The Importance of Business Location

The Location of goods and services offered by a tradesman is often directly proportional to the amount of profit the tradesman can get from the business. According to Church and Murray (2009), the location of a business is a key factor that guarantees successful operations and overall growth. When goods are easily accessed by the buyers in the market, the chain of potential buyers grows substantially. As a salesman, the decision to determine the position of goods and services is very paramount as it enables one to self-evaluate the amount of profit that he is going to get at the end of the day. Thus, one should determine the consumers he is dealing with and the proximity to the location. Consequently, it makes the consumers to easily get access to the merchandises the trader is selling in the market.

       A beach consists of several people who are looking for refreshment entertainment or seeking any form of relaxation. In case, a tradesman wants to use this idea to locate a perfect place on the beach he needs to consider the competition rate and accessibility. In the case of Ms. Bud and Ms. Weiser, the determination on the location point will be analyzed by the two individuals where in case Bud chooses place z then Weiser will use the point z based on their accessibility to the type of the consumers they want to attract to get the maximum profits. However, if they are competitors the scenario will change substantially.

       There can be a different point of sales where the same product is bought on a different location across the beach. We can assume to have a trader selling the same product at point x and another at point y probably at the endpoint of the beach and the other trader at the corresponding endpoint of the beach. Ms. Bud and Ms. Weiser both are competitors in the beach as they try to sell similar products, in this case, beer. They need to locate the perfect place for their product to maximize profits.

          Assuming that Ms. Bud will be selling at one point of the beach, a place named x and Ms. Weiser will be selling at a point named z and there is a difference between the two points. In addition, Ms. Bud has chosen the location after considering the accessibility to the consumers; it is easier for the buyers to get the goods from that point. Ms. Bud and Ms. Weiser are also the only beer vendors in that location around the beach and any other factors such as the restrooms and other food vendors are kept constant.

         When Ms. Bud is selling at the point x of the beach she is only maximizing the profits at one end as the price of the item is the same. The quality of their environment and the people within them may lead a business to succeed or fail (Church & Murray, 2009). The consumers will only buy her beer in case they are on that point sunbathing and need a quick quench of thirst or were walking around that place and decided to buy the beer. The target consumers hence have no alternative but to stay with the buyer at this end. In this case, the profits will be determined by the target customers who decided to be at that point in time. The location can be advantageous in that the number of people going to place x outnumbers the people who like visiting place z, Ms. Weiser’s point of sale. Additionally, the consumers at point z will only stick at that point. This is a very non-predictable outcome and only depends on which side the target consumers decide to reside at that particular time. Place x and z have a different profit margin and depends on whoever was lucky on that day.

       Consequently determining maximum profits at the path y where the two players are all competitors and have decided to maximize their profits. In the first scenario where all the two are far apart, they tend to affect the force of selling differently and anything that affects the selling of z will also ultimately affect the selling in x. Clustering will only be the solution where they will sell their products at one point in the middle of the distance y; clustering together will enable the two to attract the same target consumers and share evenly when located at the same place. This solution is optimal as both parties will be comfortable and gain an equal amount of benefit from the point location.

    In conclusion, any business should have the ability to develop, shape and enable continuous relationships with the target consumers. One’s business position is necessary for successful operations and overall growth. When choosing a business location, one must consider consumers’ needs and equipment needed to complete the services (Church & Murray, 2009). The position of any business is determined by the trends in the business. Grouping of the same products at a central point will enable both the vendors venturing in any business to receive maximum profits.   

References

Church, R. L., & Murray, A. T. (2009). Business site selection, location analysis, and GIS (pp. 259-280). Hoboken, NJ: John Wiley & Sons.