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
Sometimes it’s because they really are hoping not everyone will bother to get the money back. It’s a form of “price discrimination”. Basically they know some people are happy to pay $500 and don’t have time to waste getting $100 back, while other people would happily jump through hoops to get $400 and wouldn’t be willing to pay $500. So that way they maximize the money they make from each person.
However, another reason is because it isn’t the same entity taking your money and offering the $100 back. For example: the store sells the product for $500. The manufacturer wants to get rid of inventory so they can introduce a new model, so they offer $100 money back coupons to get more people to buy their product. The store isn’t involved at all, the money back comes directly from the manufacturer to the customer.
There might be other reasons!
Sometimes it’s because they really are hoping not everyone will bother to get the money back. It’s a form of “price discrimination”. Basically they know some people are happy to pay $500 and don’t have time to waste getting $100 back, while other people would happily jump through hoops to get $400 and wouldn’t be willing to pay $500. So that way they maximize the money they make from each person.
However, another reason is because it isn’t the same entity taking your money and offering the $100 back. For example: the store sells the product for $500. The manufacturer wants to get rid of inventory so they can introduce a new model, so they offer $100 money back coupons to get more people to buy their product. The store isn’t involved at all, the money back comes directly from the manufacturer to the customer.
There might be other reasons!
Sometimes it’s because they really are hoping not everyone will bother to get the money back. It’s a form of “price discrimination”. Basically they know some people are happy to pay $500 and don’t have time to waste getting $100 back, while other people would happily jump through hoops to get $400 and wouldn’t be willing to pay $500. So that way they maximize the money they make from each person.
However, another reason is because it isn’t the same entity taking your money and offering the $100 back. For example: the store sells the product for $500. The manufacturer wants to get rid of inventory so they can introduce a new model, so they offer $100 money back coupons to get more people to buy their product. The store isn’t involved at all, the money back comes directly from the manufacturer to the customer.
There might be other reasons!
The companies know that less people will go through the effort to claim the cash back. People forget to claim or lose their receipts. So the company actually loses less money this way.
The companies know that less people will go through the effort to claim the cash back. People forget to claim or lose their receipts. So the company actually loses less money this way.
The companies know that less people will go through the effort to claim the cash back. People forget to claim or lose their receipts. So the company actually loses less money this way.
People are lazy. They’ll buy the thing being so sure there gonna be one of the few that remembers to submit for reimbursement but there’s always a good amount of people who completely forget
People are lazy. They’ll buy the thing being so sure there gonna be one of the few that remembers to submit for reimbursement but there’s always a good amount of people who completely forget
People are lazy. They’ll buy the thing being so sure there gonna be one of the few that remembers to submit for reimbursement but there’s always a good amount of people who completely forget
I see this frequently with large purchases that are financed. They sell you a car and include a “free” gift card. Of course, it’s not really free, it’s financed and you pay interest on it.
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