If you've already turned a profit, then your left over crap could be destroyed and you'd still be fine. At this point you're not trying to be profitable, you're being greedy. It's normal for my company to announce discontinuance of a product and eat the "loss", nearly give away the old stuff just to make room and not waste old product. We always just release the latest greatest asap. We nearly have our market cornered and we're more profitable than the competition.
We focus on quality and our competitors can't figure that out. Pretty much the only people that go to our competitors is because of price(literally could not afford us), but eventually they come to us and we get told about how horrible the experience was with the other people. We've even been complimented by our competitors during the few times we've had to collaborate for very special reasons.
It's hard to get a company started when you focus on quality, but once you're there, you rake in the money. As soon as your get greedy, it's a race to the bottom and you're not longer special. At some point you will be the same as all of your competition and all you can do is compete on price. Enjoy your slim margins.