Three methods to select the best location for your points of sale
Posted: Wed Dec 18, 2024 5:29 am
The location of the points of sale is one of the most important decisions that will help us achieve our commercial objectives, favouring the commercial process and facilitating the choice of consumers. To achieve this, we must take into account certain prior considerations that can be complemented with three basic selection methods .
Our main objective is to bring our products or services closer to consumers , so we will have to look at factors related to demand, such as the existence of competitors, proximity to the largest mass of potential buyers, communications, etc.
However, we cannot forget the costs that the implementation of each point of sale will entail and the salaries of the staff that we will have to place in each one, in addition to other logistical problems.
More is not always better
Some people may think that the more points of sale, the more sales, and although in a certain way this is correct, the truth is that the benefits of each one can end up being negative, making us lose all the possible profits obtained from said volume.
This is usually a calculation that consists of subtracting the average sales of each point (obtained by dividing the total estimated sales between the planned sales points) from the profitability threshold and multiplying the result by the profit margin per unit.
By doing this calculation we would see that as we nursing homes email list increase the number of points, the profit from each one is reduced despite the total increase in estimated sales, until it becomes negative. It is something similar to what we already saw with sales visits.
This would lead us to close points of sale and assume the losses that have occurred , being something that we will undoubtedly want to avoid and that we can achieve through planning.
Where to locate the points of sale?
Each business responds to different markets and therefore to different conditions when selecting the location of the points of sale. Even so, we can talk about three basic selection methods:
Analogy: by studying the results of a point of sale we can estimate its attractiveness in other similar markets. Unfortunately, this method is very difficult to apply with certainty and is too simple, so we must rely on our experience and other subjective criteria. It may be a good starting point, but it is difficult to expect similar success in locations that, although similar, are always different .
Our main objective is to bring our products or services closer to consumers , so we will have to look at factors related to demand, such as the existence of competitors, proximity to the largest mass of potential buyers, communications, etc.
However, we cannot forget the costs that the implementation of each point of sale will entail and the salaries of the staff that we will have to place in each one, in addition to other logistical problems.
More is not always better
Some people may think that the more points of sale, the more sales, and although in a certain way this is correct, the truth is that the benefits of each one can end up being negative, making us lose all the possible profits obtained from said volume.
This is usually a calculation that consists of subtracting the average sales of each point (obtained by dividing the total estimated sales between the planned sales points) from the profitability threshold and multiplying the result by the profit margin per unit.
By doing this calculation we would see that as we nursing homes email list increase the number of points, the profit from each one is reduced despite the total increase in estimated sales, until it becomes negative. It is something similar to what we already saw with sales visits.
This would lead us to close points of sale and assume the losses that have occurred , being something that we will undoubtedly want to avoid and that we can achieve through planning.
Where to locate the points of sale?
Each business responds to different markets and therefore to different conditions when selecting the location of the points of sale. Even so, we can talk about three basic selection methods:
Analogy: by studying the results of a point of sale we can estimate its attractiveness in other similar markets. Unfortunately, this method is very difficult to apply with certainty and is too simple, so we must rely on our experience and other subjective criteria. It may be a good starting point, but it is difficult to expect similar success in locations that, although similar, are always different .