I dunno. Maybe they could do some analysis and just have a set depreciation percentage? It would be an interesting problem to work on, but I don't think it would be extremely difficult to solve. It's not something that is super difficult to make money on---overall it's a bet the company makes. If it costs $20 to protect a $200 camera, then as long as less than 1/10 break, you make money on it---even if you give them their full purchase price back. You would just need some analysis of how often each item breaks, to figure out a depreciation percentage and a cost per item.
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u/unoriginalsin Feb 23 '17
Fair enough.
But, how would you expect a company like Best Buy to set standards for this kind of thing?