Hey {{ first_name | there }},
The biggest roofing company I work with has no idea what their customer acquisition cost is.
Let that sit for a second. $40M in revenue. No idea what it costs them to acquire a customer.
They're not an outlier.
The Pattern I Keep Seeing
I meet $10M and $20M construction businesses running the same way. Surviving on reputation and referrals. Great work. Strong word of mouth. Zero visibility into the actual cost of bringing in new business.
It works until it doesn't.
When a slow season hits, they don't know where to cut. When a new competitor enters the market, they don't know what they can afford to spend to defend their position. When they want to expand into a new market, every decision is a guess.
What CAC Actually Buys You
Knowing your customer acquisition cost is how you buy certainty about the future of your business.
When you know your CAC, you know exactly what a new market is worth before you enter it. You know how much you can spend to acquire a customer and still hit your margin. You know whether your marketing is working or just spending.
Billion dollar brands run their entire growth strategy around this number. They know exactly what a customer costs across every channel. That knowledge is what lets them outspend competitors without losing margin.
The contractors I work with who track it sleep better during slow months because they know exactly what levers to pull.
The ones who don't are flying blind at $40M a year.
Talk next Wednesday.
Zach, Founder at Venveo