Many Happy Returns (and Rebates)

At C-L, we obsess about finding savings. As such, few things make us sadder than when people fail to redeem rebates, or don’t do returns on time.

Rebates

Amazed at the great rebate deals at Staples?  Wondering how your Newegg purchase can really be free after rebate? After all, there are no free lunches, so what’s up?

First and foremost, many people won’t return rebates at all – either they forget, they lose the receipt or UPC code, or they don’t act by the mailing deadline (often 30 days after purchase).  If you aren’t redeeming the rebate, you likely paid a lot more for a product than you otherwise would have, because it was the rebate that enticed you to buy it in the first place.

Other rebates are designed to get you hooked on a product. This is often seen with computer anti-virus software. They entice you with a ‘free after rebate’ offer.  Worst case for the company is that they rebate you the money, but you now have it on your computer and are much more likely to upgrade to next year’s version. Best case for them is that you forget the rebate, but install the program anyway.

Returns

Sometime over the last few years, return policies have gotten stricter. 14 to 30 days is now the norm for many companies for a refund or exchange. Some may give store credit for up to 60 or 90 days, but that’s not guaranteed anymore (I’m waging my finger at you Target!).  Other stores, ranging from electronics to furniture stores, charge restocking fees of 20% or more. Others, like Costco, do not. But it’s not hopeless – some have even improved their return policy (Apple, for instance, accepts returns on engraved merchandise and extended their usual 14-day return policy through January 9 for all holiday purchases; Best Buy ended their 15% restocking fee on regular merchandise last year).   The point here is that stores are changing their policies, and your expectations around what is returnable, how, and when may differ markedly from current policies. Vigilance!

Tips

Procrastination is the archenemy of returns and rebates. The clock ticks down, the receipt gets buried further in a stack of papers, and soon you are out of luck.

For C-L members that have found timely returns challenging in the past, we have advised putting items into physical piles based on where they will be returned (for instance, grouped by a specific mall, or packages going through the UPS store). Then, block off a time slot after work or on Saturday morning to do that bunch of returns.  Keep the piles in a visible place, so you are constantly reminded.  If a return is particularly timely, put it on your car seat the night before you are to return it, or next to your coffee maker.

For rebates, we suggested carving out time to do all rebates at once (realizing it tends to be within 30 or 60 days of purchase, not from the time it was given as a gift).  Keep copies of everything submitted (including the addressed, stamped envelope) and put a reminder in your calendar for 2 months ahead (or whenever the estimated turnaround time is) to make sure you received your rebate.  I can’t stress this enough. Twice in the past five years I’ve had companies insist they never received my rebate submissions, but they honored it once I produced the copies. Most rebates will allow you to select a check rebate as opposed to a store gift card or pre-paid visa card.  Look for the alternative option, and choose the unattached cash.

Bill Varettoni is a financial planner and the founder of Community Ladders.