I sell merchandise on eBay.
Now, if I posted my item as an Auction, starting at $1 and for 7-days length, it may end up selling at high bid for $15, $20, or $25 dollars 7 days later.........
Now, let's say I have that same item posted as a "Buy It Now" for $100, because I don't want to take low money (the $15-$25).
A Buy It Now can have the right buyer come along in hours or days, and pay you the $100, or offer you (with the "Best Offer" function) $90, $75, etc........
ORRR the item can sit there for MONTHS at a time, while waiting for the right person, who wants to pay the right money.
I am writing a business plan for investors, and I am dying to know what this economic concept/terminology is called ---- when you have to "sit" on inventory for sometimes a verrrrryyyy long time before it sells.
I am also trying to justify it as profitable, since my product take little space to store, and my overhead/expenses are low.
It is well worth it for me to list something for 6 months to get $75-$100, as opposed to doing a 7-day auction, and get only $15-$25 because the right people were not FIGHTING for it.
Terminologies, or a shove to the right Wiki page, would be most appreciated.