the rebate program... what a sham!

[Aswah]

I have been lurking on this site for over a year now... actually since the first rumors of the new 5D Mark III surfaced a while back. I had been tracking the costs for over a year I planned to buy one when they were originally released. A series of financial setbacks and other responsibilities prevented this from occurring last year on now is my time to get one. Actually April 26th I will pull the trigger. I was excited to see this rebate program was starting and thought top myself, wow... I can save a bit of money. I had my wish list all set of a very popular NYC camera store and tracked the pricing closely. Then the rebate program comes along and everyone raises their pricing to offer a rebate which actually makes the price higher than it was before the rebate program. I have waited so long I may choice to wait longer. Seriously is anyone fooled by this marketing ploy? Raise the price than offer rebate to make the illusion of savings. Only two companies I have seen keep their pricing low. One scares me because of it's negative customer reviews online and maybe the other will get my business. It just seems so bogus.

 

[Loswr]

I bought a 600EX-RT a couple of weeks ago. With the rebate, it's $50 cheaper today. I may just buy another before the rebates end...

 

[Mt Spokane Photography]

Its nothing new, been going on for years. This is the 2nd thread on the subject.

 

[Zen]

So don't buy the thing! Wouldn't want to fall for a sham . . .

 

[thepancakeman]

Someone correct me if I'm wrong, but from my limited observation it seems that this "higher price after rebate than before" is much more prevalent now that Canon has their...um, forgot the exact term, but it's "minimum price" policy in place.

I thought when I watched the rebates before, the net effect was almost always lower prices (not by nearly as much as the rebate, though), whereas now it's not. And I did notice the the prices of the bodies went up substantially when the rebates started while the lenses seem to be mostly a wash.

 

[J.R.]

You guys are lucky to get online rebates / discounts. In my country the online discounts range only between 2-3 per cent of the Canon MRP (which is 30-40 per cent higher than that in the US because of taxes).

The only way to get a good deal is to travel to the national capital, visit the national distributor and get a discount of 8-10 per cent, if at all!

 

[Mt Spokane Photography]

Someone correct me if I'm wrong, but from my limited observation it seems that this "higher price after rebate than before" is much more prevalent now that Canon has their...um, forgot the exact term, but it's "minimum price" policy in place.

I thought when I watched the rebates before, the net effect was almost always lower prices (not by nearly as much as the rebate, though), whereas now it's not. And I did notice the the prices of the bodies went up substantially when the rebates started while the lenses seem to be mostly a wash.

The Rebates have been based on the MSRP for a few years now, but way back, they were mail-in rebates and you could strike you best deal and then mail in and hope you got the rebate. Finally, Canon's Rebate management company went out of business leaving a lot of very unhappy customers without their rebate. Canon made good on them, but it was a PR flop big time.


Canon then devised the new system whereby the dealer had to give the rebate up front, and then submit a bunch of paperwork to Canon to get credit. This can be hard on small dealers, since they may be selling below cost and waiting for the rebate to make their loss up. I 'm not sure if it still happens that way.

 

[jon_charron]

I don't know about the US, but in Canada, there are pretty strict regulations on that, and the prices have to be raised in advance of the sale price or rebate. Not sure how long it is anymore, but if I recall, it was more than just a few days. Same thing if you go into a retailer and they have a sales tag with a regular price, and it's marked down. The retailer can get into a lot of trouble if they have never offered the item at that regular price.

 

[dstppy]

Cyclically, the retailers raise the price when the rebate comes out . . . SO . . . your best time to buy is the day the rebate goes in before the other price goes up.

FWIW, Newegg w/coupon @ $2765 for the mk3 has been the best online price in recent history.

Unfortunately, for me, that is only $8 than the cost of new clutch and transmission that my mazda is currently in need of.

Do your research; today, $2900 is not bad, $2800 is good for authorized dealers with good return policies. That will change.

 

[unfocused]

Okay, this has been discussed and explained a number of times before. Even Helen at Adorama has provided input in the past. Basically, Canon has the right to set a Minimum Advertised Price and they require retailers to honor that or they can't participate in the rebates.

