The Rebate Run-Around

It didn't surprise me to see this piece in Money magazine about a consumer getting a rebate run-around. After all, isn't that what rebates are for -- to try and make it as hard as possible for consumers to actually get their money (the article says 40% of rebates go unredeemed each year)?

In the piece, the firm claims they never received the person's rebate for $100. How convenient. And since it's the word of the firm versus the word of the consumer and since the firm has the money and the consumer doesn't, who do you think is going to win the dispute?

The situation does get resolved once Money steps in, but not all of us can count on that sort of help. But Money does list some things we all can do to make sure our rebates do get fulfilled as they're supposed to. Their suggestions:

• Be meticulous (complete everything EXACTLY as the rebate requires).
• Make copies of everything.
• Use certified mail so you have proof the company received it.
• Mark the rebate return date in your calendar. If you don’t get your money in the time promised - usually within 12 weeks - call the company immediately. Businesses that do not send rebates by then are violating FTC regulations.

We do the first two regularly and have had a couple times when we didn't get the rebate within time as the company claimed it didn't receive our mailing. So I sent them copies of the copies I had and they were eventually fulfilled. Still, what a hassle. That's why I've sworn off rebates unless 1) it's a really great deal on the item and 2) the rebate is so high that the purchase is a no-brainer. Otherwise, I skip rebates because they are simply too much time and hassle for too little reward.

What's your take on rebates?

Comments

[pink panther]

I've had a very positive experience with buy.com and newegg.com's rebate procedures. I have bought monitors etc with rebates and it takes forever to get them but I've never had a problem. It's all tracked online and they give you a precise checklist of what they need as proof of purchase.

I think the biggest problem is that companies farm out rebate processing to third parties, and often give it to the lowest bidder who doesn't care and provides a low-quality service. I think buy.com etc force their suppliers to use a quality rebate processing company, so the experience is better. In the long run, this is a good plan. I don't understand why companies generate such bad will, create bad publicity, and give themselves a black eye over rebates. Is it really helping them compete?

What I don't understand is why it takes months and months and months to do a computerized rebate. Like store gift cards, I think the rebate process is a way to keep your money and make interest off of it. There's more to this than we know, or they wouldn't be doing it.

But I hate rebates because eight months later you get a $20 check and have to make a trip to the bank -- why can't they just deduct it from the total credit card charge? Rebates are more hassle than they're worth in a lot of cases -- which is exactly why companies do them!

[Christopher]

I just ordered a new computer and became a mac convert. Apple had a deal to get a free iPod w/ a new computer for school, but it's a rebate.

A friend of mine did the same thing and got her rebate very quickly (within two weeks). So it's been a positive experience so far. They gave me a confirmation number and have treated the rebate as if it's an order (going to send me an email when it mails, etc.)

This is the only rebate I've done, so my take on them is positive so far! That said, if the amount was significant ($300 is significant) I probably wouldn't bother. Liquor stores and distributors like to put mail in rebates on some things, but it requires a consumer to buy 5+ bottles to save a whopping five bucks. Wine companies sometimes do the same thing.

[gharkness]

The problem with sending rebate offers by certified mail is that unless the rebate is for a really big amount, the postage charges can be a big percentage of the rebate amount, and these charges are, of course, not reimbursed to the customer.

Being a CPA, I'm pretty good at following instructions, so I very rarely have a rebate refused (and never have I had a rebate 'lost') but it would still just be nicer if they reduced the price already and made everyone happy.

[MasterPo]

I never had a problem getting a rebate (yet) though sometimes it too sooooooo long that when it came I had to think what it was for! NTL, considering that most of the rebates I get are in the $10-$20 or so range sending everything certified mail cuts into the value IMO.

[Lolita]

I am a huge fan of rebates! As a matter of fact, my boyfriend and I just opened a savings accouny using nothing but money we've recieved from rebates. It was just over $50 for the past month. I've got more rebates coming in September too. At least $30 that I know of off the top of my head! Our plan is to tuck our rebate checks into the account. The interest will pay for the postage and we'll be able to see exactly how much money we've saved with our rebates as time goes on.

Of that $80 in rebates, I only sent in 3 through snail mail. The others were submitted online! No postage necessary:) So to me, yep, rebates are well worth the time!

[Eden]

Rebates can be a real hassle. However, I have a positive rebate story. Just 2 weeks ago I bought a MacBookPro and iPodTouch. The Touch comes with a $300 rebate, making it free. To get my rebate, I simply had to log in to my Apple account, click on my order, click on a rebate link, Apple verified it, and my check showed up in about 4 days.

Not here promoting Apple in particular, just that I was really shocked at how smooth the process was. Apple took the burden of verifying and processing the rebate, only requiring me to ask for it. That's how rebates should be done.

[Rick]

I've redeemed many, many rebates over the years, and I've never had any trouble with them. Every form that I've submitted (at least those I've submitted on time) I've received the rebate. It is a small hassle, and a stamp, but I've got all sorts of things for cheap and for free.

[Kevin]

Hey, if I can get $50 or even $5 by filling out my name and address and sending it with a receipts in a letter, count me in. Sounds like a real pain in the butt to me.

["Mo" Money]

I've never had a problem getting a rebate. Although I am waiting for a $50 rebate from verizon for at least two months.

[Justin]

I have had to call in and inquire about 40% or so of the rebates I have every submitted. Often they claim I didn't send everything they asked for, then I would fax them the copies I had made and usually it would magically be approved.

[a]

I loathe rebates. I've lost money on some (didn't fill out the prescribed paperwork in the prescribed amount of time or it just got lost in the mail), and I hate spending time jumping through bureaucratic hoops.

I'll fill out rebate forms if I get them (don't want to pass up free?? money) but I'd much rather just buy products sans rebates.

[Alexandria]

I don't know why people don't get that companies only offer rebates because so many go un-redeemed. They won't just start giving the discounts, no. It's the "are you willing to jump through some hoops?" discount.

I am kind of with the other CPA though. I have NEVER had a problem with a rebate. (We redeem on average 12 per year, though primarily through Fry's). I do follow all the directions. I have never really seen what the big deal is except most people are terrible at following directions.

[LAL]

I hate it. It's just such a pain and too much work. I do it but not often.