Many business owners are flying blind when it comes to their real costs. You might be spending more to acquire customers than you’re actually making from them, and that’s a fast track to financial struggle. Understanding your Customer Acquisition Cost (CAC) is critical to making sure your business is profitable and sustainable.

👉 Reflect today: Do you know how much it costs to get each customer? Are you charging enough to cover your costs and make a profit?

Here’s why knowing your numbers is essential for financial success:

1️⃣ Calculate Your Customer Acquisition Cost (CAC)
Your CAC is how much you spend on marketing and sales to get each new customer. If you’re spending $500 on ads, social media, and promotions but only charging $60 per sale, you’re operating at a loss. To find your CAC, divide your total marketing spend by the number of new customers acquired in a given period.

2️⃣ Make Sure You Cover Delivery Costs
Beyond the CAC, you need to factor in how much it actually costs to deliver your product or service. If you’re paying staff, using tools, or investing in onboarding, you need to recover those costs in the first sale or have a strategy for delayed profit.

3️⃣ The Subscription & Delayed Profit Model
Not every business needs to break even on the first sale. If you’re running a subscription-based business, like Tekmatix, profitability may come after a few months of retention. This means investing upfront in great service, onboarding, and customer experience to ensure long-term loyalty.

4️⃣ Charge More if You Need To
If your CAC is too high, the fastest way to fix your profitability is to increase your prices. Many entrepreneurs undervalue their services, leading to constant struggle instead of sustainable success.

5️⃣ Track Your Numbers to Stay Profitable
If you’re not tracking your costs, you’re guessing your way through business. Use tools like Google Analytics and Tekmatix reporting to analyze customer behavior, acquisition sources, and identify where you’re overspending.

🎯 Pro Tip: Set a goal to recover acquisition costs in your first sale, then maximize long-term profits with subscriptions, upsells, and repeat business.

💡 Want to make your business more profitable, predictable, and scalable?
Join Legends Lab for advanced pricing strategies, automation tools, and business models that increase revenue while reducing unnecessary expenses: www.sarahcordiner.com/legends

Sarah x