About product rebates?

Question

Since we all are smart enought to realize that companies do not give anything away for free, and that the money we get as rebates on merchandise and vehicles was obtained from over pricing a product in the first place, how come we have to pay tax on what is essentally our money to start with ?

Answer 1

I agree, in part, but I often find "great pricing" on products offering "rebates".  Typically, electronics, shaving products, usually, for me, products over $50 +.  At any time I shop for an item/product in this price range, up to 100's, I still do my homework and purchase at the BEST pricing regardless of "rebate".  The "rebate" is just an added "bonus".

Many Americans ONLY look at the "rebate" and DO NOT consider whether this to be a "good deal" or NOT.  We, often MORE times than NOT, buy on "instinct" rather than insuring if this is a "wise" choice.  This can be "exemplified" by OUR use of newspaper "coupons" purchasing products we would NOT normally use or eat, ONLY because of the coupon in hand do we buy.

FACT, only approx. 42% of us actually submit the "rebate" as directed, although, it was due to this "rebate" we purchased in the first place.  It is important to purchase "based on BEST pricing" due to this and, some, just simply DO NOT "remit" the "rebate" by date indicated.

Every wonder why "rebates" as printed take so long to get to you, shown typically 6 to 8 weeks.  YOU, as an individual, "benefit" by an indicated amount and YOU as this individual are ONLY concerned about one person, YOU again.  When "rebates" are offered and returned to the manufacturer properly "filled out", it is a FACT that MOST are received within the FIRST 30 days from the product's initial date of a "rebates" release.  Imagine ALL of us purchasing and doing as stated and the cost to the manufacturer in a short period if "rebate" checks were to be disbursed within a couple of days, maybe millions.

When a manufacturer delays outgoing funds for "rebates" up to 6 to 8 weeks a couple of things happen in "favor" for them.  They are able to generate "interest" over this period of these purchase "funds" received by the "store purchased".  In other words, using YOUR money and others.  Secondly, it can be extremely "expensive" to print, mail, etc. these "rebate" checks.  The MORE at one time that can be printed and mailed is a tremendous savings as well.

Answer 2

It's all about scamming the consumer in the end.  Some rebates aren't from overpricing however and it really is just a way for the company to sell more products or more of a certain product.