What is the purpose of money back purchases?

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The whole money back thing makes absolutely no sense. If you are going to sell something for $500, then say you will give $100 back after purchase, why not just make the product $400? Is it some sort of sleezy marketing scheme? ELI5. Please! Make this make sense.

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Anonymous 0 Comments

Often these rebates are not instant. They comes weeks or months later, assuming the customer does the work to claim them. As a result, the company can also earn interest on that money for the duration before returning it, and it may have other impacts on their cash flow.

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