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From: ark@alice.UucP (Andrew Koenig)
Newsgroups: net.consumers,net.flame,net.misc
Subject: Re: Coupons and Rebates-- Flame
Message-ID: <4286@alice.UUCP>
Date: Mon, 9-Sep-85 10:27:17 EDT
Article-I.D.: alice.4286
Posted: Mon Sep  9 10:27:17 1985
Date-Received: Tue, 10-Sep-85 04:24:27 EDT
References: <243@mot.UUCP>
Organization: Bell Labs, Murray Hill
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Xref: watmath net.consumers:2930 net.flame:11867 net.misc:8559

> Can anyone explain to me the marketing purpose behind coupons and
> rebates? Why do manufacturers want people to do the idiot-level
> work of cutting out and organizing coupons, or, worse yet, filling
> out rebate applications and sending them in in return for little
> checks in the mail?  WHY DON'T THEY JUST LOWER THE %&##@! PRICES?

Simple.

	1. If they lower prices, eventually people get used to
	the new prices and no longer feel they're gettin a bargain.

	2. It's hard to raise prices without people noticing.
	But if a rebate quietly expires, people accept it more readily.

	3. By putting a cut-off date on a coupon offer, a vendor can
	make it plain that if you don't buy their widget by a
	particular time, it will cost more.

	4. Some people lose the coupons or forget to send in for
	the rebates, which saves money for the vendor.