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Margins 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 ha
by scholia 12y ago
Margins 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.)