Being Frugal Two Pennies

Beware Of Instant Rebates At Costco

December 22, 2012 | 2,328 views |

Costco is a great place to buy more stuff than you can use, all their warehouses are always crowded, you walk in, walk out spending over $100 for a few items and wondering “what the heck did I just buy that cost this much?”. Costco sells in volumes and you buy to store your stuff for Costco to make money. Most of their stuff is actually more expensive than when other stores having a sale.

Anyhow, these days, Costco has almost everything on sale with INSTANT REBATE instead of just INSTANT DISCOUNT, I think it’s some kind of fraud. I saw a TV $1800, instant rebate $700, price is $1100, but because of the sale price is less because of the rebate, we pay tax on $1800, and these days, CA tax are almost 10%, which means the price is NOT $1100, it’s $1100 + $180 tax.

When I buy TV or Electronics stuff, sometimes it’s cheaper from department stores when they’re on sale and they DISCOUNT, NOT INSTANT REBATE, Fry’s Electronics has the same instant discount on the same products sometimes.

The reason Costco rather to sell stuff as Instant Rebate instead of discounted prices because they want the total revenue of sales to be higher for Wall Street Investors to be impressed, but on consumer expenses. I never buy anything at Costco if it has INSTANT REBATE, to me, I feel cheated by Costco. Yes, with INSTANT REBATE, Costco’s revenue is 10-30% higher than real revenue and state of CA get some more money for tax from naive consumers.

The must be a fraud somewhere in INSTANT REBATE.

Cheers and watch how much you spend at COSTCO and if what you buy is really cheaper compared to Walmart or Target when they’re on sale because you pay 10% more on the price on these rebates.

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