Quote:
Originally Posted by Ea
How does coupon's actually work? I mean, how does people get them, can they just be used everywhere, are they distributed by retailers or manufacturers, and isn't there a lot of administration for both shops and manufacturers? How does it make economic sense - wouldn't the extra cost connected with giving rebate and administrating it mean an increase in the price? |
Actually a rebate is different than a coupon. The idea of a coupon is to get you into the store. Many of them are pretty restrictive. Also, the hope is the coupon will increase the traffic in the store hence profits.
Rebates do cost money to administer. However, I think only a small percentage of people every actually go through all the motions needed to get a rebate. That is why many states are mandating that rebates must be "instant" rebates that are applied at the store.
Also, coupons are "mostly" issued by the store. Where as rebates are issued by the manufacturer. Although there are many manufactures coupons too... mostly for grocery type products.
BOb