Understanding Customer Acquisition Cost (CAC) for Makers and Small Shops

Let’s talk about Customer Acquisition Cost (CAC)—and how it impacts your bottom line.

Say you spend $50 on an ad or craft show table and gain 5 new customers. That means your CAC is $10 per customer.

Now let’s say each customer buys one product for $20.
Here’s how the numbers break down:

• $10 covers your CAC

• $10 is left for materials, packaging, labor, and overhead

Not a huge margin on that first order—unless they buy more than one item. If someone grabs two or three pieces in that initial purchase? Now your margins breathe a little easier.

But here’s where the magic happens:

➡️ When they come back to order again, that second purchase is far more profitable. You’ve already paid to bring them in.

Repeat customers are gold for small businesses. They often:

• Spend more over time

• Share your shop with others

• Become part of the community you're building

Want to encourage them to come back?

Try one (or more!) of these simple touches:

• A heartfelt thank you note

• Thoughtful, memorable packaging

• A personal connection on social media

• An invite to join your email list

• A small discount code for next time (if that makes sense for your margins)

CAC isn’t just about the first sale—it’s about building long-term momentum.

Have you heard of CAC before?

I’d love to know what strategies you use to bring in new customers and encourage them to return.

Come chat about it in the Monarch Pine Craft Supply Insiders Facebook Group ♡