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

Besides what others have said, there comes a point where something that isn’t selling no matter how cheap has a cost since it is taking up space that a profitable item could be in. There would definitely be a cost point where it is cheaper to throw it away if it cannot be moved quickly at a certain price.

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