fooled me, I thought it was for Tiger Direct XD

Wow, I always thought that they figured that people wouldn't take the time to redeem rebates... not count on keeping the money by just automatically round-filing it.

The good thing is that anytime I've had a problem with a rebate at Fry's, I just take all my photo copies to one of their stores and they cut me a check. I guess they must charge the vendor later on.

"When confronted, the company's owner blamed it on a lazy employee who no longer works for Vastech"

Yeah, he was promoted to CEO of their parent company.

I never take rebates into account when shopping. If they wanted to give you a discount, they would just give you the discount and not make you jump through the ridiculous hoops and wait months for the check. They are counting on most people deciding not to bother or screwing up somehow so they don't have to give them the rebate.

@gatopeligroso: WHOA. I gotta remember that one.

How long did you have to wait on line to get that to happen?

Mercury News article reprinted inside so you don't have to register to see it...

Having to register with a newspaper is stupid IMO, news should be accessible to all. That being said is reprinting an article like this (as a whole) a copyright violation? I know copyright law decently well (as an photographer one has to deal with it all the time) but this one kinda stumps me. One might think so because it cuts off the authors ad revenue from the site, and there are laws against scanning/copying written works but I am not sure about this in particular.

This is why I send every rebate back (greater than $15) with certified mail (no return receipt). They can't claim that they never got it.

Having been general counsel to a now-bankrupt rebate-driven online retailer, I learned a lot about the rebate world. Yes, retailers depend on what they call "slippage," the tendency for customers *not* to bother sending in the rebate forms. Slippage varies; although it averaged (at that time) around 80-90% of eligible purchases, the higher the rebate, the more likely the forms would be filled out and sent in, lowering the slippage rate. Expiring gift cards operate on the same theories of slippage.

At the same time, enforcement actions have led to both easier rebate submissions and many retailers stopping the use of rebates. On the flip side, I once visited our returns warehouse, and found that at least 90% of the returned items (for which credit was probably granted) were missing UPCs, meaning that customers were attempting to doubledip (rebates and refunds).

For myself, while I don't send them certified, I do scan every UPC and other piece of documentation, so that if a retailer claims I didn't send in some required piece of info., I can reply with a copy. I have had great success with rebates from the major retailers, as well as online companies like Buy.com, but there are definitely potential problems out there. {Prof. Jonathan}

Um, paper shredder?

I worked at a rebate processing center for 1.5 years. I did data entry. Nothing against the people who opened the mail and sorted them, but for peoples sake who send in the big rebates $100+ staple your UPCs to a 8.5x11 sheet of paper, unless it says not to. I was amazed at the number of UPCs there were on the ground.

... in other words, Fry's knows they're a scam but doesn't give a damn about it.

I nearly never buy anything with a rebate on it due to bullshit like this. The last time I did, everyone in every state other than CT would have to mail in a rebate form. CT buyers would get an instant discount at the register.

WHY IS SOMEONE FROM CT TREATED FAIRLY AND SOMEONE WHO IS NOT IS EXPOSED TO BEING SCAMMED?

i will almost always try to get the rebate amount taken off at the time i buy something. granted this has usually been with cell phones but they will give you the rebate amount right away a lot of times. those things are a total ripoff. tell me anyone believes that a large majority of those companies don't throw away x percentage of the forms they do receive and just shrug their shoulders when people try to check up on their rebates. total bullshit ripoff.

@Egakino:

shhhhhh....Consumerist laughs in the face of copyright law. Ask the folks at Flickr.

It's a long shot, but perhaps... just perhaps... the rebates in the dumpster were not postmarked by the required date.

Blame it on my naiveté, but geez, I am just dumbfounded. I've known for a long time about the gross inefficiency of rebate processing centers and their general lack of concern about their "customers", but damn... this just beats all. Weizhen Tan should be held accountable for this--an "oops we goofed" doesn't cut it here.

