4 ms·
The importance of this depends on unit economics. For businesses with historically tight margins (e.g. retail), small swings in input prices (labor, cost of goo
by eldavido 13y ago
The importance of this depends on unit economics. For businesses with historically tight margins (e.g. retail), small swings in input prices (labor, cost of goods) can make or break profitability.
Whereas software, if you're doing it right, should have much higher margins.
Sidenote: I'd be very curious to know what the "typical SaaS business" has as its gross margin, factoring in all sales against "cost of goods": servers, bandwidth, operations, etc.
- opendais 13y ago80% seems to be the common 'educated guess' number: http://www.quora.com/What-should-be-the-typical-gross-margin-for-a-SaaS-startup http://www.quora.com/What-should-be-the-typical-gross-margin... http://www.forentrepreneurs.com/saas-metrics-2-definitions/ http://www.forentrepreneurs.com/saas-metrics-2-definitions/ http://www.forbes.com/sites/jjcolao/2012/10/02/running-a-saas-business-answer-these-four-questions/ http://www.forbes.com/sites/jjcolao/2012/10/02/running-a-saa...