sockpuppets
Senior Member
- Joined
- Nov 27, 2009
- Messages
- 298
- Reaction score
- 2
I am not being argumentative, but how does one, let's say J. Crew, profit more from selling something that it has a finite supply of at a discount, then selling said item at full price? I really want whomever to get the 25% off, but I am simply stating that basic economics that deal with finite resources would tell one that making more profit is better than making less profit.
Let's assume that J. Crew acquires the boots from Alden at half of their retail value, so $225. You are arguing that they should take a 50% loss on their net revenue on THE shoe of the season that will most likely sell without promotion because...?
I feel it necessary to covenant again that I WANT whomever to get the 25% off.
The assumption that Jcrew would have 100% sellthrough on current inventory at full retail price is flawed. The economy isn't in great condition, I'm sure they're happy to have the sales. They have to try to act like they're combating discounts to maintain brand equity and honor their retail partner agreements however.
They can always order more, it's not like Alden isn't stapling more dead animals together.