06.24.06
Rage Against Rebates
I really dislike rebates and think they are dishonest. Retailers advertise goods at the price after rebate and people don’t find out until they are actually in the store that a rebate is involved. Of course, I understand why retailers do it. A huge percentage of the buying public will never apply for the rebate, so the retailer or manufacturer ends up getting more for their product. Applying for a rebate is a hassle and involves a long period of time, giving the retailer and/or manufaturer an interest free loan on your money.
After my latest experience, I am at a point where I may refuse to buy any item with a rebate unless it is an instant one which doesn’t involve a lot of jumping through hoops.
My latest experience has really hardened my resolve on this point. I lost my cell phone and had to get a new one. I have always wanted a RAZR, so I got it because it was as reasonable as a phone with fewer features when the rebate was deducted. I followed all the instructions and sent the rebate application right away. Now … one month later … I get a text message saying they have received my rebate application and are processing it and I can expect my rebate in 10 to 12 weeks. So, assuming that it takes the full 12 weeks, Cingular and/or Motorola will get the use of my money for a period of about 150 days from the date of purchase and not have to pay interest on that amount. At prime rate, that only amounts to about $1.25, but that amount is sizable if you multiply it times the probable number of people who bought the phone because of the incentive offered by the rebate. It becomes even larger if you factor in the number of people who won’t apply for the rebate … probably about 50% of the purchasers.
Do you wonder why I am raging against rebates?