It's a poor moral practice perhaps but arguably a good business practice to spend as little as possible on "cost centres"
I got given a Patagonia bag (not my thing), the wheel broke off (thanks AA), took it to a store, and the customer service was so good I’m a convert. Conversely, I recently stopped using a service I spent >$20k a year on because their customer service was so bad. Can you boost profitability short term? Definitely, but I suspect in the long term you trading long term customer NPV for short term profits