If you're like most Canadians, you probably spent a little money recently on some product you saw in a store flyer, the price of which was accompanied by an asterisk. The asterisk referred to the rock-bottom price of the product — after the mail-in rebate.

It may have been what attracted you in the first place.

If you took the time to copy your original sales receipt, fill out the rebate form, cut the UPC code from the packaging, stuff it all in an envelope, put the correct postage on it and drop it into a mailbox, you're a pretty rare bird.

Typically, less than 10 per cent of Canadians claim the rebates they are entitled to. That means more money in the hands of manufacturers.

University of Toronto marketing professor Sridhar Moorthy says the rebate redemption rate ranges from two per cent to 50 per cent, depending on the size of the rebate.

He says most manufacturers count on consumers not redeeming rebates. They call it "slippage" — most eligible rebates slip through the cracks.

"This is an exercise on the part of the seller to give some people the regular price," he said.

"They will buy the product at the regular price. There are other people who are more price-sensitive. They're the ones who are going to turn in the rebate and get the lower price."

Moorthy adds that much of the problem is that the rebate process is too complicated — the slightest mistake in your application, and you won't get your cheque. Get it right, and you can still be waiting up to 12 weeks to receive that rebate cheque.

Moves to make claiming rebates easier

The manufacturers say they have to have safeguards in place to prevent fraud — a $100 rebate offer may persuade some people to try to cash in several times by duplicating materials and providing different addresses.

Some retailers are responding to customer concerns that the process is just too difficult. Future Shop and Best Buy — both owned by Best Buy Co. Inc. — feature information on most of their rebates online.

There are also websites — like Canada Computers — that collect all computer-related rebates together.

Several retailers allow you to submit your rebate application online. You still have to mail in your receipt and the UPC code. There's also an option to receive your rebate within days instead of weeks — for an administrative fee.

In July 2006, computer retailer Dell announced that it would restructure its pricing and rebate program, to make purchases "less confusing for consumers." The company pledged to phase out most rebates within 18 months and move to a paperless system for those rebates that remained.

U.S. states crack down with rebate laws

South of the border, Connecticut was the first state to pass legislation that took aim at mail-in rebates. Under the Rebate Advertising Law, retailers cannot advertise the after-rebate price of a product as the final price to be paid by the consumer. If the advertisement contains the after-rebate price, the retailer is required to pay the consumer the amount of the rebate when the item is bought.

Rhode Island followed with similar legislation in the summer of 2006, followed in November by New Jersey. Florida is also considering a rebate advertising law. California has tried twice but has failed to agree on similar legislation.

So far, no province has gone that route.

How to ensure you get your rebate

Here are some tips on making sure you receive the rebate you are entitled to:

• Before you buy the product, read through the rebate requirements — make sure you're eligible and double-check mail-in deadline dates.
• If you've purchased a product for which the rebate offer is only available online, download and print the rebate information immediately (or risk having the rebate disappear from the site once the promotion has ended!).
• When you're filling out a rebate form, write clearly — consider writing in capital letters to lower the potential for errors once you've sent the form in.
• Be sure to provide all of the documents requested on the rebate form (e.g. original receipts, UPC bar codes, etc.). If you don't send all of the required documents, your claim will likely be rejected.
• Make photocopies of everything you mail in to redeem your rebate — these will be your only record of the transaction if anything goes wrong. Keep those copies on hand and follow up if you haven't received anything by the time the rebate was due back to you.
• Mark the expected rebate return date on your calendar.
• Be sure to attach the proper postage to your envelope!
• Record/log your rebate application.
• Create a paper trail, especially if you're expecting a large amount in your rebate. Submit your rebate claim through registered mail, which will allow you proof of mailing and/or proof of delivery. Canada Post's registered mail option also provides customers with a mailing receipt and secures the signature and the printed name of the individual who signed for the item, along with the date of delivery of the item.
• Watch for your rebate! Be careful not to toss your cheque out with the junk mail (some rebate cheques look like post-card ads).
• Check your rebate status. Sites like http://www.rebatestatus.com/search.aspx track many available rebates.

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