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In this case I would agree, probably relatively easy to scale. I've long thought about the differences in scalability and margins when comparing service-based
by shostack 12y ago
In this case I would agree, probably relatively easy to scale.
I've long thought about the differences in scalability and margins when comparing service-based businesses to product-based ones.
In the ad agency world, it is all service-based for the most part still, margins are razor thin, pay is low, and the stress is massive. The problem then becomes maintaining quality of service as you scale, and efficiency of operations to keep your margins as healthy as possible. Stressed out service employees are basically the equivalent of delivering a shitty product. If it becomes a big enough loss in quality, you lose customers.