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What are the consumer downfalls of rebates?
Home » Advertising & Marketing » Rebates » What are the consumer downfalls of rebates?Posted by Your Guide on October 6, 2006 2:41 PM
While a mail-in rebate can sound like a fantastic price, there are many things you need to watch out for that could make it a much smaller deal.
First of all, sales tax is calculated on the initial purchase price, not the price after the rebate. A $199 item with a $150 rebate is advertised as only "$49", but the customer must pay tax on $199. Rebates never refund the sales tax, the cost of the postage or envelope, or the time value of the refund during the waiting period before its arrival.
Second, once the UPC has been removed from the box, retailers will not accept a return of the item. Customers must therefore ensure that they do not need to return the item before mailing the rebate. It's usually a good idea to make a note in your planner to mail the rebate stuff in seven to 10 days after purchase. If something major is going to happen, it will be within the first week.
Other things to look for are:
• UPC codes can also be called the "EDP Label", adding to confusion.
• Rebates usually require the consumer to submit the original sales receipt and circle the item purchased.
• Rebates usually require the consumer to accompany the UPC and the receipt with a properly filled-out rebate form.
• Consumers should make copies of all the materials they are mailing in case the rebate is rejected.
• For high-value rebates, consumers should send materials via certified mail to ensure proof of both the mail date and the receipt.
• Since rebate turnaround time is typically months away, consumers should keep records for the rebates they send in. It also helps to set up reminders to go back and check on the status of rebate submissions.
• Some sellers may cancel a rebate without any notice, and buyers may have purchased these items without knowing that the rebates are no longer active.
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