Re: Rebates are Hell
- From: "amcwill417" <amcwill417@xxxxxxxxxxxxx>
- Date: Mon, 26 Sep 2005 05:15:57 -0500
"Too_Many_Tools" <too_many_tools@xxxxxxxxx> wrote in message
news:1127704553.548498.166530@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
> The concept of "rebates" became popular in the 70's.
>
> If the retailer would reduce the price at the register, they leave
> themselves open to being caught having to maintain that price if the
> government imposes price controls as Nixon did.
>
> With a rebate, a company can pull that discount at any time and doesn't
> have to continue it. It is the same reason why car companies don't just
> lower the price of a vehicle...if they did and were caught in a price
> control move they would have to continue selling it at a severe
> discount.
>
> But again since most people don't pursue the rebate, it is easy money
> in a company's pocket.
>
> TMT
>
It is a rare thing to see rebates on grocery items and clothing. However
Coca Cola recently had a rebate offer which required one to peel the UPC
label off individual bottles in a 6-pack and guess where the glue held the
label most securely! But rebates are a way of life for electronics retailers
such as Best Buy and Circuit City. I have not seen price controls around
for a long time so I doubt that is now an issue. I would suggest that
rebates actually increase prices because companies must operate and maintain
rebate centers.
Alex
.
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