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
I used to work at a food stand selling hot dogs. At the end of the day we could either throw away or eat the leftovers, but we were explicitly told we cannot give them away. The whole logic was pretty straight forward –
1 – people are going to feel like they got ripped off if they buy a hot dog and then hear us giving away free hot dogs to the rest of the crowd
2 – once they realize it’s free hot dogs at closing time, they’ll just wait until then to eat
3 – it helps discourage people from making extra to give to friends/family
Obviously you aren’t talking about food, but the same could go for something like shoes or bags that go in and out of style. If there’s a new version of Nikes that comes out every January and you know for a fact that last year’s will go on sale for 90% off, you’ll just always buy last year’s instead. If they throw last year’s in the garbage you’ll be forced to buy this year’s at full price
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