CLV Suppose you are a mar tech firm selling your B2B software as a service (SaaS) to obtain an annual revenue stream for your acquired customers. You typically acquire these customers at a cost of $5,000 and once they are a customer you retain them with a 50% likelihood each year. Suppose your margins on software are high, at 85%. Given your weighted average cost of capital (WACC) of 8%, what price must customers be willing to pay in order for you to break even on your software offering?

Answer rating: 100% (QA)

To determine the price point needed to break even on the software offering we need to consider the following factors 1 Customer Acquisition Cost CAC 5... View the full answer