Monday, July 03, 2006

The End of the Rebate (as we know it)?

OfficeMax is one-upping their Office Superstore competitors by ending the mail-in rebate (or MIR). A story from CNET details their action, citing customer dissatisfaction as their motivation. It will be interesting to see if they can match all those good "after-rebate" deals by simply reducing in-store prices, as one of the economic "secrets" of rebates is the fact that many of those eligible never get around to doing all the work to receive the rebate and then cash the inevitably late-arriving check. And the big potential loser? The state and local governments that with MIR's receive sales tax on the full, pre-rebate price.

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