Financial Statement Forecasting Process: Use of Rebates Essay

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Rebate is a sales promotion which the manufacture or dealer offers cash or coupon to a proof of purchase of the goods or service which is on offer. It is a sound business decisions especially for promoting sales for goods which are experiencing slow sales or goods which the manufacturer or the dealer will have additional sales of goods or services after the initial sales. So the manufacture is much concerned on future sales to support the goods bought (Autobytel, 2009)….

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Then the practice is ethical and it is a good sales promotion method. Furthermore, it is also voluntary for those customers who wish to apply for it. However the contact information obtained by the manufacturers or dealers is used in future sales and promotion purposes. The percentage of rebates offered and paid depends on the company and the rules which are put in place but Business Week ….

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According to Leung & Qi, (2009) rebates is mostly used when there are possibilities of returns sales and because the printers will needs tonners and cartridges for printing therefore they would increase the sales of the company and as well lock their market with such customers from competitors…

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