Hello:In Part 4 of our 7 part series we ll discuss what it means to know your market.When dining out, your expectations can vary. Maybe you don t feel like slaving over a stove so you go out to grab a bite. In a case like this some fast food will do the job just fine.There are times though when you want to sit down for dinner and have a nice time without spending a fortune. We re not talking about a special occasion. Just one of those days when a Number 1 combo from the Drive Thru doesn t do it for you. So you head to the diner where the food is a notch above fast food but not gourmet.

Good food at a reasonable price, nothing wrong with that.Sometimes, however, a special occasion calls for a break from the ordinary routine. You want to go someplace you DON T usually go so you head to a fancy restaurant. Maybe you have to make reservations and dress up to fit the atmosphere. This may even mean wearing a tie!Think of the establishment in each of these three scenarios: each one has done its research and knows its market. They know what kind of clientele to expect, maybe even dictating the terms (reservation and tie) and catering appropriately to that clientele.Meal for four at Burger King: $25Meal for four at Le Gourmet Expensive : $600 or more.Granted, in the coffee shop business the tastes don t cover a wide range. However the consumer sees Dunkin Donuts differently than HDPE PIPE welding machines they see Starbucks, even though they are in the same business and in competition with one another.So ask yourself: Where do I fit?What crowd should I cater to?Set up your coffee in a slum neighborhood and you ll have a hard time getting people to pay $2 and up for a cup of coffee.

However, if you open up a shop in New York s arts district you will easily be able to sell that $2 or more cup of coffee. The key? Knowing your market.The only way you can know your market is a study in demographics. Take a survey of people in your area. There are several things you need to know. Who lives there? What is their income level? And ultimately, what are their preferences? Don t forget about the competition. Notice who s become established in the area. Maybe Starbucks opened a store there... and it failed. This could be a dead giveaway of how viable a high class type coffee shop will do in your target area.Before you ever open a coffee shop, get to know your market. You can avoid a disaster by doing diligent research.See you soon with more.To YOUR coffee shop success,Byron Michaels

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