In spite of their many hassles, mail-in rebate offers are on the rise. They are nearly ubiquitous at retail stores: $50 off a new printer, $2 off hair-care products, $10 off a case of motor oil.

Yet, according to Boston-based research firm the Aberdeen Group, only about 40 percent of buyers actually get the rebates for which they qualify. Additionally, Aberdeen estimates that 40 percent of rebate forms never get mailed, and 20 percent more of the forms are disqualified, such as those that arrive without all the required documents.

For most everyone, rebates are a love-hate relationship. Consumers like the discounts rebates offer. Retailers and manufacturers like the boost in sales. Nobody likes the paperwork. And retailers hate being blamed when a manufacturer's rebate goes sour. The guidelines for rebate programs create a tremendous burden on retailers, manufacturers and consumers alike.

Generally, however, lengthy rebate qualifications are necessary to protect against fraud, and as long as all parties eventually get the money, rebates will continue to rise as a popular sales incentive.

(May, 2004)