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Market Study Toolbox

Market Study Toolbox

  |  December 31, 2006

The purpose of this guide is to provide volunteer board members of new or expanding food cooperatives with an accessible tool they can use to better understand their market potential. A market study is a pivotal piece of information necessary to obtain project financing. Even more important, a good market study will help a cooperative or organizing committee decide whether it is even feasible to consider a new or expanded store. It can help keep you from making a very costly mistake.

This toolbox is not intended to replace the work of a professional market study. Professional market analysts have access to data and years of experience that few volunteer boards can match. This guide can, however, help boards of directors gain a thorough understanding of the issues before they engage a costly consultant, and prepare a good foundation of basic market data before they even begin. A good market study can cost between $5,000 and $10,000 to complete, depend- ing on the scope and level of analysis required. Studies involving substantial customer surveys and focus groups can cost even more. The process of following the steps in this book and collecting and analyzing the basic market data will help volunteer boards decide whether it is advisable to move to the next step of engaging a professional. It will also help you ask good questions and use your consulting resources wisely.

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