Our electrical market multipliers can help you estimate available business in a market.
Multipliers are a tried-and-true marketing tool to estimate (I emphasize, estimate) a market's size. The multiplier itself expresses the business available, in units or in dollars, for each unit of some other economic factor connected with the company or market in question. Often an employee count is the economic factor used. Multipliers work like this: If electrical contractors in an area employ 755 people, the potential for sales to electrical contractors there would be 755 times the electrical contractor multiplier of $46,070 or $34,782,850.
We have been providing multipliers for markets electrical distributors serve since 1979, and we introduced the concept to the industry a number of years before that. Recently, interest in these multipliers and how to use them has skyrocketed, right along with the availability of huge databases of prospect names at low cost. Today, it's not only advisable and feasible to do market and customer analysis, but it's also cost-effective. It is rapidly becoming necessary to carry out market research in order to target markets effectively.
To grow your business, you need to go on the offensive, to take a proactive stance. These multipliers provide one tool toward that end.
Those of you who study these multipliers closely from year to year will see some changes for this year's multipliers that may not make sense to you based on the fact that business shows an upswing between 1997 and 1998. The combination of new customer mix percentages that show shifts in distributors' market focus and record employment levels in many end use industries led to a new perspective for this year's multipliers. Anyone who would like to discuss this further with me can reach me via our web site: www.ewweb.com or by telephone at 973-509-0780.