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They make it up in volume!!!
Seriously, most people sign up for the service and don't use it. Like all of those extra services, credit protection, credit insurance, etc, offered with credit cards. Or Extended warranties. They are generally a bad bet for the consumer, and a cash cow for the seller. Also, they get $80 from you up front. Cash is king! Walmart sells some items below cost, but makes money on cash flow, selling the item 2 months before paying the manufacturer.
Remember back in the late 90's when to support the stock price, they would have had to sell every other book in the USA? Well, they are an online Sears or Walmart now. And in fact, they are also a better version of Ebay consignment stores.
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James
The pessimist complains about the wind; the optimist expects it to change; the engineer adjusts the sails.- William Arthur Ward (1921-1994)
Red-beard for President, 2020
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