If you’re scaling without knowing what it costs to get a customer, you’re not building — you’re gambling.
Let’s be real: too many cannabis brands, delivery services, and distro crews are moving units with no clue what they’re paying to earn a buyer. That’s cute in the short term — deadly in the long run.
What is CAC and Why It’s the First Number That Matters
CAC = Customer Acquisition Cost.
How much are you spending (in dollars, time, effort) to lock in one paying customer?
It includes:
Paid ads (Google, IG, Weedmaps, etc.)
Sales reps’ commissions
Packaging, sampling, freebie drops
Time spent DM’ing and following up
Add it all up. Then divide it by the number of new customers that actually paid you.
If your CAC is $75 but your average order value (AOV) is $65 — you’re upside down.
Why Most Plug-Level Operators Stay Broke
Most cats think revenue = winning.
Wrong.
If you’re not tracking CAC, you’re:
Overpaying to look busy
Misallocating marketing budget
Leaving profit on the floor
Struggling to scale because you can’t repeat what’s working
Let’s break the myth: volume is not victory.
Profitability is. And profitability starts with knowing CAC.
How to Calculate Your CAC in 15 Minutes
Here’s a back-of-napkin method:
Pick a time window (last 30 days works).
Add up spend:
Paid ads + design fees + promo packs + discounts + labor.Count new customers only — repeat buyers don’t count here.
Divide spend by new customers.
Example:
You spent $3,000 last month.
Got 40 new paying customers.
Your CAC = $75.
Easy. Now ask: what’s your breakeven point?
If your customer spends $100 over their lifetime with you, but it cost $75 to get them — you made $25. Cool. But can you do that at scale?
3 Moves to Lower Your CAC Starting This Week
Tighten Your Funnel
If your IG page looks like a meme page, you’re losing leads.
Build a clear path to conversion: Menu → DM → Checkout.Retarget Smarter
Run ads only to warm traffic. Email your list. Text your past buyers.
Stop cold-blasting strangers.Fix Your Offer
People don’t buy product — they buy results.
If your flower solves anxiety better than meds, say that.
Passion Farms Can Cut Your CAC — If You Let Us
We’re not just dropping fire on the menu. We’re helping distro partners build funnels, track metrics, and grow profitably.
- Pre-built backend systems
- Menu drops with marketing assets
- Consulting for scaling legit
DM “GROWTH” to get CAC clarity and backend support.
Or tap in at PassionFarms.org — see how the new wave is really moving.
