Pricing · 4 min read · Free
When a Fast $100 Profit Can Beat a Slow $200 Profit
Time matters because your cash is stuck until the item sells.
A bigger dollar profit is not always the better deal. If $100 comes back in three days and can be redeployed, while $200 takes two months, the faster deal may produce better results over time. Learn how quickly your category moves, not just the theoretical margin.
What it is
Comparing profit with the time capital stays tied up.
Why it matters
Capital velocity can make smaller repeated profits outperform larger slow ones.
When to use it
Use when deciding whether to accept a lower offer or choose between categories.
How to do it
Track days to sell. Compare expected profit per unit with how many times the same capital could be reused over the same period. Include risk of market decline while holding.
Worked example
Option A: $100 profit in 7 days. Option B: $200 profit in 60 days. If you can repeat A several times with similar risk, it may outperform B even though each sale looks smaller.
Your action plan
- Track days-to-sell
- Compare profit per 30 days
- Review which categories free cash fastest
Common mistakes
- Looking only at dollar profit
- Assuming every fast deal is repeatable
- Discounting too aggressively just for speed
Key takeaway
Time is part of return on capital.
Try this
Compare two hypothetical deals using both profit and expected days to sell.
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