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> Obviously everyone wants to cut all costs all the time Why would this be obvious? I've worked in companies whose revenue grew so quickly that no one could be
by routerl 4y ago
> Obviously everyone wants to cut all costs all the time
Why would this be obvious? I've worked in companies whose revenue grew so quickly that no one could be bothered to cut existing costs. It literally wouldn't be cost effective to do anything but grow revenue.
Cutting costs is just one half of the equation.
- lotsofpulp 4y agoOutside of VC pump and dump markets, business owners are incentivized to increase net income = revenue - expenses for their own utility and because they have competitors who are working to lure their customers by offering lowering prices. It is possible that in an explosive growth business area with little to zero marginal costs, focusing solely on revenue and ignoring costs in the short term makes sense, but it is not sustainable. Even then, there is never a blank check for labor costs so someone somewhere will notice a number being too high.
- routerl 4y agoYou've echoed my point exactly. Different scenarios call for different approaches. Cutting costs is only one half of the equation.