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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.
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To begin, first enter the name of the cell phone under the Price Analysis section of the Field tab, along with an initial price point to analyze. Then enter the total fixed cost for the business, which is the total amount of money a business must pay to keep their operations running regardless of how many products they make or sell.
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Need to evaluate the best pricing strategy for a product? This Pricing Strategy spreadsheet includes the top pricing tools to evaluate cost, feature,...
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