As many of you may know, the rebate system is based on the idea that most folks will not get around to filling out a rebate form, or will fill it out improperly. Estimates run that 60% or more of people don't get their rebate. In some cases, the companies do everything they can to not redeem, some are even accused of illegal behaviour. Some companies are rumoured to be rejecting all rebates then only redeeming to those people who complain.

What this means of course is that they can give a very attractive rebate, in many cases selling the product below cost. We've seen rebates for the full purchase price in some cases.

Now this is actually good for you if you are very good at getting rebates back, because you get to buy a product below cost, subsidized by the people who aren't good at getting the rebates back, who ended up paying an above average price. It's a form of differential pricing. Those who care get a lower price, those who are richer and care less pay more.

So is the time ripe for a company that, for a fee, will do your rebate paperwork for you? Of course, you would still need to cut off the proof of purchase, check over the rebate for any special requirements (like signatures or serial numbers not found on the proof of purchase) and stuff them in a preprinted envelope, and get it to the post office in time to make it to the rebate paperwork house in time for them to mail it in to the vendor. (Not really the vendor, but the vender's outsourced rebate house.)

I imagine you would pay something like $5 plus some small fraction of the rebate, charged on your credit card, and refunded to your credit card if you don't get the rebate. That seems like a lot for what should be a few minutes work, but if you factor in the time required to fill out forms carefully, print envelopes, copy receipts and other items, and get to the mailbox, I think it's not out of line.

Of course for the rebate facilitator, they are even more efficient. They have all your relevant info on file, filled out in a web form. They have all the popular rebates similarly encoded and scanned. They can either automatically print out a rebate form with your info clearly filled in, or they can print a custom sticky label with your info and apply it to the original if the original is needed.

They can copy the receipts and scan the proof of purchase. And then mail them out at bulk postage rates to the rebate center, or even have staff who hand deliver them to the major rebate centers in certain cases if volume is high enough.  read more »