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You're talking about "profits" when you should really be talking about "costs".

At a macro level, in a large company/business, your employees expect raises for a variety of reasons (inflation, quality of life, promos, etc). A new product or feature may require hiring additional employees. If an employee exits, you may need to spend more money to hire a replacement. In addition to all of that, there are contractual obligations with vendors, your customers may be trying to eliminate product (or leave entirely), etc.

All of that raise the cost to run the business. If you want to keep your margin you need to raise your prices, cut expenses, or both.




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