Playing the Saving Game by Using Rebates, Promotions, Conditional Trials and Coupons

There are various ways for consumers to save money on almost everything they buy. Some of these money-saving methods are buying products that are attached to rebates, accepting a trial offer, looking for promotions and using coupons. Nowadays, there are multiple sources for these money-saving methods: online, printed circulars, in-store and point-of-sale locations, and mail. If you’re willing to learn the rules of the game, you might enjoy being a player – and save some money as well.

Banking the Rebates

Rebate offers abound on consumer products, especially electronics. They work in two ways: either cutting the price of consumer goods at the time of purchase with instant cash rebates that can be redeemed immediately at the checkout counter or promising partial or full reimbursements after the purchase, which are usually of the mail-in variety. Mail-in rebates require consumers to pay the full cost of an item at the time of purchase, then send documentation to the manufacturer or retailer to receive a rebate by mail.

If the rebate is a mail-in process, the consumer is required to send in the original sales receipt, UPC code from the original packaging, rebate slip provided by the retailer, and the customer's name, address and telephone number.

In most cases, this paperwork must be sent to the manufacturer or retailer within 30 days of the purchase. Consumers generally receive their rebates up to 12 weeks later. Do note that, by law, companies are required to send rebates within the time frame promised, or if no time is specified, within a "reasonable" time, which is often interpreted as within 30 days.

When purchasing a product that offers a rebate, the Federal Trade Commission encourages consumers to:

• Follow the instructions on the rebate form and enclose all required documentation in the envelope when filing for a rebate.
• Make a copy of all paperwork to be mailed when applying for a rebate. It's the only record a consumer will have of the transaction if anything goes wrong.
• Contact the company if the rebate doesn't arrive within the time promised.
• If the rebate never arrives or arrives late, file a complaint with the Federal Trade Commission, the state Attorney General or the local Better Business Bureau.

Conditional Trial Offers

Companies use “free trial” offers to sell a variety of items, including but not limited to books, recorded music and movies, magazines, hosiery and Internet access. For consumers, trial offers can be a great way to try new products or services inexpensively and without making a long-term commitment to a membership, subscription or extended service contract.

Companies must state if any conditions are attached to the deal. While companies may claim its free trial offer has no risk or obligation for the consumer, this often means the consumer must take timely action within a specified period to avoid future obligations. For example, you may have to contact the company to cancel during the trial period to avoid receiving additional goods or services or to pay for what you've already received. By not canceling, you may be agreeing to allow the company to enroll you in a membership, subscription, or service contract, and to charge the relevant fees to your credit card.

Here are a few examples of conditional free trial offers:

• A company offers you an introductory package of products. If you accept the offer, you may be agreeing to enroll in a club that will send you the products on a recurring basis and bill you until you cancel.
• A company offers you the first three issues of a magazine for free. Unless you cancel after receiving the third issue, you may be agreeing to a one-year subscription that is automatically renewed each year.
• A company offers you free Internet service for 30 days or 700 hours, whichever comes first (30 days = 720 hours). Unless you cancel within the 30-day period, you may be agreeing to pay for continuous Internet service.
• A company offers you a free pair of stockings. By accepting the offer, you may be agreeing to receive a second pair as well. You also may be agreeing that, if you keep and pay for the second pair, the company may keep shipping you pairs. This may continue untilyou tell the company to cancel your account.

Saving Money with Coupons and Promotions (Online and Offline)

Coupons and discount offers can be found in the mail, in stores, as part of other clubs or service companies with which consumers are already affiliated (known as relationship or affinity marketing), and online. For hard-copy coupons, clip them carefully, making sure not to cut the UPC code or mar the expiration dates. Be sure to check the fine print for any restrictions and the expiration date.

Online, some web sites specialize as clearinghouses for coupons and promotions from scores of retailers and manufacturers. Offers come in many varieties such as free shipping, 75% off orders of “items of the week,” $10 off orders of $100 or more, 15% off any order, 10% off orders of $50 or more, special clearance items and overstocks, one- and two-day sale items.

Some of the sites specializing in coupons and discounts offer “deal alerts” for which the consumer can register. These alerts of the latest coupons and deals are emailed to the consumer based on keywords the consumer enters. The consumer can select when it’s best to receive the updates as well, such as daily or as soon as they become available.

On these sites, coupon offers fall into two categories: link-only deals and code deals. Link-only deals are when the consumer clicks on the discount link and will usually be brought to a page on the retailer's site detailing the offer. The offer should be automatically reflected at checkout.

The majority of offers, however, are code deals. To redeem a code deal, first click through on the discount link. Usually you will not be brought to a special page, but instead to the retailer's home page. Shop as you normally would but keep in mind that the discount is not automatic - you will need to enter the coupon code you found on the clearinghouse website.

Most sites prompt you to enter the coupon code during the checkout process; however, some give you the opportunity to do so earlier. Coupon codes are entered differently on every site, but in general you should look for a box marked "Coupon/Discount" or "Promotion Code." Once you enter the coupon code, the discount should be reflected as you continue the checkout process.

However, don't finalize any order without first seeing confirmation of the special offer or discount in the checkout process, unless you are willing to pay the stated price. Should you run into a problem and need to cancel your order, call the site's customer service right away. Don't e-mail a cancellation request or click another link or go to another page, as it may immediately complete the transaction.

As with any retailer transaction, note that shipping charges vary greatly from site to site. Take this into consideration when comparing deals and prices.

Since the object of using online clearinghouses is to save money, note that sales taxes will be charged only if the merchant is based in the same state in which you reside. Savings on in-state sales tax can be a significant savings when purchasing expensive products. Check the merchant's address in the "About Us" section of their site and compare with other offers. It makes no sense, for example, to utilize a 15% off coupon if you’ll be charged a hefty shipping charge and a, perhaps unnecessary, sales tax.

Source: Omni Financial®