rebates

What is the thinking behind mail-in rebates?
1)Is the customer actually getting a good deal from this?
2)Does the customer actually end up paying less than they would normally (once the rebate has been sent in)?
3)How could the company possibly benefit from this?
4)Or does the store jack the price up before the rebate and then put a rebate on it so that the final price after rebate ends up being the same as it normally would?
5)What makes mail in rebates enticing?
The company offers rebates to increase sales. They are making enough profit even on the sale of the unit minus the rebate. Plus they count on people being lazy and not sending the rebate in, so they don’t actually have to pay out all the rebates. It’s only a good deal for the consumer if you remember to send in and follow up on the rebate.
Black Friday Rebate Tips by www BlackFridayAds2009 info
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