Sam is planning to start a pool cleaning business from his home. He has decided on a radius of 30 miles from his home as a region of operation. After surveying the region of operation, he has found that 43% of homes in the region have a swimming pool. There are 36,248 homes in Sam’s region of operation.Which of the following statements is the best reason to include in the market analysis component of Sam’s business plan explaining why such a high percentage is good for Sam’s business?
Answer
A
43% is 40% more than Sam needs.
B
Only 57% of the home owners need to build a swimming pool.
C
43% of homes with a pool means 15,586 guaranteed customers, creating a solid customer base.
D
Since pools are not often removed from a property, 43% of homes with a pool means a strong potential customer base now, with the existing home owners, and later, with new home owners.
Explanation
A high percentage of homes with pools indicates a large potential market for Sam’s cleaning service. Those homeowners may become customers now, and because pools usually remain with a property, future homeowners may also need cleaning services. The 43% represents potential customers, not guaranteed ones, so choice C overstates what the survey shows.
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