Re: Staples Christmas commercial

David J Taylor wrote: 
Larry Lynch wrote:

In article <yRQof.10340$iz3.3164@xxxxxxxxxxxxxxxxxxxxxxxxxx>, david-
taylor@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx says...

Ron Hunter wrote:

[Staples] stock a pretty good range of cameras and computers, as
well as many other items not 'stationery store' type things.
Prices are competitive, and their rebate program is something the
whole industry should copy.


Why are rebates better for customers than lower prices?  Don't
rebates simply bring in a whole lot of extra administration, and
create an extra layer where things can go wrong?


They crate a "layer" of people who wont bother (paper work ect) with
the rebate, so the company saves the "lost money" on the rebate.

Im pretty sure most of the current rebates at both Staples and Office
Max are "at the register" instant rebates, which makes them simply
"sale prices"

So effectively, apart from "instant rebates", rebates are actually price increases for customers who can't be bothered to claim the rebate? An they raise the total seeling price in any case, because of the extra staff to handle them? Amazing! 

Naw.  It's just business trying to undercut the other guy.  The
"extra staff" is in Bangalore, and is paid for by the  manufacturer,
who offers the rebate for the same reason that he does market research
and buys advertising.  He hopes to move more units and thereby make
marginally more profit than his competitors.  The end goal of the game
is to be the only producer left standing and to be able to set prices
wherever he wants.  Unless you're Microsoft, it's hard to get to that
point without doing something illegal.  :-)

Paul Allen
.

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