17. Cost Structure Flashcards
1
Q
Is your business cost-drive or value-driven?
A
Cost-Driven
- minimize costs wherever possible
2
Q
What are the necessary costs to operate the business?
A
- fixed costs
- variable costs
3
Q
What is economy of scale?
A
At a high volume, cost of supplies likely to be lower.
4
Q
What is economy of scope?
A
Make multiple products for your customers to increase their lifetime value.
5
Q
What are execution metrics?
A
- product cost, market share
- customer acquisition costs, conversion rates
- revenue curves
- basic operating costs
- channel margin
- average selling price
- burn rate