@82300sd: But they can claim that all you sent them was a bunch of cookie recipes. :)

This is why I never buy anything with a mail in rebate offer (although I like Harumph's idea about trying to get them to give you an instant rebate instead, I may have to give that a shot next time). I'm not going to spend fifteen minutes reading all the fine print, making copies of everything, putting it all together, and mailing it. My time is just worth more than that to me, especially considering I will probably waste more later trying to prove I did indeed send everything in correctly when they deny me later. What a scam!

I'm sorry, but am I the only one who thinks that blaming a lazy employee for throwing away 1300 rebates is just insane. That guy should have been arrested right then and there for even thinking up such a stupid fraudulent lie like that. Yes, the employee was lazy, but not lazy enough to take 200 to 300 pounds worth of mail to the trash, and apparently try and hide it so no one would catch him or her.

In a perfect world, our government would outlaw rebates and just force retailers to offer the rebated price right then and there.

@CaliforniaCajun: I've shopped at the Frys in Downers Grove, IL. They will usually get me a response within two weeks. The amount was only $30.00 but hey, money is money.

@deadhouseplants: true, if a company offered to handle the rebate rigamarole for me instead of farming it out to a third party in an obvious attempt to duck responsibility, i would definitely throw my business their way.

The point of rebates from a marketers stand point is to prey on human optimism and laziness simultaneously. The marketer knows that the rebate will help motivate people to buy the product with intentions of cashing it in, but few will actually get all the necessary materials mailed on time. When they get large returns on a rebate, it is considered a failure. I had a marketer relate a story to me once that used to work for Buena Vista distribution. For the movie "Hook" she included a rebate form that was stamped with the signature of Dustin Hoffman and Robin Williams, numbered as a limited edition, and designed to appear to be on old parchment paper, the idea to make it appear collectible. You should have seen her face beam as she boasted of a miniscule 10% return on that rebate!

I've had surprisingly good luck with rebates over the last year. I've received about $90-$100 back total from 3 or 4 rebates. I haven't even had to call to complain either. I just make sure everything is photocopied and I fill out the forms and mail out the envelope before I fully start using the product.

@harumph: I did that recently with TMobile. Got the RIZR Z3 for 30 no rebate instead of 79 with 50 rebate and even 50 with no rebate. Helps when you bullshit about sports for a while with the guy (I was all set on the 50 no rebate when he told me, after having placed the order, that he reduced it to 30 instead :D

@deadhouseplants: 1300 letters would not be 200 pounds. Each letter would be under 1 ounce to qualify for the 41 cent stamp, and at 1300 letters at exactly 1 ounce, it would only be 1300 ounces, or 81.25 pounds, if 1 ounce each.

@RandomHookup: Bwahaha. Seriously, dude.

I like what we read here, but you guys honestly need to be more careful about that. Especially with the Flickr stuff.

I really hate rebates. Waste of paper, time and energy.
Instead of wasting all that paper, why not just go direct and process rebates at the retailer?

@telliott: "For the movie "Hook" she included a rebate form that was stamped with the signature of Dustin Hoffman and Robin Williams, numbered as a limited edition, and designed to appear to be on old parchment paper, the idea to make it appear collectible. You should have seen her face beam as she boasted of a miniscule 10% return on that rebate!

That is brilliant!

@AnnieGetYourFun:

I think they went legit with Flickr...people have to tag their photos for Consumerist and they get attribution. But it was ugly for a few days when the photogs threatened an insurrection.

@RandomHookup: Yeah and the consumerist insulted them on top of it. That was pretty ugly.

This is more than a one time problem with Vastech. The CEO is flat out lying. I purchased a Vastech product from Fry's Electronics in October 2006 and immediately sent in the $7 rebate form. I then called and emailed Vastech in January 2007. The emails went unanswered and the voice mailbox was full. So then I contacted Fry's electronics and they eventually sent me the rebate check. The bottom line is that Vastech has a long record of not paying out rebates and Fry's knows this, but still sells their products.

