How do businesses with quickly depreciating products operate?

CyberGhost

I've always wondered about this,

Let's say a phone shop, like the one in the Square in Tallaght, they have tons of phones on display, many of them are old, and I've checked, they've had the same phones displayed for weeks and they are not display units, they are for sale.

So how does this business stay afloat? Phones get outdated so fast, if you don't constantly change them, batteries die.

They don't drop the price on them. What happens to all these phones?

The same with cars. I go by a Ford dealership and there are rows and rows of cars, aging quickly, getting dirtier, getting rained on, plus it's not good for a car to be stationery for long periods.

What happens to all the unsold stock?

Aint Eazy Being Cheezy

They're given away on Facebook, in like and share competitions AFAIK.

Yourself isit

They're handed back to the manufacturer.

KungPao

All shops in Tallaght sell on their old ****e to the shops in Dominic's. I suppose that's what they all do. Make their money while the going is good then sell on the leftovers at cost or cut their losses, and move on to the next big seller, just like Del Boy.

uch

KungPao wrote: »

All shops in Tallaght sell on their old ****e to the shops in Dominic's. I suppose that's what they all do. Make their money while the going is good then sell on the leftovers at cost or cut their losses, and move on to the next big seller, just like Del Boy.

I love the sign in Dominic's, 'we don't call the Guards for shoplifters, Anto will deal with it'

drisx2

Big turnover..win some..lose some..

prinzeugen

Anywhere I worked will sell items cheap usually with a "sold as seen" sticker. You would not see it in the shop unless you went in first thing.

My dad used to buy ex display cars in Scotland. Would be sitting on the forecourt for months and used for the odd test drive, but they were cheap.

The prob was that they would be unregistered when bought so when my dad sold them, there would always be questions about why a 96 Astra was on a 98 plate (think one had a UK S plate when it should have been a P for that model)

KungPao

uch wrote: »

I love the sign in Dominic's, 'we don't call the Guards for shoplifters, Anto will deal with it'

Poor Anto is no longer with us.

CyberGhost

CyberGhost wrote: »

Let's say a phone shop, like the one in the Square in Tallaght, they have tons of phones on display, many of them are old, and I've checked, they've had the same phones displayed for weeks and they are not display units, they are for sale.
...
The same with cars.

Maybe they just look at businesses that must sell really really quickly, like bakers and fruit and veg shops...and just take it a little easier?

I mean it must be just crazy in the really really quickly ones...

JustAThought

KungPao wrote: »

Poor Anto is no longer with us.

What happened - where has he gone? I hope one if his customers didn't deal with him?

Outlaw Pete

2nd hand phones don't depreciate that much. I see S4 Minis and S4s going for the same price in CEX and the like that they were this time last year. They also pay out very little to those selling or trading those phones to begin with.

There are some shops in town that I often wonder how they stay afloat though. Some shops that always seem empty and almost never anyone shopping in, like certain antique dealer places and old book shops. How the hell do they pay their overheads I'll never know.

TerrorFirmer

A better example would be something like a fruit and veg shop. Imagine the waste on a daily basis?