CFO Expertise

CAC & how to calculate your threshold! What can you spend to acquire a new customer? ? Knowing this information and setting your threshold can dramatically change your trajectory. ? This insight is crucial in determining how much you can spend on acquiring new customers while still making a profit or pushing to break even. ? Understanding your margin and where you can set your CAC threshold, will allow you to manage costs more effectively, ensuring you're not overspending on customer acquisition. ? Let’s break it down very simply: ? ? New Customer AOV: $100 ? COGS: $20 ? Shipping to Customer: $12 ? Merchant Fees: $3.5 ? $100 – ($20 + $12 + $3.5) $100 - $35.5 = $64.5 ? So if you are focused on just breaking even, you can set your CAC at $64.5. ? But if you want to build in profitability right at acquistion then you can lower that, and set the threshold with your ad agency or marketing department. ? ****now how aggressive you get with your CAC depends on your CLV, and how often customers come back to repurchase… ....but I can dig into that on another day. ? By the way, if you would like me to create a simple template of this for you, just drop me a comment and I can get it created and headed your way. #dtcbrands #dtc #ecommercebusiness #ecommerce #ecommercetips #dtcwlth

DTC Brands it's the end of the year.....don't sleep on your inventory. As this year wraps up, here's a quick tip that can transform your business: Year-End Inventory Count...don't get bored yet! It's not just ticking boxes; it's about powering up your brand for the new year. Let’s break down why: ? Align your physical stock with your balance sheet inventory value. ? Ensures financial statements reflect the true health of your business. ? Provides insights for smarter purchasing and sales strategies. ? Helps avoid overstocking or understocking – key for efficiency! ? Identifies discrepancies early, preventing future headaches. ? Streamlines your inventory management for smoother operations. ? Crucial for accurate profit margins and revenue reporting. ? Protects against loss and theft, safeguarding your assets. A thorough Year-End Inventory Count isn't just a chore; it's a strategic step towards a wealthier, more stable future for your brand. So, tell your 3PL to get to steppin' and make this year-end count.......count! See what I did there? #dtc #dtcbrands #ecommerce #ecommercebusiness #ecommercetips #inventorymanagement

I've created ?? simple forecast template, for DTC brand owners to get clarity on profitability ?? Type "PROFIT" below and I'll share it with you! #dtc #dtcbrands #ecommerce #ecommercebusiness #ecommercetips #ecommercegrowth