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 work for a company that does this. It’s all about the brand. The brand has to stay expensive and luxurious, and it would degrade the brand if poor people or people in Africa were seen wearing them on mass. So for the company it’s more profitable to have the excess stock destroyed and keep the supply low and therefore more expensive.
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