What is Customer Acquisition Cost?

Posted by Philip Huthwaite on September 27, 2023

CAC Definition

Whether you're in traditional high street shops or diving into the fast-paced world of eCommerce, one goal stays the same: get and keep loyal customers. With so many businesses fighting for attention, finding those loyal customers isn't always easy.

That's where the Customer Acquisition Cost (CAC) can help. CAC is the average cost of acquiring a new customer, from initial contact to them making their first purchase.

Read More

Topics: Cost Plus, Customers

The Brutal Truth About Cost-Plus Pricing

Posted by Moira McCormick on August 30, 2016

Cost-plus pricing is a common approach to pricing used by many B2B businesses. It's simple really - in order to reach your cost-plus price you figure out all the costs of production or manufacture, set a desired margin for each unit and add that margin onto your cost. Hey presto, you have your price!

Read More

Topics: Pricing Strategy, Cost Plus

Forget Cost-Plus Pricing - Sell Value Instead

Posted by Moira McCormick on August 2, 2016

Typically - if you are offering a product that provides more value than the competing alternative, customers will choose your offering. If your offer provides less value than its competing alternative, customers look elsewhere.

Read More

Topics: Margin Growth, B2B, B2C, Value, Willingness to Pay, Cost Plus

What Are the Most Popular Pricing Strategies by Industry Sector?

Posted by Moira McCormick on April 28, 2016


Pricing is one of the four elements of the marketing mix, along with product, place and promotion. An effective pricing strategy is vital for companies who wish to achieve success by finding the price point where they can maximize sales and profits. Companies may use a variety of pricing strategies, depending on their own unique marketing goals and objectives – and also on which industry they represent.

Read More

Topics: Pricing Strategy, Pricing, B2B, Retail, Dynamic Pricing, Manufacturing, B2C, Cost Plus

When should a change in cost price affect your selling price?

Posted by Moira McCormick on April 26, 2016

Costs (direct or indirect) are the expenses that a business incurs in bringing a product or service to market. The selling price is the amount a customer pays for that product or service. The difference between the price that is paid and the cost that is incurred is the profit the business makes when the item sells. If a customer pays £10 for an item that costs the company £5 to produce and sell, the company makes a £5 profit.

Read More

Topics: Price Management, Pricing Strategy, Pricing, Cost Plus

Recent Posts

Posts by tag

See all