1. boldman4's Avatar
    RIM shipped just 200,000 PlayBook tablets last quarter, lower prices coming – SplatF

    Hey RIM, just lower the price already. Don't give us this BS about rebates. Jeebus.
    09-15-11 04:38 PM
  2. TheScionicMan's Avatar
    Because RIM doesn't have control of the retail end of the chain. If they were sold in RIM stores, they could do it. They've already sold these units to the stores, the stores sell them for the price they want. RIM can offer the consumer a price break, but not through the retailer.

    It's simply business, not a sneaky tactic...
    09-15-11 04:46 PM
  3. Economist101's Avatar
    Rebates help to limit the incentive to people that really want it. To be fair, if someone can't be bothered to process their own rebate, then obviously the rebate wasn't all that meaningful to them. Yes, a straight price cut would be more convenient, but a rebates do a better job of matching the incentive to the buyers truly interested in it.
    09-15-11 04:46 PM
  4. boldman4's Avatar
    HP seemed to have managed the price drop (the initial $100 drop) without rebates.
    09-15-11 04:52 PM
  5. papped's Avatar
    HP seemed to have managed the price drop (the initial $100 drop) without rebates.
    I think you are missing the key difference between HP's touchpad price drop....
    09-15-11 04:53 PM
  6. boldman4's Avatar
    I think you are missing the key difference between HP's touchpad price drop....
    No, I'm not. about 3 weeks before the fire sale, HP dropped the price by $100. $399 for the 16GB. $499 for the 32GB. They didn't offer rebates. Retailers dropped the prices themselves after HP announced the permanent price drop. Then, a few weeks later, HP gave up and did their fire sale.

    HP TouchPad gets permanent $100 price cut: $399 for 16GB, effective now | This is my next...
    09-15-11 04:55 PM
  7. Economist101's Avatar
    HP seemed to have managed the price drop (the initial $100 drop) without rebates.
    There's no right or wrong way to do it.

    Here's an example. My wife and I shop at Costco. Costco sends out coupons every month for particular products, and while some products have prices reduced in store, others require that you have the coupon when you check out. This is the most efficient method for Costco to use, because then most sale items are only sold at sale prices if the customer has the coupon. Meanwhile, people who didn't bother to look through the coupons yet are buying items that they don't know to be on sale don't get the savings, since the sale wasn't what spurred those people to buy.

    The same applies to rebate purchases. If the rebate is important to you, you'll take advantage. If it isn't important, either because it's too much effort to worry about or you don't know about it, then RIM gets to keep that additional revenue. Again, not the most convenient way of doing to for customers, but it's often the most fiscally sound for both sides.
    09-15-11 04:59 PM
  8. boldman4's Avatar
    There's no right or wrong way to do it.

    Here's an example. My wife and I shop at Costco. Costco sends out coupons every month for particular products, and while some products have prices reduced in store, others require that you have the coupon when you check out. This is the most efficient method for Costco to use, because then most sale items are only sold at sale prices if the customer has the coupon. Meanwhile, people who didn't bother to look through the coupons yet are buying items that they don't know to be on sale don't get the savings, since the sale wasn't what spurred those people to buy.

    The same applies to rebate purchases. If the rebate is important to you, you'll take advantage. If it isn't important, either because it's too much effort to worry about or you don't know about it, then RIM gets to keep that additional revenue. Again, not the most convenient way of doing to for customers, but it's often the most fiscally sound for both sides.
    Doesn't sound very consumer friendly. What's the easiest method to attract millions of new customers? Playbook for $399! or Playbook for $399 (after $100 mail-in rebate)?

    One of those is better than the other. And if RIM is serious about mass marketing this thing, they will pick the one that catches the consumer's eye. Remember, we want millions of these to sell.
    09-15-11 05:02 PM
  9. FF22's Avatar
    There's no right or wrong way to do it.

    Here's an example. My wife and I shop at Costco. Costco sends out coupons every month for particular products, and while some products have prices reduced in store, others require that you have the coupon when you check out. This is the most efficient method for Costco to use, because then most sale items are only sold at sale prices if the customer has the coupon. Meanwhile, people who didn't bother to look through the coupons yet are buying items that they don't know to be on sale don't get the savings, since the sale wasn't what spurred those people to buy.

    The same applies to rebate purchases. If the rebate is important to you, you'll take advantage. If it isn't important, either because it's too much effort to worry about or you don't know about it, then RIM gets to keep that additional revenue. Again, not the most convenient way of doing to for customers, but it's often the most fiscally sound for both sides.
    Interesting fact about Costco coupons: Once you show ONE coupon, you get the sale/coupon price on any other items in that booklet without having to show the additional/specific coupon. So they really have no way of knowing if the sale/lower price induced you to purchase other items after that first. Come back next week and purchase something else and if the coupon is still in effect, you do not need it if you used a coupon the week before.
    09-15-11 05:33 PM
  10. Economist101's Avatar
    Doesn't sound very consumer friendly.
    I agree. From the customer's view, a simple price cut would be simpler and might ultimately lead to more sales than a rebate. You'll get no argument from me.

    Interesting fact about Costco coupons: Once you show ONE coupon, you get the sale/coupon price on any other items in that booklet without having to show the additional/specific coupon. So they really have no way of knowing if the sale/lower price induced you to purchase other items after that first.
    Exactly. All of the coupons have the same bar code on them, which apparently is tied to the overall promotion, and not a specific product.
    09-15-11 05:43 PM
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