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Can new innovations make a present item obsolete?
We are in the midst of our discussion about buying in bulk to avail of a discount. We covered two of questionable assumptions so far. The first one related to using up all the quantities purchased and the second one about the last piece being as good in quality as the first one.
Let’s now come to the third one. Buying in bulk has an inherent assumption that the item we are buying in bulk will be equally desirable in future as well. We have often seen competitors launching innovative products, making the existing ones much less desirable. It happens quite frequently in electronics, for example. If we buy in bulk for future consumption, we are unlikely to switch to new improved alternatives till we consume the entire purchased quantity.
If the product category is undergoing rapid technological evolution, be careful about bulk buying for a small discount!