Fixed Costs Quotes

Sunk costs? We pay too much attention to them.

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.

Nobody wants the expenditure of a lease on a factory which lasts 21 years. You can't plan 21 years ahead.

Know the difference between your necessary and discretionary expenses.

Pay your utilities, gas and other basic needs before paying on your debts.

Historically, the U.S.'s big launchers fly seldom enough that their costs are dominated by annual upkeep of facilities and staff, not by the actual cost of each launch. The expensive part is maintaining the launch capability, not actually conducting launches.

There are certain economics involved in making a network TV show that you want to amortize the costs of that, so the more episodes you make, the cheaper they all are individually.

Like the producers of crops, airplanes, and books, producers of natural gas provide goods to meet the size of their available market. The larger the market, the more they can produce, and the more revenue they can obtain to cover their fixed costs and invest in future development.

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

Build into each budget the cost of hiring and don't lump yourself with capital investment.

I can hire out for editing, proofreading, formatting, and cover design, and those are fixed, sunk costs. Once those are paid, I can earn 70% on a self-pubbed ebook.

Textile mills are not a very high-margin business and have fixed overheads, so it was challenging. But I think it is only in challenges that you get opportunities.

Unfortunately, I've got airplanes that I can't even afford to use today that are sitting there. I'm still paying insurance on them; I'm still paying payments.

Unless you have fixed costs, you don't need any capital to create a prototype. Ideally, your co-founders, with sweat equity, can create the product themselves.

Thus a new way of finding fluidity will inevitably be imposed on management and labor alike. The profit-sharing, or "progress" sharing union contract is the only possible way of satisfying labor and the consumer without saddling industry with fixed costs that in depression periods can kill off marginal companies like flies.