Mail-in Rebates Being Phased Out
A related story that was linked in the Dell article below was about their plan to cut back on mail-in rebates. They want to “simplify” prices and make the buying process better for their customers. This is part of their plan to improve relations with their customers, which have deteriorated over the last few years.
Dell is joining a list of other retailers who are either changing the way they do rebates or else getting rid of them completely. Staples was the first company to alter the process at all when they introduced an online rebate system a few years ago. But the complaints kept coming (many retailers report that rebates are the top source of complaints) and strangely, some retailers have taken serious action. A few weeks ago, OfficeMax announced it was ending almost all mail-in rebates. Best Buy has pledged to eliminate them within the next year or so. And although Dell hasn’t said they are going to completely eliminate them, they are still making a big change.
Rebates are always an easy moneymaker for retailers because they know a certain percentage of people are not going to redeem them, especially for smaller amounts. Although the statistics may vary, it has been estimated that only about 40% of all rebates are redeemed. In addition to the people that don’t redeem, there are those who do and then don’t get them for whatever reason. If there is a problem with the rebate center, the store you bought the product at will just say it’s not their fault because another company messed up. A lot of people just plain forget about the rebates they sent in, since it’s pretty easy to forget about something after two months. If they do release that there was a problem, there probably isn’t a whole lot they can do about it.
So hopefully all this means that in the near future, if you see a $50 printer in a store or online, you are actually going to pay $50 for it.
Dell cutting rebates to streamline pricing [CNN]
Langberg: Mail-in rebates not dying fast enough [Mercury News]
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2 Comments about “Mail-in Rebates Being Phased Out”
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July 27th, 2006 at 2:11 pm
Rebates and discounts are really out of favor these days. I can safely say that the modern buyer is just too clever for this bait. The problem with such rebates and discount offers is that people do not avail such discounts too often. If you ask any person he or she will tell you that its better that companies invest the money from rebates into making the product better and more useful. I think most people will trade off a rebate offer for a better product. Companies cannot sustain on goodies and a crap product. It’s high time that the companies start thinking the way most customers think.
September 5th, 2006 at 6:52 pm
Hello, I’d like to pass along my experiences with Best Buy and the rebate for an emachine purchased in March this year. Or to make a long story short, the only way I have had any satisfaction is by contacting the Attorney General of my state and entering a complaint. Today, 9/05/2006, I have received two $50 checks. Still short another $50 I am much better off than I was. Always keep a copy of everything you send in and I would get a traceable number when the forms were mailed.