Market Size vs. Market Saturation

[tajensen]

Hello, all. My first post here!

I have been doing research into starting a wsr business and my research shows that no matter what market I look into (I have a few areas I would prefer to live), there are approximately 10 repair/replace operations per 100,000 residents (as listed in the yellow pages).

~100,000 population county. 10 listings for auto glass repair/replace. (About an hour outside of a 1,000,000+ metro area).

~500,000 population county, plus ~50,000 students. 60 listings for auto glass repair/replace.

~300,000 population two-county area. 32 listings for auto glass repair/replace.

I realize that with proper marketing, service and quality any market short of an Amish community is viable, but does this seem a normal level of saturation?

Is it better to serve a community of 100,000 with 10 potential competitors or serve a community of 1,000,000 with 100 potential competitors?

Any insight or wisdom is appreciated!

Todd

[desertstars]

Todd.

You forgot to add in the w/s companies that aren't listed at all in the directory.

My definition of "saturation" is how many lawyer-listings can fit into a phone book before it becomes impossible to move without a wheelbarrow. Most yellow page books have reached that limit already. They'll be touting their wares on the sides of ambulances next.

What is more apropos here is the amount of vehicles in the population areas you researched.

Don't forget to factor in the government, fleet, company, outside-sales, car lots and junk yards.

Yes, junk yards. Good place for leads. Think about it.

It's not how many businesses are listed or not listed.

It's how aggressive you are compared to your competition chasing down and closing the business that exists.

[tajensen]

Thanks for the input, desertstars. I very much appreciate it.

I'm a little spooked by the thought of throwing my hat into the ring. I don't think I have a grasp yet of what the repair market is really like. My background is in advertising (past six years at an ad agency) and one of the rules is "know your market." But on the other hand I'm a mechanic's kid who was taught "you can make anything run with a little hard work."

Conflicting values.


Todd

[desertstars]

The nice thing about this business is that you need not throw your hat all the way into the ring at first.

Just partway.

Sort of like the Democratic presidential contenders this year until they sat up and realized they were eating Dean's dust and only then kicked the hat fully into the ring with bull feet.

Frankly, Todd, although advertising is extremely important for many companies, I'm not sure that advertising is either very effective or of paramount importance in this particular business although your expertise in that area certainly cannot hurt.

Ah, but market research is another animal entirely.

When I started in this business I did a LOT of market research! Each day, I arose with the intent of asking at least ten strangers with w/s damage on a later model car what they thought about repairing the damage rather than ripping out the windshield and ruining the factory seal.

And, probably the repair wouldn't cost them one red cent!

To some people, that is plain old cold-calling. But, just as a janitor nowdays is a Sanitary Engineer, I preferred to call myself a market researcher.

Call it what one wishes. Cold-calling is the key to individual jobs as well as building small and large fleet accounts.

And, the ATTITUDE one approaches that "market research" with is of supreme importance. I never went in either hat-in-hand or arrogantly. My intent was to save that company money and to make money in the process and to make damned sure I did a credible job of imparting that concept before I departed.

Your dad had it right.

[Repair1]

One thing I would look at are breakage rates in each market not all markets will be the same based purely on population there are a lot of factors involved weather, Road conditions etc. What I would do is get a hold of the glass wholesalers ask them if they know what the breakage rates are for there markets. I think you will see the higher replacement breakage rates reflect the number of repairs available in each market. It

[Coitster]

I just wanted to add something. I personaly prefer it if there are tons of glass companies in a market. In fact the more there are the better I like it. For a couple of reasons.

#1 If there are lots of competitors that means its a great market to begin with. That means there is a big demand for glass repair.
#2 Don't worry about competition, if you are aggressive in your marketing then you will win. It all has to do with how aggressive you are.
#3 Provide a great service and do a great job and you will have people only coming to you for your service.

Remember most glass companies don't offer quality windshield repair. If you do good you will smoke them.
David
Coitster

[tajensen]

David, Brian... thanks for the input!


Todd