Comment by PhoenixFlame101
9 days ago
Luxury brands do in fact intentionally destroy old stock to make sure their value doesn't drop due to excess supply. I suppose the next step is making everything extremely limited like hypercars?
9 days ago
Luxury brands do in fact intentionally destroy old stock to make sure their value doesn't drop due to excess supply. I suppose the next step is making everything extremely limited like hypercars?
However hypercars are not purposely limited. It takes an enormous amount of time and labor to build them unlike a handbag where the limit is artificial to sell more.
If you think Piero Ferrari isn't above playing the same games as Bernard Arnault, you're not paying attention.
> However hypercars are not purposely limited
Are you serious? Pricing theory includes both supply and demand, and limiting supply makes the remaining items more valuable by dint of rarity. Companies absolutely limit supply on items to maximize profits. How is this even a question?
Are they harder than ordinary cars?
Singer used to do this, they'd give favorable trade-in deals for old sewing machines so they could be destroyed and kept off the second hand market.