Remove Compensation Remove Manager Remove Variable Costs
article thumbnail

Incentive Pay Challenges And Opportunities In 2023  

Chief Executive

There is a delicate balancing act happening in many organizations where there is a need to: • Be conservative in hiring activity and managing variable labor expenses, and. Supplemental compensation practices to offset inflation. Reward existing talent—and especially top talent—as competitively as possible.

article thumbnail

A Quick Guide to Breakeven Analysis

Harvard Business Review

Managers typically use breakeven analysis to set a price to understand the economic impact of various price- and sales-volume scenario. These costs are fixed because they will not change with the number of kites sold. Therefore, the unit variable costs to make a single kite is: $50 ($20 in materials and $30 in labor).

18
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Contribution Margin: What It Is, How to Calculate It, and Why You Need It

Harvard Business Review

To understand more about how contribution margin works, I talked with Joe Knight, author of HBR Tools: Business Valuation and cofounder and owner of business-literacy.com , who says “it’s a common financial analysis tool that’s not very well understood by managers.” ” What Is Contribution Margin?

15
article thumbnail

An HBR Refresher on Breakeven Quantity

Harvard Business Review

“It’s one of the more popular ways that managers calculate marketing ROI,” says Avery, pointing out that other common ones include calculating the investment payback period, calculating an internal rate of return, and using net present value analysis. The variable costs to make each pair of flip flops are $14.00.

15
article thumbnail

A Quick Guide to Breakeven Analysis

Harvard Business Review

Managers typically use breakeven analysis to set a price to understand the economic impact of various price- and sales-volume scenario. These costs are fixed because they will not change with the number of kites sold. Therefore, the unit variable costs to make a single kite is: $50 ($20 in materials and $30 in labor).

10
article thumbnail

The Customers Who Are Happy to Pay More for Less

Harvard Business Review

It seems that marketing managers seldom question the product sizes they’ve inherited. In a restaurant experiment, he found that pricing half portions at 70% of the price of the regular size more than compensated for lower margins by attracting additional consumers. How leading companies connect with customers.

14
article thumbnail

Constructing Your Personal User Interface

Harvard Business Review

In an attempt to buff out my real-life rough edges I tend to over-compensate by trying to add excess functionality to my website. In this modular era for workers, some principles of user design can be applied not only to building websites, but to each of us as managers, free agent workers, and freelancers.

16