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Cash-back benefits?

Discussion in 'Canon Conflab' started by Malcolm_Stewart, May 3, 2018.

  1. Malcolm_Stewart

    Malcolm_Stewart Well-Known Member

    I've never worked in retail or in a photo company of any sort, so I'm puzzled as to why Canon (amongst others, perhaps) offers Cash-backs when it wants to clear an item from its "New" inventory. Why can't the list price simply be reduced? I understand that a 3rd. party is often used to process the claims, so that seems like a cost to Canon.

    Puzzled. Does anyone know why?
     
  2. Snorri

    Snorri Well-Known Member

    The price they sold the goods at to the retailers..? I mean they don’t need to work anything out with them as they pay the discount to the buyer.
    I don’t know, just a thought...
     
  3. RogerMac

    RogerMac Well-Known Member

    Do it that way and it comes to a natural end. A price drop would be very difficult to reverse
     
  4. PeteRob

    PeteRob Well-Known Member

    It is probably tax efficient, maintains their dealer income and because they deliver it through their official dealer channel (you have to have an appropriate receipt) it encourages the right sort of foot-fall. They sometimes do very short duration cash-backs. I'm on the LCE email list and 'L'-lens offers come up quite often. I bought the 100-400 ii on the last cash back and it went very smoothly and I got the refund quite quick.
     
  5. EightBitTony

    EightBitTony Well-Known Member

    Let's not forget the % of people that don't bother to claim it.
     
  6. Malcolm_Stewart

    Malcolm_Stewart Well-Known Member

    I think what was at the back of my mind with raising the query was memories of redemption problems in the US some years ago. Anyone else remember the details?
     
  7. EightBitTony

    EightBitTony Well-Known Member

    I don't sorry.

    I've bought 3 (I think) lenses that had cashback schemes running, and redeemed them each time, two Canon and one Tamron. All worked, but they weren't the reason I bought the lenses, just happenstance.
     
  8. PeteRob

    PeteRob Well-Known Member

    No, but when everything had to be done by post the scope for paperwork to go missing was quite high. Now they take a scan of the receipt, validate with dealer by email and its done.
     
  9. peterba

    peterba Well-Known Member

    I've always presumed that the cashback system simply allows the manufacturer to 'hold' the cashback sum for (usually) around a month, until paying it back to the customer. Multiplied by a large number of customers, collectively this could amount to a considerable sum of money. In turn, this could earn significant interest, when skilfully invested on the money markets - even for such a relatively short period.

    Of course, if someone on here knows otherwise, I'll readily concede that this theory could be complete rubbish. :)
     
  10. Malcolm_Stewart

    Malcolm_Stewart Well-Known Member

    I worked in GEC and the "cash mountain" that Lord Weinstock had accumulated was loaned out during the night on the money markets.
     
    peterba likes this.
  11. Andrew Flannigan

    Andrew Flannigan Well-Known Member

    Some of the Japanese conglomerates include at least 1 bank which does exactly that: all day every day. Very early in my career I worked for the London branch of such a bank and the amounts of cash being lent were eyewatering.
     
    peterba likes this.
  12. PeteRob

    PeteRob Well-Known Member

    Sounds like rubbish. They are making a decision to give back what would otherwise be profit. The administration takes time.
     
    nimbus likes this.
  13. peterba

    peterba Well-Known Member

    Well, thank you! ;)
     
  14. peterba

    peterba Well-Known Member

    Actually, Pete, I must disagree. Manufacturers don't do this out of the generosity of their hearts - they do it to tempt people into buying things, on which the sales figures which weren't looking too good (and it works).

    So it's an attempt to salvage some of the profit that the manufacturers thought/hoped that they would be making... but weren't.
     
    RogerMac likes this.
  15. Bazarchie

    Bazarchie Well-Known Member

    I doubt anybody really knows the answer. Some buyers wait for a cash back period, if there were no such periods they would buy anyway, but others would not.

    Having the buyer applying for a cash back rather than the retailer is unusual. It doesn't work this way when say car manufacturers have promotions. I think part is due to the manufacturers expecting some buyers not to apply or to not have the correct paperwork. Part is due to the way the market works between the manufacturers and the retailers.
     
  16. peterba

    peterba Well-Known Member

    Well, my post (#14) is my view of cashback, and I *suspect* that I'm right. However, your comment (above) is almost certainly more dependably accurate. :)
     
    Last edited: May 5, 2018
    Bazarchie likes this.
  17. Chester AP

    Chester AP Well-Known Member

    How urgent is your purchase?

    On the rare occasions during the last 30 years when I have purchased any camera bodies or lenses 'new', I have waited until they have been replaced with a new model. When this happens the model I wanted was reduced to an even better price than any previous 'cashback' offer. However, the most recent of these was 5 or 6 years ago. Today there is so much recent stuff available used from reputable dealers who advertise in AP, so now I would never buy new. Something that got a decent review in AP 3 or 4 years ago is good enough for me, and possibly for you too. Spend the savings on a cheap flight to Venice or Florence in the 'off' season instead.
     
  18. Bazarchie

    Bazarchie Well-Known Member

    I'm with you on this. However some people must have the latest camera as soon as it is released, the same with mobile phones. I struggle to understand why, perhaps the camera is marginally better on paper, will it make them a better photographer or will the image improvement be obvious, I think not. However if it results in a healthy used market then I am all for cash backs.
     
  19. Chester AP

    Chester AP Well-Known Member

    I believe that anybody with too much spare cash, or a high credit card limit, should be encouraged to upgrade their camera body and lenses with pointless regularity, so that people like you and I can have such a good choice of mint-condition used stuff. The same applies to audio equipment, but the sales numbers are much smaller and the used market much smaller too.

    I recall a letter in AP a year or two ago about having the latest and most expensive kit: whilst enjoying a superb meal, the host complimented the writer on his/her photographs and suggested that he/she must have a very good camera. The reply was that the meal was very good so the host must have a very good cooker. I once suggested to AP that one round of APOY should be devoted to the best picture taken with a camera body and lens that could be purchased now for less than £300... but I don't expect that Sigma would be happy to sponsor that one.
     
    Andrew Flannigan likes this.
  20. PeteRob

    PeteRob Well-Known Member

    Me too, and on average it takes me about 2 years to decide to buy something, but I'd rather buy new if I can. A cash-back can force the issue. I was dithering between buying the Fuji 100-400, which would have meant getting an XT-2, and the Canon 100-400 and possibly a 7Dii. I bought the Canon, still not sure about the 7Dii.
     

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