In this episode of the Perpetual Traffic podcast, hosts Ralph Burns and Lauren Petrullo, along with guest Cole Turner, delve into the critical marketing metric of new Customer Acquisition Cost (nCAC). Cole shares a story about a client's miscalculation of their cost of sales, which led to an inaccurate nCAC and potential financial losses. The discussion covers the importance of including all variable costs, such as fulfillment, shipping, and marketplace fees, in the cost of sales calculation, rather than just the cost of goods sold. The hosts emphasize that accurately determining nCAC is essential for understanding a business's true profitability and making informed decisions about ad spending and scaling strategies. They also touch on how to factor in operating expenses and the counterintuitive concept of needing to increase ad spend to cover overhead costs. The episode concludes with a promotion of Tier 11's nCAC calculator and special Q4 offer.
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