What's the deal with rebates?

[Butterfly]

Another expensive "extended warranty" is that which the stores try to sell people when they buy a new Major Appliance. Case in point....we bought a new refrigerator about 8 years ago, and the store tried to sell us an extended warranty that would cost about $80 a year...after the 1 year manufacturers warranty ran out. This past February, the wife noticed ice building up in the freezer compartment. After some basic trouble shooting, I ordered a new Temperature Control, Defrost Control and Evaporator Fan Motor from a great online parts store...AppliacePartsPros. The parts arrived in 3 days, and cost $103, delivered. We took the food out of the fridge, put the frozen stuff in the basement freezer, and the perishables in a big cooler. It took me about an hour to replace the parts, and the fridge had to "stabilize" overnight with the new parts. By the next morning everything looked good, so we began using the fridge again...and it is still working great after about 5 months. I figure I saved around 4 or 5 hundred by fixing it myself vs. what some repair person/warranty would have done for us. Besides, the few times I have called a repairman over the years, I doubt that most of them really have that much training/skill. I've fixed stoves, washing machines, dryers, and even the outdoor AC unit for a fraction of what these repairman try to charge.

Well l am very glad I bought the warranty on my huge double-door fridge from Sears. The thing up and died (they said it was major compressor woes). It would have cost them more to fix than to replace, so they gave me a new one, PLUS money for the food I had lost.

 

[Butterfly]

If you buy an item even smi-regularly, you should know what the price is. If they've doubled the price, I would not buy it. I've never had this happen, and I get quite a few BOGOs.

True, some people are not as in tune with prices as others, but maybe they should be.

I agree. I watch those BOGOs carefully. Sometimes they are a very good deal. Most stores around here don't double the prices -- people would notice and have a fit!

 

[Ken N Tx]

I agree. I watch those BOGOs carefully. Sometimes they are a very good deal. Most stores around here don't double the prices -- people would notice and have a fit!

..Our local stores want us to return..

I have fixed outdoor AC units, washers,dryers ovens..etc..Online parts are available.

 

[QuickSilver]

I shop at Jewel... Yes... they double the BOGO price on ribs.. I always laugh.. Usually a slab of Hormel back ribs is $10 to $11 on BOGO day it's $20.. I always ask the Butcher if they think we are stupid... He just shrugs and says he does what he is told.. Apparently these big chains really DO think everyone is stupid.. What they are doing is fraud and forcing people to by two even if they really only want and can afford one.

 

[Ken N Tx]

Some of our stores offer can goods for 4 for a dollar..You are not required to buy 4, at the check out one registers as 25 cents.

 

[WhatInThe]

A lot of rebates are for accounting purposes and others, especially the one's the consumer has to mail in are used on the premise that only a small portion of them will be sent in or requested. I saw one number that as little as 25% of the consumers take advantage of things like mail in rebates.

With big ticket and something like a car it's accounting because sometimes they're offered by the manufacturer and others the dealer. They also affect how fast a dealer might get money or credit for a sale. There are also laws on how long an item can be sold at reduced price, in other words it could considered false advertising if it's on sale too much. Theoretically it should be the regular price. I heard of laws number of days per year and number of days in row. Rebates skirt around that issue.

I thought on small ticket stores had to provide rebate forms and clear instructions on how to get it. I don't like some rebates because these companies get personal information on what should've been a private transaction between you and the store. Many rebates are fishing expeditions for personal information and marketing. I tend to avoid rebates and store cards for that reason alone.

 

[Phillygal]

I purchased a home warranty several years ago when I upgraded the olive appliances that came with the house to stainless.

I don't know how they make money. Aside from all the repairs (for which I pay $50 ea), they've replaced my hot water heater, my stove, and my washer machine.

I am extremely frugal, know my prices. BOGOs here never raise the base price. When I combine them with coupons I often get items for pennies.

As for cars, the first mistake (IMHO) is buying new. I haven't bought a new car or had a payment since 1994.

In all that time, aside from routine maintenance, I had one car break down on me. A Durango, the computer went, $700. I was still so far ahead. I also avoid cars with under 100,000 miles. By then, the kinks are worked out

 

[WhatInThe]

I purchased a home warranty several years ago when I upgraded the olive appliances that came with the house to stainless.

I don't know how they make money. Aside from all the repairs (for which I pay $50 ea), they've replaced my hot water heater, my stove, and my washer machine.

I am extremely frugal, know my prices. BOGOs here never raise the base price. When I combine them with coupons I often get items for pennies.

As for cars, the first mistake (IMHO) is buying new. I haven't bought a new car or had a payment since 1994.

In all that time, aside from routine maintenance, I had one car break down on me. A Durango, the computer went, $700. I was still so far ahead. I also avoid cars with under 100,000 miles. By then, the kinks are worked out

Don't know how they make money.

They make money because enough people did NOT make a claim. The whole concept of insurance is a bet. The policy holder is betting they will need it and the seller is betting they won't. Same for the extended warranties and service plans. Their set up under the premise that only a certain percentage of customers will use them. This is also why many of these plans are loaded with fine print or exclusions. They are stacking the odds in their favor because these service plans & extended warranties are a form of insurance which is a bet.