Terminology might be important here, in which case I should have typed "reconditioned" instead of refurbished in my previous post.
In the case of factory reconditioned models, the typewriter would have been completely stripped and inspected. All parts would have been cleaned, and worn/defective parts replaced. Some metal parts were refinished (chromed/plated) or polished. The case (the machine's shell - not a travel/storage case) would have been refinished with baked enamel.
Of equal importance, the typewriter would have been restored to its original performance parameters and properly set up. And it came with some type of warranty.
Who bought these machines? My guess would be smaller businesses, and individuals (like journalists) who spent a lot of time typing and understood the value of a standard model versus a portable.
Although maybe less prevalent now, we do have a similar option today to buy "factory refurbished" electronics. Ironically, I think the savings over new is similar today as it was back then.