Using Economic Intelligence for Business Success

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Listed below are reports available to our subscribers. These reports will increase your effective knowledge of how to find, use, and apply economic data for marketing research to grow your business and increase your bottom line.


Economic Essentessentials for business forecastingials For Small Business Survival

ECONOMIC ESSENTIALS
Business owners work at least 70 hours a week and spend much of their “down” time ruminating on how to operate their businesses more effectively. Feeling pressed on every side, they rarely seek out information on the economy and when they do, they often don’t see how the data translates into relevant information for their daily operating decisions.

This report will show you how to seek out that information and use it. It is THE essential handbook for small business survival using economic data.

Subscribers CLICK HERE to download it. If you are not a subscriber, CLICK HERE to get the report for $29.95 and gain full access to the Marketing Analysis Group Library.

Economic Briefs For Subscribers Only

Startup Survival Rates

Startup Survival Rates ECON First believes that business success centers around knowing the economic and demographic characteristics of each unique primary market area. While business experience, insights and intuition are important, they are substantially advanced by hard data. Using Bureau of Census data, ECON First estimates business start-up survival rates. As the example below demonstrates, the data varies considerably by both state and major industry. AN EXAMPLE The most recent Census data on business dynamics ends in 2014. The following tables show five year survival rates as of 2014 for firms that started up in 2009, by the employment size of the firm at start-up. The first table...

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Tracking Sales

  ECON First believes that business success centers around knowing the economic and demographic characteristics of each unique primary market area. While business experience, insights and intuition are important, they are substantially advanced by hard data. ECON First recommends that businesses carefully track their monthly sales as a quick indicator of the state of demand in their primary market area. The bottom line is a simple graph.   AN EXAMPLE   Harold’s local trucking delivery service was unable to get a solid fix on the direction of its sales.   After obtaining 10 years of monthly sales data from Harold, ECON First rapidly provided a straight forward method for the effective...

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Is The Price Right?

Is the Price Right? Pricing is an integral component of a firm’s marketing strategy. Setting a price too high may drive away potential customers. Setting a price too low may raise doubts among potential customers as to the quality of the good or service. The trend in consumer prices (inflation) is an essential guide to businesses in price setting for their goods and services. Prices are the key to revenue and profits and they also influence employee demands for pay increases. Price data for the standard market basket of goods and services purchased by urban households is collected by the U.S. Bureau of Labor Statistics from 23,000 retail and service establishments every month. Over time...

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Increasing B2B Sales

ECON First believes that business success centers around knowing the economic and demographic characteristics of each unique primary market area. While business experience, insights and intuition are important, they are substantially advanced by hard data. Economists have long be aware that concentrations of related industries—known as “clusters” – arise in particular locations due to backward and forward linkages among businesses and positive externalities. A typical backward linkage is the development of a strong IT industry in locations where there is a thriving aerospace industry. Positive externalities arise when there are significant agglomerations of similar businesses with similar...

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Market Saturation

ECON First believes that business success centers around the businesses knowing the economic and demographic characteristics of their primary market area. While business experience, insights and intuition are essential, they are substantially advanced by hard data. ECON First is often asked to evaluate a primary market area (PMA) to determine if there is sufficient excess demand to support entry of a new establishment.  ECON First uses a straight-forward demand/supply framework to perform such an evaluation. This is demonstrated most clearly by reviewing a recent analysis completed by ECON First. IS THERE ROOM FOR ANOTHER LIQOUR STORE? The developer of a new local shopping center asked...

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Assessing Competitiveness

ECON First believes that business success centers around the businesses knowing the economic and demographic characteristics of their primary market area. While business experience, insights and intuition are important, they are substantially advanced by hard data. To assist in the structure of local economic development efforts, regional economists use a methodology that rates industries from strong to lagging to poor performer. ECON First adopts this methodology to give local businesses one perspective on the competitiveness of their industry. THE METHODOLOGY The competitiveness assessments includes three components, all performed at the county level. First, a location quotient is...

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Size Me

ECON First believes that business success centers around the businesses knowing the economic and demographic characteristics of their primary market area. While business experience, insights and intuition are important, they are substantially advanced by hard data. When a business is considering expanding or opening a second site within its primary market area, one set of data examined by ECON First is the population of similar business establishments and the changes in that population. ESTABLISHMENT DETAILS Detailed data on establishments for specific industries is increasingly available through the Census Bureau, particularly in County Business Patterns and the QCEW data bases. To...

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Strategies for price changes

ECON First believes that business success centers around the businesses knowing the economic and demographic characteristics of their primary market area. While business experience, insights and intuition are important, they are substantially advanced by hard data. A major question that all businesses struggle with at one time or another is when and how to change prices. To advise businesses on price changes ECON First uses a combination of basic economic theory, market data, and insights from the business owner. ECONOMIC THEORY Economic theory on pricing centers around the concept of “price elasticity”…or simply the sensitivity of sales to a change in price. A change in the price of a...

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Gauging market penetration

ECON First believes that business success centers around knowing the economic and demographic characteristics of each unique primary market area. While business experience, insights and intuition are important, they are substantially advanced by hard data. The primary market area (PMA) of most business can effectively be captured by a combination of zip codes. Fortunately, beginning in 2011, the U.S. Census Bureau has compiled five year weighted average economic and demographic data on an annual basis by zip code. ECON First uses this data to gauge business market penetration. THE PROCEDURE The first step used in gauging market penetration is for the business to compile a listing of its...

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Should you move into E-commerce?

ECON First believes that business success centers around knowing the economic and demographic characteristics of each unique primary market area. While business experience, insights and intuition are important, they are substantially advanced by hard data. As evidenced by rising vacancy rates in malls, brick and mortar retailing is under attack by booming electronic sales. The U.S. Census Bureau compiles quarterly data on electronic sales. During 2016 E-commerce sales (transactions conducted over the Internet) accounted for 8.3% of total U.S. retail sales…$391 billion. Recently E-commerce sales have been rising at 14% to 15% per annum. Between 2005 and 2015 while total U.S. retail sales...

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Understanding Inventory To Sales Ratio

RELEVANCE: The Inventory/Sales ratio, or the number of months of inventory on hand, measures how quickly manufacturing and whole and retail trade businesses read the direction of the economy. Businesses typically do not anticipate recessions and slowdowns in the economy, and during those periods inventory tends to accumulate relative to monthly sales. MECHANICS: The inventory and sales data are collected by the U.S. Bureau of the Census through monthly surveys of manufacturers and whole and retail trade establishments. The sample is stratified by detailed industry and covers at least 3,000 establishments. The data is reported approximately 40 days after the close of the month, with the...

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Sales Per One Thousand Dollars In Income

Sales per $1,000 of PY  ECON First believes that business success centers around knowing the economic and demographic characteristics of their primary market area. While business experience, insights and intuition are important, they are substantially advanced by hard data. Every market area is unique and the data proves it. Among other measures, ECON First tracks industry sales per $1,000 of personal income. This measure is derived from a combination of data from the BLS Quarterly Census of Employment and Wages, the Department of Commerce Census of Business, and the BEA annual income accounts. The example below evidences how important it is to gather data on each market area.  THE BUCKEYE...

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