Step three of our example set continues on with Trade Areas. We will focus on the art of designing a potential trade area based on multiple variables. Straight distance or a radius, drive times, mental barriers and taking into account other locations.
The Trade Area
We take the best of all variables and draw what the typical pattern would be for someone to get to your site. Most importantly including number of other locations someone could go to. Radius and Drive Times do not account for this.
In this example we have added three other locations and their respective trade areas then added the trade area for the new location.
The areas we are showing here are derived from a combination of radius, drive time and physical and mental boundaries along with store locations. Remember no matter what area you come up with there will always be outside factors that will influence your potential trade area.
Much different than either of the previous examples. While all examples have their uses we find trade areas to be the most useful. Of our three examples which do you prefer?
Let’s wrap everything up for you with a real world example.