A rebate is a form of buying discount in marketing, which is an amount paid by way of reduction, return, or refund that is paid retrospectively). It is a type of sales promotion that marketers use primarily as incentives or supplements to product sales. Rebates are also used as a means of enticing price-sensitive consumers into purchasing a product. The mail-in rebate (MIR) is the most common type of rebate. A MIR entitles the buyer to mail in a coupon, receipt, and barcode in order to receive a check for a particular amount, depending on the particular product, time, and often place of purchase. Rebates are offered by either the retailer or the product manufacturer).
Rebates are widely used for advertising sales in retail stores, and can be especially appealing to price-sensitive consumers by increasing their willingness to pay. For example, an item might be advertised as "$39 after rebate" with the item costing $79 out-the-door with a $40 rebate that the customer would need to redeem).
Rebates are also used in the automotive industry, where a vehicle rebate is a discount provided by the manufacturer to qualifying buyers. Unlike a discount, which indicates a percentage off, rebates are typically expressed as a cash amount. Because rebates are offered at the manufacturer level rather than the dealer level, you can go to any dealer that sells that type of car to take advantage of a rebate offer. Rebates are most commonly offered by mass-market car manufacturers, such as Honda, Chevy, and Ford.
In summary, a rebate is a type of discount offered by a manufacturer, distributor, or retailer that is paid retrospectively. It is often used as an incentive or marketing tactic to attract customers and can benefit both buyers and business owners or manufacturers.
