• Stop being a LURKER - join our dealer community and get involved. Sign up and start a conversation.

Market Share Calculations

john.quinn

Boss
Dec 2, 2009
1,047
720
Awards
9
First Name
John
Any Market Share experts out there? We have several dealerships where our market is defined by X radius from our zip code. So if one dealership sells 50 cars, but only 25 (total, all dealerships) were sold in the X radius, then they list our market share as 200%. Great huh? Not really.

Next month, we sell 40 cars -- 25 total in the X radius. 160% market share. So the report shows us losing market share. But we didn't -- in actuality, total units decreased -- not share. But the "line" on the graph still points South.

Aside from making the obvious argument that "X" is too narrow, I've been making the argument that you can't have more than 100% market share -- if nothing else, cap the Share at 100%.

Looking for something to back that up... any ideas? (Am I wrong?) Thanks!!