[gjmacd]

Couple points to follow up.

- US based business, Boston. Taxes are higher, rent is higher (when you needed rent). Salaries are higher (if you want good people). As the founder, I wanted my company to have great benefits and healthcare. That cost (and I'm not kidding here) reduced our revenue considerably. This is why I'm a huge fan of a single payer option in the US that takes healthcare off corporations. - B2B business with SMB's, average customer ARR was about $3K. E-commerce integration product, so it was a bit of a lift on the technical side with many nuances between integrations. - Support ended up being about 75% of our labor costs.

[jwr]

Yes, benefits and healthcare are important. Did I mention that these tax rates and margins I listed also cover full healthcare costs (state-provided health insurance)?

Anyway. My point was to show that costs can vary wildly across countries, and I was surprised to see how low the net margin can end up in the US.