An Insider's Look At Rebates

Here’s your first clue to when sales are soft—rebates. Whenever a manufacturer gives you a rebate, he’s trying to pull his product through the distribution chain because the sales just aren’t happening by themselves.


Right now the shooting industry has heaps of bolt-action hunting rifles piled in warehouses because of the Obama-induced recession and a bit of over-supply. Thompson/Center Arms is offering a $150 cash rebate with the purchase of any new Icon rifle plus an additional rebate of $75 if you add a Nikon scope to the deal.


Remington is offering a $40 rebate on Model 700 and 770 rifles, plus other rebates on 11-87 shotguns and ammunition. Uh-oh. That’s When you need a rebate to sell ammo, that's a real sign of a turnaround.


Marlin is kicking in $35 on select models and $25 on others.


Ruger is offering a free Carhartt jacket to keep you warm in your deerstand if you buy a new bolt-action rifle.


Now, here’s an insider’s look at rebates and how company’s plan them. You know the deal—you have to include the box label, a copy of the invoice, maybe a copy of the Form 4473 and who knows what all? Your dog’s paw print…


The reason is “breakage.” That’s the term for unclaimed rebates which manufacturers are keen to maximize, for obvious reasons. They get the sale and don’t have to kick anything back.


“Breakage” is such a science that a company called Parago even has a patent on how to “break” as many rebates as possible. It’s U.S. Patent number 7,120,591. This patent describes itself as, “The present invention satisfies a need for a more consumer friendly method for processing rebates that maintains a breakage rate ...


“The rebate processing system provides a user friendly interface, yet retains hurdles sufficient to maintain breakage."


So the next time you’re tempted to buy a bolt-action rifle or an electric toothbrush because of a rebate, remember to dot you I’s and cross your T’s because whoever made that product is hoping you’re part of their “breakage.”


Share |

Comments

ADD YOUR COMMENT

Enter your comments below, they will appear within 24 hours


Your Name


Your Email


Your Comment

4 Responses to An Insider's Look At Rebates

an icon owner wrote:
January 29, 2011

Well I sent in the rebates with all the requested info two months ago plus and have yet to see any checks and TC which used to have a link to "where's my rebate" has removed the link.

a centrist gun-owner wrote:
September 14, 2010

"Right now the shooting industry has heaps of bolt-action hunting rifles piled in warehouses because of the Obama-induced recession and a bit of over-supply" The economic issues get back MUCH farther than that to another democrat, but two terms of republican leadership in the oval didn't right that course either. In other news, yes, rebates are a sham. Anybody who's done them knows they're hit/miss. I did get a nice $200 check on my Sig556 though, earlier this year :-D

Ernest wrote:
September 14, 2010

Rather than "rebates" they should have just offered up a better (lower) price to begin with that would have given us the consumer a reason to buy. That marketing money wouldn't have been wasted, either.

Gadget wrote:
September 13, 2010

I've never used a rebate for firearms or related items. But I have absolutely sworn off of them as a result of my experience with them in the computer world. Far too many of the fulfillment companies, who actually process all the rebate envelopes, and are responsible for sending your money are.. well.. dishonest; either that or just incompetent. I've seen and read documented stories in the media, of fulfillment companies simply trashing mailings by the barrel full. They 'lose' them, but routinely disclaim any responsibility. Even if you've dotted/crossed everything, they still deny them. And you can't disprove it because you had to send them everything in the first place! So, if an item isn't at a good price without the rebate, I absolutely ignore it. If you can't run a sale on even a fixed quantity, as MidwayUSA does, then don't bother with the rebate. You won't ever get me to bite on one... period.