This article is inspired by Simon Sinek's best seller “Start with Why”.

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You do searches related to market studies, point of sale, marketing and you end up with Geomarketing.

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Immediately, you are bombarded with several advertisements offering you the “best solution”, perhaps even some talking about the best price (those would have to be from Mapfry, which offers the best solution for the best price, but we're not talking about that now).

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What is happening, and it happens a lot, is that we take action, the How and What, without first thinking about the Why.

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Some Whys of Geomarketing:

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• If stores have always opened without Geomarketing studies, why should I do it differently?
• Why should I pay dearly or have a job to do a Geomarketing study?

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Let's get to the answers:

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First of all, when carrying out Geomarketing studies you will be no different from super successful companies, such as McDonald's, Cacau Show, Boticário and others.

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Those who do not carry out previous studies may end up paying dearly and having a hard time reversing or absorbing a poor choice.

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It turned out that the existing solutions were only feasible for large companies, who could afford them.

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Finally, it's neither that expensive nor that laborious, Mapfry is here to make Geomarketing ever faster, simpler and more accessible.

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You can start!

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When should you do a Geomarketing study?

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This one's easy, BEFORE.

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They are previous studies, they indicate the best places where you should go.

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If you advanced without evaluating before, you may even find benefits of studying later, such as reviews, competitive updates, measurement of residual potential.

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But those who made a mistake not doing the study BEFORE will have problems reversing this scenario LATER.

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Take this example:

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The new franchise law provides that the contacts of all franchisees who disconnected from the network in the last 24 months are provided to interested parties.

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If a franchise network is careless in the selection of points, it will end up accumulating former franchisees who are dissatisfied with the results that will contaminate the perception of the brand, thus removing a new franchisee and slowing down the growth of the network.

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Notice how toxic it is to lose a franchisee dissatisfied with reality versus the promises made to them.

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Geomarketing studies should not embellish reality, but rather describe it and allow the franchise to simulate the behavior of a unit there, preferably mirroring units that operate in markets similar in size and profile.

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Combined it's not expensive

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Even if a franchisee gives up their unit, if it is at a point with good potential, the franchise may transfer it to another franchisee.

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Where there is no prior study, there is nothing to combine.

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Inversely to the contact list of former franchisees, there is the list of franchises recognized for their delivery, the Seal of Excellence.

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It is not ABF that recognizes it, but the franchisees themselves who answer a questionnaire that gives great weight to the economic return in line with what was offered, as combined.

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Search LinkedIn for expansion professionals with experience in Geomarketing and you will see that they are in franchises recognized by the Seal of Excellence.

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Now, let's talk about how much you should invest in Geomarketing studies.

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A study can cost less than 5 thousand reais, when the investment in a new store is hardly less than 250 thousand, that is, between 1 and 2% of the cost as a way to protect your investment.

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Car insurance is, on average, at 6% of the vehicle.

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To put it mildly, the accident rate is the percentage of people who take out insurance, In December 2022 the auto insurance accident rate was 60%.

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That way, you can have a metric for comparing risk and protection.

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6% of the value of the vehicle against a 60% chance of needing insurance.

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A new business has an 80% chance of going bankrupt before it's 5 years old.

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Following this logic, you could pay up to 8% of the amount invested to protect your return.

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In the hypothetical investment of 250 thousand reais, the maximum amount would be 20 thousand reais.

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This level may scare you, but make some quotes with other consultancies and you will receive proposals in this range.

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That's because it's worth the investment.

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Here at Mapfry, we choose to price our services based on VALUE, that is, proportional to what we deliver, regardless of the customer's investment.

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This takes us away from practices, even very common, of variable pricing based on the customer's needs, based on DOR.

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Finally, you can pay radically less if you decide to do the studies yourself, but you run the risk of making a mistake.

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We recommend that analyses always be conducted or accompanied by certified consultants.

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