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Consulting (and services in general) is a low-margin business. You can only increase revenue by tricking young college grads to work 80-hour weeks at low pay.
by hvs 12y ago
Consulting (and services in general) is a low-margin business. You can only increase revenue by tricking young college grads to work 80-hour weeks at low pay.
- scholia 12y agoMargins on services are much higher than margins on hardware. While they're much lower than margins on software, margins on consulting services are also much harder to attack.
- johnward 12y agoWhen they are paying someone $40 per hour and billing that person at $300 per hour there has to be a nice margin in there.
- scholia 12y agoSure, but software gross margins are typically above 80%. (And should be close to 100% in a serve-yourself online software business, where the manufacturing cost is zero.)