CyberRebate: Trust it?

[sunshine]

Is CyberRebate a big come on? Can I trust it? Do they give you everything you need to get your dough back? Does it take forever to get your $$$?

[Auspexian]

Yes, it takes like 2-3 months to get your $$$ back.
Just think of it as a loan, you get the product
instead of interest :-))

Otherwise, we ordered a couple of items, all
got rebated.

John

[WhiskeyPapa]

Yes, they really do send you your money back, but it takes forever. My last rebate took 4 months. At least their web site keeps you informed about your rebate (it even tells you the date to expect your rebate.) But in my opinion, it's not worth the hassle.

At the rate dot-com businesses are going in the tank, I wouldn't want any internet company holding my money for 16 weeks.

[beckett]

fuggeddaboutit. these guys have had my money for about 4 months and i still haven't seen a cheque back. plus they have greatly jacked up prices lately. 70 bucks for 5 pens? even if they ARE suregrips...

just pass on the cyberrebate people and spend your dough on something else.

[Jnmcda0]

"At the rate dot-com businesses are going in the tank, I wouldn't want any internet company holding my money for 16 weeks"

Actually, I think Cyberrebate's business plan might be a stroke of genius. If they charge much higher than normal prices and keep your money for 4 months, then they can accrue a tremendous amount of interest on the money before they give it back to you. They make a ton of money, you get the product for free (or at whatever the rebated price is).

Maybe this will catch on to other industries. You could buy a car that would normally go for $16,000 for $40,000, then after 4 months, the dealer gives you a $35,000 rebate and you get the car for $5,000. Or you could do it in monthly payments ($600 per month, but then a $500 rebate per month after the 4th month).

[sunshine]

Thanks for all the input!

[sunshine]

For a $100 purchase:

About $3.00 cost for credit card processing (I'd expect most Internet merchants pay more)

About $0.50 interest from the purchase per month * 4 months
= $2.00 interest revenue

My guess is they're making their dough on the "breakage", the percentage of buyers who don't get their rebates in at all, on time, etc.

If they give away a product you can get for $25 somewhere else, then it would look like this:

+$100 purchase price
+$ 2 interest revenue
-$ 3 credit card processing
-$ 15 cost of the item
-$ 80 rebates (20% breakage -- which I think is low)
-----
+$ 4 profit margin

I'd bet they really get as much as 50% breakage...

Even so, it's a tough business model!

[FrozenDook]

This discussion popped up previously...CyberRebate really isn't making money right now; hence the increased prices. Remember when they had the cybermouse going for $300? That is insane. Prices used to be normal before the rebate and now they are 5x. I would advise against going there anytime soon...if they do crash and burn your rebate may get caught in the mix.

[beckett]

Rebates work on this breakage model, but i dont' know if a lot of people fail to file their rebates in time for cyberrrebates. i mean, the whole REASON people get those 100% off products is because they get them for "free". i would think that way more than 80% of people that shop at cyberrebates get their rebate forms filled out in time. actually, with the crap that's going on in florida, it's probably a miracle that half of us fill out that form correctly (:

[Sumgai]

I bought 3 of the IBM keyboards for $69 and got all 3 rebate checks last week - took 10 weeks to get my $$$.

[johnnymk]

The winter issue of Yahoo Internet Life just wrote a stinging article about them. They gave them a 2.5 rating out of 5: Long waits, some people calling numerous times to get their rebates, lousy service. With the way dotcoms are failing, I sure wouldn't hedge my bets waiting several months for a check from them

[reron]

hmmm.. have to agree on that one.. i always wondered why they did rebates.. but making money on interest is the only reasonable explanation! I passed up on buying anything from there..

[SmokinToilet]

uh... are they still alive?

when I go to cyberrebate.com, its gives me a
"Please Try Again Later"

thats scary... I have pending rebates....

SmokinToilet

[decon]

It's been 3 months since I sent in my rebate. On the website it shows "received", but when you click on received it says still requires 8 to 12 weeks afte they receive it!

