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

Think of it like inventory slots in a game. You’re half way through some area and run out of space so you dump all the low value loot so you’ll have room to pick up better stuff.

There’s still value in the stuff, but you have a limited amount of space and there’s other stuff that’s more profitable than whatever loss you could offset by discounting the stuff that’s not selling.

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