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Great idea. You're making money off of temporary hype, but the pricing structure has to reflect the variable costs. At some point, you can't make one t-shirt
by ahsonwardak 19y ago
Great idea. You're making money off of temporary hype, but the pricing structure has to reflect the variable costs. At some point, you can't make one t-shirt with Twitter on it and make any money, right?
- rrival 19y agoOf course. There's a per-screen (per color) setup charge of $x, so it wouldn't work to have a very small number of subscribers. Fortunately variable costs decrease on a per-unit basis (at volume thresholds) and the relative impact of the fixed costs decreases with each additional unit.