How much can I get with Microsoft Cashback??

Question

Microsoft is currently running a cashback program, I know the maximum cashback per purchase is $250, but how much can I get back in total? Can I get the full $250 back if I buy ten items for a total of $2500 back? Someone clear this up for me thanks - Kevin

Answer 1

From what I can see, the "cashback" deals are on an item by item basis with no limit on the number of items purchased.  Why would there be a limit when they are making good money on every deal.  The $250.00 maximum is likely just the most that they have offered so far.

Sellers started offering "cashback" when buyers stopped being very impressed by "Normally $400.00, On Sale for $300.00"  They have simply changed their pitch to say "Buy this for $400.00 and get $100.00 cashback."  Which still means that you pay a net $300.00 for the item.

Except, perhaps, when sales tax is involved.  To keep the math simple lets assume that sale taxes are 10%.  If you buy an item "Normally $400.00, On Sale for $300.00" and the sale is subject to the sales tax, you will pay $330.00 (not including any handling & shipping charges).  If you buy that same item for $400.00 and get $100.00 cashback the seller is very likely to charge you $40.00 in sales tax so you pay a total of $440.00 and get $100.00 back and you have now paid a final amount (not including any handling & shipping charges) of $340.00 instead of $330.00.  And the seller only pays the government based on net sales and keeps the extra $10.00.  Still like cash back deals?

If you would not have purchased the item listed as "Normally $400.00, On Sale for $300.00" for the $300.00 then why would you buy for $400.00 with $100.00 cash back?  

There is a web site http://search.live.com/cashback/ where you can search for cash back deals and compare different deals for the same item.  Take some time to notice that as the "cashback" amount increases for an item the net cost tends to increase.

Think if it this way.  Pick any item on that web site, buy it from me at my price, and I will give you $1,000.00 instant cashback.