If stores and product providers wanted you to pay the lower price, why don't they just reduce the price? And why do they make the process of getting a rebate so difficult? The answer is, they're trying to price differentiate. Anyone who is willing to jump through hoops to save money is more price-conscious and less likely to have been willing to pay the higher price. In this way, they can get a little closer to charging each person as much as that person is willing to pay. Coupons and rebates are two specific examples of this price differentiation tactic, but you might think of others that are also relevant for your business.