Definition
Carrying cost is the expenses associated with holding inventory, including storage and insurance. Founders reach for it when a vague conversation needs a shared, specific meaning. Name it clearly, then let the next decision — a hire, a price, a test, or a pass — follow from that meaning.
In the room
How the word shows up in a real conversation.
You know Carrying cost is doing work when it changes a weekly choice — price, hire, channel, or kill. The working definition: Expenses associated with holding inventory, including storage and insurance.
Common mistake
Using Carrying cost as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.
See also
Capping
Limiting the maximum price or rate that can be charged for a service.
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Carbon Credit
Permit allowing companies to emit a certain amount of carbon dioxide.
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Cartel
Group of companies that collude to control prices and limit competition.
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Carve-out
Sale of a subsidiary or business unit while retaining partial ownership.
Read definition →
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