Wandering through the aisles of a grocery or drugstore, we are
assailed by a never-ending supply of new products to try. Companies
hoping to cut through the marketing noise will often offer an incentive
for new consumers in the form of a rebate. The promise of cash back on a
purchase entices customers to try new products (assuming they follow
through with the paperwork).
For manufacturers, rebates mean increased sales and information for marketing research. They also allow retailers to display a lower price for an item (price after rebate), but still charge the full amount at purchase. Rebate fulfillment houses make money for each transaction they process.
Consumers must jump through the most hoops to get a rebate: fill out paperwork, send in a receipt, wait for weeks of processing, pay sales tax on the full price of the item, and finally get payment. But with the right understanding of rebates, big rewards await.
Manufacturer Rebates: Many stores work with manufacturers to create rebates. These rebates are valid only by purchasing products at a specific store and submitting a rebate form. Rebate forms and special receipts are sometimes printed by the cash register at time of purchase on a separate receipt or available online for download. Some rebate programs offer several payout options to consumers, including a paper check, a prepaid card that can be spent immediately without a trip to the bank, or even a transfer into a PayPal account. Example: Rite Aid Single Check Rebates, Walgreens Rebates, and Staples Reward Rebates.
Instant Rebates: Many stores offer instant rebates to promote immediate sales. No forms are required and the rebate is awarded at the time of purchase. This is really just a form of old-fashioned discount but excites customers into buying products. Example: Staples printer for $150 after $50 rebate, and Target $5 gift card after spending $15 on select products.
For manufacturers, rebates mean increased sales and information for marketing research. They also allow retailers to display a lower price for an item (price after rebate), but still charge the full amount at purchase. Rebate fulfillment houses make money for each transaction they process.
Consumers must jump through the most hoops to get a rebate: fill out paperwork, send in a receipt, wait for weeks of processing, pay sales tax on the full price of the item, and finally get payment. But with the right understanding of rebates, big rewards await.
The Types
Mail-In-Rebate: The most common. An MIR entitles you to mail in a coupon, a receipt and barcode in order to receive reimbursement. Example: Proctor & Gamble. Spend $30 on any P&G products in a single purchase and receive a $10 gift card when you complete and mail in the rebate form.Manufacturer Rebates: Many stores work with manufacturers to create rebates. These rebates are valid only by purchasing products at a specific store and submitting a rebate form. Rebate forms and special receipts are sometimes printed by the cash register at time of purchase on a separate receipt or available online for download. Some rebate programs offer several payout options to consumers, including a paper check, a prepaid card that can be spent immediately without a trip to the bank, or even a transfer into a PayPal account. Example: Rite Aid Single Check Rebates, Walgreens Rebates, and Staples Reward Rebates.
Instant Rebates: Many stores offer instant rebates to promote immediate sales. No forms are required and the rebate is awarded at the time of purchase. This is really just a form of old-fashioned discount but excites customers into buying products. Example: Staples printer for $150 after $50 rebate, and Target $5 gift card after spending $15 on select products.
