A “money back” plan to incentivize consumers has been a popular promotion tactic in Egypt. We wrote about Kabnoury, a manufacturer of doors, windows and cabinets that offered “investment certificates” that customers could cash in for a 30 percent refund after a certain amount of time. Some real estate companies have also used this strategy to encourage buyers.
At American Furniture, a high-end retailer that’s one of Egypt’s most popular furniture stores, shoppers who bought any two sets, such as a bedroom and dining room set, could get back a full 90 percent of one set’s cost after five years. Customers received bank certificates that they can eventually cash at Al-Ahli Bank. As an added incentive, they could also pay via interest-free installments over two years with a 25 percent down payment.
Though the refund is delayed, consumers respond to these types of promotions because, as one interviewee said, “We feel that we are getting something out of this offer”—in other words, a good bargain. “Money back” gives consumers the impression that what’s being offered is virtually free.
Photo Credit: Kareem Farid