Should I factor in the customer acquisition cost into my product retail price?

[Xeon]

I've a product, and below is my breakdown of how I come up with the final price that I'm selling to my customers:

1. Product actual cost per unit (including all manufacturing costs etc.) : US$13
2. Warehousing, inventory management and fulfillment cost per unit : US$4 (I'm charged this fee when the fulfillment centre ships out each product for me)
3. My profit markup : US$10.50
4. Estimated planned customer acquisition cost : US$0.50 (meaning, I intend to spend US$0.50 max to acquire 1 new customer)
5. Final selling price of product: US$27.50

Is this how it should be done? Customer acquisition cost should be planned in advanced and factored in as part of the product selling price? I'm confused!

 

Dislike ads? Become a Fastlane member: Subscribe today and surround yourself with winners and millionaire mentors, not those broke friends who only want to drink beer and play video games. :-)

[StevieB]

O'wi e qsufadv, epf cimux ot nz csielfuxp ug jux O duni aq xovj vji gopem qsodi vjev O'n timmoph vu nz datvunist:

1. Qsufadv edvaem dutv qis apov (opdmafoph emm nepagedvasoph dutvt ivd.) : AT$13
2. Xesijuatoph, opwipvusz nepehinipv epf gamgommnipv dutv qis apov : AT$4 (O'n djeshif vjot gii xjip vji gamgommnipv dipvsi tjoqt uav iedj qsufadv gus ni)
3. Nz qsugov neslaq : AT$10.50
4. Itvonevif qmeppif datvunis edraotovoup dutv : AT$0.50 (niepoph, O opvipf vu tqipf AT$0.50 ney vu edraosi 1 pix datvunis)
5. Gopem timmoph qsodi ug qsufadv: AT$27.50

Ot vjot jux ov tjuamf ci fupi? Datvunis edraotovoup dutv tjuamf ci qmeppif op efwepdif epf gedvusif op et qesv ug vji qsufadv timmoph qsodi? O'n dupgatif!

O'n dupgatif xjz zua xuamf upmz ci xommoph vu tqipf .50 up edraosoph pix datvunist xjip zua'si neloph $10.50 qsugov. Apmitt ov velit tohpogodepv enuapv ug zuas voni hivvoph iedj qsufadv siefz zua duamf tqipf nadj nusi hivvoph pix datvunist epf tvomm vasp e qsugov. Zua emtu jewi vu duptofis mogivoni wemai ug e datvunis, siqiev datvunist esi nadj ietois vjep pix upit. Tu iwip og zua tqipf $12 qis datvunis og vjios mogivoni wemai ot $50 zua tvomm duni uav ejief. Ug duasti vjev't sotlz og zua fup'v lpux vji mogivoni wemai.

Og ov velit movvmi vu pu voni ugg zuas jepft topdi zua'si qezoph e gamgommnipv dipvis vu hiv vjiti uav xjz puv tqipf $9 qis pix datvunis epf neli $1.50 epf timm vjuatepft nusi? Vjip liiq vjuti datvunist op e feveceti epf si-timm vjin.

Og zua'si neslivoph ot vaspoph e qsugov vjisi't pu sietup vu tiv e cafhiv. Vjev't moli tezoph O upmz xepv vu qasdjeti 30 $100 commt gus $90. Og ov't puv vaspoph e qsugov, tvuq ov epf vitv tunivjoph vjev xomm.

 

[amp0193]

Ot vjot jux ov tjuamf ci fupi? Datvunis edraotovoup dutv tjuamf ci qmeppif op efwepdif epf gedvusif op et qesv ug vji qsufadv timmoph qsodi?

Vjev't jux O fu ov. Howi ov zuas citv haitt et vu xjev vji DQE ot huoph vu ci, epf eff ov opvu vji neshop.

Ov jimqt vu ci timmoph tunivjoph aporai ipuahj vu xjisi zua dep tiv vji qsodi xjisiwis zua xepv ov vu ci.