Sharing Daily Discoveries About Personal Finance And Business Topics

Understanding Why Retail Companies Destroy Usable Items

I saw some videos today of regular people who were so shocked that a lot of retail businesses would take perfectly usable products and intentionally destroy them. Afterwards, it gets put into a dumpster. Some examples are disc based software where one would purposely scratch it to make it unusable or clothing garment that would be torn to pieces. That then raised the debate on why a business doesn’t just donate it.

From personal experience having worked in a retail store, there were times where I destroyed hundreds of CD software. The best example was tax software where the old versions are essentially useless. To my understanding, normally a retailer would ship back all the items to the vendor at the vendor’s cost. Basically, the retailer would get its money back. Instead, it’s cheaper for the vendor to simply pay the retailer money for the existing inventory and have them destroy it. If they didn’t destroy it then it’s almost like the retailer is just getting paid to have free products. Essentially, it just comes down to the economics of it being financially cheaper.

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