Variable Costs

[Chi-chi]

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.?

[Glen Ferguson]

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: gl...@coworkfrederick.com Website: https://www.coworkfrederick.com Address: 122 E Patrick St, Frederick, MD 21701

On Thu, Apr 19, 2018 at 5:41 PM, Chi-chi <xchic...@gmail.com> 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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[Jerome Chang]

And the number one variable cost, if you have hourly staff: labor. 

Jerome

Www.BLANKSPACES.com

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[Chi-chi]

Thanks Glen and Jerome. This brings greater clarity.