Make Rebates Work for You

Rebates are a double-edged sword. They look wonderful when you see the price of the item you're buying with the rebate price included, but they can end up costing you money if you don't follow through and actually receive the rebate.

It's only a great price if you actually get the rebate amount refunded to you. If it is a large purchase, such as a computer system, this can be the difference between several hundred dollars in your bank account or down the drain.

According to BusinessWeek, almost a third of all computers and gadgets now are sold with some type of rebate attached, with one-fifth of all digital cameras, camcorders and LCD TVs having some type of rebate. Not all consumers take advantage of these rebates. In 2005, an estimated 40% were never redeemed for a variety of reasons, and this added an extra $2 billion to the retailers' and manufacturers' bottom line.

While the process for getting a rebate may seem pretty straightforward, it doesn't always work that way. The Federal Trade Commission set up a study about rebate programs in April, in part because "many consumers have had negative experiences with rebates and have begun to distrust them." There was even a recent instance where a computer parts supplier in California simply dumped 1,300 rebate applications into the trash, rather than process them.

Here are the steps you need to take to ensure that you get the rebates you have coming to you:

Read: Make sure that you get the rebate form and read it carefully before making the purchase. You will need to follow the directions exactly, and if for some reason you can't, then that money likely will be lost. This can mean that the great deal you thought you were getting may not be nearly as good as you first thought.