What is a Rebate?

One of the most cost-effective ways to save money is by taking advantage of rebates. Often found on select appliance and electronic purchases, rebates are discounts that you can use to get money off a product. Knowing how and when to use them can make all the difference in deciding between making an economical buy or choosing to buy a similarly priced but more costly product.

What’s the Difference Between Coupons and Rebates?

Most people have heard the term “coupons,” but may not be familiar with the term “rebates.” Although both provide monetary savings to the shopper, there are important distinctions between the two. A coupon is usually used at the time of your purchase, while a rebate is usually initiated after the purchase has taken place. Coupons usually serve as an instantaneous discount and can be configured in many ways such as a fixed price or a percentage off the total amount spent. On the other hand, a rebate is a post-purchase refund, usually in the form of cash, points or a product credit back to the customer, contingent upon meeting the requirements of the discount.

How Do Rebates Work?

When these types of discounts, such as a rebate, become available for an item, a buyer has to possess the rebate for it to serve as an incentive. A rebate is typically received as a mail-in form from the manufacturer associated with the item. The form typically requires filling out personal information, such as name and address, as well as purchase details such as a valid proof of purchase. Once filled out, the rebate form is mailed in and, depending on the terms of the rebate, a discount is issued to the purchaser. The discount is usually redeemed through mail in the form of a check. In some cases, a rebate may also be issued via email, or you can also “stack” a rebate with a coupon to supercharge your savings.

In conclusion, a rebate is a type of promotion or discount offered to buyers when making an online or in-store purchase. It allows customers to get money or discounts back on items they purchase. Companies often use rebates to bring in new customers and maintain relationships with existing ones. Knowing how and when to take advantage of these promotions is an important step in maximizing your savings potential.