Hey,
Out of curiosity, I was wondering if there are any variable costs associated with operating a coworking space. I’m trying to calculate breakeven point and I can’t really think of any.?
As usual, the answer is “it depends.” There’s going to be incremental, or variable, costs associated with every additional member you have.
There’s going to be an increase in demand for utilities (electric, water/sewer) and internet load. Those are likely to be in small increments, but they’re still going to bump your bills a little.
If you have to maintain your own bathrooms, more people means additional consumption of hand towels, toilet paper, soap. Do you include complimentary coffee as part of membership? Coffee, tea, sugar, milk usage will go up. Any snacks included? More people eat more. Beer for happy hours? Ditto. Unless you charge for printing you’ll have increased costs for paper, ink, toner. I’m sure there are others I haven’t covered.
Glen Ferguson
Phone: 301-732-5165
Email: [email protected]
Website: https://www.coworkfrederick.com
Address: 122 E Patrick St, Frederick, MD 21701
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On Thu, Apr 19, 2018 at 5:41 PM, Chi-chi [email protected] wrote:
Hey,
Out of curiosity, I was wondering if there are any variable costs associated with operating a coworking space. I’m trying to calculate breakeven point and I can’t really think of any.?
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And the number one variable cost, if you have hourly staff: labor.
Jerome
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On Apr 20, 2018, at 9:20 AM, Glen Ferguson [email protected] wrote:
As usual, the answer is “it depends.” There’s going to be incremental, or variable, costs associated with every additional member you have.
There’s going to be an increase in demand for utilities (electric, water/sewer) and internet load. Those are likely to be in small increments, but they’re still going to bump your bills a little.
If you have to maintain your own bathrooms, more people means additional consumption of hand towels, toilet paper, soap. Do you include complimentary coffee as part of membership? Coffee, tea, sugar, milk usage will go up. Any snacks included? More people eat more. Beer for happy hours? Ditto. Unless you charge for printing you’ll have increased costs for paper, ink, toner. I’m sure there are others I haven’t covered.
Glen Ferguson
Phone: 301-732-5165
Email: [email protected]
Website: https://www.coworkfrederick.com
Address: 122 E Patrick St, Frederick, MD 21701
On Thu, Apr 19, 2018 at 5:41 PM, Chi-chi [email protected] wrote:
Hey,
Out of curiosity, I was wondering if there are any variable costs associated with operating a coworking space. I’m trying to calculate breakeven point and I can’t really think of any.?
–
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To unsubscribe from this group and stop receiving emails from it, send an email to [email protected].
For more options, visit https://groups.google.com/d/optout.
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Thanks Glen and Jerome. This brings greater clarity.
···
On Thursday, April 19, 2018 at 5:56:37 PM UTC-4, Chi-chi wrote:
Hey,
Out of curiosity, I was wondering if there are any variable costs associated with operating a coworking space. I’m trying to calculate breakeven point and I can’t really think of any.?