How to accurately calculate market volume
I am not a fan of marketing. I am one of those who believe that marketers should be driven with a broom, and not pay them a salary and then figure out what to do. How does marketing make money? How much does he bring them? Why is intuition worse than marketing? I am always guided only by intuition and I am fine, no problems and no extra costs.
I don’t spend money on marketing at all, but I spend it on my beloved, I buy cool cars, I constantly go on vacation. I don’t even use free marketing. For example, why do I need to calculate the size of the market? Everything that I purchase, everything that I produce, as a result, then I sell everything without any calculation. What will the market calculation give me, where can I apply the data?
Why do market volume calculations
You are right, intuition is really one of the tools built into a person’s synchronization with reality. The tool is really effective, but it has limitations. They are associated with the fact that intuition gives information to the subconscious in a language that he understands, i.e. in the language of feelings. The language of feelings has two ranges, it suggests “do” or “do not”. For example, he can tell whether to buy (produce) this product or not to buy (do not produce) that product.
But, as a practicing marketing consultant, I can say that intuition does not suggest the extent to which it is advisable to perform actions. The calculation of the market volume is a way to visualize the market, a way to understand the extent to which it is advisable to perform certain actions. Intuition can tell you that you need to buy this or that product or produce it, but it cannot tell how much you need to buy or produce.
When it comes to small parties, the risk is small, and you can listen to intuition. But when it comes to large parties and money, then intuition is no longer enough. In other words, there is a scale beyond which intuition ceases to be effective, because there are many parameters that need to be taken into account. Working only with intuition, you cannot go beyond this scale.
Intuition as a limitation
market volume calculation
Working on intuition, you will always remain “small”, your business will never be able to become big and even more global. For example, you can go somewhere to an unfamiliar place behind the “treasure” without a map and intuitively look for it. With a probability of 100%, you will succeed. But if someone goes with a map, or with a navigator, he will be able to do everything faster than you once in 100. While you are looking for a treasure, using intuition, they will find it and dig it out, leaving you an empty hole.
The calculation of the market volume allows you to understand the sales potential and sell as much as you want to buy, and not as much as you purchased
What is the result? All that you buy is sell and that’s great. But you earn only on what you sold. On the fact that they did not sell, they did not earn. It is possible that you lose huge amounts of money just because you buy a minimum. The calculation of the market volume allows you to understand the potential of sales and sell as much as you want to buy, and not as much as you purchased.
So maybe you are robbing yourself. For example, you can buy one pair of clothes and with a high probability everything will be sold as a result. In principle, intuition is not particularly needed here, it’s enough just to be able to sell. A good seller, in principle, can sell everything. But how much could you sell and how much could you earn, based on knowledge of what the real market size is and what it really needs? It is unlikely that the market size is 1 unit, if it is not a village with 5 inhabitants.
How much does market volume calculation cost?
market volume calculation
The calculation of the market volume costs money, as in principle, any other service. It usually costs $ 100-500, depending on the complexity of the market. You can order the development of methods for calculating the volume and then do it at least every month for free for yourself. In turn, undersales due to the use of intuition can reach thousands of units of goods and millions of US dollars.
In fact, every dollar invested in calculating market volume can bring a thousandfold profit. The second useful feature is the optimization of activities. Knowing the size of the market, one can calculate what kind of sales will be, calculate the necessary volume of production or purchases, calculate how many people are needed so that they do not interfere with each other. Including, knowing the volume of the market at different periods of time, you can see the dynamics of its development and make forecasts.
Therefore, we can say that the calculation of market size is not for cowards
There is also a psychological point, which is that “you know less, you sleep better.” Therefore, we can say that the calculation of the volume of the market is not for cowards. Knowing the volume of the market, you can accurately determine your share in it, compare it with the share of competitors, understand your position in the market, and so on. Many are simply afraid of this, afraid to know the truth, afraid to see reality, and often this is the main reason why this procedure, which is useful in every sense, is not done.