Cost Quote by Larry Ellison
“Because software is all about scale. The larger you are, the more profitable you are. If we sell twice as much as software, it doesn't cost us twice as much to build that software. So the more customers you have, the more scale you have. The larger you are, the more profitable you are.”
About This Quote
Source Interview: Bloomberg, 2015
Scale reduces marginal cost, making larger operations more profitable.
In simple terms: Bigger scale lowers cost per unit.
Key Takeaway
Leverage economies of scale.
Themes
business strategy
economies of scale
profitability
Mood
analytical
strategic
Type
business
economic
When to use this quote
- software SaaS
- manufacturing
- retail expansion
Key Concepts
cost structure
network effects
market dominance
Questions to Reflect On
- How can you scale sustainably?
- What risks accompany rapid growth?
A Different Perspective
Scale can create barriers for new entrants, reducing competition.
![“[Photography is ] likewise even French impressionists. So the Sculls bought pop. It was politics, and they moved with it. And I think that could be happening, to some degree, with photography, too. It doesn't cost as much to do it, either.” quote by Garry Winogrand](https://sms4smile.com/quotes/img-quotes/2eb/garry-winogrand-2342_cost_photography-is-likewise-even-french-impr_2802.jpg)
