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Erik Bergeman's avatar

One of the other downsides of "Doom Spending" is the whiplash effect after things settle down. That kind of spending is not sustainable. Retailers that don't take that into effect will find themselves way overbought, leading to significant discounts to purge excess inventory. It can be a double whammy. I didn't anticipate the volatility, so I sold out, and then I built a plan on artificial demand, which causes me to have too much inventory. That challenge is 100% avoidable if you understand "Doom Spending" and plan accordingly.

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