They love it when we buy their product to get a rebate check. But Julie asks a good question. Especially the large ones. Manufacturers offer rebates for a number of reasons. They can be used to clear extra inventory , control pricing structures and even provide some extra cash flow for the manufacturer .
Sellers see rebates as a good tool to move excess inventory.
It's also handy when a new model is about to be introduced. Automakers use this strategy. So do companies making appliances. They know that if prices are similar most consumers will choose a newer model over an older one. A rebate allows them to easily discount the older model and clear out the inventory .