Long Math: Determining Your Market Share

Long Math: Determining Your Market Share

One of the valuable reasons to belong to a business group or trade association is that they can help determine your role in your market. In some businesses, this can be relatively easy, like in automobile sales and real estate. Numbers are readily available to help place them in a pecking order in terms of local success. But what if you own a pizza place, an eyeglass company, or a jewelry store? Is it possible to determine your market share?

It can take a bit of research and may not be 100% accurate, but with some effort, you should have an idea on just how much business you may be missing out on.

Calculate the Total Market

How many people live in your trade zone, the area where most of your customers come from? For example’s sake, we will use 100,000 people.
Determine Average Annual Sales per Person in Your Product Category
Let’s say 95% of all people buy pizza each year, spending an average of $200 each annually. That would place pizza sales at $200 times 95,000 people, or a total of about $19 million.

You may have to do some really hard searching to find numbers that make sense for your business. If you sell eyewear, you would need to determine what percentage of people purchase eyewear, how often they purchase it, and what they spend on average annually on eyewear.

By searching enough, you will eventually find numbers that make sense and at least give you some estimate as to what your market share may be.

In our pizza example, a pizza place selling $1 million still would have less than a 5% market share.

As mentioned, a trade association may also help you in calculating your market share as well, but it can be an enlightening process.

Calculating the cost of a business insurance plan is even easier. Just contact one of our independent business insurance agents. We do the work for you! Get your no-obligation quote by contacting us today. We look forward to assisting you.


Do you have questions about your insurance? Find an insurance agent near you with our Agent Finder

Search All Blogs

Generic filters

Buzz Your
Insurance Agent

Search for a local agent with our agent finder map.

Agent Finder

Want to learn more about our blog writer?

Read more about KayLynn's background.

Click Here

Search All Blogs

Generic filters

Read More Blogs

Your Perfect Beach Day: Tips for Effortless Fun in the Sun

Easy tips for a perfect, stress-free beach day.

Peace of Mind for Your Business: Key Moments When Insurance Pays Off

Business insurance: essential protection for common challenges.

Navigating Life Insurance: 5 Common Mistakes to Avoid for Your Financial Future

Avoid these 5 common mistakes when buying life insurance.

Your Car’s Health Check: A DIY Guide to Safety and Maintenance

Simple DIY car checks for safety and maintenance.

Budget-Friendly Home Upgrades: 4 Ways to Boost Your Home’s Value and Appeal

Boost home value on a budget with these 4 DIY upgrades.

From Cutting-Edge to Clutter: Modern Antiques Hiding in Your Home

Uncover the surprising “antiques” in your tech drawer.

Unlocking Customer Loyalty with Smart Data

Turn customer data into your business superpower.

Is There an Age Limit for Life Insurance? Understanding Your Options

The truth about age and life insurance eligibility.

5 Automotive Icons That Sounded Destined for Greatness

Uncover the powerful names behind legendary cars.

7 Surprising Facts You Didn’t Know About Home Insurance

Unexpected insights into the world of home and renters insurance.