 months later, what did I get in the mail? A letter claiming that I was not qualified for the rebate. I had done everything exactly right, so I called Amazon.com's customer service number (which is extremely difficult to find - they hide it from you to avoid your calling them) and asked them how I could possibly not qualify for the rebate. The guy on the phone apologized and said he'd resubmit my request. A couple of months later, I finally got my rebate.

So let's recap. They bank on people not getting the rebate by:

- being lazy
- sending it too early or too late
- forgetting about it by the time they're finally allowed to send it in
- filling out something on the form wrong
- forgetting to send in the proper UPCs
- either not finding their phone number or being too lazy to call and complain when they falsely claim you don't qualify

Scam? Or just a PITA? Well, that last one seems kind of scammish to me.
Most from Best Buy etc, you need the receipt, UPC and the form that is on the receipt. So it's a total of 2 items. The address is on the receipt as well. It's simple. Only the ultra lazy wouldn't send it in.

Also, they aren't forcing anyone to pick them. Most stores now clearly mark what's instant, mail in and standard price.

EXAMPLE:

Price $399 ($599 -$100 mail in rebate -$100 instant rebate)
     
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Aug 18, 2006, 02:20 AM
 
Originally Posted by Cody Dawg
Why don't companies just sell you the item that they have a rebate on for the rebate sales-price immediately?

Seriously, are supposed rebates a scam? You buy the item and then the company is banking on you not sending in the forms and then they don't have to provide the rebate refund?

And what about people who never receive the rebate at all?



Seriously, sometimes I'm tempted to buy something at the supposed price - and then it shows the price is only after a rebate and I lose interest in buying that item at all.

Anyone else feel the same way?
Some rebates are store rebates, some rebates are manufacturer rebates. Besides the already mentioned 40% of people forget to send it in, some stores use the rebates to collect additional information from you to sell, such as address. That is what makes them scams. When its a manufacturers rebate, store has nothing to do with it, they just include that with the price. As a reseller of goods, when I see something that comes with a end user mail in rebate I try to push those because they end up looking more attractive and sell better. I guess manufacturers know this with resellers and that is why they offer them.
     
   
 
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