The home improvement store Menards is known for its frequent “11% Rebate on Everything.” It’s a good gimmick that seems to get people into the stores.
It works well for Menards — but think about it from the consumer perspective. They make people save their receipts and postal mail them in with a rebate form. This creates a double barrier that undoubtedly reduces the number of rebates they provide. The next barrier: the rebate now comes “disguised” as junk mail. If I hadn’t seen a warning about this online, I would have tossed it, thinking it was nothing but a sales flyer. And finally, people need to save the paper rebate they inconveniently cut out of the oversized flyer, remember to bring it, and use it in the store, likely making even more purchases — so the cycle continues.
Menards could just reduce its prices by 11%. They could offer a cash rebate instead of a merchandise credit. They could allow for electronic submission of receipts/rebate forms. They could provide the rebate electronically or as a card, making it more portable and likely to be used, or at least mail the rebate clearly marked as such. But Menards has designed a system that accomplishes exactly what it is designed to do — increase sales and reduce redeemed rebates.
Any time you see something that isn’t working, look at the system and consider who benefits from it as is. More than likely, it means the system was intentionally created that way.
