Friday, March 25, 2011

Cash back Offer

For a long time, I have been hearing about cash back offer from many vendors/service providers. If the consumer does not like the service, he/she can get back the money they paid. I always used to wonder, how much difference does it make? I never buy a service, just because, there is cash back offer.

The cash back offer is generally to capture the potential customers who are evaluating different services, or those who are in dilemma whether to buy or not, or whether it would be useful or not. If cash back is offered to those people, then there is very high chance that, they would buy that service.

There are few service providers who do not return money under any circumstances. If those service providers tell all the clauses to the consumers before selling the service, then there may not be any problem. If they don't tell all the clauses before selling the service, and if the consumer does not like all the clauses, then it may lead to many problems. The consumer may demand return of partial/full money. If the service provider does not return, then the consumer may give more negative publicity, and the loss to the service provider may be much more than the money demanded by the consumer.

Some time back, I have paid full amount to one service, and then I realized that, their service is very bad, and I did not want to use the service. I did not use their service at all, and I asked them to return the money. Initially, they said, they won't return money at all. But, finally, after few months, they returned the money. Had they not returned my money, I would have given enough negative publicity for them, mentioning all the negative points about them, and they would have lost much more than what they returned to me.

Sometimes, it is better to return the money, if the request is reasonable.

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