If product manufacturers create new and improved products; why do they continue to sell the old product?

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musa1906

If product manufacturers create new and improved products; why do they continue to sell the old product?

YA is a sham

To reduce inventory and make a profit on goods already manufactured.

Michael z

Depending on what the product is may make is necessary to continue the old products for a while. For example, When Windows 95 moved on to Windows 98 then WIN2K, etc. The company (Microsoft) has a legal obligation to continue at least some support for a short period of time. I say legal because many companies have given their customers a certain level of expectation to support their product but also, must annouce when they will no longer support it. Secondly, take a Public Utilities Company like your Electric compnay or, phone company. These companies are regulated by the government and service can not be shut off instantly but rather the markert (sales of the new stuff) will dictate how long old "stuff" stays. A good Example of this is a telephone with a rotary dial. Because this is still a working telephone and part of the public utility phone companies must still support it even though we have moved to first "touch tone" and now VoIP phones. Of course, there are things that do not impact the way people live that are discontinued instantly and no longer supported, say some toy, software or, a table and chair set.

Michelle118

Because there are some loyal customers who will still want it. They already have the means to produce it and they can phase it out slowly.

Paul B

ROFLMAO!

Just what do you think they are doing with their old product?

It is now being packaged with labels that read "NEW AND IMPROVED"!

nelson_maus

They've spend money making the old products and they to take it back. There are customers that are loyal to their old products too.

Harry P

You probably don't remember the "New Coke" fiasco.

The Coca Cola Company several years ago came out with a new and improved coca-cola product called "New Coke" and immediately terminated the regular Coke. Well people didn't like the New Coke and sales for the company dropped like a rock and the company lost boatloads of money.

Eventually, they brought back the old coke and called it "Coke Classic". This is the coke that is currently on the market. They killed New Coke and it was never heard from again.

So you see, here is an example of one reason why companies don't get rid of the old product until the "new and improved" product has been accepted in the market place.

Other reasons are:
a. clear out existing inventory
b. continue to serve loyal customers who may not want to switch
c. product differentiation, better to sell two products than one.

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