Harvard Business Review

MAY 8, 2012

Cloud service providers are increasingly proxies for utilities — they require 100% uptime, significant quantities of their own power, and predictable variable cost (which for renewables is nearly zero). buying RECs for electricity and offsets for travel). Sales/Becoming the Vendor of Choice.

Energy 17

Energy Variable Costs Travel Operations 17

Harvard Business Review

JUNE 4, 2015

Since theme parks are high fixed cost/low variable cost entities, revenue from discount-enticed new customers is virtually all profit… free money. Should beer prices at the TD Garden be higher at a rowdy Boston Bruins game than when a traveling circus is using the arena? This would result in growth. I think so.

Variable Costs 13

Variable Costs Fixed Costs Implementation Travel 13

Harvard Business Review

APRIL 5, 2013

Dynamic pricing makes sense for baseball as it shares key qualities that have enabled other industries (airlines, hotels, and rental cars) to prosper from this strategy: fixed capacity, low variable costs, and a "product" that expires at a certain time. Not long ago, for instance, downtown hotels used to be vacant on Saturday nights.

Variable Costs 8

Variable Costs Travel Revenue Sales 8