Ivor Jones wrote:
> "Meggahurtz" <nobody@here.com> wrote in message
> news:Bcsvh.59871$1W1.52727@newsfe4-win.ntli.net
>> "simon crowder" <simon.crowder@arcor.de> wrote in message
>> news:45be4e1e$0$18835$9b4e6d93@newsspool4.arcor-online.net...
>> Are my doubts unfounded?
>>
>> I wouldn`t touch Cashback, i`ve read too many horror
>> stories on this NG for a starter.
>
> I don't understand it. Why not just reduce the price by £x instead of
> charging £y and then giving the customer £x back..?

There are plenty of 100% cashback deals around; I've once had one which
actually paid *me* money to take out a contract! If the price was
reduced to zero upfront, I can't see either of those options forming the
basis of a particularly good business model for any retailer, can you?

The whole point is that the retailers advertise an attractive deal; a
zillion punters take them up on it, and of those, a high percentage fail
to claim their cashbacks for some reason, and the retailer relies
completely on this in order to make any profit at all.

David