The key is the "advertised" price, which isn't always the actual sales price. I don't pretend to fully understand all the rules, but it's what enables retailers to offer special deals through sites like this and through eBay without violating the minimum advertised price rules. It's also what forces retailers to use the "add to cart" option to get to the real price.

Bottom line: the market sets the price. Canon tries to control the prices through Minimum Advertised Price and rebate programs. They are doing this to protect their dealer network, but the dealers can only sell the product at the price the market will bear.

Rebates or not, the same rules always apply: be a smart buyer and comparison shop using the online resources available to you. Know what's a fair price and balance any savings against the reputation of, and your own experience with, the seller.

 

[Deva]

I can't comment on the experience elsewhere, but here in the UK, the very useful site www.camerapricebuster.co.uk provides graphs of the prices of all Canon equipment on sale - it's very useful for spotting the odd bargain without having to trawl round a load of sites.

What you can see, however, is that there hasn't been any hike in prices in response to the rebate program - for example, the 8-15mm has been available at the same price since December, the 17-40mm the same price since November, others have varied - but randomly, with no significant hikes. (And with no evidence, incidentally, for the concept of January sales when it comes to Canon lenses!)

 

[CTJohn]

It's a stupid program. Promotions should stimulate purchases, rather than anger customers. I bought a 6D from B&H a week before the most recent rebates were announced...paid $1779 for the body, SDHC card, and camera case package. I was not happy to hear a rebate program was coming. But...under the new rebate program, the rest of you can buy the same package with Canon rebate for $1899 today.

I guess I'll try to buy when no rebate program is offered in the future.

 

[zim]

I can't comment on the experience elsewhere, but here in the UK, the very useful site www.camerapricebuster.co.uk provides graphs of the prices of all Canon equipment on sale - it's very useful for spotting the odd bargain without having to trawl round a load of sites.

What you can see, however, is that there hasn't been any hike in prices in response to the rebate program - for example, the 8-15mm has been available at the same price since December, the 17-40mm the same price since November, others have varied - but randomly, with no significant hikes. (And with no evidence, incidentally, for the concept of January sales when it comes to Canon lenses!)

That's not quite the case, I've been following prices very closely and body prices did go up, here's the 6D graph
Same thing happens in UK

 

[jebrady03]

I can't believe I'm commenting on a dead horse thread - but I've got my verbal bat ready so here it goes...

Check Canon's website. The MSRP for equipment rarely changes. THAT is what Canon has said is the price of the equipment. Online retailers offer lower prices to encourage buyers to buy from them and they're able to achieve this through volume and I'm sure, pricing breaks from Canon. So, their DAILY PRICE is already discounted much of the time (not always though - especially with new stuff).
Canon has said that retailers may offer a rebate off of the MSRP - NOT off of any price they want (errr... internet complainers want). Canon puts some advertising muscle into these rebates so if the retailers want to be able to cash in on that muscle, they need to adhere to the program.
So, get used to it. It's not changing.

 

[jthomson]

I bought a 1.4x III from B&H under the rebate program.
Definitely savings from the price before the rebate.
Not a $50 dollar savings as there price was already less than the MSRP, but check the cart,
$499- $50 rebate = $429
They certainly have passed on savings over and above the rebate.

If you don't like the price don't buy.

 

[thepancakeman]

I don't quite get the animosity in this thread, other than maybe that some people have been griping about the rebate program or "getting ripped off". I think there's plenty of room for honest discussion of when the best prices occur for Canon equipment and in this case specifically evaluating that question against their rebate program.

Obviously if you need the equipment, then buy it. But for the cost conscious consumer who is more intent on finding the best (or at least a very good) deal, it's a simple question: does the current state of Canon rebates and MAP lead to a true savings, a cost hike, or a wash over market prices during non rebate periods?

