3 ms·
Not all counterfeits are "counterfeit". Some literally come off the same production line as the legit products. A company will order say 20,000 units from a fac
by giantrobot 5y ago
Not all counterfeits are "counterfeit". Some literally come off the same production line as the legit products. A company will order say 20,000 units from a factory but because of overages in components it's actually cheaper (or not more expensive) to manufacture 22,000 units. They can then sell that 2k unit overproduction to a counterfeit dealer for pennies on the dollar, or fractions of a penny on the penny, to make a nice little bonus.
Manufacturing can often be like hot dogs and hot dog buns. The end product is a hot dog in a bun but hot dogs come in ten packs while buns come in four packs each for their own reasons. The most efficient combinations of dogs and buns are common multiples but demand isn't always in those neat numbers. Storing the dogs and buns can be expensive and they will go bad so there's no guarantee you can ever use your stock of stored buns and dogs. If there's a counterfeit market for complete hot dog units you can unload the overproduction and not need to worry about storage or spoilage. You're in the hot dog construction business, not hot dog component storage business.
Clothes are particularly susceptible to the overproduction/counterfeit market.