02.7.4 · Skill in Business models
Costs and margins
What it costs to build and run the product compared with what it earns.
Gross margin is what is left after the direct costs of serving customers. Software usually has high margins, but AI features, heavy infrastructure or manual support can shrink them fast. Engineers influence many of these costs directly.
Resources
1- articleGo deeperSaaS Metrics 2.0: a guide to measuring and improving what matters ↗David Skok · 2013 · 35 min
The standard long-form reference for MRR, churn, LTV and CAC, with the formulas and the reasoning behind them.
Tools
none yetTools for this topic are being researched.