3 ms·
The article is useful and worth reading for its analysis, but the title makes me curious: are there people that don't think gross margins matter?
by OnlineGladiator 7y ago
The article is useful and worth reading for its analysis, but the title makes me curious: are there people that don't think gross margins matter?
- dfcagency 7y agoKinda a click bait title, commenter above said they should add "for SaaS companies"
- dang 7y agoOk, we've changed the title along those lines.
- elihu 7y agoEmployees (as long as it isn't negative and their job isn't at risk). Customers. Anyone who doesn't own stock.
- OnlineGladiator 7y agoI think those are examples of people that don't care, not people that don't understand.
- PopeDotNinja 7y ago> are there people that don't think gross margins matter? I hope not. If you sell it for less than it costs you to make it, eventually you're gonna have a bad time.
- sqrt17 7y agoThe pertinent question would be: why would you exclude sales and marketing from the gross margin, but include support costs. Ostensibly you are able to scale back sales and marketing without alienating your existing customers, but realistically optimizing for GM then potentially leads to an organization that oversells (high sales and marketing costs) and underdelivers (low value of what's actually in the product)