Re:Stripe migrates Stripe Subscriptions users to more expens...
by PragmaticPulp on Thursday November 12, 2020 @02:44PM
(#25074000)
> It could very well be that they have a lot of buyers because of a very low profit margin and this actually has a notable impact on the company's finances.
This is the real problem.
From the sidelines, it's easy to dismiss an additional 0.5% overhead as trivial. After all, that's less than 1%, right?
But it's not so simple. That 0.5% comes out of the profit margin. If a company has 50% profit margins, losing that extra 0.5% isn't a big deal. However, if a company is operating on 10% margins, that 0.5% suddenly becomes an extra 5% overhead.
This is the real problem.
From the sidelines, it's easy to dismiss an additional 0.5% overhead as trivial. After all, that's less than 1%, right?
But it's not so simple. That 0.5% comes out of the profit margin. If a company has 50% profit margins, losing that extra 0.5% isn't a big deal. However, if a company is operating on 10% margins, that 0.5% suddenly becomes an extra 5% overhead.