Information AboutMail-in Rebate |
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A rebate is a type of Sales Promotion used by Marketers , primarily as Incentive s or Supplement s to product sales. The best-known type is the mail-in rebate, an offer in which the Purchase of a product entitles the buyer to mail in a Coupon , or a Receipt and Barcode {Link without Title} and receive a Check for a particular amount, depending on the particular product, time, and often place of purchase. Originally this was a way for Manufacturer s to encourage sales, by giving the money directly back to the customer, rather than the Retailer s keeping it. Rebates are now offered by either the retailer or the manufacturer of the particular item. Large stores often work in Collusion with manufacturers, often requiring two or even three separate rebates for each item. Even manufacturer rebates are now often valid only at a single store. Rebate forms and special receipts are now usually printed by the Cash Register on a separate receipt. Rebates are heavily used for advertised sales in retail stores in the United States , such as Best Buy and Staples . Personal Computer Component s and Electronics seem to have a large portion of rebate sales. For example, an item might be deceptively advertised as "$39 after rebate", but the item actually costs $79 and comes with a $40 rebate coupon. The Turnaround Time is generally four to eight weeks, if the rebate is Refund ed at all. Most rebates are handled under Contract by companies that specialize in doing so. Their Fee s are covered by the customer money that the manufacturer or retailer keeps. Although rebates are common in the United States and Canada , many areas of the world do not use them. RATIONALE Rebates have become very popular in retail sales. Retailers and manufacturers have reasons to offer them:
CONSUMER CAVEATS
RECENT ACCUSATIONS The consumer electronics and software industry relies on rebates more heavily than others, and, as such, receives more complaints. Microsoft , for example, offered a $300 rebate for people upgrading to new versions of Visual Studio or Visual Basic several years ago. The offer, however, was contingent on including the UPC code from the ''original'' program, not the newly purchased upgrade; this caught many buyers by surprise. Other software suppliers, like Symantec and Pinnacle Systems, have been accused of designing rebate models that are over-complicated, require forms to be sent to two or three different processing centers, or are explained in extremely small print. Many software rebates advertise programs at a "net-zero" cost to the customer, and this strategy necessarily involves efforts from the manufacturer, the retailer, and the rebate processor. As a result, the process can become confusing. Long term ISP contracts are often associated with rebates, as well. At big box stores like BestBuy and CompUSA, personal computers are regularly sold with sizable rebates attached, making the advertised price more attractive to buyers. It is common, though, for these rebates to be conditional upon signing a long term contract with a particular ISP, which many users object to. Hardware manufacturers have come under fire, also. Dell , for one, has been the subject of rebate complaints involving misprinted receipts, confusing expiry dates, and service representatives who are slow to react. Rebate issues began to clog Dell's customer service forums, leading the company to shut down that portion of the website, and refocus its energy on new online customer care solutions. Cell phone service companies, including major players like Verizon Wireless and Cingular , as well as third-party retailers like Radio Shack , Wirefly , LetsTalk.com, Simply Wireless, and others have received growing attention due to complex rebate redemption rules. Both carriers and retailers make customers submit rebate claims during a 30-day window, often 6 months after cell phone activation. Some authorized dealers have responded by trying to make rebate requirements more transparent, explaining that the carrier will withdraw payment from them if a customer quits service before the end of the contract. [http://www.wireflyrebates.com OnRebate.com, which is most often spotted handling rebates for Tigerdirect.com, is widely known to simply reject rebates without further comment, and without a documented appeals process. For example, many OnRebate rebates require online registration which generates a confirmation email -- this email is often not sent, and customer support is lacking. RECENT TRENDS Some retailers have taken a step forward with offering consumers new ways to submit their rebates easily over the Internet, completely or partially removing any mail in requirements. Staples, CompUSA, BestBuy and RiteAID currently offer an online submission option for all or some of the rebates they offer. These special rebates are usually identified as such and have instructions for full or partial online submissions. This will allow a more accurate processing of the rebate, reducing the potential for human or mechanical error and in many cases eliminate the postage costs associated with traditional mail in reabtes. Virtually all the retailers mentioned above still let consumers submit rebates by mail if they so choose to. EXTERNAL LINKS
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