Wholesale prices and rebates


Please read "The Great Rebate Runaround".

Answer the following questions and put them in essay form.

1. This case describes one reason manufacturers might want to offer rebates rather than decrease wholesale price. Explain why this can be viewed as an example of customized pricing.

2. Even if all rebates were redeemed, why might manufacturers still want to offer rebates rather than decrease wholesale prices?

3. Why do you suppose that Best Buy, rather than one of Best Buy's big suppliers such as Sony or Panasonic, is considering eliminating rebates?

 

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Finance Basics: Wholesale prices and rebates
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