Manufacturer Rebates and Incentives

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Definition: Manufacturer Rebates and Incentives

A rebate is one of the ways of sales promotion in order to encourage customers to buy more of a manufacturer’s product within a given period of time.


In a rebate, a part of the invoice amount is returned to the customer, after the full payment for the purchase has been made. Rebates help the manufacturer quickly sell out inventory, without actually reducing the list price of the product. Instant rebates are available immediately during purchase, while most other rebates require claim forms to be filled and may take 4 to 8 weeks for processing.


Manufacturer rebates are very popular in automobile sales. Car manufacturers usually offer cash rebates to sell models whose sales have stagnated. Along with rebates, automobile manufacturers also provide attractive incentives like low interest loan schemes, where the manufacturers collaborate with banks and other financial institutions to provide attractive interest rates.


The government of India also launched an incentive program to boost adoption of electric and hybrid vehicles. Termed as the FAME India (Faster adoption and Manufacturing of electric vehicles in India) scheme, it offers reduced prices for the customers on electric vehicles like Mahindra E20 and the Toyota Camry Hybrid.


Hence, this concludes the definition of Manufacturer Rebates and Incentives along with its overview.


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