[_ah]

I disagree, and think this could actually be a good overall optimization technique. If the product you are selling is overpriced (not a bad value per se, but maybe ~35% above where it could be) then the sales person should absolutely optimize for the immediate sale. You get to sell RIGHT NOW at a high markup, and any time you would invest later trying to close a deal at a lower price can instead be spent selling someone else at a high markup. There's obviously no opportunity to close later at a higher price, since by then the customer has had a chance to shop around and discover true market pricing.

This works particularly well for large one-time sales where pricing information is scarce and the relationship is less important. Example: sales for replacement windows, doors, roofs, etc.

[aequitas]

Indeed, it must work somehow, or else they would no longer be in business. I think it also has to do with demographic. Some people are just easily persuaded by these kinds of offers, so if there is a hole in the market, someone will fill it.