@RandomHookup: Huh, missed all that, guess I am out of the loop. Sounds like pure "Todd Goldman fun". Puts this place in a little different light, well still an interesting place here at least ><:

The reason manufacturers do rebates is because the store may (or may not) pass on a discount to the consumer. For example, a 10% discount to the store may result in a 5% discount to us... and 5% more in the store's pocket. With a rebate, the store cannot capture the discount.

Having said that, manufacturers then play the odds game, and make
it a big difficult for us to actually get the rebate. After all, if they REALLY wanted us to have it, they'd just include a check in every box. Or a $5 bill.

@Buran: Because Dickie B is better than your favorite state attorney general?

I bet mine is in there, never received shit for purchasing an Antec P10 case [with rebate] from them. After that, I won't buy from them again.

@iHuman:
You're totally wrong!
When rebates are sent in after the required date, reputable companies just close the PO box, causing the rebate envelope to be returned to the sender with a stamp on it saying the box has been closed.

Shopped at Fry's this week. Walked out empty handed.

Dear Fry's: Get rid of the rebates and I'll buy from you again.

@telliott: Disgusting.

I don't know if I am just lucky or maybe I just do it right, but I have never been shafted on a rebate. I have probably sent in about 30 or so rebates in my life. I just take the receipt and UPC with me to work the morning after I make my purchase and photocopy each item and follow the directions on the rebate form. I save the copies in a file folder with the date sent on the tab, send the forms out (regular good ol' USPS) and wait. I have never had to follow up a single one of them. Some of them have been a couple of weeks late, but if I really needed the money that badly, I wouldn't have made the purchase in the first place. I have bought hard drives, routers, video cards, mice, etc. at Circuit City, Best Buy, Comp USA, Office Max, Staples, Office Depot etc. just to name a few. Never at Fry's though.

There are a couple of points that have not been addressed.

Companies never sell at a loss, unless:

a. They are trying to move outdated or poorly designed inventory out of the warehouse.

b. They will make the money back in some other way (i.e. service contracts or or selling the address lists. (Unless there is a privacy statement on the rebate form, it is highly likely that you will be getting more mail after you send in a rebate form.)

A third way to make a profit is to count on slippage, and even aggressively create slippage by falsely claiming that the bar code was not included or that the form was filled out incorrectly.

This puts the burden of proof on the customer and, since the vast majority of them do not retain careful records of the transactions, the customer is very nearly ALWAYS wrong and ends up paying full price for his bargain.

The rules of the game are to make it so hard for the customer to prove their claim, that they will give up.

But, as I said, companies seldom sell at a loss, EVEN WHEN THE REBATE IS PAID.

Think for a moment about how retail works. The manufacturing company sells a gizmo to a distributor for a profitable increase over the cost to make the thing. The distributor sells that gizmo to the retailer at another profitable mark-up. The retailer sells the gizmo to you at yet another profitable mark-up.

You pay $100 and get a $30 rebate from the manufacturer ... and a miracle happens. Everybody makes a profit.

So you should ask yourself. If they can afford to give thousands of people a deep discount like this, and if they are still making a profit ... HOW THE HECK MUCH WERE THEY OVERCHARGING ME TO BEGIN WITH!?

Answer: $0.

If you voluntarily paid the agreed upon price, you weren't "Over Charged" no matter how much profit was made or how much anyone else paid.

Still another reason rebates are evil/anti-consumer: You get pegged for all eternity on myriad private databases as an owner of product x...and as a sucker who will jump through hoops. (And then watch your mailbox get stuffed with trash.)

@professorjonathan

Was it CyberRebate? I always wondered what happened with that whole fiasco.

@telliott:
Wow, a great example for my marketing class :)
A rebate coupon, that people collect.

Seriously though, When I go browsing for stuff at a store, namely Circuit City, the thing that turns me off the most are mail-in rebates. I mean they lure you in with a low price but then say in fine print "including mail in rebate". What's worse is when they not only have a manufacturer's rebate but also a store one, forcing you to keep track of two! This story only deepens my skepticism.

