So I’m sittin’ there typing away on The Positioning Troubleshooting Guide for TPM v2 and my brother Chris sends me this AWESOME visual example of a narrow market position:
It says: “TAPMAN.ORG PROFESSIONAL CLEANING OF BEER TAPS AND LINES IN WA”
Anyway, I thought you’d enjoy that visual example of a narrow market position. Wondering how the math works out on that? Me too!
Let’s get our assumption hat on! Assumptions:
- Dude is a solo business owner
- He owns 40% of the market
- Only 50% of the market ever wants to clean their beer taps and lines (gross, right?)
- He’s able to group his service calls so that in a day he can see 4 customers
- He averages one “HOLEEE SHIT DUDE THE HEALTH INSPECTOR JUST LEFT AND WE NEED YOU TO GET DOWN HERE RIGHT NOW!!” call a week, and he charges triple for those and makes sure to book regular customers only 4 days/week to allow for that emergency call he know’s he’s going to get. That means he can see 17 customers per week.
Now, to the researchmobile!
- http://factfinder.census.gov/ tells us that in 2014, the state of Washington had 14,874 establishments registered under NAICS code 722 (Food service and drinking places)
- http://www.beveragefactory.com/draftbeer/faqs/FAQ_CLEAN.shtml says you should clean your beer taps/lines at least every two weeks. That means each establishment should be getting 26 service calls/year from a tap/line cleaner.
Now, to the mathmobile!
Houston, we have a problem. For this guy to own 40% of what I bet you thought was a MICROSCOPIC niche, he would need a year to contain 4,549.7 weeks. Maybe on Pluto the years are that long.
So maybe he builds a team. Or maybe he limits himself to western Washington where my brother snapped this photo. Or maybe he only handles emergencies. Or who knows… point is his problem is not market size!
Now… what niche market do you think is too small to support your business? Email me and I’ll do the math for you if you want.
More narrowing-your-focus-goodness available at: http://thepositioningmanual.com