Dead Stock Cost Calculator
This inventory has been sitting 3 months. How much am I losing per day?
The True Cost of 'Not Marking Down'
Holding costs are invisible but relentless: storage + capital + depreciation = 20-35% per year. Every month your warehouse holds unsold inventory, you're bleeding money through three channels simultaneously.
Refusing to take a 10% markdown today costs you 2-3% per month in holding costs. After 4-5 months of waiting, you've lost more than the markdown would have cost.
Inventory Carrying Cost Breakdown
| Cost Component | Typical Range | Annual Impact on $20K |
|---|---|---|
| Storage/Warehouse | 3-8% | $600-$1,600 |
| Cost of Capital | 8-15% | $1,600-$3,000 |
| Depreciation/Obsolescence | 5-15% | $1,000-$3,000 |
| Insurance/Shrinkage | 2-5% | $400-$1,000 |
| Total | 18-43% | $3,600-$8,600 |
The Markdown Decision Framework
If monthly holding cost > potential markdown savings, mark down NOW. Every month of delay compounds your losses.
FBA sellers: Amazon long-term storage fees escalate dramatically after 6 months. At $6.90/cu ft for items over 365 days, the math becomes urgent fast.
Seasonal items: Value drops to near-zero after the season ends. A 30% markdown in-season beats a 70% markdown (or write-off) post-season every time.
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