Why do they bother with rebates?

[simpleyme]

, the following is the response from lowes about my rebate ,the funny thing is i am not sure what they are going to Research as I was told flat out that my rebate is not in the system and needs to be resent how could they research it? I hate rebates and I really hate Lowes rebate center

Replied On 8/31/2007 9:31:51 AM----------------------------------------

Dear r:

Thank you for your reply.

We apologize for any difficulties you may have experienced in obtaining your
rebate.

We have asked a Rebate Center Supervisor to research your inquiry. You should
receive follow-up within 2 business days.

If you have additional questions, you can contact the Rebate Center directly by
calling 1-877-204-1223.

If you have additional questions or comments, you may contact us at
CustomerCare@lowes.com.

Thank you,

Malissa
Lowe's Customer Care
Received On 08/30/07 17:40:49----------------------------------------

[mom-from-missouri]

They are betting on 2 things.
#1 a rebate will make you buy their product
#2 you will forget to send the rebate in, or do something wrong on it so it wont be able to be used.

[terri77]

I sent in a rebate for Conn's and never got my rebate even though their website said that they received and were processing my rebate. Then it mysteriously disappeared and they kept passing around my calls. I'll never buy from Conn's again. I'd rather pay more than be treated like that.

[herm4]

really hundreds? I have done maybe ten and had to fight tooth and nail to get them

I must say i track mine and always know when they have not come,I never forget

Yes, 326 to be exact! I have been doing rebates for about ten years. I do all the free food rebates, Walgreens rebates, Store rebates, etc... I have received about $2,000 in free things because of rebates. I am very careful and make sure I send everything in that I'm supposed to, make copies of all info sent in and keep a log of what has been sent out. Honestly, I've never had a problem!

learning to live well without spending alot of money

[Daniel_Shop]

Yes rebates systems are a pain. However, whouldn't it be better an automatic rebate system?

something like... whatever you buy, wherever you are, whatever Card you use, you earn rebates and they go automaticly into an account?

that would be great!

[simpleyme]

update on my rebate
I called the rebate center and got a hold of someone who actually found me and my rebate in their computer! (others claimed I did not exist in their little system)

he said it had been sent out and came back due to wrong zip code,and he said he would resend it ! I really think its coming whoohoo,
I will never buy another rebate item from lowes again ;-)

[krayziebone33]

I NEVER forget. Often times, I follow all the rebate instructions the same day I bring home the product. I have not had a problem until recently. I purchased a cell from Sprint and followed all the rebate instructions. I mailed everything about three months ago and have gotten nothing thus far.

[BCHGRL]

One thing that I've noticed about most rebates is that you must destroy the box that you bought the product. That means you either cannot get a refund or it is 10 times more difficult to get a refund if you decide to return the item.

[simpleyme]

Thank you for contacting us concerning these rebate requests. Processed $59 delivery fee and $50.00 gift card. Please let us know if we can be of further assistance.

Lowes

Thanks,
Susan Matthiesen-Client Research Associate
Young America Corp
Email: susan.matthiesen@young-america.com
Phone# 952-467-1727
Fax# 952-467-1768

--------------------------------------------------------------------------------------
the above I copied out of an email they sent me

for one moment thought I might be getting a check for 59 dollars and a gift card! but alas today I received a check for 55 dollar ,I am very confused
but I have check and I guess that is the end of my saga

I never quite understood if I would be getting 50 bucks or if it would be the whole 59 dollar delivery fee so the 55 bucks just makes no sense ,but I'll take it
had they actually sent me the gift card I would have been happier than all get out, now I think i will shop at home depot,but really one is just as bad as the other

[simpleyme]

update on my update update ;-)

all right so I got the 55 dollar check ,then a couple days later I recieved a 50 dollar gift card then yesterday I get another check this one for 59 bucks

I have never heard of anyone getting too much rebate before i am baffled and not sure how to proceed

[herm4]

Hmmmm...sounds like it's your lucky day!

I guess you could call and verify everything.....

[simpleyme]

It is my lucky day! I contacted the person who Is listed above in my previous post and she sent me an email telling me to keep the extra check as compensation for my troubles!

whoohoo so my 59 dollar rebate I was supposed to get turned into 164 dollars! I already used the gift card and bought a programmable thermostat and a new flopper for my toilet
I always put all "found" money on my mortgage so the 59 bucks will save me interest as well,it's a good day ;-)

[fam5d07]

wow that worked out well for ya and I like your idea of all found money goes to the mortgage.

[InDebtInDC]

So why do they bother? Just give me the darn credit on my account or charge me the reduced price to begin with.

The main purpose of a rebate is to provide the company with interest-free financing by overcharging the consumer. Plus, as you said, there is a chance that some people will not claim the rebate.


Using the rebate allows the company to artificially pump up their balance sheet. Their cash reserve is artificially inflated. They have a matching liability account, but usually they discount the rebate liability for a percentage of unclaimed rebates and pour that amount into their unearned revenues account.

The more aggressive the company, the more they will book rebate liability as unearned revenues. In the end the company looks better on paper than without the rebate.