Go Back to
www.WebWholesalerMagazine.com
BLOG ROLL
Knowing Your Market
Share Will Set You Free
By Phil Wrzesinski
Do you know your market share?
It isn’t hard to fi gure out. Use this 4-step formula:
1
Find the total dollars done in your merchandise category across
the country. Your trade organizations should know this.
2
Divide that number by 303 million (the population of the U.S.).
This gives you the dollars spent per person in your category.
3
Multiply that times the population of your trade area
to calculate the total spent in your market.
4
Divide your sales by that number
to fi nd your Market Share*.
Sales ÷ [( Total Dollars ÷ 303,000,000) × Trade Population] = Market Share
Chances are you’ll get a number up your approach. When 19 out of
between 3% and 30%. 20 people aren’t shopping with you,
you’re free to experiment with your
Knowing your
If it’s close to 30%, pat yourself on business model – mix it up, change
the back. You own your marketplace. it up, or blow it up.
market share helps
But understand that you probably Knowing your market share
you know what to
won’t grow much bigger. Even Wal- helps you know what to do next
mart isn’t that big. Either be happy with your business. Do the math. I
do next with your
maintaining that share or look for promise it’s not that hard. And the
business.
other markets or categories into truth shall set you free.
which you can move. *Yes, there will be regional dif-
Th e typical independent retailer ferences and variances per category,
will be in the 3% to 9% range. If this but the number will be close enough
is you, there is plenty of room for growth. And it doesn’t take to work for most businesses.
much to achieve that growth. A store with 5% share only
needs to convince 1% of the market to do business with Phil Wrzesinski owns and operates Toy House and Baby Too, one
of the 25 best independent stores in America. He shares his business
them to get 20% growth. Th is frees up your advertising. You
secrets here and at
www.PhilsForum.com.
don’t have to convince everyone, just a paltry 1%. Th is frees
Find this and other news articles online at:
www.wholesalecentral.com/Wholesale–News
20 November 2009
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76