Internally that policy was called “getting to yes” and it was a huge pain in the ass.
The idea: customer comes in with a broken screen. You surprise and delight them by getting a manager’s override on the cost. You say you can make an exception because it’s the first time, but the next screen will cost x.
The reality: customer comes in expecting free repairs. Any charge is an argument. Their cousin dropped like 5 phones in the toilet and they were all replaced for free, etc. It sucked.