Cost Structure Quotes

On the Internet, companies are scale businesses, characterized by high fixed costs and relatively low variable costs. You can be two sizes: You can be big, or you can be small. It's very hard to be medium. A lot of medium-sized companies had the financing rug pulled out from under them before they could get big.

Fundamentally, where you have an industry in which labor is the primary cost, we can’t compete and probably shouldn’t.

It's not about revenues: The fundamental economics in digital business is scale and margins. The top line has become the bottom line.

In general, you don't want competitors to understand your business outside of telling people your revenue and profitability numbers.

Blog-based businesses have lower cost structures and are more 'authentic,' and as a result are drawing larger shares of ad budgets.

Sports has always been a pass-through. You pay for something, and then you pass it through to television, you pass it through to advertisers, or you pass it through to season-ticket holders, luxury boxes and then the fans. Then it all adds up, and you take in more than you pass out.

That doesn't mean you have to have the lowest costs in the industry to succeed. But you need to make sure the activities and product attributes that increase your costs above the other guy bring in at least that much more in revenue, and hopefully more.

Product pricing is aligned to the way customers want to acquire their solutions and are delivered via different delivery models including appliances, the cloud, or as on-premise software solutions.

You can look at the cost structure of an incumbent company and discover: where are they not going to be able to drop their prices... because that business model is fundamental to the existence of the company.

A business model describes how your company creates, delivers and captures value.

Decreased business base increases overhead. So does increased business base.

The digital business is a fantastic business to be in. The only thing you have to do is build a cost structure for a declining business, which is different from the structure for a growing business.

Your first job, as an owner and an entrepreneur, has to be to understand how the business is going to actually work.

The thought process of India was more around its potential as a cost arbitrage. We always recognised the potential of India, but we were more coming from how can we fit into cost structure rather than selling things here.

The most interesting information I can have about a competitor is the cost.

Simplicity is hard to build, easy to use, and hard to charge for. Complexity is easy to build, hard to use, and easy to charge for.

The closest thing to a law of nature in business is that form has an affinity for expense, while substance has an affinity for income.

In order for Obamacare's cost structure to work, millions of Americans must sign up to pay inflated prices; that would help pay for the subsidies to cover insurance company costs on those with pre-existing conditions.

Our biggest cost is not power, or servers, or people. It's lack of utilization. It dominates all other costs.

My expenses are largely a fixed, sunken cost, regardless of how much revenue I earn.

The Internet rewards scale; by trading higher up-front costs for lower marginal cost, market leaders can invest in better technology and service. As a result, there is nothing online that is both great in quality and small in scale. Amazon wasn't originally a better bookstore than the small shops we mourn, but it is now.

It doesn't matter much where your company sits in its industry ecosystem, nor how vertically or horizontally integrated it is - what matters is its relative 'share of customer value' in the final product or solution, and its cost of producing that value.

Once you understand business models you can then start prototyping business models just like you prototype products.

The crucial point is always the own cost structure. Therefore I created a Low Cost alliance with air Berlin.

The hardware business is all about per-unit manufacturing cost and functionality. The services business is less asset-intensive and more dependent on people.