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Cashback on the M8 again?


biglouis
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...or maybe Leica UK have just persauded Leica Solms that one of their biggest markets is in serious recession and if you want to keep sales revenue rolling you had better adjust your prices.....

 

It may well have been the dealers that bent Leica UK's ear... hence...etc. etc....... ;)

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Being a great believer in keep it simple and logical can someone enlighten me as to why we are offered these cash back schemes on various goods.

 

Why don't they just knock £500 quid of the bloody price in the first place. :confused:

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Marketing studies have shown that people sometimes don't send rebates in or on time. Companies hope this occurs. Attract folks to buy and bank on procrastination as a predictable human characteristic.

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Being a great believer in keep it simple and logical can someone enlighten me as to why we are offered these cash back schemes on various goods.

 

Why don't they just knock £500 quid of the bloody price in the first place. :confused:

 

Good question. And then we all wait an age for the rebate cheque to arrive. I'm still waiting for 2x '15% cashback cheques' from UK lens purchases made some time ago............

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Let's see - 500 quid in a money market account for 7 weeks before they actually send it to you earns...?

 

Another reason for rebates is that it is easier - market psychology-wise - to discontinue a rebate than to announce a price increase (even if it just back to a previous price).

 

Same thing occurs in tax policy: a temporary reduction in tax rates gets to be seen as the "norm" after a short time, and then the restoration of a previous higher tax rate gets slammed as an "increase".

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Being a great believer in keep it simple and logical can someone enlighten me as to why we are offered these cash back schemes on various goods.

 

Why don't they just knock £500 quid of the bloody price in the first place. :confused:

 

I dunno.... could be the marketing equivalent of a Ponzi scheme.... take people's money for a camera, then later on, give them back money from the next group of people who come along and buy a camera.....

 

LouisB

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