Getting rebates can be tricky

Ken Johnsen handled nearly 40 million rebates this year, but that's normal for him.

As the CEO of Parago Inc., one of the nation's largest rebate processing centers, Mr. Johnsen works to see that every customer who sends in a form, receipt and UPC symbol gets the $3 rebate.

"The main reason (manufacturers) offer (rebates) is they are able to give a larger discount to consumers that are willing to do a bit of work," he said.

Companies are increasingly turning to rebates as a way to discount prices to customers and improve sales.

"Manufacturers know consumers are concerned about price," said Ellen Tolley, a spokeswo­man for the National Retail Feder­a­tion. "If their item is $25 or $100 cheaper, more consumers might be more inclined to buy their product."

But unlike straight discounts, rebates give manufacturers the ability to control how many items are sold at the lower price.

"Some manufacturers want to assure they only give a discount to a certain number of consumers, like offers for only one per household," Ms. Tolley said.

On computers, for example, rebates often are valued in the several hundred dollar range, and computer manufacturers and retailers don't want to reduce the price on every computer they sell.

Manufacturers and retailers also know that not every rebate will be redeemed, meaning the seller still gets full price for the item.

Mr. Johnsen said the number of rebates sent in increases in proportion to the rebate.

"More people mail in a $100 rebate than a $3 rebate," he said.

According to Consumers Union, the company that prints Consumer Reports, about 40 percent of rebates are never submitted and an additional 20 percent are denied because the consumer didn't properly follow the directions, such as including the UPC bar code from the item ' s original packaging.

"Many people will buy an item, throw the box away and then sit down a week later to do the rebate," said Paul Richard, the executive director of the Institute for Consumer Financial Education.

Reach James Gallagher at (706) 823-3227 or james.gallagher@augustachronicle.com.

Getting your rebate

Here are some tips for ensuring you get your rebate:

- Follow the instructions carefully. Be sure to include all required documents and fill out the form neatly and completely.

- Make copies of all paperwork, in case the rebate is lost.

- Contact the company if the rebate doesn't arrive within the promised time.

- If the rebate never arrives and the company is unwilling to work with you, file a complaint with the Federal Trade Commission online at www.ftc.gov or by telephone at (877) 382-4357.

Source: Federal Trade Commission