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All of those ‘bad’ thing in launches serve a marketing purpose. Scarcity makes consumers think something is in demand. Additionally, every day of stockpiled inv
by adt2bt 4y ago
All of those ‘bad’ thing in launches serve a marketing purpose. Scarcity makes consumers think something is in demand. Additionally, every day of stockpiled inventory costs money.
- rolenthedeep 4y agoYes, artificial scarcity and the accompanying artificially high prices are a bad thing for consumers, in all situations. Inventory in a warehouse does not have the kind of cost you think it does. Most of the "cost" people talk about are hypothetical profits that a different product occupying that space might generate in the same time. The real costs are insurance and warehouse leases. Per unit, it's almost nothing. A company like Apple could easily stockpile months worth of inventory and never even notice the real physical cost of storing it.
- chrisdirkis 4y agoIf you think there's no value to present money flows, I'd love to take $1MM from you. I'll pay it back later, so there's literally no cost to you, right? Opportunity costs, or any other "virtual" cost, are still meaningful figures.
- terafo 4y agoNot if we are talking game consoles. Sony and Microsoft sell them at a loss and then recoup that loss with a cut from game sales.