Rapha, nice but a bit pricey?

There are times when a company will sell items at a loss however correct?

Yes, when the cost of warehousing approaches the point of exceeding the cost of production.

But... then the choice has to be made: Do we sell them and risk losing a large chunk of our future potential market for full priced items? Or do we send them to landfill?

If you've only got a few items and it won't impact your target market, a fire sale is the way. But what if you have quite a few items left?

At the record label I once worked for, we sent 30,000 CDs to landfill even though we were selling them. We just weren't selling them fast enough. Then we won a Brit award and had to order 50,000 CDs.

It was financially better to send the 30k to landfill and then to sell 50k for profit, than it would have been to sell 30k at a loss and only make profit on 20k.

Money fucks up everything. Just because something looks right (they'll sell that for a loss rather than destroy it and be wasteful) doesn't mean it's going to happen. What happens is whatever makes sense for the numbers at that time.