Rebates: Deal or No Deal

Have you ever seen a tag on an item such as shampoo that says something like, "Try Me Free"? Have you wondered what kind of trick the manufacturer is trying to pull on you? Today we are going to unearth the deep mysteries of rebates.

A rebate is when the manufacturer reimburses you for buying their product. It's different from a coupon because you have to pay for the item first and then send in the rebate via snail mail. Rebates are awesome, but they can be dangerous—if you forget to mail something in, you lose the money. That said, you can get a lot of stuff for free or close to free if you play it right. I will show you how to do it.

Since October 2009 I have sent in for over $800 in rebates! It adds up quickly. Usually rebates are offered for non-food items like shampoo, lotion, razors, cleaning supplies, or batteries, but sometimes you can find rebates for food. Last year I scored free Jennie-O turkey, free Pepperidge Farm cookies, and free frozen pizza after rebate. Not too shabby.

So, where do you find a rebate? I usually find out about available rebates from the couponing blogs I read (consult my list to the left) and then get the actual rebate form from one of three places:

1. On the package of the item purchased. Many times if a company has come out with a new product they offer a rebate as an incentive for people to try it. This is how I got free Pepperidge Farm cookies and Kelloggs cereal this year.
   
2. On the internet. This is the most common way to find rebates. You just have to print them out.
3. At the store, usually at the register. Places like ACE or Staples love to print out a rebate when you buy the product. Toys 'R' Us has rebates on board games fairly often that you pick up either in the aisle with the games or at the register.
   

Rebates are really easy to do. The key is to fill out your rebate form immediately after you get home from the store. If you don't fill it out and send it in that same day the chances that you are going to remember to do it go down exponentially with each passing day (I did a very scientific study to determine that). The rebate form always has very simple instructions plainly outlined. There is always a deadline for when you have to send the rebate in. Usually you have to fill out the form, cut out the UPC from the package, and send them with the original receipt from the store. Plan on cutting out that UPC before you put the product away or else you will forget to do it. Trust me. Just do it. It's worth it.

So why do manufacturers offer mail-in rebates? It's not just because these companies are nice, I'll tell you that. From what I can tell there are three reasons that rebates exist:

1. The manufacturer is trying to get you hooked on their product. Let's take Oil of Olay, for example. If you try their lotion for free and love it they are going to make a huge profit off you if you keep buying their lotion at full price. And you are going to think they are a really nice company because they gave you free lotion initially.
2. The manufacturer is trying to make you a loyal customer by giving you a "Starter Package", but then you have to pay for refills. This happens a lot with razors. Gillette will give you their top-of-the-line razor for free after rebate, but then you are stuck buying new cartridges for it after that. I say go ahead and get what's free and don't worry about buying refills. Just get another free razor!
   
3. The manufacturer knows that most people won't actually send in for the rebate. Many people will get sucked into the idea that this lotion is free so they buy it, then they never send in for the rebate. If you don't actually send in the rebate it's not saving you any money!
   

There are a few different varieties of rebates out there. Again, you just have to read the instructions on the form to know exactly what to do, but I will give you an idea of some of the most common rebates I see: (don't be mad that I am making another list)

1. The very straightforward "Try Me Free" rebate. This is easiest kind. Fill out the form, cut out the UPC, and send in the receipt. Get a check in a few weeks or months. Because they refund you the total cost of the item it doesn't matter how much money you have to fork out initially.
2. The similar "Now $2.99 (After Mail-In Rebate)". ACE and Staples love to do these. They advertise a rake or a ream of paper for the price after the rebate so it lures a lot of people into the store. Only a fraction of the people who actually buy that product will send in for the rebate, so the store makes a large profit. Don't be one of those people!
   
3. The "Get $20 Back When You Spend $50" rebate. Oil of Olay loves to do this. Sometimes it has to be $50 on one receipt and sometimes you just have to spend a total of $50 in a given window of time. That means you can buy different products at different stores and send all the receipts in together. Read the instructions on each rebate to make sure you are following the rules.
4. The "Get $10 When You Buy 10 Products" rebate. I did one like this with Keebler around Christmas last year. I waited for the cookies to go on sale, bought 10 packages for a total of about $12, and then sent in the rebate. Once I get the check back it will basically be $2 for 10 packages of delicious cookies. Don't worry, we gave some of them away, with missing UPC symbols, of course!
5. The non-cash back rebate. It's the same idea as a rebate, but instead of sending you a check the manufacturer sends you something else. You've seen them: free movie tickets when you buy specially marked boxes of cereal, free photos from Snapfish when you buy five boxes of Pop-Tarts. These usually aren't a great deal, but sometimes you can find one that is. If they charge you for shipping and handling, it's probably not worth it. Last year I got five free cups of yogurt (with coupons) and then sent the lids in for a free Leap Frog book that I gave my son for his birthday. Can't get much better than that!

I hope that I have clarified the issue of rebates for you. If you have questions please leave a comment or email me. Rebates are awesome because you can get tons of free stuff (plus it's just fun to get checks in the mail). The key is to simply remember to send them in and follow the instructions on the form!