What is the purpose of money back purchases?

1.23K views

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.

In: 40

60 Answers

Anonymous 0 Comments

(Money back = rebate): An instant rebate is a marketing ad that works just like any sale price. A mail-in rebate relies on layers of inconvenience such that the percentage of consumers who actually end up having the rebate redeemed is somewhere like 20–68% (20% of all sales, but 68% if you consider only the consumers who likely only bought the product for the explicit intent of redeeming the rebate). ([WP: Rebate](https://en.wikipedia.org/wiki/Rebate_(marketing)#Types_of_rebates))

You are viewing 1 out of 60 answers, click here to view all answers.