 

[LetTheRightLensIn]

I have been lurking on this site for over a year now... actually since the first rumors of the new 5D Mark III surfaced a while back. I had been tracking the costs for over a year I planned to buy one when they were originally released. A series of financial setbacks and other responsibilities prevented this from occurring last year on now is my time to get one. Actually April 26th I will pull the trigger. I was excited to see this rebate program was starting and thought top myself, wow... I can save a bit of money. I had my wish list all set of a very popular NYC camera store and tracked the pricing closely. Then the rebate program comes along and everyone raises their pricing to offer a rebate which actually makes the price higher than it was before the rebate program. I have waited so long I may choice to wait longer. Seriously is anyone fooled by this marketing ploy? Raise the price than offer rebate to make the illusion of savings. Only two companies I have seen keep their pricing low. One scares me because of it's negative customer reviews online and maybe the other will get my business. It just seems so bogus.

Yeah it happens a lot with these, not for all items from all stories every time, but I do see that a lot. Often it is a complete or partial sham (where the prices end up being anywhere from slightly less but not full rebate less to the same to even more than pre-rebate).

 

[LetTheRightLensIn]

Someone correct me if I'm wrong, but from my limited observation it seems that this "higher price after rebate than before" is much more prevalent now that Canon has their...um, forgot the exact term, but it's "minimum price" policy in place.

I thought when I watched the rebates before, the net effect was almost always lower prices (not by nearly as much as the rebate, though), whereas now it's not. And I did notice the the prices of the bodies went up substantially when the rebates started while the lenses seem to be mostly a wash.

The Rebates have been based on the MSRP for a few years now, but way back, they were mail-in rebates and you could strike you best deal and then mail in and hope you got the rebate. Finally, Canon's Rebate management company went out of business leaving a lot of very unhappy customers without their rebate. Canon made good on them, but it was a PR flop big time.


Canon then devised the new system whereby the dealer had to give the rebate up front, and then submit a bunch of paperwork to Canon to get credit. This can be hard on small dealers, since they may be selling below cost and waiting for the rebate to make their loss up. I 'm not sure if it still happens that way.

Basically their rebates went from an indirect sham (realllly poor rebate company that would always try to pretend that you hadn't sent in this or that when you had and it'd be almost a year by the time you sent it or copies of all in 2 or 3 times and got the cash, if you were unlucky, if you were persistent you did always get the full rebate though) to an upfront sham .

Bad Canon.

 

[backcountrygirl]

I agree. It is a bit of a sham, but I think there's more too it than that.
I believe Canon is having a problem selling it's 6D. They need to create a larger market for the new entry level
full frame so what they did was to create a larger gap in prices between the 6D and the 5D Mark III. Canon raises the prices slightly for the 5D Mark III, and they lower the price slightly with the 6D since it's entry level price of $2099. Yes, it was a smoke screen that Canon preformed here by Raising the prices and tossing out a rebate at the same time. Even Big Value is having a problem with selling the 5D Mark III now. They've been stuck on a quantity sold of 370 for the last 5 days. They too have raised prices, but in the end it's all about profit and creating markets.
With Canon trying to create this larger gap between the 6D and the 5D Mark III, it's going to allow Nikon to gain a larger market share of the DSLR overall market.
To be honest, there are lots of comparisons between the 5D Mark III and the Nikon D800. When you get right down to it, you really have to nit pick the heck out of the differences unless you include video. ( Canon is much better ) As of today you can get a Canon 5D Mark III for roughly $3299 from either of the big retailers out of New York. ( At the end of March you could get a 5D Mark III from the big boys at $2949 ) You can go to the same retailers and get the Nikon D800 for about $2796. A $500 difference between Nikon and Canon???
I love my Canon, but I question the strategy behind creating this new entry level extended price gap. It's going to hurt sales versus create sales by allowing Nikon to price gap the differences of the Canon strategy.

 

[Vossie]

On May 1 a rebate program in The Netherlands (and maybe some otherq European countries as well) will start. The 24-70 2.8 Ii has €300 in cah back! Time for me to get one. Over here you need to send in the original barcode to get your money back.

Have bought a lot of stuff under these programs. If you can wait with a purchase its an attractive construction.