>But to an established company trying to make money, 0.7% of revenue is a huge (seriously, huge) line item in a CFO's accomplishment list.
Ok, that seems pretty weird right there, 0.7% overhead of an early stage startup is now 0.7% of revenue even though we agree it is just increasing as the same rate of hires?
In other words while each new programmer hired will drink the same amount of soda as the others it should be evident that the percentage of revenue would be decreasing, otherwise they have some serious problems that getting rid of free soda will not fix.
Ok, that seems pretty weird right there, 0.7% overhead of an early stage startup is now 0.7% of revenue even though we agree it is just increasing as the same rate of hires?
In other words while each new programmer hired will drink the same amount of soda as the others it should be evident that the percentage of revenue would be decreasing, otherwise they have some serious problems that getting rid of free soda will not fix.