It’s rebate time.
Several weeks ago I went to the local T-Mobile store and purchased a smart phone. Of course, a promotion was underway so the sales person offered me another smart phone for “free”.
Two for the price of one. How could I pass it up?
The sales person told me that the second phone cost $50 but that I would qualify for a $50 rebate for each phone. I effectively had to pay T-Mobile the $50 upfront so it could be sent back to me.
I wondered if only a small percentage of the customers file for a rebate; hence, the reason behind the pay-now, rebate-later pitch. Would this promotion financially work for T-Mobile if every customer received a rebate? How much does it cost to process all the rebate paper work and send out the cards? What is the estimate of users that pay the $50 for the phone, yet, never send in for the rebate?
I decided to go with the offer. I purchased the phones, completed the rebate form, mailed it and waited. Now several weeks later, voila.
Here are a few gritty details about the rebate cards with questions:
1. Three major logos on the front of the card: T-Mobile, Citi, Visa.
Why are there three company logos on the front of the card?
2. The back of the card says non-reloadable debit card.
Does that mean that once I spend the balance the card is useless?
3. The front has the old raised numbering which was important when merchants would put the card in a “knuckle buster” to imprint the number on carbon paper.
Do merchants still imprint cards on carbon paper?
The Visa card issued by my bank doesn’t have the raised numbering.
Does raised numbering cost more?
4. The front also has the word “promotional”.
Why is it promotional?
Does this mean that the card has the ability to deliver promotional value?
If so how much?
Certainly a bright business person some where has a formula to measure the promotional value this card delivers.
What is it worth to those three brands?
5. The back of the card says that I can send the word “BAL” to 7283 to obtain the balance of the card. Interestingly the same number is on the back of both cards.
How does Young America or the processor know which balance to send if I have two cards?
6. Customer service is provided by tmobilerebates@young-america.com or 1-877-4U2-SPND. I like the suggestion to actually spend the rebate. However, I’ve taken both of these to the bank and simply withdrawn the money.
Now what do I do with the plastic besides throw it away?
Does this seem wasteful to issue these promotional cards?
Is there a more cost effective way to send a promotional rebate?
I’m going to carry these for a while and ask these questions of my friends.
Let me know what you think.
