Carrying cost
Also called cost of carry, holding cost
Carrying cost is what it costs to hold a watch in inventory until it sells, chiefly the cost of the money tied up in it, whether that's interest on credit or the next deal you can't do.
It grows with every day a watch sits, so slow sellers carry much more of it than fast ones. Insurance, storage, and the risk of prices softening add to the real cost of holding stock.
Build carrying cost into your buy price by estimating how long a watch will take to sell. A slow piece should get a lower offer than a fast one at the same sale price.
Related terms
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Where this comes up
Pages on this site that use the term.
- Buying outright vs. taking a watch on consignment: the dealer's mathArticle
- How much should a watch dealer pay for a watch?Article
- Common mistakes new watch dealers makeArticle
- Financing watch inventoryArticle
- Is it worth servicing a watch before you sell it?Article
- Offering layaway or a payment planArticle
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