Post by BillI thought that was Best Buy who announced that??
My mistake. Came across this article though. Very good:
<http://www.businessweek.com/bwdaily/dnflash/nov2005/nf20051123_4158_db016.htm>
The Great Rebate Runaround
Consumers hate the hassles and hoops. Companies love them unredeemed. Now
regulators are wading in
Ah, the holiday shopping season: Santa Claus, reindeer -- and rebate hell. Those
annoying mail-in offers are everywhere these days. Shoppers hate collecting all
the paperwork, filling out the forms, and mailing it all in to claim their $10
or $100. But no matter how annoying rebates are for consumers, the country's
retailers and manufacturers love them.
From PC powerhouse Dell (DELL ) to national chains Circuit City (CC ) and
OfficeMax (OMX ) to the Listerine mouthwash sold at Rite Aid (RAD) drugstores,
rebates are proliferating. Nearly one-third of all computer gear is now sold
with some form of rebate, along with more than 20% of digital cameras,
camcorders, and LCD TVs, says market researcher NPD Group.
Hal Stinchfield, a 30-year veteran of the rebate business, calculates that some
400 million rebates are offered each year. Their total face value: $6 billion,
he estimates. Office-products retailer Staples (SPLS ) says it and its vendors
alone pay $3.5 million in rebates each week.
TAX ON THE DISORGANIZED. Why the rage for rebates? The industry's open secret
is that fully 40% of all rebates never get redeemed because consumers fail to
apply for them or their applications are rejected, estimates Peter S. Kastner, a
director of consulting firm Vericours. That translates into more than $2 billion
of extra revenue for retailers and their suppliers each year. What rebates do is
get consumers to focus on the discounted price of a product, then buy it at full
price.
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