Magellan Rebate Ripoff?

[+KirkwoodCacheCrew]

Anyone else get taken by Magellan on the $30-$50 rebate? I just found out that I'm out $30 on my Sportrak Map due to the wrong upc label. Appearently only a few units have the UPC that qualifies for the rebate. I purchased the unit without checking the UPC number thinking a sportrak map was a sporttrak map...

 

Oh well live and learn.. Last Magellan I ever buy..

[Neo_Geo]

See THIS THREAD

 

And THIS THREAD too.

Edited March 26, 2004 by Neo_Geo

[+Stunod]

I had no problem with my rebate.

[+Prime Suspect]

Anyone else get taken by Magellan on the $30-$50 rebate?  I just found out that I'm out $30 on my Sportrak Map due to the wrong upc label.  Appearently only a few units have the UPC that qualifies for the rebate.  I purchased the unit without checking the UPC number thinking a sportrak map was a sporttrak map...

 

Oh well live and learn..  Last Magellan I ever buy..

What happended to you is exactly what the companies that offer rebates hope will happen. If they really wanted you to have the money, they would have simply lowered the price. Instead, they make you jump through hoops, and wait months to get the money you were promised.

 

They farm out the actual rebate process to third-party companies, who are rewared for send out as few rebate checks as possible.

Edited March 27, 2004 by Prime Suspect

[+TeamK-9]

Yah, my brother used to work at an office supply store that was real big on rebates.

 

He explained to me the whole idea of how companies actually afford to have rebates is they expect more than half the people to never turn in for their rebate.

 

And of the half that do turn in rebates, they expect the person to not qualify because they screwed up, or they won't get it because the company wrote in some fine print keeping EVERYONE from getting it...

[Neo_Geo]

I make a LOT of purchases based on rebates! I don't think I've ever paid more than $3.00 for a spindle of 50 CDs

 

Yeah - I jump through a lotta freakin' hoops, but I always make sure I follow the instructions to the letter, and I have never not gotten a rebate. There was one time when my wife was told that her rebate was invalid, but as a rebate shopper, I made copies of everything and the "misunderstanding" was rectified.

 

I don't know how things work on the "inside" of a rebate. I suspect that there are certain people at the rebate processing facility working on the Magellan account that are somewhat "less than highly motivated" to write the check.

 

If there are any geocaching lawyers out there, I smell CLASS ACTION here, baby!!!

[+Nekkar]

My friend I and each sent in for our rebates at about the same time, and around three months later we each received our rebate checks. The only difference is that I sent in for the 30 dollar rebate, but got a check for 50 dollars. Awfully nice of them. By the way, I didn’t do it on this rebate but have on others; send in the rebate requirements by certified mail. It only costs a couple of dollars, and on a big rebate, it’s a little extra insurance. Also, I read it gets their attention.

[+NimravusHSSR]

Contrary to popular belief of companies "hoping you won't turn it in", only less than 20% actually do not. A company cannot operate on "hoping" 50% of customers won't turn it in. Because one quarter of 90% return rate will kill their profit margin, driving down stock etc.

 

Knowing execs in Pepsi, I know that sometimes they will lose money just to gain more marketshare for a period of time. They will make a deal with a store to sell below cost, Pepsi providing kickback so the store can break even. They just put more Pepsi on the street than Coke. That's advertising.

 

If you don't think this works, think again. That's why battery companies usually lose money to have their brand in a product. Consumers will buy the same brand subconciously. I'm not talking about the people like you and me, if your here your more saavy than most consumers.

 

Most of us like to get a bargain. And when someone sends us a check for buying their product, well that's even better! And manufacturers offering rebates know that. They love it when we buy their product to get a rebate check. But you ask a good question. How can they afford to offer rebates? Especially the large ones. Sometimes the "after rebate" price is free. Don't the manufacturers need to make money to stay in business?

 

Manufacturers offer rebates for a number of reasons. They can be used to clear extra inventory, control pricing structures and even provide some extra cash flow for the manufacturer. Sellers see rebates as a good tool to move excess inventory. It's also handy when a new model is about to be introduced. Automakers use this strategy. So do companies making appliances. They know that if prices are similar most consumers will choose a newer model over an older one. A rebate allows them to easily discount the older model and clear out the inventory.

 

Sometimes manufacturers use rebates to try out a lower price. A rebate allows them to easily find out whether demand would increase at the lower price. If it doesn't work they can always kill the rebate. On the other hand, once lowered it's hard to raise prices back to their original level.

 

You'll find that some rebates seem to go on forever. If a rebate is active for more than 90 days, it's probably the company's way of lowering the real price without changing the 'official' price. Sometimes changing the official price has legal consequences that they want to avoid.

 

Manufacturers also realize that every sale doesn't have to be profitable. Sometimes they're willing to take a loss on one item in the hopes that you'll buy other things. The goal is to make you profitable as a customer.

 

Computer printers are a good example. The manufacturer doesn't really need to make money on the printer. If it takes a rebate to get you to buy their model, that's fine. They're happy to make money on the ink cartridges that you'll be buying on a regular basis. They know that most consumers will spend more on the ink than they did on the printer.

 

Sometimes the "shipping and handling" charges provide the profit. What the manufacturer gives up in product pricing they take back in shipping charges. Some even cheat by raising their shipping charges above normal levels.

 

A recent trend has been for manufacturers to team up on rebates. One company will offer a rebate if you sign a long-term contract with another company. Computer manufacturers and internet service providers are big players.

 

Rebates also offer some interesting cash flow opportunities for manufacturers. Remember that they get to use your money until you actually cash a rebate check. It might not seem like much. But if they have hundreds of thousands of dollars 'in float' all the time the interest earnings add up.

Edited March 27, 2004 by FlashMaster

[+GeckoGeek]

Contrary to popular belief of companies "hoping you won't turn it in", only less than 20% actually do not.  A company cannot operate on "hoping" 50% of customers won't turn it in.  Because one quarter of 90% return rate will kill their profit margin, driving down stock etc.

Well, a local article said that 50% was typical, but the more the rebate was for, the more likely it was to be cached, so there is quite a bit a variability in that.

 

In addition to what you've mentioned, it can be something of a stock holder scam. With a rebate they get to show good numbers on their sales (which shows a good trend and hopefully a good future) and hope no one really notices how much they spent on "marketing".

 

Edit: It might be interesting to watch the timing on these. It might be used to boost one quarter's sales at the expense of next quarter's profits. That could well explain why it takes so long to get the money back.

Edited March 27, 2004 by GeckoGeek

[+NimravusHSSR]

True. There are so many reasons why a company gives rebates I don't think we can pin it down.

[SBPhishy]

I got my first rebate fine. Got a 50 dollar check, when I was supposed to get 30. I'm just waiting for my other one now.