Scenario: I'm running a website where customers can take a test and based on that test, it will determine the best place to go on vacation. Once that place is found, it will direct them to other websites where they can buy tickets/rent hotel (let's just call them ticketholder.com). We will take 3% per transaction fee from ticketholder.com. (For example let's just say airplane ticket cost 300, we would take 9$)
What is our cost of goods sold? (We don't have any inventory, we're just providing the service, so how can I determine the cost of goods sold? For example, would my CGS be 80% of revenue?)
What would be our variable cost? (customer service and support, information techniciansâ? anything else to determine it?)
What would be our fixed cost? (rent, utilities, and advertisingâ? anything else?)
Again, this is just a website/app.
Scenario: I'm running a website where customers can take a test and based on that test, it will determine the best place to go on vacation. Once that place is found, it will direct them to other websites where they can buy tickets/rent hotel (let's just call them ticketholder.com). We will take 3% per transaction fee from ticketholder.com. (For example let's just say airplane ticket cost 300, we would take 9$)
What is our cost of goods sold? (We don't have any inventory, we're just providing the service, so how can I determine the cost of goods sold? For example, would my CGS be 80% of revenue?)
What would be our variable cost? (customer service and support, information techniciansâ? anything else to determine it?)
What would be our fixed cost? (rent, utilities, and advertisingâ? anything else?)
Again, this is just a website/app.
