Purchased a set of four 17-inch rims with Michelin’s Ice & Snow tires for my new Honda from Tire Rack in mid-October. Total package was in the $1200-$1500 vicinity (with mounting and balancing). While they’re nice winter tires, the $70 “Michelin Consumer Rebate” did influence my decision to buy these over some other brands. I mailed the necessary paperwork Priority Mail (about $6) as soon as the tires arrived and well before the end of October. A third party does the actual rebate work but calls itself “The Michilin Tire Rebate Center.”
Than, ... It’s wait, wait, wait for that $70 Visa gift card to arrive - running the old pickup on empty, thinking its thirsty 30-gallon tank a good repository for the $70. Finally, November 30 they send me an email stating the rebate has been “approved” and I should receive it in the mail soon. Now, December 28, still no rebate. I call their toll free help-line today and am informed that: On December 20 the Rebate Center forwarded the rebate “paperwork” to their bank for “processing”. I should expect to receive the rebate gift card in another 3 weeks. That would be late January, putting the total time from tire purchase to actual receipt of rebate at about 3 months.
Somebody’s making money off of this scam practice. Who?
Comments
Derf
Probably the same reason it takes "4-6 weeks" to get one's name removed from an e-mail marketing list run by prominent companies. In 2018 I find that timeframe beyond laughable.
Most of the brands (not all) TR was selling did have some type of rebate. I’m guessing the rebate centers are somehow earning a return on all these rebates and prolong getting them in the mail as long as possible. After 2 or 3 months many consumers may forget about the rebate and may toss the gift card in the trash - confusing it with junk mail when it eventually arrives. Another more sinister proposition - if you don’t call them and ask about it as I did today, perhaps they simply “forget” to mail it out.
Maybe I should be happy. With gas prices dropping 20% or more since the tire purchase, the $70 card will likely be “worth” more gallons of gas when it eventually arrives than it would have been couple months earlier. One never knows.
https://www.investopedia.com/financial-edge/0810/how-mail-in-rebates-rip-you-off.aspx
Derf
"Between 40% and 60% of rebates are never redeemed," says Edgar Dworsky, founder and editor of ConsumerWorld.org. Many customers who are expecting a traditional paper check rebate in the mail may throw the debit card away, mistaking it for a pre-approved credit card offer.
If the rebate simply never arrives at all, the company is betting on the fact that you won't notice. "Sometimes the manufacturer delays paying the rebate fulfillment house, and the consumer simply forgets after eight weeks that they are even owed money,"
Add this all up and I’ll guess that “$70 rebate” is actually costing the company about $35 on average. The interest earned on the cold cash sitting in their hands for months may well cover their call center overhead. The toll free call-in center was obviously overseas - so costing little to operate.
Added 12/29:
Thanks to all who commented. To be clear, the rebate didn’t attract my business. I’ve been dealing with Tire Rack for about 8 years or longer. Have bought 3 or 4 sets of tires and two sets of rims over the years. Change out winter & summer tires myself at home. I’ve found TR highly reputable and very knowledgeable about which products fit your vehicle and which ones don’t. Never a problem. They do a terrific job balancing, mounting and getting the correct valve stem and/or TPS sensor installed. Arrives at your home by UPS in about 3 days.
If you live in the snow belt you recognize the need for good dedicated winter tires from around November 1 until sometime in April. A definite safety issue driving on icy or snow covered pavements. The standard “All season” tires have their uses in milder conditions, but don’t substitute for a good winter tire. And on that account, not all winter tires perform equally well in ice and snow.
So, going to Tire Rack in search of winter tires / rims for new car was pretty much a no-brainer. Having been very happy with the Michelin’s “Ice & Snow” on previous car, I’ll admit to being a bit partial to them. Wasn’t more than $200 difference between them and the next cheapest (or more expensive) set of 4. Nearly half of that $1200-$1500 tab I cited went towards a nice set of winter rims. This saves your summer rims from road salt damage during winter and saves $$ and wear and tear on the tires by not having to mount / dismount them to / from the rims every season.
The $70 rebate offer helped me decide which premium tire offered the best overall value - but I would have opted for a similarly priced tire anyhow. Was more curious about the business model - if any - and who the big players are. Some similarities to insurance companies - Deny or delay payouts as long as possible - keeping the cash invested and earning income.
After waiting so long for the rebate, you can guess what happened next. USPS lost the mail. So I expect the $5 check (or whatever it was) to show up in my state's abandoned property department in another 2-3 years.
Derf
Derf
*Deleted rant on our state’s roads. But will say that a good many here constitute a “hazard” in themselves.
Derf
(Card was good. Money spent.)
Good investing to all, Derf