Stock Out Cost is the cost associated with items out of stock for a business. When a customer wants to buy an item and it is unavailable, this leads to a missed sale and often a lost customer which means businesses can incur additional costs from restocking as well as potential lost revenue. By understanding Stock Out Cost and its effects, businesses can create strategies to reduce its impact such as improving inventory management techniques and boosting their order frequency. In addition, having in-depth data on Stock Out Cost can help businesses negotiate better purchase contracts with suppliers, drive improved forecasting accuracy, and maximize sales opportunities.