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Aug 08, 2007 -- Are rebates a rip-off?

Clark doesn't do rebates. He believes that you shouldn't buy something just because it offers a rebate. After all, you may never see that money! The Wall Street Journal recently sent five people out to buy five different items at five different retailers. All the products purchased came with rebates. All five people correctly filled out the necessary paperwork to get the rebates. Yet only one person actually got money back. That's a mere 20 percent! And that was with all the rebates being processed properly by the consumer. Now, think about how often you lose the rebate paperwork or fill it out incorrectly. Rebates are like a legal con game, according to Clark. His executive producer, Christa, recently tried to get a rebate from her phone company when she got high-speed internet bundled with other services. She still hasn't received any money back. Even worse, she was eligible for three separate rebates when she bundled three services together. But she hasn't yet seen a single penny in rebate funds from her phone company. Meanwhile, Clark likes that OfficeMax has eliminated rebates and instead lowered prices. Staples, meanwhile, offers very easy online rebates similar to wholesalers like Costco and BJ's. That's a good start, but why don't they just go the OfficeMax route? Perhaps because they know that most people don't even bother applying for rebates. The moral of the story here is that you shouldn't buy something just because it offers a great rebate deal unless you are sure you are going to use the product.

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What others are saying

  • No rebate received
    www.fastfloors.com offered $200 rebate (hardwood floor purchase) to be received in 8-10 weeks.
    Did not show form to filled out to get this rebate, but they claim I should have clicked on a picture to find it.
    Now they're saying I didn't fill out the form - but could find no on-line form on their website.
    Therefore, we lose our rebate.
    Any chance of getting the $200 out of them?
  • rebates
    I have never been ripped off on rebates. Staples, Best Buy, Menard's and others have always sent them, and in the prescribed time. I don't understand your comments from 05/12/08 about only getting 20 percent response. There must be more to the story.

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Do you like the idea of auto insurers switching to a pay-as-you-drive model -- where how, when and where you drive may be monitored?
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