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They'd like to sell the items that don't sell cheaply, because it means more profit, but this would lower the perception of their brand, so they'd end up losing
by carlmr 7y ago
They'd like to sell the items that don't sell cheaply, because it means more profit, but this would lower the perception of their brand, so they'd end up losing money on the upscale items. Costing them in the total calculation.
So they throw away everything, inefficiently, for free.
- chrisseaton 7y ago> inefficiently It must be more efficient for them to maintain the high price, otherwise they wouldn't do it! I know it's not efficient for the environment, but nothing in fashion is.
- carlmr 7y agoThat's what I was explaining. It's more profitable to keep up the illusion of value than actually creating value. This is normally seen as a market inefficiency, too, in economics lingo
- iguy 7y agoBut how do you tell what is "actually creating value"? For instance, do movie producers do this, when they construct whole buildings and then knock them down a week later?