Rebate
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
14 September 2011
what is rebate and difference between rebate&discount?
CA Ravi Sisodia
(Expert)
14 September 2011
A rebate is a tool that businesses use to increase sales, making it look like you are getting a better deal than you really are.
A rebate is a tool that businesses use to increase sales, making it look like you are getting a better deal than you really are.
A discount is simply a reduction in the price you pay at the time of the purchase.
A discount is money you save instantly. With a rebate, you buy the item at full price, and then have to send out some paperwork and proof of purchase, then the company sends you a rebate check.
A rebate is a tool that businesses use to increase sales, making it look like you are getting a better deal than you really are.
A discount is simply a reduction in the price you pay at the time of the purchase.
A discount is money you save instantly. With a rebate, you buy the item at full price, and then have to send out some paperwork and proof of purchase, then the company sends you a rebate check.
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14 September 2011
A rebate is a tool that businesses use to increase sales, making it look like you are getting a better deal than you really are.
A discount is simply a reduction in the price you pay at the time of the purchase.
A rebate involves paying full price (including taxes on the full price, etc.), gathering the required forms (often not accepting photocopies), reciepts, UPC codes, and other documentation, filling out the information they require, then mailing it to them (pay for the envelope and stamp, as well as the value of your time), where they can take up to several months before contacting you either with the rebate or with a reason for not giving it to you, usually some technicality about the forms or documents. Many people never mail in the rebate forms after purchasing, or mail them after the deadline (normally it's a "reach us by" date, not a postmark date, since they close the PO box on that date). Most companies depend on the fact that as many as 2/3 of the eligible rebates are not submitted, not submitted on time, or otherwise refused payment. Even in the best cases, the extra sales tax, the value of money over the time it takes to get your rebate, and the cost to you of stamps, envelopes, photocopies for your records, etc. make the rebate less of a value than a discount of the same amount. With a discount, you know what the cost is; with a rebate, the savings is in question all the way up until the rebate arrives in the mail.
A discount is simply a reduction in the price you pay at the time of the purchase.
A rebate involves paying full price (including taxes on the full price, etc.), gathering the required forms (often not accepting photocopies), reciepts, UPC codes, and other documentation, filling out the information they require, then mailing it to them (pay for the envelope and stamp, as well as the value of your time), where they can take up to several months before contacting you either with the rebate or with a reason for not giving it to you, usually some technicality about the forms or documents. Many people never mail in the rebate forms after purchasing, or mail them after the deadline (normally it's a "reach us by" date, not a postmark date, since they close the PO box on that date). Most companies depend on the fact that as many as 2/3 of the eligible rebates are not submitted, not submitted on time, or otherwise refused payment. Even in the best cases, the extra sales tax, the value of money over the time it takes to get your rebate, and the cost to you of stamps, envelopes, photocopies for your records, etc. make the rebate less of a value than a discount of the same amount. With a discount, you know what the cost is; with a rebate, the savings is in question all the way up until the rebate arrives in the mail.
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