Originally posted by Atticus
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Back when I worked for a retailer, we allowed people to buy warranties with large purchases. This wasn't a grift; the warranty terms were good and it was no-quibble (I had it myself and used it a couple of times). But obviously you had to pay for it, and they'd worked out only maybe 1 in 10 people ever use the warranty, meaning that the margin on it was massive. Like, if we sold one warranty, we made more money than if we sold ~15 big-ticket items. Same reason we sold voucher cards; around 10% of them were never spent (lost etc.) which meant they had a 10% margin - people were paying us £10 for £9.
It seems counter-productive to think a person might risk sabotaging a sale for the sake of upsell, but sometimes that's how it breaks down.
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