Starting today, mail-in rebates are going out the window for Verizon’s top-tier phones. The carrier has decided that any phone over $150 that formerly had an attached rebate will instead be sold directly for the after-rebate price.
So, for example, before the change, consumers would have purchased the Motorola Droid X for $300 with a two year contract, and then would have received a $100 mail-in rebate, bringing the final price to $200. Verizon is doing away with the middle step, and with the new policy in action, the Droid X will just be priced at $200 from the start, no rebate necessary.
Instant rebates have been available in the online store for some time, but now Verizon is spreading the feature to Verizon stores nationwide.
Aside from the already mentioned Droid X, the Motorola Droid 2 Global, the Droid Pro, the Samsung Fascinate and the BlackBerry Storm 2 9530 are just some of the models from the list of thirteen phones that are shedding their rebates.
The Benefit of Mail-In Rebates to Companies
Consumer Affairs estimates that more than $500 million in rebates goes unclaimed each year. While redemption rates range widely depending on the size of the rebate and other variables, they never hit 100%, meaning that at least some are unredeemed. This leads to extra revenue for the company, and, with the added benefits of potential data mining and the ability to hold on to extra capital for a longer period of time, rebates are a valuable asset to companies in many situations. Rebates are also traditionally seen as a hassle by customers.
Verizon gave no reason for its decision to drop the mail-in rebates on high-end phones.