Rebates: The Great American Rip-off

You may wonder how a company can afford to sell you an item then give you a rebate for the full purchase price. The simple answer is

so they don't. They know that some of their "marks" will never bother to send in the rebate form, some will not read the fine print and send in the form incorrectly (i.e. without the purchase price circled) and most will not keep copies of everything they send in. Very few suckers will attempt to follow up on a rebate and those that do are easily "handled":

"You should get that in 2-4 weeks."

"I don't show that we ever received your materials."

"That offer had expired by the time it was processed."

The manufacturer sells it products to a distributor or wholesaler for a profit. The wholesaler/distributor re-sells its products to the retailer for a profit. The retailer sells the products to you, the consumer for a profit. The manufacturer then rebates some or all of your cost to you. The idea is that the manufacturer gets to report great sales figures for its products, and the distributors and retailers both make money from this manufacturer's products and presumably will order more. The expense of paying the rebates to the consumers is a tax write-off to the manufacturer. So everybody wins, right?

Same concept, except the retail store itself pays out the money to the consumer. The idea here is to get you to shop at their store on a regular basis. Again, any rebates they pay out are a tax write-off. In my experience, it is usually easier to get a rebate from a retailer than a manufacturer, because you have the advantage of being able to meet face-to-face with a customer service person, who just wants to avoid conflict and stands to gain nothing by withholding your rebate. An internet retailer is an entirely different story. It can be impossible to contact a human being. Often e-businesses list no address or phone number.

If you are reading this, it�s probably too late and some people will still be seduced by the unbelievable bargain so here's my advice:

"We're out of rebate slips"

"The rebate slip is in the box." This is sometimes true, but it is easily verified. Simply open the box at the counter in the presence of a salesperson. No rebate slip - no sale.

"The rebate coupon is expired, but you can still use it."

"You don't have to send in the original receipt. You can send in a copy." Again, this is sometimes true, but remember, whatever is printed on the rebate slip overrules anything the salesman or cashier tells you.

DO NOT leave the store without a valid, non-expired rebate slip. If they can't produce one, get a refund.

Read the entire rebate slip before you pay. Some stores will not give out rebate slips until you purchase the item. If you have to hold up the line, GOOD! That's a stupid policy the store should change.

Be sure to get enough original copies of the sales receipt to fulfill all the rebates that require them. All modern cash registers have the ability to print another copy of the receipt, unfortunately, not all modern cashiers do. If necessary have them ring up each item separately. Again, if it holds up the checkout line, remember that the cause is an internal problem with the store (lack of training), not you.

Send everything by Certified Mail or "Return Receipt requested."

I realize this is an additional expense, but as I said in #3 above, disregard all rebates of less than $5. Mark on your calendar the date you sent in for the rebate and the date it is due back to you (8-12 weeks as indicated on the rebate slip). I also used to put everything in a folder, including the return receipt when I got it a few days later.

Important: If you do receive the rebate check, immediately cross it off your calendar and throw away all your copies. This will save you the time and embarrassment of pursuing a rebate you've already received. I am speaking from experience.

If you haven't received the rebate by the date due on your calendar, immediately start hounding customer service. It is important to start early, because if the manufacturer is going out of business, they may be able to honor a few rebates before their bankruptcy is complete. At this point, you will probably get to experience what we all know as "The Runaround", but now you are armed with all the copies and proof that you need. More than likely, you will eventually be given a long distance, non toll-free number that you "need" to call to follow up. Congratulate yourself, this is generally their last line of defense. Expect to be on hold for at least 15 minutes. Have all your paperwork with you near the phone. Write down the name of everyone you talk to.

Be relentless, don't take open-ended promises like "we'll get back to you."

Your response should be "When?"

Get them to narrow it down to a specific day.

If they say "2-3 business days",

you should respond: "So if I don't hear anything by Thursday, I'll call you back, do you have an extension or do I just ask for <insert their name here>."

This lets them know you are not going to be dismissed, handled or ignored. By now, you have every right to be upset, but avoid swearing and name-calling. This will get you nowhere, except disconnected. Make a note to call back on the specified day. When that day arrives, call them again. Talk to the same person if possible, express your extreme disappointment and point out that you have now made two long distance calls at your expense. I actually got reimbursed for 4 long distance calls I made once in pursuit of a $40 rebate.

After this second contact, if there has been no progress, forget about it. Your next step is to call the Better Business Bureau and file a complaint, which can also be done online. Write a letter to the people who are withholding your rebate clearly stating your position and informing them of all your actions. There is no need to send this letter certified, because it your last hope that they will do the honorable thing and send you what they owe.

If this sounds like a lot of hassle for minimal return, see Suggestion 1 above.

Preach this to everyone you know, stop buying all products (not just rebated items) from companies that offer rebates all the time. If you see someone buying something similar, tell them "they don't honor their rebates."

You can�t really hold the retailer responsible for the actions (or inactions) of the manufacturer, but be sure to tell the store owners you won't buy a particular brand because they don't honor their rebates. That reflects poorly on the store and they may stop carrying that brand. Sometimes, the retailer itself will honor the manufacturer�s rebate. This is really above and beyond the retailer�s call of duty and you should thank them, even though they are just giving you what you are owed. Remember they are in effect paying someone else�s debt. If a retailer burns you on a Retailer rebate (as described above), don't shop there anymore.