Overview of Rebates

A rebate is an amount paid by way of reduction, return or refund on what has already been paid or contributed. Types of rebates include purchase price, challenge, escalating, group, guarantee and charitable refund.

High-value rebates can be used for expensive, high-margin products to generate possible trial, infrequently purchased products or products with low market value. Lower-value rebates should be used for frequently-purchased products with low brand loyalty. Rebates can also be used for competitive promotions and to establish consumer databases.
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