Glossary
Carrying cost
Carrying cost is what you pay to keep goods: rent, insurance, spoilage and the money tied up.
What it means for a shop owner
It is usually estimated as a yearly share of stock value. Many shops forget it and think idle goods cost nothing. The shorter an item stays, the lower it is.
A worked example
Stock worth 10000 with a carrying cost of 20 percent a year costs you 2000 a year.
Related
Try it in your shop, free, no card.
The free plan: the whole shop for one branch, an offline cashier with stock, debts and accounting, with a daily limit on invoices, expenses and purchase orders. What it includes