Re: Rebate Question
"Charles Schuler" <charleschuler@xxxxxxxxxxx> wrote:
>> If so, why not just drop the price in the first place?
>
> Because marketers have learned that rebates stimulate sales with less
> cost than price decreases. Some folks forget to apply and some apply
> incorrectly (i.e. they don't submit all the forms, receipts, bar
> codes) and some apply and never get their rebates for various other
> reasons.
Obviously that's a big part. Note there are also rebates offered by
particular stores as opposed to manufacturers, but the same incentives
would apply. It occurs to me there are a couple of additional things
that could be relevant, though. Charging a higher base price might mean
higher commisions for salespeople. It also almost certainly has tax and
insurance implications for the store (and of course it does mean the
customer pays higher sales tax). It isn't obvious how any of that would
benefit a store, but I imagine it figures in somehow...
---------------
Marc Sabatella
marc@xxxxxxxxxxxxxxxx
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Featuring "A Jazz Improvisation Primer"
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Relevant Pages
- Netgear Travel Router Sale
... CompUSA (in store only) ... Price $10 after rebates. ...
(microsoft.public.pocketpc.wireless) - Re: Yo! David Maynard! (Was: Rebates -- Best Buy rebate scam)
... Corporations know exactly how much they made on the 'lazy ' consumer, ... Because they aren't 'lowering the price' and if you really want to see ... about 'sales', 'special offers' and 'rebates', they generally expect price ... its a stroke of the pen that puts all things well in accounting. ...
(alt.comp.hardware.pc-homebuilt) - Re: Yo! David Maynard! (Was: Rebates -- Best Buy rebate scam)
... Corporations know exactly how much they made on the 'lazy ' consumer, ... raise the price now that I'm 'hooked'." ... I see how you get that impression from my colorful, limited, example but, no, I'm speaking of products in general because, while people are sanguine about 'sales', 'special offers' and 'rebates', they generally expect price stability, or feel something's amiss. ... inconvenience unto the consumer. ...
(alt.comp.hardware.pc-homebuilt) - Re: Will Rebate Wonders Never Cease?
... their claims even though all criteria for the rebates were fulfilled. ... Your reading of something 'sinister' into her 'instant' reply could be explained by a quite rational policy. ... They have better timing flexibility and are obviously a 'temporary deal' that avoids the buyer angst of 'the price was lower but NOW THEY RAISED IT" when the intent WAS a 'temporary deal' and not a price change. ... Not to mention what the heck does one do with tons of sales literature, price sheets, discount contracts, web pages, and all the rest for a "price change" that will revert to the original again in 90 days? ...
(alt.comp.hardware.pc-homebuilt) - Re: Good and Bad Canon
... advertise a price, hoping they won't have to honour it. ... the entire amount, not on the amount after rebate, as opposed to collecting ... a smaller amount on a sale price. ... them to hire the fulfillment firm to deal with the rebates, ...
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