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You're right, the primary cost for us (and like most B2B companies) are the employees that serve our customers. That's about 25% for our business. However, the
by suhail 12y ago
You're right, the primary cost for us (and like most B2B companies) are the employees that serve our customers. That's about 25% for our business. However, the % of cost substantially increases to become infra for the highest volume customers.
So, in a way, you make an interesting point: it's quite difficult to reduce costs for your smallest customers since the cost of supporting them isn't generally infra related (unless you're a consumer startup?).
There are number of advantages to have lots of smaller customers, no matter how seemingly "unprofitable" on paper they are: marketing, product feedback, etc. Your mileage may vary though for each business and its timing in the market.