Thank God, it's about time. Say what you will about Best Buy but they do get a good many things right.
Retailers' love affair with mail-in rebates may be coming to an end.In response to customer complaints, Best Buy Co. Inc., the world's largest electronics retailer, promised Friday to eliminate mail-in rebates within two years. Best Buy's rivals, including Circuit City Stores and CompUSA, are expected to follow suit.
"Our customers are telling us they just hate the process," said Ron Boire, executive vice president and general merchandise manager at Best Buy.
It remains to be seen, however, whether the decision will translate into better deals for consumers. By eliminating the promotion, consumers may end up paying more for certain products than if they received the rebates, Baker said.
"If you don't do a rebate, that gives the retailer and the manufacturer money to spend in other ways," Baker said. "It doesn't necessarily mean more money back to you."
Yet most analysts said they expect Best Buy to drop its prices to compensate consumers, and that will force other consumer-electronics retailers to eliminate their mail-in programs.
"I can guarantee you that there are five executives in a room at Circuit City trying to figure out what to do next and when to do it," said McGranahan of Sanford Bernstein. "If they're smart like Best Buy, they will realize that there are probably other promotions that would be a lot more effective and less frustrating."
