The Customer Acquisition Cost (CAC) directly impacts the pricing of a product. It's the cost a business incurs to acquire a new customer, including all the costs associated with marketing and sales. If the CAC is high, the product price might also need to be high to cover these costs and ensure profitability. However, if the CAC is low, the business has more flexibility to price the product lower, potentially attracting more customers.
Need to evaluate the best pricing strategy for a product? This Pricing Strategy spreadsheet includes...
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