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Slim margins means it isn't a great product, at least by standard business definitions. A product with slim margins is one that you divest from so you can focu

Slim margins means it isn't a great product, at least by standard business definitions. A product with slim margins is one that you divest from so you can focus on the products with good margins.

tempsy 7y ago
I was referring to the quality of the product from the customer POV.
- purple_ducks 7y ago
  They rent office space.
  - michaelt 7y ago
    If you think office space doesn't vary in quality, you haven't worked in a very wide range of companies :)
    - icelancer 7y ago
      Or rented from Regus, which is a company that people are just now finding out about. Their offices are absolutely embarrassing.
- AlexandrB 7y ago
  MoviePass was an amazing product from the customer POV. Not a viable business though.
- smacktoward 7y ago
  From the customer's POV, selling dollar bills for fifty cents each is also a high-quality product.
  - tempsy 7y ago
    No not really. Again, they lose billions right now because it costs a lot to build out new buildings. Then as a building matures they recoup these costs through the memberships. The more mature offices are profitable. It just isn’t necessarily tech/VC level profits.
    - throwaway2048 7y ago
      They aren't building out anything, they lease existing office space.
the_watcher 7y ago
There are lots of good businesses that operate on thin margins. They're good businesses, which is why you can divest them to investors who want to run a good business. What they're not are businesses that should trade at anything close to software revenue multiples.