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What is a customer worth to you?

Put in your own numbers. See what one customer is worth over the time they stay, the most you could spend to win one, and the 30-day payback line.

Department: Sales

Your numbers

Fill in each box with your own numbers. The numbers shown in the boxes are examples, not averages.

  1. Direct costs are what it costs you to deliver the sale: materials, labour, fees.

Your estimate

Sales from one customer, over their time with you
Profit from one customer, after direct costs and before overheads, over their time with you
The most to spend to win a customer and break even
The most to spend to be paid back in 30 days, if the first sale is made and paid for in that time

An estimate from the numbers you entered, worked out in your browser. Your numbers are not saved or sent, and no email is asked for.

How this is worked out

FIG. 01

SHEET 01 OF 01

Sales from one customer = the value of one sale, times how often they buy in a year, times the years they stay.

Profit = those sales, times the share left as profit.

The most to spend to break even is that profit.

  1. The 30-day line is the profit on one first sale, and assumes that sale is made and paid for in the first 30 days. It is never more than the break-even line. Profit here is profit after direct costs, before overheads.

  2. This is your own arithmetic, not a forecast. Spending to the limit leaves nothing for the business, so you may want a lower number.

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