To: wlcnyc who wrote (77 ) 1/19/1999 9:11:00 AM From: HIGHPLANESDRIFTER Read Replies (4) | Respond to of 2003
Bill, ... you are a lot more savvy than this wishful thinking : << A consumer COULD go directly to the store and still come back and apply for the rebate, creating a record for BFL's "share." >> Let's see, I buy a Barnes & Noble book today for $12 plus $4 shipping and handling ... I go to BFL (because some time in the past I went to B&N through BFL) and ask for a $4 rebate ... BFL writes me a check for $4 (say that costs $25 in admin overhead) and then gets their 10% = $1 from B&N. I put the loss to BFL at $28 ... but see my post above as to why B&N won't even write the $1 commission ... Plus, affiliate programs usually pay within thirty days of the end of the quarter ... do the BFL's of the world write the rebate check immediately and take the loss on the float until they get their commish? Or do they also rebate quarterly to the consumer, or even worse, like most affiliate programs, write no commission or rebate check at all until the aggregate owed exceeds say $30? Yikes! As a consumer, when you get that rebate check in 6 months, will the goodwill flow back to the BFL franchise? Or if they pay you in individual checks, how will they cover the admin overhead ... now the BFL's and the B&N's could make it better by deducting the shipping at source and working it out among themselves, but that's obviously not the game here ... that would involve booking the rebate program at 100% up front ... it appears more to me that BFL is counting on consumers to simply not bother with the process of claiming their $4 .. it then comes in at a much smaller percentage far down the road ... Aside: Have we seen any SEC filings with financial statements for BFL? The cost of business compared to the returns seems like less than a zero-sum game ... These are not negative bashes ... they are the reality of those facing this business model ... how do you make it work?