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

Back when I used to dumpster dive, there was one dumpster that was always packed with frozen pizzas. It was great. A little while later, I was working a temp job in the same building as the frozen pizza dumpster. One day some guy comes by with a pallet full of the stuff and asked if anybody wanted some. I asked why they were always throwing away so much frozen pizza, and they said that it was because they ordered it by the truckload, but didn’t have enough space for the whole truckload. He also said that if they ordered it by the pallet that it’d be more expensive.

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