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How Much Does It Cost to Get a New Customer? A Plain-English CAC Guide for Contractors
Most contractors have never calculated this number. It's the difference between a marketing budget that works and one that quietly bleeds money. Includes a five-minute worksheet you can do today.
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TL;DR
- CAC is total marketing spend divided by new customers. $3,000 for 30 customers is a $100 CAC.
- As a rule of thumb, CAC should land between 10% and 20% of your average job value.
- Compare CAC to lifetime gross profit (LTGP): you can usually afford to spend 30% to 50% of a customer's LTGP to win them.
- The usual mistakes: tracking spend but not results, blending channels together, and never calculating LTGP.
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