I’ve noticed more American-style “cashback” offers creeping into Australia catalogues recently. Most commonly, they’re attached to $850 laptops, which come with $100 cashback, to bring the laptop price down to $750.
Why can’t they just sell the laptop for $750? Can someone with some marketing knowledge explain to me what the benefit of making the consumer pay more for something that should cost less is?
I have read that manufacturers count on a certain percentage of people not redeeming their cashback, but surely that can’t be the only reason?
(Aside from my gripe about cashbacks, I must say it is AMAZING how good the $750 laptops are. Officeworks has a Compaq one on the front of its latest catalogue which is a 15.4″ widescreen, 60GB hard drive, 512MB RAM and CDRW/DVD combo drive. The only downer is the Celeron M 1.73GHz CPU, but that’s adequate for running XP and doing office tasks.)