When to Buy a Large Consumer Business

Our model again is going to be, it's going to be a lower margin product for that provider but they're not spending any money to get, to get that customer. And so you can choose to play that game or you can choose not to.

Great. Taylor, you had talked at the top.

Or when, when you were speaking with your investors about this rate, doing your fundraise the growth plan here and it sounds like the market penetration is really what it's about. The low hanging fruit of market penetration is already behind you. The co founders did that.

That's the business you bought. So now it's going to be more incremental penetration. But give us a sense of the size of market and to what extent it is already penetrated by energy Ogre.

So the size of our eligible market, single family homes in a competitive area within the state of Texas is 5.3 million meters and we're in single digits of that penetration story. I, you know, we believe that we can, you know, we can double that. What we need to, what we need to be able to do is in my view is to feed our word of mouth engine because we resonate really well in cross the table…

So the more customers we acquire, the more referrals we're, the more referrals we're getting.

And as a business owner that's great because that's my stickiest customer and that's the customer that doesn't cost me as much to get what we probably, you know, during, during diligence and as we discussed customer acquisition, I think we had to get comfortable with the next tier of customers is likely going to cost us more, but it's still going to be within a range that is very much healthy for…

Right. And so what we're focused on now is if we do have to go, you know, what are the channels in which are going to be healthy, have a high retention customer that may cost more but is going to kind of perpetuate and build this word of mouth engine that is so strong and that we believe in. And so that's essentially the model for us.

And that's what we had to get investors comfortable with is where does basically cac, where does customer acquisition cost land in that next tier? Because you know, in the history of the business, which has been 13 years, it's, it's, it's, it's been in a really great spot from an LTV to CAC perspective. It's very healthy.

Yeah. And, and so why do you think that you're at this moment of tiering where it's going to get harder? Maybe you still got a lot of willing customers who you can acquire cheaply or are you already seeing it in the data that CAC is just inching up year by year?

I think, I think it just comes from a posture to clarify. I think it just comes from a posture of us wanting to kind of kick it into gear from a growth perspective. We're going to probably have to go pay for that growth now.