> History is littered with companies who claimed to have great "gross margins" but died because they overspent on "product development."
Please do tell.
> DuoLingo's hosting costs should be low. But content development costs should be included in COGS (being pedantic: COGS doesn't apply to non-inventory business activities, so we should be using the term COR instead). Content development and customer service aren't cheap.
I agree with you here, except for specifics. Do we know how much content costs? (ps, once you create content for a language it can scale infinitely - as opposed to having teachers in a classroom who can't). We don't know how much customer service costs / personnel they have, BUT it is part of COGS (as per their definition) so its impossible to qualify that hosting "should be lower" unless you know their specific hosting costs.
Please do tell.
> DuoLingo's hosting costs should be low. But content development costs should be included in COGS (being pedantic: COGS doesn't apply to non-inventory business activities, so we should be using the term COR instead). Content development and customer service aren't cheap.
I agree with you here, except for specifics. Do we know how much content costs? (ps, once you create content for a language it can scale infinitely - as opposed to having teachers in a classroom who can't). We don't know how much customer service costs / personnel they have, BUT it is part of COGS (as per their definition) so its impossible to qualify that hosting "should be lower" unless you know their specific hosting costs.