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
Let’s say you are interested in buying a new bike and you look at the local bike shop and your dream bike is there on sale for $150. You need to save up for it so you work hard and save up $150 and go back to the shop but the sale is over and that same bike is now $200.
Once you saw that you could have gotten that bike for $150, the cost of that bike is always $150 in your mind. You will not be willing to pay $200 for that bike anymore. This is why some brands never go on sale, because the sale price is now the only price people will buy. For the producer, they will have more profits by throwing away excess inventory and maintaining high prices than lowering the price indefinitely.
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