Mail-in rebates are an offer by a company to give the consumer some or all of their purchase price back by mail if he buys that product during a specific period of time. The consumer is required to mail in the receipt and other documentation in order to get the mail-in rebate. These rebates are not available in the store.
Types
Most mail-in rebates are for cash back on the purchase. Small items sometimes have mail-in rebates offered for the entire purchase price, while larger items such as major appliances frequently have mail-in rebate offers available for a set amount, such as $50 or $100. This will usually be a greater discount than an in-store sale of the same item would offer. Sometimes, a mail-in rebate will not be for cash, but will be in the form of a coupon for future purchases.
Consumer Use
For consumers, a mail in rebate is used to get money in exchange for sending in the required documentation after buying a product. Mail-in rebates can be found in store circulars, online and in stores near product displays. The consumer picks up or prints out the form, makes the purchase and sends in the required documentation. She will receive a check for the rebate amount within a time period specified by the company.
For example, if a store offers a mail-in rebate for $100 on a $400 washing machine, the consumer will pay the full $400 at the store, fill out the paperwork, mail it in to the company and wait for payment. The company will send a check for $100 to the consumer's home upon receiving and verifying all of the documentation.
Requirements
The requirements for taking advantage of a mail-in rebate offer are usually very specific. Most companies require the original purchase receipt, a specific form filled out in detail and the UPC code cut from the packaging of the item. If any of these are missing, the mail-in rebate request can be denied. The purchase must be made and the rebate also usually must be claimed within a specified time period. If it is sent in before or after the specified dates, the rebate won't be filled.
Company Use
Companies use mail-in rebate offers instead of simply putting items on sale as a way to entice customers to buy the item without discounting their goods. Companies also use it as a way to save money, since not all consumers who purchase the item will fill out the required forms and send in all of the requested items. A 2005 report in BusinessWeek magazine estimates that 40 percent of mail-in rebates never get redeemed.
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