"FREE!" The ad screams.
"After rebate" it whispers.
Walk into any electronics store, and the good deals are almost too good to pass up: DVDs, cell phones, even televisions, all at rock bottom prices. It seems the sellers are giving them all away, to steal a phrase.
But what aren't they giving away? Often times, the rebate checks. Those words "after rebate" frequently appear in the smallest of small print, rivaled in font size only by the rebate instructions. To get their money, consumers have to jump through hoops so complex even the architects of the new Medicare prescription drug program gaze in admiration.
To play the rebate game, you must know the rules. And, for the most part, with persistence, you can win. Here's some tidy tips on how to best claim and reclaim rebates.
It's a game, of course. About half of all rebates go unredeemed, according to the educated guesses of experts (companies carefully guard the true figures). But it's a necessary game, one that's not going away any time soon.
This game props up industries, like home electronics, that operate on such thin margins that without sneaky revenue, they'd never survive. Think DVD players, for example. They are practically free already. So companies that sell such products count on "breakage," the industry term for rebates that are never filed, and "slippage," the term for rebate checks that go uncashed.
"In some low-margin businesses, (unredeemed) rebates could be all the margin you're going to get," said Paula Rosenblum, a rebate expert at AberdeenGroup, Inc.
Still, nothing churns the stomachs of consumers more than this rebate bait, which often leads to rebate wait, and eventually, unknown rebate fate. Recently, I wrote about Wirefly.com, a cell phone seller that promises incredible rebates, but has apparently frustrated many consumers. The column elicited hundreds of responses from consumers, who vented their anger and shared their ingenuity on how to win the rebate game.
Combined with tips from industry experts, here's a compilation of that ingenuity, divided into three categories: What to do before you make a rebate purchase, when you're filling out the forms, and finally, how to wrangle a wayward rebate from a neglectful or slippery company.
Before a purchase
1. Not the deciding factor. Perhaps the most important suggestion of all: Don't play the game. Remember, by mailing in the form you most certainly are going to end up on some marketer's mailing list. Just find a good deal without the hassle.
But if you must do the rebate thing, don't let the rebate be the deciding factor in the purchase. Know that you may never see the money. If it's a good deal *before* the rebate, then fine. Consider the expected rebate check play money. That'll take the pressure off.
2. Read early and often. Make sure you understand what's required of you before you make the purchase. Turn the box over, or click around the site, and spend a moment reading the rebate terms. At Wirefly, consumers had to wait 180 days before filing their claims, and had to file before 210 days had passed. That's a tiny window. If you want to take that on, fine, but do so with your eyes open.
3. Easy rebates are good. Kudos to Staples for its Easy Rebate process, which got high marks from readers. Consumers just go to a Web page and type in a number printed on their receipt. Rosenblum said the company spent two years getting suppliers to play along, but it was worth the wait. When you shop, consider supporting Staples and other retailers using consumer-friendly rebates -- a list that may be about to grow. Thanks to all this controversy, in fact, at least one major electronics retailer might do away with rebates entirely this year, Rosenblum said.
When filling out the forms
4. Copy everything. Think like a lawyer. You are gathering evidence. If you like rebates, invest in a copier for your home office so you don't leave documents in office mailroom. I recently saw a copier on sale at Staples for $30 -- after rebate.
5. Do it at the store. Ask a store worker to fill it out. Some Red Tape readers have had luck with this; the retailer will know the potential pitfalls of the form better than you. A slight variation on this theme, one reader suggested, was to negotiate with the retailer to cut you a deal, dropping the sale price by the rebate amount. An effective strategy if you can work it.
6. Strike while the iron is hot. If you don't do it at the store, do it as soon as you get home. The longer you wait, the less likely you'll do it. And the more likely Fido might eat the box with the UPC symbol you need.
7. Include instructions. Here's one idea from an anonymous reader: Photocopy the rebate instructions, highlighting each completed step, and include that with your rebate application. It'll be harder for the company to argue that you did something wrong.
8. Get a receipt from the post office. Again, more evidence gathering. It'll cost a few bucks, but include that in your rebate price mathematics. You can use certified mail, but I prefer priority mail, which only costs about $4. Delivery is quick, and you can watch the progress of your package online.
9. Mark your calendar. To ruin a tired metaphor, if a rebate never shows up in your mailbox, but you never notice, did the company really cheat you? Mark your calendar when you expect to get the money, so you can complain if you don't. PC World links to a free rebate tracking program called "Rebate Rebate," you might find handy. I find it cumbersome. Your wall calendar or day planner should do.
10. Not junk mail. Finally, many rebate checks are discarded because they come in unmarked envelops that look like a dastardly credit card application or some other nuisance mail. Here's where step No. 9 might help. Scan your snail mail carefully!
If you must confront
11. The demand letter. I don't mean to imply that companies sometimes cheat consumers, but well, they do. So you've got to be ready to fight for your rebate. Many consumers have written saying that complaining does get them somewhere. Companies count on people who are quitters. Sometimes, only one telephone call will do the trick. If not, a sternly-worded letter is your next step. ConsumerAffairs.com offers a tidy sample demand letter, artfully cc'd to the applicable state attorney general's office.
A testier, but somehow more satisfying, sample letter, was submitted by a Red Tape Chronicle reader in that Wirefly.com column. It threatens small claim court, and deftly cites the state consumer protection statute. These vary, but a search for your state and "unfair or deceptive practices," or "consumer protection statue" at your favorite search engine should yield you an impressive-sounding sentence. You can also contact the division of consumer protection in your state and ask for help. There's a list here.
To find this sample letter, click on the Wirefly.com column. Then use your browser's find tool to search for this sentence, "I recently found out that a rebate was improperly rejected," to find the relevant entry.
12. Complain to the store. Even if the rebate was issued by the manufacturer, the store itself might have to pay. The Federal Trade Commission has taken on several rebate cases, but none more important that a CompUSA case settled in March of 2005. In that situation, the FTC argued that the retailer was responsible for rebates that a manufacturer failed to pay. Stores often shoo away frustrated consumers, telling them they were just the messenger, passing along the rebate offers at the point of sale. Consumers are then sent to complain to the far-away maker of the DVD or CD player that has so far failed to deliver on a rebate. The "we didn't do it," excuse holds less water now. Retailers clearly can be held responsible, at least some of the time.
Matthew Gold, who worked on the case for the FTC-CompUSA case, says the settlement doesn't create a legal precedent, and there were special circumstances in that case. Still, it's an important case, and knowing about it will increase the odds the store will heed your complaints, even about a manufacturer's rebate.
13. Complain to your legislator. Finally, high consumer frustration, and political opportunism, have elected officials buzzing around the rebate issue. A new New York state law took effect last fall. It required firms to include clear rebate rules, and to pay up in a timely manner. Texas and California legislators passed similar laws that were vetoed by their governors last year, but the legislation is sure to return.
Even with all that in place, you might still end up in a pitched battle with a company you've never heard of. Both retailers and manufacturers often outsource rebate paperwork to third-party firms called fulfillment houses. Since they have no relationship with consumers, they have less incentive to treat them well. But they do have to abide by the law. And if you know your rights, keep copies of everything, and you're persistent, odds are good you will eventually get your money -- emphasis on eventually.