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Episode 32 is up - Rebates

by acedtect-20196213851867054973637995818137 / November 21, 2006 7:21 AM PST
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Tom sounds like a chipmunk
by RUGUNIT / November 22, 2006 1:41 AM PST

Anyone else getting this file in high speed when playing from the site, not downloading? On mine he sounds like one of the chipmunks...pretty funny...

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Chipmunks
by ron_r_08 / November 22, 2006 2:13 AM PST

Whats up with the high speed recording.

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ok
by aribeiro2 / November 22, 2006 4:13 AM PST
In reply to: Chipmunks

the file sounds ok to me...

and this episode finally gave me a good explanation about what the main reason of rebate is: the green!
if you don't come with a green explanation, it's not a good one!

you overprice a product, keep all the money and the interests for 3 months, and then give back the overpriced part of the price back to the costumer... sounds very reasonable to me!
sorry folks for spoiling the episode! hahaha

and the episode was short, but objective...

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One aspect that was overlooked
by abe-tolentino / November 30, 2006 11:42 PM PST

This might seem obvious, but it wasn't mentioned in the episode.

When purchasing an item that has a mail-in rebate, you are paying sales tax on the pre-rabate amount, and you don't get that tax back. I don't hold it against retailers, they're doing their job and have to report the sales tax they collect to the government, but I get steamed that on my net purchase price, I am paying a much higher sales tax, and it is one reason I carefully consider what items I will purchase with a rebate.

This might not seem like a big deal in the US, but in Canada, and Quebec in particular, the government double-dips on sales tax (they charge the GST first, then charge QST on top of the previously taxed amount, but I believe that Quebec is the only province so inclined to screw consumers). For example, if I see a product that is regularly $100 offered with a $75 mail-in rebate, I am paying $13.95 in tax on the $100, and not the net $25 cost. When looking at the final cost, I might only be paying $25, but I have to eat over 50% of the final cost in sales tax. If the product came with a $75 instant rebate, I would only pay $3.49 in sales tax.

One final point that will only interest Canadians: many rebates come from the US. We often see $75 rebates advertised, but the small print reads "$50 USD converted to $75 CDN". During the time that the rebate is processed, the exchange rate can shift, which affects the actual value of the rebate when you cash the check.

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