How to tell if a market is too saturated?
- Thread starter tbk125
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How long are clients waiting to be serviced?
Are companies going out of business?
Are prices for service rising or falling?
How much advertising for the existing companies is there? (more advertising generally means they have to fight harder to find work...if you don't see any, that probably means they are as busy as can be and a new company can capture some market share relatively easily with some half decent marketing)
The other question to ask is what are the companies doing? Perhaps there is a void for high quality pruning? Maybe there is a market void for difficult removals (but those often mean a bigger upfront investment), or maybe low cost removals for smaller trees (everybody else in town can't afford to take down a 10" tree for $400 because their equipment needs more....but that tree doesn't need their equipment). Or is there anybody doing a good job with pest management? How about different client bases: residential, commercial, municipal - are they all being served well? etc...
Often the Chamber of Commerce or SBA will have a small business adviser who can help you think through those things.
Are companies going out of business?
Are prices for service rising or falling?
How much advertising for the existing companies is there? (more advertising generally means they have to fight harder to find work...if you don't see any, that probably means they are as busy as can be and a new company can capture some market share relatively easily with some half decent marketing)
The other question to ask is what are the companies doing? Perhaps there is a void for high quality pruning? Maybe there is a market void for difficult removals (but those often mean a bigger upfront investment), or maybe low cost removals for smaller trees (everybody else in town can't afford to take down a 10" tree for $400 because their equipment needs more....but that tree doesn't need their equipment). Or is there anybody doing a good job with pest management? How about different client bases: residential, commercial, municipal - are they all being served well? etc...
Often the Chamber of Commerce or SBA will have a small business adviser who can help you think through those things.
A bit late to the game here but another good indicator is to see how many are running Google Ads (paid ads on Google - do a search for your business + location) and see how many of the results have the little "Ad" symbol. If there's More than 3 or 4 ads there on the one page that suggests that all these businesses are chasing more work and that there MAY be a shortage of work or too many businesses. Not a foolproof strategy but just another indicator.
KingBeee
ArboristSite Member
Check Google . If you see lots of ads on the first page related to the business then you will find it hard getting customers or climbing through the ranks
