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Paula Gregorowicz, owner of The Paula G. Company, helps you discover and successfully create the work you are meant to do in the world. Through the p...
 
 
 
 

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Why Are Rebates So Much Work?

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While we all know that rebates are simply worked into the overall equation of making a sale, when I buy something that has a rebate it feels like "found money". It is exciting because by the time you actually receive your rebate 4-6 weeks after submitting it (or longer) you've usually already paid for whatever you bought and it feels like an unexpected gift.

I remember in the old days, you'd submit a rebate form and then receive a check in the mail. As good and as close to cold hard cash as it gets. Nowadays, though rebates are a complex business unto themselves and actually ever seeing a check or cash in hand is unlikely.

Before the holidays my cell phone died and I had to get a new one ASAP. So I went over to my local AT&T store (since that is my cell phone service provider) and checked out the selections. Nothing is every priced as-is anymore, everything comes with a rebate and a service contract. Nevertheless I chose a new phone and submitted my rebate form to get $50 back. Well, yesterday I finally received my rebate in the form of an AT&T Rebate Visa Card. What a pain in the butt. By the time I figure out where I can actually use it and then attempt to use the full amount in no more than 1 or two places, this sudden windfall of money is no longer as exciting as it once was. And the myriad of rules I need to follow to actually get my money quite frankly annoys me. Apparently I'm not alone. Pocketables has a whole article called "Trouble using AT&T Tilt rebate (Visa debit card)" and shares:

Those involved in the original lawsuit, which was filed in June 2006, had mentioned that the card carried lots of restrictions, expired in 4 months, and required jumping through hoops to actually use, but with no explanation of what these restrictions and hoops were, I assumed that I wouldn't run into any problems. I mean, how hard could it be to use a Visa card?

Quite hard, actually.

Although the card bears the Visa logo and can therefore be used "anywhere Visa is accepted":

* It cannot be used to obtain cash at a bank or ATM.
* Merchants must run the card as a credit, not a debit, transaction.
* When purchasing goods that exceed the available balance on the card, the difference must be paid using an alternate method first. Then the merchant must process the card for the exact amount available on the card. For example, AT&T suggests that customers tell merchants, "Process this card for $22.41."
* It cannot be used to pay for gasoline at the pump; it must be taken inside the station.
* Restaurants may add 20% to the total authorization placed on the card to account for tip.

This is not inspiring to me. I do so much shopping online, yet I don't even want to try and leap that hurdle. So rather than fully being able to spend it my way, I'll have to stick to some major store in person and try and spend it all at once.

It simply seems like a dishonest way to do business and advertise. Little known to me, I'm not the only one who had this thought. Apparently AT&T remains in legal waters regarding this practice according to the Consumer Watchdog:

A lawsuit charging that Cingular (now AT&T) engages in false and misleading advertising when offering "rebates" on cell phones may proceed, a federal court has ruled.

The suit, brought under California's consumer protection laws, states that the cell phone company promised to pay rebates to people who bought cell phones, and advertised discounted prices that reflected the promised rebate. But instead of getting a rebate check, purchasers received a "VISA Reward card" that can only be used under numerous restrictions and for a limited period of time. By the time consumers found out they were not getting a rebate check, it was too late to cancel Cingular's wireless service without paying an Early Termination Fee of $175.

Sometimes saving money just seems more painful than fun. Another potential pitfall of rebates is not even sending it in the first place. Deep in the archives of Queercents,

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Debra Roby 5 pts

got a phone last year that was "free after rebates". I had to wait 3 months to file the first rebate, which then required that I have some information from the box the phone came in. Like I knew where the box was 3 months later! (well I could guess.. it was recycled).

Debra
A Stitch In Time ( http://astitchintime.blogspot.com )
Deb's Daily Distractions ( http://debsdistractions.blogspot.com )

paulag01 5 pts

I agree Helene it is often the case. Sometimes unfortunately when it comes to a vendor who has you with a desperate need & nowhere else to go at that moment... boom it is rebate time. One thing I can say is that I ALWAYS send them right in. At least I have that going for me ;-)

Lisa - you got it.. it is nothing but a strange game with ALL the phone companies. Of course I've been hooked in service contracts so long, that I haven't had the chance to change, although I wonder if one is really any better than the other in the long run....

Thanks for starting the conversation!

Paula Gregorowicz
The Paula G Company

http://www.thepaulagcompany.com
http://www.coaching4lesbians.com
http://www.paulagwebdesign.com
http://www.queercents.com

ecstewart 5 pts

Love the iPhone but went with an iTouch (now with email!) because I refused to go with AT&T -this is just one more reason to stay far away from them. Additionally, companies are ecstatic over the fact that most consumers (myself included) forget to use the gift card within the specific time alloted or worse, lose it!

Recently, I purchased a gadget and while I got a rebate, they told me I had to wait 30 days before submitting it!!! Wait! They know damn well I'll lose it -they're counting on it. Frankly, I can't remember what it was I bought, I think it was a phone thru Verizon...

Oy.

Lisa, Creative Goddess
----------------------------------------
Creative Goddess ( http://ecstewart.blogspot.com/ )
CalligraphyPets ( http://www.calligraphypets.com/ )

moddivorce 5 pts

I hate to say it...but rebates are marketing tactics designed to lure buyers into purchasing items for full price, because most will forget, choose not to, or mail in the rebates too late to receive a cash refund. They are made so difficult based on the probability that most people won't follow through!!

Helene
The Modern Woman's Divorce Guide Blog
http://themodernwomasdivorceguide.com/blog