Is the business realizing its fair market share?
The power in knowing – even estimating – this information, is in identifying opportunities for growth by product line, as well as (for acquisitions) identifying correct pricing for a business.
The worksheet below is a simple way for to calculate market share, based on total customers (not dollar volume).
- Less than fair share may indicate issues/opportunities with pricing, sales deployment, product/service quality, reputation, marketing, or something else; if the business is for sale, pricing may have to reflect the fair share (or explain it in some way)
- Greater than fair share my indicate opportunities for premium pricing (if the business is for sale)