Quote:
Originally Posted by dilanesp
thespaah:
To understand why rebates are the way they are, take a look at airlines. Airlines do a great job of selling the same flight to a leisure traveler for $150 and a business traveler for $650. You make maximum profits this way, and airlines, like racetracks, are a low margin business.
Rebates allow racetracks the ability to charge bettors who care about takeout less without doing general takeout reductions.
By the way, all businesses do a certain amount of this. For instance, supermarket coupons are a form of this- if you care about saving money, you clip the coupons. There is nothing disreputable about it.
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You forget one important aspect. Both businesses Airline and racing charge fees that guarantee some return.