how does a artificially limited supply of a product generate a benefit for the seller?

205 views

I‘m just sobbing over year old limited vinyl only releases going for x times the original price second hand. Wouldn‘t the artist themself make more money if i could still buy it digitally? Same thing for sneakers etc

In: 12

9 Answers

Anonymous 0 Comments

ROI vs total earnings

Corporations(and most other business models) exist to return the greatest possible return for it’s investors. For every $1 invested a company wants the maximum amount of return. This sometimes results in counter intuitive business decisions. If you can invest $100 and earn $160 then you have total earnings of $60 or $.60 for every dollar, or you can invest $200 and earn $280 giving you earnings of 80 but only $.40 for every dollar.

You are viewing 1 out of 9 answers, click here to view all answers.