Instant rebate
Encyclopedia
An instant rebate or sometimes instant savings, is a marketing
strategy or gimmick
in which a product is either advertised at a specific price, or at a discounted price, where the discount is applied at the time of purchase. For example, the store may advertise a widget
for $9.99, but with a $5 instant rebate, the price is $4.99. Or the product may be advertised as $4.99 with a $5 instant rebate.
Instant rebates are different from a "standard" rebate. Under normal circumstances, a rebate
is given to a customer who mails in a coupon along with proof of purchase, and is mailed a check by the manufacturer or the rebate processor. In the case of an instant rebate, the rebate is provided immediately, at the instant of purchase.
We can say instant rebate as a discount on a product. In accounting strategy the actual invoice will be less by the amount of the instant rebate that is given to the customer.
Then
invoice cost = the product cost - instant rebate amount.
Marketing
Marketing is the process used to determine what products or services may be of interest to customers, and the strategy to use in sales, communications and business development. It generates the strategy that underlies sales techniques, business communication, and business developments...
strategy or gimmick
Gimmick
In marketing language, a gimmick is a unique or quirky special feature that makes something "stand out" from its contemporaries. However, the special feature is typically thought to be of little relevance or use. Thus, a gimmick is a special feature for the sake of having a special feature...
in which a product is either advertised at a specific price, or at a discounted price, where the discount is applied at the time of purchase. For example, the store may advertise a widget
Widget (economics)
The word widget is a placeholder name for an object or, more specifically, a mechanical or other manufactured device. It is an abstract unit of production. The Oxford English Dictionary defines it as "An indefinite name for a gadget or mechanical contrivance, esp. a small manufactured item" and...
for $9.99, but with a $5 instant rebate, the price is $4.99. Or the product may be advertised as $4.99 with a $5 instant rebate.
Instant rebates are different from a "standard" rebate. Under normal circumstances, a rebate
Rebate (marketing)
A rebate is an amount paid by way of reduction, return, or refund on what has already been paid or contributed. It is a type of sales promotion marketers use primarily as incentives or supplements to product sales. The mail-in rebate is the most common...
is given to a customer who mails in a coupon along with proof of purchase, and is mailed a check by the manufacturer or the rebate processor. In the case of an instant rebate, the rebate is provided immediately, at the instant of purchase.
We can say instant rebate as a discount on a product. In accounting strategy the actual invoice will be less by the amount of the instant rebate that is given to the customer.
Then
invoice cost = the product cost - instant rebate amount.