The recent news that OfficeMax plans to phase out most mail-in rebates, as Best Buy already announced it wants to do as well, raises a question. With major retailers recognizing that rebates generally make for a bad customer experience, can't they just be eliminated altogether? Rather than forcing the customer to fight through complex procedures designed to keep succesful claims low, then argue with foot-dragging rebate fulfillment houses over mysteriously missing receipts or moving deadlines, and finally wait months for a check that may never show up at all, why not just give us all the same discount at the register?
It's an argument we've had many times on the Gripe Line, with readers often voicing the opinion that rebates are just a racket that we'd all be better off without. "The whole idea is to discourage folks claiming rebates, which is a subtle form of fraud," wrote one reader earlier this year. "Just cut the shelf price and get it over with -- anything else is disrespect for the customer. This whole rebate business cannot possibly be saving the vendors any money unless a significant portion of buyers fail to claim it, or are denied it. The extra costs for the whole stinking setup can't be justified unless suckers can be cadged into laying down their cash for what amounts to a loan to the corporation. They get several weeks before they have to honor their advertising."
But such comments inevitably meet a counter-argument from those who can testify that they personally save money by applying for rebates. "Rebates are good precisely for the reason that so many people never cash them in," wrote another reader. "That means I get to take full advantage of them without fearing that the companies will find them unprofitable and stop doing them anytime soon. Because in that event, the prices of goods that I want to purchase will stay at their normal levels without any benefit to me. If you really want to see rebates go away, encourage everyone you know to apply for them every time they have one coming. If everyone does it, the companies will stop offering them."
The many tricks manufacturers and online retailers come up with to reject rebate claims often lead readers to argue that rebates either need to be more heavily regulated or completely outlawed. "Customers should NEVER have to jump through these kinds of hoops to get/use their rebates," a reader wrote. "It's time to outlaw rebates and force these companies just to take the price off at the purchase site."
But others feel just as passionately that government has to be kept out of the rebate business. "It's not the government giving the rebate, it's a private business in a private transaction," another reader wrote. "If they don't actually give the money that they're claiming to give, that's fraud and should be dealt with, but they have no obligation to give any rebate at all, so if they choose to do so, they have the right to set the rules. If you don't like their rules, don't buy their product. Most businesses play games with their customers psychologically. Would Coke be the best-selling soft drink in the world if it didn't promote itself with lots of things that have nothing to do with the taste of the product? Would people be as likely to buy a given piece of furniture if they didn't think it was "on sale"? Rebates are another psychological game to make people think they're getting a deal, whether they really are or not. If some people get swayed to buy something by a rebate, then can't be bothered to follow the rules, that's their problem, not mine and not the government's."
And there are those who think our government likes rebates fine just the way they are. "Unfortunately, I believe rebates will never be outlawed," another reader wrote. "That's because you are taxed at the full price, and the rebate -- if it comes -- does not include any return of the excess taxes paid. I don't believe any politician will give up a revenue stream willingly. I hate rebates -- they are a hassle (even if things work as advertised), they require you to transfer personal data to complete the transaction, and you are overcharged taxes every time."
So do you think rebates should be outlawed? Answer that question in the reader poll and post your comments on my webpage.
Read and post comments about this story and respond to the reader poll here.
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