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What is the Cost of Unsold Inventory?

Hidden Costs of Unsold Inventory

Why is unsold inventory expensive, especially in the plant industry? Unsold inventory is expensive to maintain.

Opportunity Costs

As an example, let's say that the overhead cost associated with 100 unsold plants is $1000/month. The opportunity cost is what you would have gained, if you instead used that $1000/month on a marketing campaign, business trip, employee bonuses, etc.