Take the 2-minute tour ×
English Language & Usage Stack Exchange is a question and answer site for linguists, etymologists, and serious English language enthusiasts. It's 100% free, no registration required.

What does "lost sales" mean in the sentence below?

The most important quality cost, lost sales, is often omitted from quality cost reports.

share|improve this question
add comment

2 Answers

up vote 5 down vote accepted

Lost sales are those selling opportunities that you have lost because an item was out of stock or because you do not carry a particular brand or line of merchandise or any other reason that caused you to lose the opportunity to sell.

Check out this link.

share|improve this answer
add comment

Lost sales is the difference between actually sold items and potentially sold items, i.e. how many more items you would sell under different circumstances.

In the sentence, the difference is due to the quality of the product. If you sell a product with a lower quality, fewer will buy it. Improving the quality would give an increase in sales.

share|improve this answer
1  
or mathematically, [lost sales] = [potential sales] - [actual sales] –  advs89 Feb 21 '11 at 21:06
add comment

Your Answer

 
discard

By posting your answer, you agree to the privacy policy and terms of service.