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From: king@kestrel.ARPA
Newsgroups: net.consumers,net.flame,net.misc
Subject: Re: Coupons and Rebates-- Flame
Message-ID: <1002@kestrel.ARPA>
Date: Tue, 10-Sep-85 11:48:31 EDT
Article-I.D.: kestrel.1002
Posted: Tue Sep 10 11:48:31 1985
Date-Received: Thu, 12-Sep-85 23:12:37 EDT
References: <243@mot.UUCP> <2610@ihnss.UUCP>
Organization: Kestrel Institute, Palo Alto, CA
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Xref: linus net.consumers:2420 net.flame:10970 net.misc:7204
Summary: One reason why marketers use rebates and not lower prices


As I remember...


Rebating first became popular shortly after Nixon imposed and then
withdrew price controls.  It seemed to me at the time that they wanted
to avoid being cought with their prices down if price controls were
ever reimposed.

If they lower prices temporarily, they are stuck with those lower
prices if the temporary reduction period includes the effective date
of price controls (which was, in the Nixon case, weeks before the
announcement).  If they instead give a rebate ofer with an expiration
date, it is reasonable to suppose that they would be permitted to let
the offer expire, at least if the practice wasn't too popular.

Seems likely to me that if price controls were ever reimposed rebates
in effect on the effective date of the controls would probably have to
be continued, however, in the current climate.