Opportunity Cost
The value of the next-best alternative forgone when a decision is made. In reselling, relevant for deciding whether to hold an item or discount it: holding has an opportunity cost (the capital is tied up, the space is occupied, the time managing it is spent). A slow-moving item at full price may be less valuable than a quick sale at 70% of asking price if the cash enables faster reinvestment. Resellers who ignore opportunity cost often sit on stale inventory indefinitely.
Where you'll see this
This term is commonly used on:
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