I’m trying to get a sense of CAC when it comes to fb ads, specifically a higher priced product.
Say my product price is 349. If I subtract 21% VAT it’s 288. (in my country VAT is 21%).
I’m aiming for a 50% gross margin, so my gross profit is half of that 288: 144.
Within this 144, I have to account for CAC and hopefully some net profit (and other operational expenses).
Does anybody have an idea of what the CAC will be for this product costing 349 euro? I’d like to get a sense of this so I can adjust certain numbers etc.
To be more concrete: what do you think the CAC will be for this product priced at 349?
My goal is to have CAC about 50% of my gross profit, i.e. 72 euro. Is that realistic? Then I’ll be left with 72 net profit, making the net margin 25%. (72/288) * 100 = 25%
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