Rebate (marketing)
From ArticleWorld
A rebate is a sales promotion technique that involves cash reimbursement to a customer who purchases a product or uses a particular service. Rebates are used by manufacturers to help increase sales of a particular product or service. Cell phone companies, internet service providers, electronic stores, and more all display products that they have for sale that have rebate incentives attached to them.
The reason why companies usually offer rebates is because they know that most people will forget about the rebate which in turn provides even greater revenue for a company. Either that or people who request rebates do not do so in a timely manner and will often lose out. For example, some people might order a DSL service that offers a $50 rebate on the price of an external DSL adapter.
However, many people will forget that they only have three weeks to mail the rebate in that they have forgotten all about it. Therefore, these people lost out on the rebate and lose the amount of money that they were planning on saving when they purchased this item. Companies use this technique to their advantage.
The proof usually needed to receive a manufacturer’s rebate includes proof of purchase which is usually the UPC (Universal Product Code-bar code) on the side of a package and a customer’s sales receipt with the date and time of purchase on it. These have to be kept in safe keeping until a customer gets home. Then, the customer can mail this receipt in a sealed envelope-or just as a post card, but the customer usually has to supply the stamp.
Customers have been known to save quite a bit of money if they are careful shoppers and organized enough to remember their receipts. Rebates can also be big for families who want to cut down on their grocery bills. Those who need the money the most are the ones who will most likely remember to mail in the rebates. It takes a good thrifty shopper who is organized enough-and perhaps needing the money is an extra incentive to help that shopper be better organized.
Another rebate incentive that are offered by stores are in-store rebates that customers can receive right at the register. This often immediately after purchase that this takes place. Otherwise, the retail company may pick up the tab immediately and then mail in a large volume of receipts in order to get reimbursed the manufacturer instead of the customer. This provides an extra service to customers in order to bring more revenue into that particular retail establishment.
Online rebates are often available also. This is especially true for people who purchase items such as cell phones, computer parts, magazine subscriptions, and more. This will allow a customer to try a product that they like, and if they do, they may receive an added discount which provides them with an additional incentive to stay with the particular online service that they have chosen.