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Manufacturer offers a £50 Cashback. Customer pays £350 for a washing machine to retailer then claims £50 back from manufacturer. How does that affect the retailer, do they benefit from these Cashback promos or lose out?
( you’ve already guessed that I don’t do retail hence my curiosity)
Re: How does ‘Cashback’ work?
I don’t know the answer, but either way, a canny alternative to reducing the price, and more profitable for both I suspect. Having participated in one of these recently (cashback on ink if you buy printer and ink together), I guess a high {e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} of people persuaded to hand over their cash don’t pursue their claim, failing to comply with strict rules and timescales set out in the terms and conditions.
Re: How does ‘Cashback’ work?
No affect to the retailer at all.
The manufacturer is the one that takes the hit.Re: How does ‘Cashback’ work?
Nothing sinister, very simple in fact to administer and the customer receives a pre loaded Mastercard direct from BSH. Claims can be made either online or by post.
Helps BSH to increase unit sales, more importantly the more claims received the more data they have to target these purchasers in the future with marketing campaigns.
The built in part ex promotion is slightly different in that BSH reduce the cost price by 60{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} of the trade in value and the retailer can support this up to 100{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} if they wish.
Don
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