Variable Costs 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.

Know the difference between your necessary and discretionary expenses.

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.

Because what happens is, as the economy suffers, tax revenues go down. But unlike businesses, where at least your variable costs go down, in government your variable costs go up: unemployment insurance, workmen's compensation, health care benefits, welfare, you name it.

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.

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

We have never considered any costs as fixed. Therefore we first reduce the price to a point where we believe more sales will result. Then we go ahead and try to make the price. We do not bother about the costs. The new price forces the cost down.

It is critical to bundle all future variable costs of supporting the customer in order to fairly estimate the future contribution.