7 Keys to Marketing Genius: Rethinking Rebates
The following is an excerpt from The 7 Keys to Marketing Genius by Michael Daehn
Those ads in the paper have some great prices, but then you read the fine print and it says, “after rebate.” Why do companies use rebates? When I ask most people this question, they say it is because a lot of people will not send in the rebate form and the manufacturer keeps the money. Does this sound like a good strategy? It is not wise to have people angry with you because they missed a rebate deadline, or to think you are manipulating them out of their deserved cash. This is the opposite of building relationships (Key 5) with customers.
Rebates tend to confuse people and, by their nature, are manipulative. They say the price is one amount, but you pay another. You have to cut off this code, copy that receipt, jump through a hoop and do it by a deadline. Do you really want people associating this unpleasant experience with your company? If you can afford the rebate, a better alternative is to lower the price, or offer a short-term promotion. I hate filling out rebate forms, so I beg you manufacturers, for the sake of humanity and my personal sanity, please stop the rebate confusion.