F21 — Cost Base
What It Costs to Operate
This page answersWhat must be true on the cost side for this to work?
Assumptions are shared across every financial page — change one, all outputs recalculate.
178–179 — Staffing
U.S. operating team
Team model
ESTIMATE| Function | Headcount | Average package | Loaded annual cost |
|---|---|---|---|
| Engineering and product | 18 | US$190,000 | US$4.2M |
| Data, mapping and venue verification | 9 | US$105,000 | US$1.2M |
| Merchant sales and success | 14 | US$118,000 | US$2.0M |
| Growth and performance marketing | 7 | US$148,000 | US$1.3M |
| Customer support and trust | 11 | US$74,000 | US$993K |
| Finance, legal, compliance and licensing | 5 | US$165,000 | US$1.0M |
| Leadership and general management | 4 | US$245,000 | US$1.2M |
| Total | 68 | — | US$11.8M |
Cost drivers
ASSUMPTIONHosting, mapping, payments infrastructure, data licensing and tooling.
180 — Structure
Fixed versus variable
Cost composition
MODEL OUTPUTWhy the split matters
A platform with a high fixed cost base and low variable cost has explosive operating leverage above break-even and severe cash risk below it. PawPals sits in exactly that position: roughly 84% of the modelled cost base is fixed.
The practical consequence is that rollout pace, not unit economics, determines survival in the first three years.
181–182 — Break-even
What is required to cover the cost base
Annual contribution per user
Users required for break-even
On consumer contribution alone
Paying merchants required for break-even
On merchant subscription alone
Annual fixed cost to cover
The two break-even figures are alternatives, not additive. In practice the business reaches break-even through a combination — the model shows each in isolation so neither is hidden behind the other.
Salary bands are ESTIMATES for U.S. metropolitan markets with a 22% loading for employer taxes, benefits and equipment. They are not offers, budgets or committed plans.
Investor implication
Break-even at 663,155 users is the single most testable claim in this section. It can be validated or destroyed in one metro, at a fraction of the national capital requirement.