unfortunately, this is more about chasing profit. The large ticket items, like the cellphone or laptop that this person is buying, have very small profit margins and so Grumbel’s doesn’t make as much profit from selling JUST the one item.
This is why accessories, protection plans, etc. are focused on more than just making sure that the customer gets the big item they initially wanted. Corporate wants high profits every quarter so that shareholders won’t sell and devalue the company. The only way to do that is by pushing merchandise with high profit margins.
I got the plan when I got central air installed by ***** (a dept. store). Paid every year
then, when it got old enough it might need repair, they wouldn’t let me renew it any more.
Underwriter had it down pat: it broke down a year later.
unfortunately, this is more about chasing profit. The large ticket items, like the cellphone or laptop that this person is buying, have very small profit margins and so Grumbel’s doesn’t make as much profit from selling JUST the one item.
This is why accessories, protection plans, etc. are focused on more than just making sure that the customer gets the big item they initially wanted. Corporate wants high profits every quarter so that shareholders won’t sell and devalue the company. The only way to do that is by pushing merchandise with high profit margins.
Is it annoying? Very, but :that’s capitalism:
I got the plan when I got central air installed by ***** (a dept. store). Paid every year
then, when it got old enough it might need repair, they wouldn’t let me renew it any more.
Underwriter had it down pat: it broke down a year later.