Comment by ragall
9 days ago
> My claim is that if they could have sold that inventory at a profit, they would have.
That's utterly incorrect. They don't just want profits - that would be easy to obtain by sending the merchandise to an outlet - they want high profits in a way that maintains high profits in the future too. Any discount "cheapens" the brand by giving customers the expectation of low(er) prices in the future.
> It's theirs to do with as they please.
Only within the bounds of the law.
Agreed. A good business will take both short and long term profit into consideration when making a decision. They will strive to maximize profit (within reason) in whatever they do.
I don’t presume to know anything about the fashion industry and generally find it uninteresting.
My point is that I assume the people running those businesses know what they’re doing. Many of them have been around for many decades.
I’m admittedly surprised to find so many people here with so much confidence in their own ability to effectively constrain an entire industry they obviously also know nothing about.
> My point is that I assume the people running those businesses know what they’re doing.
I agree, but their profit-seeking is myopic and there's no reason why it should be allowed.