What’s the best way to think about profitability?

Fred Wilson (Co-Founder and Partner at Union Square Ventures)
Measuring Price Elasticity And More – AVC

You must know the price elasticity of your product or service. You must know how much it costs to produce. You must know how much it costs to acquire a customer. And if your model is subscription, you must know your churn and lifetime value. From all of that comes the data and knowledge that allows you to optimize price, margins, and profitability. Which, after all, is the goal of a business, all the other bullshit you read on the internet notwit… (read more)