UVA Darden
MAY 11, 2022
Once you add fixed costs to those wages, it gets very expensive to run a quality program with skilled providers. Miles: Despite high costs for parents, the younger the child being cared for, the worse the pay is for care providers. Child care is expensive to provide because it’s a highly regulated labor-driven service.
Harvard Business Review
MAY 19, 2015
That gave it a steadier cash flow to cover the costs of its large fixed cost investments, but did not eliminate the unused capacity of plants dedicated to one kind of product. These regional production centers would reduce transportation costs and currency risks, while developing closer ties to their customers.
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Harvard Business Review
NOVEMBER 10, 2016
They started back in 2009 with black car limos, which were essentially the academic medical centers of transportation: extremely expensive and mostly empty. On any given day in America, 40% of hospital beds lie empty, their enormous fixed costs weighing heavily on the system. Or take medical appointments.
Harvard Business Review
OCTOBER 6, 2014
Blindly transporting a retail concept across international borders is seldom a recipe for success. Hard discounters aim for twice the volume with the same fixed costs so they can make the same returns at half the gross margin. and spends it in international markets. The answer is simple – selling more.
Harvard Business Review
JULY 12, 2018
A second important deficiency arises from the fallacy that a cost-plus price is guaranteed to cover costs. Cost-plus prices provide no guarantee of covering costs or earning a profit. This notion can make managers falsely complacent.
Harvard Business Review
MARCH 28, 2014
The theory of disruption explains why incumbent businesses – with high fixed cost infrastructures and embedded beliefs about what the market wants – fail to adopt business models that lower the cost of their services and drive product accessibility to entirely new sets of users. VR is insular.
Harvard Business Review
MAY 21, 2015
The costly and complex operations of transporting energy have made utilities natural monopolies, while regulatory barriers and the high fixed costs of building and maintaining regional electrical grid infrastructure have also kept much competition at bay. Consider how Uber opened up the transportation market.
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