The Economics of an Empty Seat
What cheap Tuesday tickets teach us about marginal costing—and the unit economics of operating at scale.
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Sathya Narayanan
Why Unit Economics? The Next Decision Needs More Than an Average
A profitable month can hide very different economics underneath. Connect the books to decisions about price, promises, processes, and capacity.
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Unit Economics: The Discipline of Close, Every Day, Every Unit
Five questions connect accounting discipline to daily decisions at scale.
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Netflix: A Viewing Event Is Not a Subscription
Connect service-day revenue to shared content costs without confusing allocation with causation.
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Taskrabbit: Whose Money Is on the Invoice?
Separate provider entitlements from platform revenue and connect support work to the task.
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Walmart: One Order, Two Deliveries, One Return
Follow item-level recognition, fulfillment costs, return estimates, and recovery of inventory.
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Airbnb: A Booking Has More Than One Clock
Separate booking, cash, check-in, payout, and later service adjustments.
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Uber: The Ride Ends Before Its Costs Do
Follow a ride from fare and driver entitlement to insurance estimates and revised contribution.
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Month-End Close: Five Questions Before You Trust the Profit
Understand why the unclosed profit is provisional and what makes a reviewed result credible.
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One Month, Closed: Follow Every Adjustment
Reconcile every adjustment to the income statement, balance sheet, equity and cash flow.
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From Local Books to the Organization's Profit
Understand group eliminations, currency, tax and the different levels of profit.
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Balanced Books Can Still Be Wrong
Connect the ledger to banks, subledgers, schedules and evidence beyond the accounting system.
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