For many individuals, mail-in rebates can be a pain. They require you to send in all kinds of personal information, cut out UPCs, mail envelopes stuffed with crap, and remember where/when you sent them. It’s no wonder many individuals don’t even bother sending in the rebate. Well, I am not one of those individuals. I keep up with all of my rebates to make sure I am paid what I am due.
Why Do Companies Even Offer Mail-In Rebates?
1. They Get Your Personal Information
Most rebate forms require you to submit them with all of your personal information. It allows them to place you on their mailing list as well as track your spending habits. If they notice that you spend a lot of money on computer accessories, you better keep an eye out for a coupon in the mail!
2. They Know Many People Won’t Even Bother to Send It In
Companies are not dumb. They know that there will be a certain percentage of consumers out there that won’t even bother to send it in. Either they will forget or they will sent it in with the wrong information. It’s been estimated that only between 50% and 70% are redeemed. For example, in 2005 TIVO only had about 50% of their new customers redeem their $100 rebate netting the company a cool $5 million.
3. They Can Earn More Money
While you are fiddling with cutting out the UPC and licking the envelope, the company is still collecting interest on your rebate money. Just a way to earn a few more bucks!
4. It Can Stop You From Returning Items
Since you have to remove the UPC to get some rebates, it’s a great way to thwart off returns. Most companies will not return items without the UPC.
5. It Can Help Inflate Sales
If a company needs to boost it’s financial outlook for shareholders, a rebate can be rather handy. They can record the sale at the full price in one quarter and show the discount in another after you redeem the rebate. It helped them boost up sales in that first quarter.
Stay Ahead in the Rebate Game
Back in March, I sent in two mail-in rebates to Staples for some various software packages I bought. The other day I got a nice follow up email from Google Calendar reminding me when I sent the rebate. Since I had yet to receive the rebate, I gave them a call to find out what the problem was. Turns out they sent them, but got lost in the mail. They needed all of the information again in order to reprocess the rebate. I imagine they were hoping I forgot about the rebate and didn’t keep good records. Well, they were wrong and provided them with all of the info they needed. Needless to say the rebate is on its way again. If not for my attention for detail, that $60 would be long gone. Here are some tips to follow when sending in mail-in rebates.
1. Keep the Rebate in Your Sight at All Times Until You Send It
As soon as you get the mail-in rebate, keep it in your site until you mail it. If you do not follow this step, there is probably a 50% chance that you will forget about it. That’s like throwing money down the drain.
2. Read, Read and Read Some More
Make sure you read the instructions on the rebate several times. Neglecting to do this may cause you to miss an important step in the rebate process. If you miss something they will contact you (maybe) and let you know what you are missing. Chances are good that you have already misplaced the required information (the UPC if you threw away the box).
3. Copy Everything
After you get all of the required information ready, make sure you copy everything. Copying these crucial documents are your proof that you filled them out correctly. I also recommend copying the envelope you send it in with the correct address and a stamp on it. If it is a really big rebate you may even want to send the envelope certified mail or get a certificate of mailing.
4. Set a Reminder
Mail-in rebates often give you a time frame to let you know when you should receive your rebate. If it says 4-8 weeks, set yourself a reminder in Google Calendar. If the rebate has not arrived by the time you get that reminder, it’s time to give the company a call. You should have the phone number to call because you kept all of those copies.
You forgot to mention checking to see if you can file the rebate online. I just bought some Behr paint at Home Depot. If you go to HD’s rebate website, it makes filing for the rebate very easy. (It even said ‘Behr Memorial Day Rebate’ and directed right to the correct form.)
Electronics are a big item that have rebates, even for very small stuff like $5 and $10 cables.
mapgirl´s last blog ..Where Are Interest Rates Headed?
@MapGirl – Actually, the rebate that I was talking about in the post was an electronic one. It is still important to keep all of your information readily available after you submit. Also, if I didn’t have the reminder set, I would have forgot about this particular rebate.
Staples does make it rather easy to submit their rebate online. I would imagine many retailers (like The Home Depot) will go to this format.
Thanks for the tips! I tend to avoid items with rebates because of the hassle associated with them. You also have to carefully read the fine print because sometimes you might think you qualify for something that you really don’t!
meinmillions´s last blog ..Revolutionary Road
@MeInMillions – You’re right about the fine print because that is one of their tactics. They assume that many will not be eligible for the rebate based on some of the fine print that they have. However, being Americans, they know we will not read it and buy the product anyway. Once we send in that UPC we won’t be able to return it!
I hate rebates, I always feel like it’s some kind of sham with a billion hoops to jump through. It really makes me angry, I’ll often even pay slightly more at a retailer offering the same product but at a slightly higher price with instant savings then the rebate. Again that’s just me.
Paul @ FiscalGeek´s last blog ..Frugal Fix: Revive your Cell Phone or Electronic Devices from Water Damage
@Paul – I’m with you on that one. If I have choose between a product with rebates at $499 (after rebates) and a product without them for $529. I would definitely go for the one without rebates. I value my time and I think the extra $29 is well spent.
I never look at the mail in rebate as a way to buy an item at a discount price. There is usually fine print and they make it such a hassle to eventually get the savings back.
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