Calculating the Lifetime Value of a Customer...
This tool is to help you determine your own customer lifetime value. As an example, the first column shows typical values for an automotive repair shop. If you don't have exact figures, ask your bookkeeper or accountant for an estimate, or give your own. You can always refine these later.
Once you know this lifetime value, anything that makes you a new customer for less than that is your pure profit. That means "Joe's Garage" will make a profit as long as he spends less than $1,706 to make one new customer. The same calculation applies to your own business, whatever that may be, using your own data that you calculated below.