Why offer rebates vs. decrease wholesale prices

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Reference no: EM133541760

Discussion Post: The Great Rebate Runaround

Manufacturers and retailers around the country enjoy providing rebate opportunities to customers. However, most customers do not share that same enthusiasm regarding filling out documents, gathering the necessary paperwork and receipts, and mailing in the rebate documents to claim up to $100. Hal Stinchfield shared that over 400 million rebates are offered for products annually averaging a face value of $6 billion. Many businesses, drugstores, national chains, and companies that sell technological gear offer rebates on their products. This discussion thread will answer questions regarding rebates.

Task

Question 1. Why Offer Rebates vs. Decrease Wholesale Prices?
Question 2. Why Best Buy is Considering Eliminating Rebates?

Reference no: EM133541760

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