March 21st, 2008 by john 
in Categories: 
In this post, I will give you three real life examples of why you should bother to register for rebates. And, I will also share how our family combines multiple discounts to maximize the bang for our purchasing buck. Ready? Of course you are!
How many times have you been enticed into purchasing something because of a nice fat mail in rebate? After tearing open your new prized possession, the rebate quickly fades into oblivion. Sound familiar. You’re not alone. That’s why manufacturers do mail in rebates. They get the psychological benefit of a great sale, without having to pony up. It’s a Vegas-esque numbers game, with the “house” favored to win. They know that the majority of consumers will not follow through to get the rebate. Don’t be a statistic. Well if you want to be a statistic, don’t be part of that statistic. Capiche?
Painting Project
My first example is from August 2007. We decided to do some room painting and needed about 10 gallons of paint. We purchased 5 one gallon cans and one 5 gallon can. The total purchase price was $228.97. We got 1% cash back from our rewards credit card. That’s $2.29. We received $50.00 in mail in rebates. The rebates were mail in and took about 15 minutes to complete.
Purchase Price: $228.97
Less
Rewards Card: $2.29
Rebates: $50.00
Total Savings: $52.29
Total Purchase: $176.68 A 30% Savings
The rebates arrived in about 5 weeks and we promptly paid our credit card.
Back To School
Next up is from December 2006. My wife enrolled in on line courses to complete her Bachelors Degree. Ten more classes and she done, yeah! Anyway, she needed a laptop for school. So after doing my usual comparative shopping I settled on a brand, price and store. We ordered the computer online, shopped through Upromiseand paid with our Chase rewards card. The notebook was on sale for $789.00 ($140.00 off original retail) with free shipping. We got 3% cash back from Upromise. That’s $23.67. We got 1% cash back from our rewards credit card. That’s $7.89. And finally it had two rebates totalling $200.00. The rebates were online and took about 5 minutes to complete. So let’s add this up, shall we?
Sale price: $789.00
Less
Upromise: $23.67
Rewards Card: $7.89
Rebates: $200.00
Total Savings: $231.56
Total Purchase: $557.44 A 29% Savings (60% off original retail)
Oh and I almost forgot, we paid for the laptop with her school loan, so the interest is tax deductible. 
The rebates arrived in about 6 weeks, which we promptly paid to her school loan.
The Mac-Daddy
And my last example is from November 2007. Our refrigerator and dishwasher decided to collaborate together and start acting up at the same time. We purchased both in 1994 and decided to purchase new rather than gamble on future repairs. I visited several local stores, found the appliances with the features we wanted and of course, on sale. I then went home, ordered them on-line, through Upromise, using our store charge card. AND I had a special online voucher for 10% off. The total purchase price $2477.96. This included free delivery, free haul away of old appliances and a 5 year on-site maintenance contract on both the refrigerator and dishwasher. We got 4% cash back from Upromise. That’s $99.12. We saved 10% before taxes. That’s $235.40. The mail in rebates totaled $271.00. We put the purchase on the store card which had 0%, no payments for one year. Two weeks later, both items went on sale for Thanksgiving for $150.00 (both together) less than we paid. I called the store 800 number and they credited $150.00 right to the charge card. So let us look at this little gold mine of savings.
Sale Price: $2477.96
Less
Upromise: $99.12
10% Coupon: $235.40
Rebates: $271.00
Sale Match: $150.00
Total Savings: $755.52
Total Purchase: $1722.44 A 31% Savings (36% off original retail)
Once again, this rebate was completed on line, with minimal paperwork to mail in. We received the check in about 4 weeks, which we promptly applied to the credit card.
I’m not making this up folks. It’s not rocket science. Anyone can do this. With just a little planning and time on your part, you can achieve HUGE savings. In my appliance example, I have about 7 hours invested in that entire transaction. That includes my comparison shopping, online ordering, waiting on a Saturday for delivery, filing out the rebate information and calling to get my sale price match (this took 15 minutes). I had a total savings of $755.52. So, you could look at it like a was paid $107.93 per hour for my time spent. Not bad!
I want you to take note of a few things. One, I usually try to buy on sale. Two, I try to combine some other offer, a coupon, rebate, etc. Third, I always take the savings and pay back my payment vehicle. (credit card, school loan) And fourth, but a very important part of my savings strategy, I ALWAYS, try to shop through Upromise website. To date, our savings since January 2003 is $1442.99. That’s not small potatoes!
AND, most important of ALL, is take the time to fill out the rebates or you will certainly pay much more than you had convinced yourself your purchase would cost.
Disclosure: I have been a member of Upromise since January 2003. I became an affiliate in February 2008. If you decide to sign up with my link, I will be paid a small pittance. This would be much appreciated as I have a self hosted Wordpress site and do have EXPENSES associated with the running this blog.
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{ 4 comments… read them below or add one }
Nice entry =) Thanks for sharing your experiences and providing details of your savings so systematically and clearly. Companies offering rebates for their products are just tapping on the “lazy” nature of some people to earn more money… Jamie has had some experiences – submitted one for a Dell computer ($200 rebate), a pretty significant amount don’t you think?
Yup, as the saying goes, a puddle of water begins with a single drop. Every little savings, when accumulated, can make a big difference at the end of the day… and your post serves as a good reminder to everyone, including Jamie. Thanks dude! =)
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Hi Jamie – Yes, $200.00 is outstanding! I am glad to hear you have taken advantage of manufacturers rebates. Many people do not. I have heard several people say that you never really get the money after filling out the paperwork or that it takes months to get your check. This has not been my experience. If you don’t mind, how long did it take to get your money?
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Hihi John! =) It took between 2 to 3 weeks for Jamie to obtain the rebate. Reason being Jamie had to post her request to Malaysia (where Dell’s office is located) even though she is staying in Singapore. If Jamie is right, Dell has since factored the rebate in the form of reduced prices. Jamie thinks it’s because of high overheads incurred just to set up a department to process the rebate requests, and this rebate “methodology” seems to negatively impact Dell’s reputation. =) Perhaps consumers do win the war at the end of the day? =)
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Hi again Jamie – Wonderful insight! I think it’s great that you received your rebate in 2-3 weeks, especially considering Dell’s situation that you described. In any case, that’s not too long to wait for $200.00 in my book! And you are absolutely correct, in that consumers have definitely won the war in the computer and electronics arena. I am amazed how much prices have continued to decline over the years. I read somewhere that if the automobile industry had gone the way of PC’s you could buy a BMW today for $1000.00! It’s a beautiful thing!
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