Can somebody explain the point of mail-in rebates?

[mandrigald]

I understand how they work, and the process of them and how the consumer can benefit and such. However, I don't understand the point of the companies even offering one, how do they benefit in any way? Plus, why do they have to put this unnecessary process in there, why not just lower the items price? This may be a stupid question but I don't understand this.

[TheNinjaNextDor]

Probably because most people wont do it because of the work involved instead of just doing nothing for a lower price. It makes people buy the product because of the "low price" that they never get.

[mandrigald]

Probably because most people wont do it because of the work involved instead of just doing nothing for a lower price. It makes people buy the product because of the "low price" that they never get.

Oh okay, so they put it there to make it look like the consumer will get a deal in the long run which will give motive to buy the product, knowing that many consumers wont seize this opportunity due to the work involved?

[Kamina]

I never bother with it, and the rebate for my mobo was outdated by a month lol. Stupid Amazon.

[LogicDeifying]

Oh okay, so they put it there to make it look like the consumer will get a deal in the long run which will give motive to buy the product, knowing that many consumers wont seize this opportunity due to the work involved?

Yes,I remember @LinusTech explained this in a stream of his.

[TheMightyNoob01]

It also stops international buyers from getting a discount.

[Ja Krispie]

It's basically a way to attract people to buy a product, what the company counts on is that the better % of people won't bother with it, or properly follow the instructions. Most people don't do them because their a hassle, and it takes like 6-8 weeks to get it back. It's just a marketing scheme really

[dizmo]

Yup. There's a high % of people that will never capitalize on it. These days they're usually a lot easier, just having to go to a website and filling in a few fields.

That said, I was still too lazy to do that when I had a $75 MIR with my power supply.

[The Last MeMe]

My rule is that if it's 15$+ it's worth doing

[HK_Rage]

It's a business trick (Sort of a scam) companies use. To most people, it appears as a discount, and believe it or not, their are some people who will buy it just because it's on discount. Automatic Discounts from the company itself are the best since theirs no loops you have to go through however MiR gives companies all sorts of ways to screw you over. 

[Unhelpful]

Most people wont remember to do them. They look like a great savings, and they are, but companies know that people wont cash them in.

[Dudenstein]

Yes,I remember @LinusTech explained this in a stream of his.

Yup I think it was the stream where he was playing Rome II

[LogicDeifying]

Yup I think it was the stream where he was playing Rome II

Yeah.

[CyberneticTitan]

Don't you have a survey that you have to do?

 

Maybe the company pays for that information.

[qwertywarrior]

http://en.wikipedia.org/wiki/Rebate_%28marketing%29#Rationale

[Mooshi]

If manufacturers really wanted you to have the product at the rebate price, they would have made the product that price in the first place.

[NannerBeans]

The money for mail in rebates come from the company instead of the store so the stores will be able to give you a lower price then they could have before without losing money.

[Gronnie]

The money for mail in rebates come from the company instead of the store so the stores will be able to give you a lower price then they could have before without losing money.

Not really, b/c the manufacturer could just credit the store $x for each unit sold.

 

They make the consumers go through the hoops of MIR hoping many consumers either will forget to do it or screw it up and they won't have to pay out.

[TheNinjaNextDor]

Side note: its the same as Nvidia not including a steam code but instead a link to go and redeem a game.

[FluffyNuggets]

There is no point, that's the point 

[DefinitelyNotAPedophile]

The point of a MIR is that the company wants to give a personal discount. If the store Gives a $20 discount, then the store lost $20 per purchase. If the company gives a $20 MIR then the company then the company gives $20

[mk005]

The point of a MIR is that the company wants to give a personal discount. If the store Gives a $20 discount, then the store lost $20 per purchase. If the company gives a $20 MIR then the company then the company gives $20

^This it doesn't cost the retailer where as just a flat discounted price would.  Coupons work similarly except the business eats the cost of the coupon initially and is later reimbursed by the manufacturer.

[ZackBarletto]

$200 dollars, $20 mail-in-rebate. they recieve the full payment, and collect interest on it then give you the $20 back, they get there interest boost to cover what they are giving back. on a small scale dealing with <10% interest it dont seem like much, but when you have a multi million, even billion dollar company,  it works.

 

 

 

(i may be wrong, or have some thing miss directed, but this is how it was taught to me, and it make sense)