The opportunity cost is the price you pay to take a given opportunity, often cited by Charlie Munger.
If you hire person A the opportunity cost is that you didn't hire person B or C.
If you buy service A the opportunity cost is that you didn't buy service B or C, but additional opportunity costs are if you bought something cheaper and invested the money or just not bought it and invested the money. So the additional cost here is the compounded interest you missed.
An example might be a car with a deposit of 3k and a monthly payment of £300 over 3 years. You might consider this car has cost you £13,800 over three years. But if you hadn't bought the car and put the funds in an index fund at 6% interest you would have made £1,590.87. The opportunity cost was actually £15,390.87.
Consider the opportunity costs when making decisions.
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