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Best Buy admits it: “Rebates Suck”

Posted By Barry Ritholtz On April 6, 2005 @ 6:36 am In Retail | Comments Disabled

Kudos to Best Buy for ending an inherently dishonest scam: Rebates.

"Our customers are telling us they just hate the process," General Merchandise Manager Ron Boire said during a conference call to discuss the earnings report.

He described that process as "they send it in, they remain aggravated until they get their check."

The rebates have aggravated regulators, too. Wisconsin consumer protection officials last year looked into the rebates after 89 consumers complained, and Ohio Attorney General Jim Petro sued Best Buy in August in part over complaints about rebates.

Boyer said the phase-out would happen over the next two years, as Best Buy shifts its promotional spending to programs like its "Reward Zone," where customers pay an up-front fee but earn points toward future discounts.

We’ve discussed this in the past [1], including my own sordid saga [2]. Note also that with this entry, we add the category "Retail."

Hat Tip to: Division of Labour [3].
http://divisionoflabour.com/archives/000997.php

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Sources:
Best Buy to End Rebates, Reports Earnings [4]
Joshua Freed 
The Associated Press, Apr 1, 2005 
http://ap.tbo.com/ap/breaking/MGBEYLMO07E.html

Best Buy to End Rebates, Reports Earnings [5]
http://biz.yahoo.com/ap/050401/earns_best_buy.html?.v=9


Article printed from The Big Picture: http://www.ritholtz.com/blog

URL to article: http://www.ritholtz.com/blog/2005/04/best-buy-admits-it-rebates-suck/

URLs in this post:

[1] past: http://bigpicture.typepad.com/writing/2003/07/cbs_marketwatch.html

[2] own sordid saga: http://bigpicture.typepad.com/writing/2003/08/more_rebate_non.html

[3] Division of Labour: http://divisionoflabour.com/archives/000997.php

[4] Best Buy to End Rebates, Reports Earnings: http://ap.tbo.com/ap/breaking/MGBEYLMO07E.html

[5] Best Buy to End Rebates, Reports Earnings: http://biz.yahoo.com/ap/050401/earns_best_buy.html?.v=9

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