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Market Share Calculations

john.quinn

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Dec 2, 2009
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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!!
 

✨ AI Highlights

  • A dealer questions the validity of market share calculations that exceed 100%, which occur when their dealerships' sales volume exceeds the total units sold within their defined market radius.
  • The poster argues that market share should be capped at 100% by definition and seeks expert validation that their current reporting methodology is flawed, since it incorrectly signals market share loss when total market units actually declined.

A dealer questions the validity of market share calculations that exceed 100%, which occur when their dealerships' sales volume exceeds the total units sold within their defined market radius. The poster argues that market share should be capped at 100% by definition and seeks expert validation that their current reporting methodology is flawed, since it incorrectly signals market share loss when total market units actually declined.

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