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
One concrete example: my friend and I produced a board game. The initial run was shipped in bulk to a few warehouses to cover orders from different countries. At one point we had about 20 copies in the UK, selling a couple per month. Profit per copy was about $20, the long term warehousing fees were $50 per month, and shipping them to us in bulk would’ve cost around $500. So overall keeping them warehoused was costing us $10 per month, and shipping them here to sell would lose us $100. The best option was to have them tossed.
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