Home Electrical Contractor Free Electrical Contractor Business Strategy Questionnaire 4.23 Market Value of Owned Home by Education Nationally Analysis Questionnaire
What is the purpose of having the Annual Market Value of Owned Home by Education analysis in a business plan for a Electrical Contractor?
The Annual market value of owned home by education nationally gives a very clear idea of what kind of demographic our potential client may or may not fall into. This excellent analysis looks at the market values of homes owned by folks categorized by their education over a period of 10 years thereby giving the reader of the business plan as well as a small business owner like Andy Powell an idea about who they should or should not target in their target market locally.
In order to conduct the annual market value of owned home analysis by Education we categorize the population into the following education achievement buckets:
Besides the data that is presented in a table we also graph out the amount of spending in the most recent and the most historical time period covered in the analysis - this serves as an excellent tool for business owners since it assists them in quickly identifying the trends over time.
What if the home values of the folks with the least education have gone down disproportionately compared to others?
Clearly, if this analysis is confirmed in the local target market of Cuyahoga, Ohio, it would have implications for Lights On Electrical, Inc. and other local businesses. For example if you were in the kitchen remodelling business and were looking to market to homes with folks with lower educational achievements, after the results of the analysis, you may want to consider offering coupons and price incentives to your potential clients to make your service s more attractive and be able to complete for the business better than other contractors.
Is there a co-relationship between education and income?
Yes. There is a very high relationship between education and income. To put it bluntly, the more educated the target market population is on average, the higher will be their average income and income generating potential. While this may not come as a complete surprise to everybody, folks who come from humble working class neighborhoods tend to also have lower levels of education and this is why there is a push within such communities to further educational achievements for those that are falling behind.
Is there a high corelationship between education and the amount spent on goods and services?
This is a much tougher one to call. The reality of spending is that folks spend on the items they need. Thus in the case of fast food we may well find that the largest spending is coming from folks with less than a bachelors degree education, but that does not matter sicne they are still spending their hard earned money on a product or service. Rather than bother so much about how much is being spent, what we want our small business clients like Andy Powell to understand is that this analysis reveals who they should be specifically targeting.
There is no sense in opening up a check cashing small business in a very affluent neighborhood since folks living there tend to be in the high income bracket, have better education and will most probably not need to cash their checks since they probably have the savings to wait until the checks written to them clear in their own bank accounts. Typically it will be the less well-to-do neighborhoods that will have a demand for check cashing services, since many folks there don't have the savings to wait until checks are cashed and made available to them in their checking accounts, or they may simply not have a banking relationship at all!
What if the Annual Market Value of Owned Home by Education analysis reveals that folks with a high school education are spending the most on a product or service?
The first step we would recommend to a small business owner like Andy Powell would be to conduct further analysis of the local market to confirm the results locally. A business like Lights On Electrical, Inc. would have to use a marketing database or service that already has the local target market demographic broken down by education and knows which households have folks with a high school education. Thus once you are armed with that information, you can go ahead and begin a marketing campaign offering discounts on your products and services in the form of coupons etc to the households in the target market where the residents have a high school education. Many marketing companies also use the income tax data tables provided by the IRS to correlate the income brackets of a certain target market with the level of education achieved.
What if there is a change in the Annual Spending by Education and folks with a masters degree are no longer spending as much as they used on a product or servce?
Again - the first step is to conduct further analysis of the local trends in the target market to ensure that they confirm the analysis being ascertained at a national level. This is very possible over the 10 year time period that we look at when conducting this analysis. Since the buying habits of the population can change quite a bit over that time period, you can easily find that folks with a masters degree have changed their spending habits and are now spending much less than they used to on a product or service from a Electrical Contractor. This trend may be indicative of much lower demand for that product or service due to newer products and services being offered by the marketplace. If you are a small business still advertising to folks with masters degrees, you could be wasting your marketing dollars and may be better off by spending that money on folks who are actually spending the most money on your products and services.
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