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

Even at discount you have to have some take the item in, look at it make sure its not deamaged/what is deamaged, catalog that, put it on a shelf, pay for the shelf space, have it sold (does matter if online or in a store), have a payment process, then if online have someone recieve the item, package it and ship it. And at least in the eu you still have to provide 2 year warranty on it. You paid for all of that just to have a very high percentage of items send back again.
On the other hand you just have the cost of putting everything in a big press.

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