Rebates--Deals or Not?

A rebate offers lower pricing to consumers. It is a type of sales promotion that marketers use as incentives on products ranging from cars to cell phones to computer software to food.

But, according to the Promotional Marketing Association, 80% of all rebates are never redeemed. Many feel that manufacturers make it difficult to redeem rebates by using unclear deadlines and instructions and extremely fine print.

A different view was taken in a recent Business Week article which claimed that rebates "can be viewed as a tax on the disorganized that is paid by those who do not submit their rebates on time."

In his book, Fight For Your Money, David Bach provides the following tips:

• Read the fine print. Each manufacturer has a different set of rules. Most rebates require some proof of purchase and a receipt. Some require the original receipt, while others may be fine with a copy.
  

• A number of manufacturers will ask for the UPC code. This can be confusing when merchants put their own bar codes on packages. Bach suggests that you keep your box until your rebate cheque arrives, just in case you mailed in the wrong proof of purchase.

• Know the dates of the promotion.

• Follow up if you don't receive your rebate within a month.