What the manufacturer gives up in product pricing they take back in shipping charges. Some even cheat by raising their shipping charges above normal levels. A recent trend has been for manufacturers to team up on rebates. One company will offer a rebate if you sign a long-term contract with another company. Computer manufacturers and internet service providers are big players.
Rebates also offer some interesting cash flow opportunities for manufacturers.
Remember that they get to use your money until you actually cash a rebate check. It might not seem like much. But if they have hundreds of thousands of dollars 'in float' all the time the interest earnings add up. Manufacturers also know that not everyone will collect on their rebates. Some won't bother to send it in.