I always marveled how adverstisers can make products seem less expensive then they really are. I look through many of the Sunday circulars and find products for FREE after you subtract the mail in rebates. I always wondered how many people actually mail in those rebates and what the cost actual is to the vendor of the product.
A recent issue of LapTop Magazine stated that American companies rebated $6 billion last year which is nearly twice what they did in 1999. Most companies expect one third to two thirds of the people to submit the rebate which saves the vendor lots of money. The number of consumers that submit the rebate goes up as the rebate value increases. Most vendors “wait” 8 to 10 weeks to “process” through a third party which helps their cash flow!
