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.
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.
If 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.
rolenthedeep|3 years ago
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|3 years ago
Opportunity costs, or any other "virtual" cost, are still meaningful figures.
terafo|3 years ago