Calculation of market volume – how to find out sales prospects
I’m not into 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 many does he bring? Why is intuition worse than marketing? I am always guided only by intuition and everything is fine with me, no problems and unnecessary costs.
I don’t spend money on marketing at all, but I spend it on myself, I buy cool cars for myself, I constantly go on vacation. I don’t even use free marketing. For example, why do you need to calculate the market volume? Everything that I buy, everything that I produce, in the end, then I sell everything and without any calculation. What will the market calculation give me, where can I apply the data?
Why Calculate Market Size
You are right, intuition is indeed one of the tools built into a person to synchronize with reality. The tool is really effective, but it has limitations. They are connected with the fact that intuition gives information to the subconscious in a language understandable to him, i.e. in the language of feelings. The language of feelings has two ranges, it prompts – "to do" or "not to do". 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 tell you the amount in which it is advisable to take action. Calculating the volume of the market 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 you exactly how much to buy or produce.
When it comes to small parties, the risk is small, and you can listen to your intuition. But when it comes to big 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 with only intuition, you will not be able to go beyond this scale.
Intuition as a limitation
Working on intuition, you will always remain “small", your business will never be able to become big, much less global. For example, you can go somewhere to an unfamiliar place for a “treasure” without a map and look for it intuitively. With a 100% chance you will succeed. But if someone goes with a map or with a navigator, he will be able to do everything faster than you 100 times. 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 bought
What is the result? Everything you buy, you sell, and that’s great. But you only earn what you sell. On the fact that they did not sell, they did not earn. It is possible that you are losing huge amounts of earnings just because you buy a minimum. Calculating 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 bought.
So maybe you are robbing yourself. For example, you can buy one pair of clothes and with a high probability in the end everything will be sold. In principle, intuition is not particularly needed here, just being able to sell is enough. A good seller can basically sell anything. But how much could you sell and how much could you earn based on knowing how big the market really is and what it really needs? It is unlikely that the market size is 1 piece, if it is not a village with 5 inhabitants.
How much does it cost to calculate the market volume
Calculating the market volume costs money, just like any other service. It usually costs $100-500 depending on the complexity of the market. You can order the development of a methodology for calculating the volume and then do it at least every month completely free of charge for yourself. In turn, undersales due to the use of intuition can reach thousands of units and millions of US dollars.
In fact, every dollar invested in calculating the size of the market can bring a thousandfold profit. The second useful possibility is the optimization of activities. Knowing the size of the market, you can calculate what sales will be, calculate the required volume of production or purchases, calculate how many people you need so that they do not interfere with each other. In particular, knowing the volume of the market in different periods of time, you can see the dynamics of its development and make forecasts.
Therefore, we can say that the calculation of the market volume is not for cowards.
There is also a psychological point, which is that "the less you know – you sleep better." Therefore, we can say that the calculation of the market volume is not for cowards. Knowing the size 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.
In fact, it can be said that it is more convenient for some to take the “ostrich position” with their head in the sand and pretend that everything is fine. Well, in order to avoid psychological discomfort from the fact that “the head is in the sand”, it is enough just to look askance at marketers and marketing, believing that this is a useless activity and useless specialists who do not bring money.