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What Exactly Is a Rebate?

April 10, 2023

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And Why Should Consumers Care?

Let’s pretend you just purchased a sandwich in a deli. You grab your sandwich, walk out the door and head toward your car. But before you can get there, the owner catches up to you and hands you back $3 of the $10 you spent on the sandwich. There was nothing wrong with your sandwich. You never asked for a refund. But you got some of your money back anyway.

We all know this isn’t how food establishments or most other businesses work. But if we lived in a rebate-driven world, this is what everyday transactions might look like.

A rebate is a partial refund handed back to the customer after the time of purchase. You might be wondering why a rebate is even a real thing. What sense does it make to charge someone full price, only to hand some money back? Allow us to explain.

Rebates Are Designed to Incentivize & Reward

There is a strategy behind rebates. Some companies use them as a way to increase customer loyalty. Think about it: Imagine you need an AC replacement and you purchase a new air conditioner. If the manufacturer hands back a portion of the money you spent, aren’t you more likely to stick with that company when you need a new system down the road? As long as you’re happy with the quality of the product, the manufacturer is giving you every reason to be loyal. The key with rebates is remembering to claim the rebate, which some consumers forget to do.

The government also offers local, state and federal rebates to incentivize homeowners to make energy-saving upgrades at home. For example, if you upgrade to an energy-efficient heat pump that qualifies for a rebate, you will pay full price for the heat pump. After the purchase, you’ll receive some money back under the terms and conditions of the rebate. A rebate is different from a tax credit, which helps offset any tax balances due.

You’ll typically see rebates when the product or service somehow benefits the greater good. For example, we all know that investing in solar panels isn’t a small expense. But because solar energy is a renewable energy source that helps promote a healthier, more sustainable world, many states offer solar panel rebates to help offset the upfront costs.

Let’s Talk About Ways to Save

Here at Timo’s, we’re always looking for ways to help you save, whether it’s through our own promotions or third-party rebate programs and federal tax credits. We’d be happy to discuss which options are currently available so you can improve your comfort while taking advantage of every money-saving opportunity.

Speaking of saving money, when’s the last time you scheduled an AC tune-up? By staying on top of maintenance for your equipment, you’ll help prevent costly repairs and keep your system running as efficiently as possible. AC maintenance is designed to help you save money and get the most out of your investment. Before the hottest months arrive, now is the perfect time to make sure your AC is good to go.

To schedule service for your home or to learn more ways to save on your next purchase, contact us online or call Timo’s Air Conditioning & Heating at 760.475.9542 today.   

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