Camera cashback - why?

[13m]

Why do manufacturers do £40 / £60 cash back rather than reduce the price of the camera?

Having just bought a new one for the business today it seems that all the manufacturers are at it. But why?

[randlemarcus]

Because 20% of purchasers will never do anything about it, and 20% will manage to mess it up so they get nowt. Therefore its 40% cheaper than reducing the price, and has the added advantage of getting 80% of purchasers details to flog on.

[DavidY]

It protects dealer margins, while offering a 'sale' price

[Tony Starks]

And it takes forever to get the money back, I sent my £50 cashback off to canon at the end of December and still waiting now. You can bet if I owed the money it'd be a different story.

[Mroad]

Often it's on models that are near the end of their production life and new models are due.
Also on models that may not be selling so well.

[DavidY]

And the manufactures like to take their time refunding the cashback, so that you don't return the camera in the meantime, and claim the cashback. Personally I don't think that stance is inreasonable

[StevieBee]

DavidY said:

It protects dealer margins, while offering a 'sale' price

This, and the fact that the cash you get back is by means of a pre-paid credit card, the providers of which will then tempt you to sign up to keep the card and use once you've spent the money on it.

I purchased a Nikon D7200 with Free Battery Grip. Had to apply to Nikon for the grip and arrived within a week.

[13m]

StevieBee said:

DavidY said:

It protects dealer margins, while offering a 'sale' price

This, and the fact that the cash you get back is by means of a pre-paid credit card, the providers of which will then tempt you to sign up to keep the card and use once you've spent the money on it.

I purchased a Nikon D7200 with Free Battery Grip. Had to apply to Nikon for the grip and arrived within a week.

The shop said it will be cash into my account.

[rich888]

13m said:

StevieBee said:

DavidY said:

It protects dealer margins, while offering a 'sale' price

This, and the fact that the cash you get back is by means of a pre-paid credit card, the providers of which will then tempt you to sign up to keep the card and use once you've spent the money on it.

I purchased a Nikon D7200 with Free Battery Grip. Had to apply to Nikon for the grip and arrived within a week.

The shop said it will be cash into my account.

The Canon cash-back offer was paid direct into my bank account as was the Sony cash-back offer last year, however, some manufacturers do send the payment as a credit on a pre-pay debit card, I purchased some Michelin tyres last year and received the cash-back in this form which is somewhat annoying, can only assume it is done in the hope that you will lose or forget to use the card.

[dtmpower]

It also helps to gain traction with preferred suppliers or channels.

e.g. offer a cashback deal to your independent dealers - so they can compete against the amazons / 3rd party imports , without making it a race to the bottom on price.

[Elderly]

DavidY said:

It protects dealer margins, while offering a 'sale' price

I was talking to a rep in a camera store and he told me that usually when a shop has 'sale' items,
it is the manufacturers who are taking the hit on the margin, and not the shop.

I don't know why they offer cash backs but maybe it's because the manufacturer then has you on a database,
or maybe temporary cash backs help reduce perceived depreciation?