Absorption Analysis –
Investors, banks, developers and builders often create their business plan based upon a third party analysis.
Absorption projects the number of sales expected. It starts with a historical perspective of demand in the target market and looks at the location and it’s potential. Is the area just catching on or is it waning? What is the competitive environment? Does the location afford a significant advantage, such as along a golf course, or on a lake?
The quantitative statistical methods are augmented by customer surveys to ascertain preferences, which can better meet the needs.
When completed, the client will have a realistic number to match to the business plan and have specific recommendations on creating a “Unique Selling Proposition.”