I'll pass on cyberrebates in the future.

Remember that ridiculous price for Who Wants to be a millionaire?

[AH3000]

reron:

What's wrong with you? Smoking too much crack? Some people, like Sunshine, have gone to some trouble, using their critical thinking capacity, to reason and try explain how CR makes money. If you would read their posts it would be very obvious that they DO NOT MAKE THEIR MONEY FROM THE INTEREST!

Read, think, re-read, think some more, then post.

Sunshine: Your figures are correct but you also need to factor in many other assorted costs: Shipping, handling, packaging, marketing, web maintainance, office space, advertising, cost of proccessing rebates, etc., etc. I have no idea what their "breakage" factor is, but it's my guess that quite a few folks don't ever bother applying for the rebate. If that's not the case, we'll be hearing their death throes soon enough.

FrozenDook: On what do you base your assertion that CR isn't making money now? Or is that just a wild gues on your part? If so, say so.

BTW I've done several orders with CR, and have received every rebate. Usually within 13 weeks. Total amount of orders is north of $3500. I'm giving a ton of toys to a local kids charity this Christmas.

There have been a couple of problems, but they were both resolved to my satisfaction.

If you do order from them, go through ****** or Dash and pick up an extra 5%.

[Edited by AH3000 on 12-04-2000 at 10:02 PM]

[reron]

A-hem.. speak for yourself.. "breakage" I think was meant in terms of making money (through interest perhaps)off of those individuals who did not mail-in for the rebate.. (mentioned in a post already).. I'm sure that your $3500 you've spent has accrued quite a bit of INTEREST in a high money market account for 13 weeks! Cyber-rebate could be earning money this way.. although I do not know the exact details of their operations, I am merely speculating..

so.. let ME SPECULATE SOME MORE! And it is a known FACT that a majority of the internet companies today are losing money.. that's right (surprise!), NOT making a profit, and operating off of either private funds (easily exhaustible) or money from their IPO (which many companies don't have much of, or even go consider going public). So... until their profits (which are probably negative) dip below their fixed costs... they'll still be in business!

And apparently, you have yet to provide your own explanation. Why refute when you yourself cannot justify and explain?

We never said they sucked, we just don't like the idea of getting our money back 13 weeks from now!

[rcastillo]

Personally, I am so far ahead of the game with CyberRebate.com that I can afford to lose any outstanding rebates I have. If I were a first timer, however, I think I'd be nervous. As it stands now, I only buy things I can actually use, such as an electric can opener or Palm Case. No more laser pointers or multi tools for me!!!

When the rumors started, I had about $300 in outstanding rebates, then I suddendly got a bunch of checks at once, as it typically does. then the rumors intensified, to the point that I was afraid the checks were going to bounce when I cashed them!

Nevertheless, I will continue to take my chances and shop there till they go bankrupt. I'll just wait for my next rebate check to come in before I purchase my next item, and it sure ain't gonna be a $200 mouse or dinosaur puzzle.

[sbp]

Hey everyone I got this beer can you can (ha) buy for $100. You'll get your money back in 10-12 weeks. http://www.geocities.com/sbp7777/files2/tflol.gif

Act now and you'll get the whole 6 er 5-pack for a mere $400. What a bargain!
http://www.geocities.com/sbp7777/5of6beer.jpg

[INeedAVacation]

the prices are extremely steep right now but IT IS CHRISTMAS ya know! This should be their busiest time of the year. I have spent thousands of dollars at their site and have done most of my Chrsitmas shopping through them (there are a few pretty nice items on their site like the breadmaker and remote control tank and tent, etc.) I will continue to do business with them after receiving more of my checks back. Currently I am waitting for about $8,000 or so to come back to me. They are making money off the interest no doubt but at the same time I am making 5% back from ****** on the same money since my daily percenatage rates on my credit cards are less than 5%. I am a genius.....unless they go out of business before I get my checks back.