Cash rebate is considered to be a certain amount which is paid through return or reduction on the paid or contributed sum; it should be stressed that this notion is frequently used in modern marketing and business sphere being referred to the type of sales promotion used by marketers as supplements or incentives for the purpose of sales production. Current businesses use this cash management technique very often; cash rebates are popular enough among in manufacturing business as they go unredeemed and done by means of electronic mail.
It is necessary to underline the fact that one of the businesses to use cash rebates frequently is computer technology promotion. According to the surveys provided in Business Week, more than one-third of manufactured and supplied computer equipment is sold through cash rebates covering such products as digital cameras and LCD televisions. Business reports in computer technology have shown that more than $400 million rebates are provided annually.
Despite the wide usage of cash rebates in small and big businesses, this form is considered to be unethical and causes a number of complaints. To understand all difficulties and principle of work fulfilled by Rebate Company, it is necessary to examine established rules and important aspects connected with the procedure under analysis. It should be noted that a lot of firms cooperate with rebate centers in order to pay customers’ requests, though these companies usually create complicated rules providing short term periods and plenty of documentation – all these cause sharp inconveniences and impossibility to get clients’ money back. The problem evaluation gives an opportunity to see that in most cases consumers are completely ignored or their rebate checks are delayed for a long period in order to avoid additional paying to the client. Some companies can try to ask for additional documentation such as product box codes being thrown out long time ago.
The analysis of cash rebates system has shown its unethical side in cooperation with the customers; nevertheless, it usually brings billions to the companies offering them. According to business surveys only 38% of all rebates is paid to the customers; in most cases people are to avoid cooperation with rebate companies, such as:
- Firms accepting no receipts copies;
- Firms sending no rebate checks according to identified rules;
- Firms providing no telephone information for inquiries allowing checking the rebate status.
Cash rebates are beneficial for many businesses though they are risky for customers; in case people are ignored or paying is delayed it is necessary to file a complaint and write to the company of the product purchased.
It is an open secret that business sphere makes money from everything; the technique provided for money saving appears to be a risky management technique requiring customer’s attention and careful attitude. Cash rebates in computer technology as well as in other spheres are considered to be an integral part of successful business cooperation. This process is usually aimed at customers’ giving up, so they are to behave in an attentive and well organized way in order not to make grave mistakes in documentation and rules observation.
References
Steurele, E. & Ooms, V. (2000). Vouchers and the Provision of Public Services. Brookings Institution Press.