4 ms·

You don't always, ethical companies should not charge a percentage.

• ocdtrekkie 6y ago
  There's a lot of justification for ethical percentage-based businesses. Particularly if the service provided is provided on each transaction. It also means they don't make any money if their customers don't make any money. It's a good incentive for providing a quality product, over say, a single lump sum purchase price.
  • qubex 6y ago
    Variabilising all a company’s costs is every CFO’s dream: it makes all projections perfectly linear and totally eliminates any risk as zero revenue doesn’t create a loss because all costs also go to zero. At least, in the start-up phase of operations. Later, when economies of scale kick in and break-even has been far overcome, one seeks to negotiate smaller unit charges, primarily to capture more of the added value for oneself, and partially to reduce visibility of one’s revenue.
    • ocdtrekkie 6y ago
      That's all definitely true. I think the cloud is a terrible value proposition for anything that's not a startup, for instance: You will safe a crud-ton of money paying your own IT staff instead of paying Amazon's IT staff, provided you have a stable business with relatively predictable needs. Arguably, once you are a big player in a space, you should ideally have the clout to negotiate a better deal too.
• colinmhayes 6y ago
  Ethical companies don't exist. The only point of a company is to make money. If the company lets ethics get in the way of that it will be replaced by a more effective company.
  • ketzo 6y ago
    Eh, maybe, but even so there are more ethical and less ethical companies, and I would sleep easier at night if I ran one of the former.
  • quickthrower2 6y ago
    Unless ethics is what the company is about, and what the customer wants. I suspect smaller companies can have the luxury of being more ethically focused if they choose to.