What is the purpose of money back purchases?

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The whole money back thing makes absolutely no sense. If you are going to sell something for $500, then say you will give $100 back after purchase, why not just make the product $400? Is it some sort of sleezy marketing scheme? ELI5. Please! Make this make sense.

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Anonymous 0 Comments

Because a lot of consumers won’t follow through and get the money back. So they get the boost of sales from the anticipation of the 100 savings without necessarily losing the money.

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