What does mail-in rebate mean?

Mail-in rebates are one strategy companies use to entice customers to buy their product. The customer pays full price at the store for a certain item. If there is a mail-in rebate for that product, the customer then sends the manufacturer a receipt or proof of purchase in order to receive money back.

As an example, let's say that you purchase batteries from Company A for $10. If there is a mail-in rebate available for $4 off, you can receive $4 back and will have only spent $6 on batteries. You would be more likely to choose the batteries from Company A for $10 with a $4 mail-in rebate than batteries from Company B that cost $9. Of course, to get the savings you have to remember to mail back the receipt and/or proof of purchase!

The savings from using a mail-in rebate comes after making the purchase, as opposed to a coupon, which is used at the time of purchase.