Economic Leakage
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Are you losing customers to larger markets?According to multiple research projects conducted by the City of Rexburg and BYU-Idaho, $3.8 million is leaving Rexburg every single month! $2.5 million (18%) from the residents, and $1.3 million (12%) from the students. This is due first of all to the growth of internet shopping over the years, but the studies done were focused on the economic leakage into Idaho Falls and the larger Utah markets.
What are we missing? When it comes to consumer needs, apparently some of the wholes where we are leaking include food (grocery), clothing, food (eating out), and entertainment. Why is there a leak? This could be for multiple reasons:
One recommendation for increasing the market perception of your industry product that businesses have done in other cities is to cluster businesses of like nature. Generally you see clusters of restaurants, or clusters of hotels, or clusters of clothing stores, etc. This is to strategically create an perception in consumers minds that if you want to shop for clothing, then you go to the clothing cluster. It increases business for all involved, and helps capture any leakage. |
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