Rebates Leave, But Prices Remain

Rebates are falling out of fashion, but, as Edgar Dworsky notes,

You may naively think if stores stopped offering rebates, they will lower prices for everyone. That is not necessarily case, particularly because of the economics of rebates. Since only 40% of consumers follow through with rebates, stores and manufacturers could never afford to pass on the equivalent in savings to all buyers.

… but will anything comparable replace them? Probably not.

Basically you would need something that attracts increased purchases by promising delayed discounts, and hen uses confusing rules and regulations to prevent customers from receiving that money.

Only a mind of greatest acuity would be up to the task. — BEN POPKEN

When Rebates Disappear, Prices Don’t Fall [Consumer World Blog]
(Comic: Toothpaste For Dinner)

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