What Are Rebate Offers?

Rebate Offers

If you've looked through store ads or browsed store shelves, you've probably noticed some price tags with a rebate discount. You might see a camera priced at $200 with a rebate discount of $50, bringing the final price of the camera down to $150.

You usually run into these offers at office supply and home electronics stores. Stores like Staples, Office Max, and Best Buy often have rebate offers, as do online stores like Amazon. Energy Star also has a large rebate program where consumers can submit qualified Energy Star purchases, such as appliances with the Energy Star label, for a rebate.

There are two main kinds of rebate discounts: instant rebates and mail-in rebates.

Instant Rebates

Instant rebates are generally advertised right on the package and are applied automatically at checkout. When you take your item to the register, the rebate amount will be deducted and you pay the final price. In the camera example, it'd ring up as $150, plus sales tax. See how it's instant?

Mail-In Rebates (MIR)

Mail-in rebates on the other hand, require that you pay for the full amount, before the rebate discount, and then get a rebate check sent to you after your purchase. In the camera example, you'd pay $200 first, mail in the rebate form, and then get a $50 rebate check sent to you.

There are a few things about mail-in rebates that you should be aware of so you don't end up paying more than you planned.

Sales Tax

Remember in the last example, I said you'd pay $200 and get $50 back for it later? Well even though the camera's "final" price is $150, because you're paying the full amount upfront, it means that you're paying sales tax on the $200. You don't get that back with your rebate.

Free After Rebate (FAR)

You might see a price tag that, after the rebate discount, is free. For example, a set of pens is priced at $10. It has a mail-in rebate offer of $10. That means the pens are free after rebate. That might seem crazy to you, but these deals happen frequently. But just like I previously mentioned, you'd have to pay the $10 first, which means paying the sales tax on that and you won't get back with the rebate.

Before You Buy

Before you buy whatever is advertised with a mail-in rebate, make sure to check the fine print. First, look for the valid dates. Rebates are for a limited time only. Just because you see it on a store ad or on the shelves, it doesn't mean it's currently valid. The rebate will always show the dates that the rebate is valid.

Also, rebates are only valid at certain stores. If you see a rebate offered at Staples, it doesn't mean that you can buy that same item at Best Buy and mail in a rebate form to get the rebate. Make sure you only get the item at the approved stores for the rebate.

How to Get Your Rebate

There are 5 steps to the mail-in rebate.

1. Get the rebate form. If you buy an item in the store, the rebate form should print out at the register. The cashier will give you your receipt, the rebate form, and oftentimes an extra receipt to include with the rebate form. If you buy the item online, the product page should have a link to the rebate form. Make sure to print out the rebate form or save the file right away, because once the deal is over the rebate link will no longer be there.

2. Check the deadline. There is always a deadline for sending in the rebate. It might give you a specific postmarked by date. Or it might specify a time period within your purchase. For example, it'll say that your rebate form must be sent in within 10 days of your purchase. Watch out for this if you're buying online. If the rebate offer has a time deadline for mailing it in, you might not even get your item before the rebate deadline has passed. You always need the item in hand before mailing in the form. And one last tip about rebate deadlines: even though the rebate is valid for a certain time period, it doesn't mean that the product will be available during that entire time. Products often sell out, and quickly, especially if they have good rebate offers--like those free after rebate deals.

3. Include your receipt. Make sure your receipt clearly shows the product and date of purchase. If you bought multiple things in the same purchase, circle the item that you're submitting the receipt for. Most of the time the rebate offer will ask for a copy of the receipt, so you don't have to send in the original. And usually the store will print out an extra receipt for you to include with the rebate. For online orders, print out your order confirmation.

4. Include the UPC sticker. Rebates will always ask for the UPC sticker. That is the bar code on the package. Sometimes you have to actually cut it out of the packaging. That is the trickiest part of filling out a rebate. Read the instructions carefully. Follow them to the letter. They might say "tape, don't staple." The instructions will also specify whether you should send the "original" or "copy" of the UPC. I've run into deals where there were more than one mail-in rebate for a particular item, and one rebate form will ask for the original while the other asks for a copy. If you mix them up, your rebate will be rejected.

5. Make a copy. Once you have all the pieces, make a copy for your records. That is important in case your rebate gets rejected or you don't get your rebate after 8-10 weeks.

A Few More Tips on Rebates

  • Online options: Some online sites will allow you to register, or pre-register a rebate form. That simply allows you to enter your information into the system and track its status. It does not mean you've completed the rebate process. You still have to fill out the paper form, include the required materials, and send it in.

Some stores have store-specific rebate options. For example, Staples offer an "easy rebates" program. If one of their products has an "easy rebate" label, you can submit your rebate entirely online, without mailing anything in. Keep in mind though that it has to specifically say "easy rebate" and the other rules (like buying within the valid dates and paying the full price first and sales tax on it) still apply. 

  • Returns: Because mail-in rebates require the UPC, keep in mind that you won't be able to return the item after you've submitted the rebate. Make sure that the product works and you really want it before cutting out the UPC for the rebate.

  • Processing time:It can take up to 10 weeks to get your rebate in the mail. If the rebate amount is high, you might want to consider whether you can wait for that money to come back.

Finally, in order to get your rebate you have to send them in. Lots of people, lured by the low price, buy the product but don't end up mailing in the rebate.

I hope this has helped clear up any confusion on rebate discounts. Next time you see a rebate offer, you'll know exactly what it means and how to get your rebate.

This has been an episode of Dealista’s Quick and Dirty Tips for Getting More for Less, brought to you by Wise Bread, a personal finance blog that helps you live large on a small budget.

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Until next time!