Essay: Rebates Effects on Market Support
Before a company begins to enjoy the economies of scale, the rebates support the producers through the reduction of the production costs hence enabling them to break even or making it possible for them to remain in business. However, this initiative, the rebates enable the producers to overcome the initial costs that are very high. As technology advances coupled with mass production of most products, the unit cost per unit eventually decline just like the distribution costs.
Through the decline of the product costs, the cost of the products eventually decline too. This makes it apparent that the rebates support the market, stimulate innovation and the sales of the new products increase tremendously over time. Since the quality product have a positive society benefit, the rebates through supporting the marketing and production of these products also help in the society.