bill wrote:I don't miss the mail in rebates either, Slim. Never really understood why companies offer $5 or $10 rebates.. How much interest could they earn on our money after they deduct the administration cost? Seems like a waste of time for both parties.
Well, when I worked for a computer hardware company many moons ago, the industry average was between 20-25% of eligible purchases actually had rebates paid out on. The redemption rate was slightly higher, but people aren't always so bright and don't send in all the correct information, so pay out rate was lower.
That's why it makes sense for companies to do a mail-in rebate versus just $$ off. Why offer something for $5 off at the register, when you can offer a $5 rebate and instead only lose $1.25 per item?