@82300sd: I'll have to remember that.

I was just in Fry's today. That place is spiraling the drain. Why can't I get a goddamn pack of NORMAL Duracell batteries? And why was EVERY pack of batteries scuffed around the edges?

I'm a long time customer of Fry's and I buy thousands of dollars of computer equipment from them every year. I've stopped buying products that are advertised as having a rebate because out of the dozens I've sent in over the years I've received my rebate checks for only a couple items. They make you send in UPCs and a copy of your receipt and nothing ever comes back. Now and then I'd get a notice that my receipt didn't have the product listed so I started circling the items. Still I never get my rebates. These companies must owe me thousands of dollars in rebates by now.

It's not just no-name companies either. I've had quite a few rebates from big name companies that product hard drives, printers, and so on and none of them has ever sent me a check. The only company offering a rebate of more than a couple dollars that has ever actually sent me my rebate check is Apple. They did give me my rebate for an iPod with the purchase of an iMac. My response? I bought another iMac. Thanks Apple.

Another problem with rebates is that the cheque (if ever you receive it) is in US funds. For all your Americans it's not a problem but for me in Canada, I learned the hard way that when I cash it in I have to pay fees to convert to $CDN and fees to make the deposit at the teller and not at the ATM. For example, the last rebate cheque I received was for 12$US, by the time I was done I deposited about 3$CDN.

We can't blame the stores for offering mail-in rebates because it's the manufacturers to actually offer them and if the store doesn't follow then another will. So if stores don't want to lose business they have to offer the "deal". Pressure should be made on the manufacturers to offer instant rebates instead of mail-in.

I built a new computer last Christmas with parts purchased from Fry's - parts that included 4 rebate forms.

Three were processed and returned within 12 weeks. (Of course, if I paid *my* bills 12 weeks after receiving them, I'd be writing this at the library.)

One was rejected with a postcard for a "missing proof of purchase". I took my photocopies to Fry's, who denied any responsibility whatsoever for the rebate. They called the vendor for me, who repeated as if (ahem) reading from a script: "You did not submit the proper proof of purchase."

The one who refused to pay was Memorex - and no, I will *not* forget!

I keep copies of everything I send in, but if you don't send it certified, there's nothing to stop unscrupulous retailers/rebate processing companies from claiming you didn't postmark it by the required date.

And that's exactly the notice I received in the mail a couple days ago for a $10 D-Link rebate.

Someone's gotta know that you can't photocopy a postmark. Certified -- what is it, $3? $4? -- would have cut too big a chunk out of my cash back, not to mention I would have had to go out of my way to stand in line at a PO.

I had trouble with a MacMall rebate but once I actually called them to dispute the rejection letter, since it made absolutely no sense whatsoever, the person I spoke to overrode the rejection. I received my checks in less than 2 weeks.

@Egakino: Yes, it is definitely a copyright violation UNLESS he asked for and was given permission to reprint it. (Or if there was an indication on the site that all its stories were free to reprint or redistribute, but I doubt that there was.) A lot of news sites have a form available for that, though I have no idea how often permission is granted.

As if shopping at Fry's wasn't  already such pure joy, now you can figure in a decent likelihood that those rebate offers behind most of the good-looking deals may end up as unprocessed landfill.

Here’s a look at some of the happenings this week from the MoneyBlogNetwork and beyond: FMF asks do you pay cash for your cars? - FMF’s post highlights a Bankrate study that found that 12% of thier respondents paid cash for their cars.

All this story will do will make them burn the envelopes now or throw them in their neighbors dumpster.

By the way, how did he know it was the lazy employee who threw them away? If he did know that the employee threw them away, why didn't the owner take them out of the dumpster????

@yahonza: That's exactly the point, they don't wan't to save you money. The last thing they want is for the advertised savings to become real. This is why I can't stand it when companies claim they're devoted to satisfying us and that it's prority numero uno. Behavior like rebates that they'll do anything to deny you makes this sound like bull to me.