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dumping is an international trade concept. For a company to be dumping, there needs to be a differential between what a company is selling for in their domestic
by malandrew 6y ago
dumping is an international trade concept. For a company to be dumping, there needs to be a differential between what a company is selling for in their domestic market versus a foreign market.
Even if that wasn't the test for it, my understanding is that they have unit positive economics (positive EBITDA), but are losing money because they haven't yet amortized overhead like SG&A. This is not atypical with any new venture scaling up until their positive unit economics are sufficient to dilute overhead and turn the company profitable.
- bsder 6y ago"Dumping" is simply using non-local money to sell something at less than normal value. It is normally applied to international trade because such an action generally requires systemic support from a government to continue for a sufficiently long timescale. However, it can certainly be applied to local economic products and regions--Rockefeller and Standard Oil being one of the notable examples.