how is it possible that it’s cheaper for a company to destroy/throw away inventory?

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My wife has been addicted to watching dumpster diving videos where people end up finding brand new expensive things thrown away by retailers. It made me remember reading somewhere that the reason they do this is because it’s cheaper for them to throw away or destroy their inventory than it is to give it away or sell at discount. HOW???

I don’t see how they could possibly save money by destroying inventory rather than putting it on extreme discount. Surely they could make more money selling at an extreme discount versus no money at all by destroying .

In: Economics

36 Answers

Anonymous 0 Comments

I worked for a company that made blinds. We threw away so much wood that was sitting there for 10 plus years because we needed the space. We discontinued wood except for white and tossed dumpsters of stuff out. Old fabrics too. No one ordered it. 10s of thousands worth of stuff. 2 15 yard dumpsters.

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