An American industrial complex adopts an innovative method to turbocharge profits for a slew of intermediaries while making consumers believe they are getting the best bang for their buck.
Intermediaries “negotiate” discounts off manufacturer’s selling prices but which are not realized until the product is sold at the retail level. “Sure, happy to negotiate prices with you! Just tell us the amount of the discount you need and we’ll make it happen” says the manufacturer, “Why don’t we double our price, then discount it 50% but only after you can provide proof of purchase at the retail level.”
This is just like in the old days when we used to scrounge around the neighborhood looking for discarded Coka Cola bottles which we could redeem for 2 cents each at the local food store.
Unfortunately this doesn’t happen in today’s rebate world. Consumers can no longer do what we used to do as kids, proving de facto proof of purchase in return for lucrative 2 cent rebates.
Imagine, for example, taking your empty prescription bottle back to the pharmacy and getting back 50% of what you paid for it. Wouldn’t that be cool!
Instead consumers are forced to trust intermediaries to do that for them. “We pass 100% of all rebates back to you!” they say.
How kind…………….
