Rebates are an amount paid by a manufacturer by way of reduction, return or refund on what the consumer has already paid.
It is a type of sales promotion used as an incentive or supplement to product sales.
Rebate programs are designed to encourage customers to purchase an item while off-setting the discount applied until a later date. Rebate programs continue to gain in popularity, some companies even base their entire sales strategy on the premise that a solid rebate program will allow it to offer lower prices, hence obtaining a competitive advantage.
Another marketing strategy to increase product sales is to setp an instant win game. As opposed to rebate programs, instant win games offer an incentive (the potential to win) as opposed to a discount.
You may promote your product with a $24.99 price promotion. However, the consumer actually pays $29.99 at time of purchase and receives the $5 off when they mail in a rebate form to you.
This is a way of measuring who is buying your products, from where and when. In addition, it may provide you with specific information on the consumer.
Budget: $250 - $750 monthly