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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60 Answers

Anonymous 0 Comments

It is bait that not everyone takes. Markups on most products are usually around 500%, sometimes as high as 1,000%. A little cashback which people rarely claim is a small price for any measurable increase in sales volume

Anonymous 0 Comments

It is bait that not everyone takes. Markups on most products are usually around 500%, sometimes as high as 1,000%. A little cashback which people rarely claim is a small price for any measurable increase in sales volume

Anonymous 0 Comments

It is bait that not everyone takes. Markups on most products are usually around 500%, sometimes as high as 1,000%. A little cashback which people rarely claim is a small price for any measurable increase in sales volume

Anonymous 0 Comments

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.

Anonymous 0 Comments

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.

Anonymous 0 Comments

For car companies at least, and possibly others, it’s so they can reduce the price of the car without reducing the actual list price of the car. Changing the list price can have various tax, insurance, legal, business implications. Can be time limited offers, etc. Not an expert tho, maybe someone else knows more!

Anonymous 0 Comments

For car companies at least, and possibly others, it’s so they can reduce the price of the car without reducing the actual list price of the car. Changing the list price can have various tax, insurance, legal, business implications. Can be time limited offers, etc. Not an expert tho, maybe someone else knows more!

Anonymous 0 Comments

I’m pretty sure Rhode Island passed a law a few years back that requires any rebates be issued at point of purchase. It’d be great if more states, or all of them followed suit.

Anonymous 0 Comments

I’m pretty sure Rhode Island passed a law a few years back that requires any rebates be issued at point of purchase. It’d be great if more states, or all of them followed suit.

Anonymous 0 Comments

I’m pretty sure Rhode Island passed a law a few years back that requires any rebates be issued at point of purchase. It’d be great if more states, or all of them followed suit.