[BC] rebates ... was apple something

[Barry Mishkind]

At 04:37 PM 11/16/05, davidgarland wrote
>I wonder if the FTC has ever done a study of rebate practices...

         The rebate problem has been researched,
         and sadly, many companies that offer them
         don't know there is a problem until you
         get to someone in authority at the company.

         The usual deal is that Company X hires
         Company Y to handle ALL their rebates
         on a product for $Z

         Company Y makes money by turning
         down the rebates, or failing to actually
         mail out. Knowing less than 20% actually
         even file in the first place, they use
         the actuarial tables to set their pricing.

         If Company Y gets more rebates than
         they planned, they can actually go
         "in the hole" and lose money on the
         contract.