You may have seen advertisements or in store promotions that include offers of cash back on certain products when you are shopping for electrical equipment, computers or whitegoods.
For example, a computer may be advertised at $999 in store but the manufacturer is offering $200 cash-back to promote sales of their brand (some retailers may advertise the price as $799 after cash back). You have to pay $999 to the retailer and if all the conditions are met, you will receive $200 from the manufacturer after the required waiting period. This means you end up only paying $799 for your new computer. However, you need to be aware that if you fail to follow all the instructions carefully you might not qualify for the cash-back offer and end up losing the $200 saving.
You may have also seen offers for bonus goods such as game consoles or DVD players in advertisements for LCD or plasma televisions and other high-value electrical goods. You will also need to comply with strict instructions to claim the bonus item.
What are cash-back promotions?
Cash-back offers are becoming a popular marketing tool by manufacturers to give you an incentive to buy their brand.
Cash-back promotions are a promise by a manufacturer to refund part of the price of goods you buy or provide you with bonus products to entice you to buy a particular brand of product.
They are not normally provided by the retailer and are most often redeemed from the manufacturer after the sale.
In some limited cases the retailer will provide the cash back at the time of the purchase and redeem the rebate from the manufacturer.
Cash-back offers will normally only be paid (or bonus products supplied) once you have met certain terms and conditions.
They are usually only available for a limited time.
There may be restrictions on the number of products eligible for a cash-back or bonus product promotion.
The cash-back is normally paid by the manufacturer of the goods and not the seller.
The seller should provide you with details of how to claim the cash-back or the free product when you buy the goods.
You will not automatically receive your cash back or bonus item—you need to follow the process set out by the manufacturer within strict timelines to receive your refund or bonus product.
The process will vary according to the manufacturer but normally includes:
Registering your claim for the cash-back or bonus product online through the manufacturer’s website—you will normally need the purchase date and a product serial number to do this.
Printing a copy of the cash-back form generated through the registration process.
Sending a hard copy of the cash-back form in the mail to the address listed on the cash-back terms and conditions.
Including proof of purchase such as a copy of your receipt and usually the barcode from the product’s packaging with your application.
You must complete this process within the time frame specified by the manufacturer or you will not be eligible to receive a refund.
Manufacturers may take some time to pay the cash-back or supply the bonus item. It can often take up to three months after you bought the goods. Waiting periods usually allow for situations where the goods might be retuned to the seller.
Cash-backs will normally be paid by cheque through the mail.
We understand that a large number of cash-back and bonus product offers are not redeemed. This could be due to the conditions required to qualify for cash-back schemes or simply that many people fail to apply for them. This is called slippage and saves the manufacturer large sums of money in unclaimed cash-back and bonus product offers.
The tips below will help ensure that you get your cash back or bonus item.
Read the offer carefully before you buy the product!
Ask the retailer directly what is required to claim a cash-back and, if necessary, for any documentation explaining the redemption process.
Important things to look out for include:
the expiration date of the offer
all the steps you need to complete before you are entitled to claim a cash-back
any waiting periods that apply before you receive your money.
Do not rely solely on the retailer to provide you with information about the cash-back offer. Check with the cash-back provider (usually the manufacturer) who will normally provide this information on their website.
Make sure you follow any instructions provided for the cash-back or bonus product and be aware of any time frames that need to be met. If those steps are not followed correctly, you will not be eligible to receive the cash-back or bonus product.
Ensure that you have the appropriate documents to claim the offer.
Promptly submit the cash-back paperwork! After the excitement of a new purchase, it is easy to forget to fill out the paperwork to redeem the cash-back.
Make and keep copies of important documents submitted to claim the cash-back, such as your cash-back application, receipts, barcodes and product serial numbers.
Mark in your calendar when you expect to receive the cash-back. If you have not received it by the specified date, follow it up with the manufacturer—some have dedicated inquiry processes for cash-back schemes.
