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Yes, artificial scarcity and the accompanying artificially high prices are a bad thing for consumers, in all situations. Inventory in a warehouse does not have
by rolenthedeep 4y ago
Yes, 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.