Many people browse through their local Best Buy circular looking for deals on gadgets and electronics (or you can go
here and see all the circulars for your region at once). Often a price will look amazingly low and you rush off to the store only to find that the you neglected to read the small print to see that the price is AFTER REBATE!! Ugh.
Much like prices ending in .99 to make things seem cheaper ($249 equates to $240 and not $250 for some reason), rebates have long been used by retailers to entice users to make a purchase that would otherwise be out of budget. The rebate normally requires you to mail in your entry within a specified (and typically obscure) time frame, include receipts, UPC symbols, a filled out form, return postage (sometimes), headshots of your first cousins, your foot size, a fresh baked cookie, and a urine sample. Fine I made up that last stuff but oftentimes the rebate form is made deliberately difficult to deter people from sending them in, or to cause confusion and errors so the manufacturer is not obligated to send any payment back. On top of that, the time between when you mail in your request to when you receive payment is juuuuuuust long enough (6-15 weeks) so that you have forgotten about the rebate altogether. Thus if you never get anything back you don't care because you've forgotten anyway!
I regularly read
slashdot (it's a tech/nerd blog) and recently saw a story regarding Office Max and how they would cease using mail in rebates. According to
the story MIR's (mail in rebates) were the number one complaint they got from customers so they decided to act on it. Best buy is reportedly going to drop rebates as well. The new prices will include any rebates or offer in-store rebates. Slashdot linked to a website/blog called rebate roulette which in turn linked to ZDnet news. This illustrates the way news spreads through the proverbial blogosphere. Share a customer experience and it's "headline"' news to the masses.
The Rebate Roulette website was really interesting in that it offers a forum for people to discuss their rebate experiences in dealing with different stores and websites. The slogan for the site is "Get your rebates, not thee shaft". In browsing the site you can see they have overall ratings for retailers and e-tailers. Best buy has a
4.5 star rating (out of 5) which indicates they are fairly honest and quick with their rebates. Cingular on the other hand has as
1.5 star rating indicating that the users weren't too happy with their experiences. Granted only 2 people submitted reviews for Cingular, the data may not be accurate. The site does encourage users to submit good and bad experiences so that the data is not skewed one way of the other. It is easier to complain than compliment right?
The website is a useful tool for businesses to get a good idea on the perception of their company and their rebate services. There are other retailer review sites like
bizrate and
epinions but I was focusing only on the rebate experience aspect. All these forums are a good way for management to step down from their ivory towers and see how regular users perceive their businesses. It's true that bad news spreads quickly but retailers with good ratings get positive word of mouth and develop very positive online reputations. I myself have spread the gospel of
newegg.com (PC accessories) and
monoprice.com (high end but cheap AV cables... NEVER buy Monster cable!) since the service, speed, and integrity of those stores has impressed me so much. I, in turn, heard about those stores from other users.
In short, it's a good idea for companies to use these review and rating websites to see how they actually perform compared to what their self perception is. I guess the next step would be for social networking sites to offer "personal reviews" so that people can rate and review their friends! Surely I must be worth 5 stars.... :)