FEDERAL DEMOGRAPHIC REGISTRIESLIVENATIONAL LABOR DATALIVEPUBLIC DISASTER INDEXLIVECOMPETITOR INTELLIGENCELIVEREAL-TIME DEMAND SIGNALSLIVEESTABLISHMENT CATALOGUESLIVEGEOSPATIAL REFERENCE LAYERSLIVEHOUSING & INCOME DATASETSLIVEFEDERAL DEMOGRAPHIC REGISTRIESLIVENATIONAL LABOR DATALIVEPUBLIC DISASTER INDEXLIVECOMPETITOR INTELLIGENCELIVEREAL-TIME DEMAND SIGNALSLIVEESTABLISHMENT CATALOGUESLIVEGEOSPATIAL REFERENCE LAYERSLIVEHOUSING & INCOME DATASETSLIVEFEDERAL DEMOGRAPHIC REGISTRIESLIVENATIONAL LABOR DATALIVEPUBLIC DISASTER INDEXLIVECOMPETITOR INTELLIGENCELIVEREAL-TIME DEMAND SIGNALSLIVEESTABLISHMENT CATALOGUESLIVEGEOSPATIAL REFERENCE LAYERSLIVEHOUSING & INCOME DATASETSLIVE
← THE ARCHIVE
002MethodologyMarch 20268 min

Why four pillars, and not one opportunity score.

Composite scores lie by averaging. Here's what we do instead — and why a 74 in our system isn't the same as a 74 in someone else's.

H
Head of Research
Leads the methodology desk.

The problem with one number

Every legacy market-research tool we've used collapses the answer into a single "opportunity score." It's seductive — one number, easy to sort, easy to defend in a meeting. It's also where the analysis dies.

A single number can't tell you why a market is attractive. It can't tell you the market is attractive because of low competition but despite weak demand. It can't tell you the market is attractive for roofing but terrible for solar. It can't tell you which number to disbelieve.

What four pillars give you

Separating the signal into four independent dimensions forces the scorer — and the operator — to look the tradeoffs in the face:

*Competition Saturation* — how crowded is the market. Low score = packed. High score = open lanes.

*Marketing Disruptability* — how weak are the incumbents. Bad reviews, sparse photos, sleepy SEO = high score.

*Market Demand* — is there an actual pull from households. Owner-occupancy, housing age, trend velocity.

*Economic Feasibility* — will your pricing hold. Income, wages, disaster-risk discount.

Four numbers. Four decisions. Aggregated only when you decide, with weights you control.

What it looks like in practice

A Nashville exurb might score 91/58/72/85 — high feasibility, low demand — that's a market you enter only if your margin structure can absorb lower volume at higher ticket. A Brooklyn ZIP might score 22/71/88/47 — crowded, but highly disruptable and high-demand — that's a market you enter with a sharper marketing thesis and a willingness to eat lower gross margin for volume.

You can't make either of those calls from a 74.

— END · № 002
← BACK TO ARCHIVE
◈ THE DISPATCH

Like this issue?
Get the next one in your inbox.

Blog - Market Analysis Insights & Business Growth Tips | EllieReid