- Areeb Mirza
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- No market is saturated, the churro shop example
No market is saturated, the churro shop example
I was in Spain recently and they love their churros. Specially this time around the year you can get a bag of warm churros and a hot chocolate dip is kind of the perfect snack or dessert for the cold weather with the soft crunch, just writing this makes me want to get one.
I was walking down this street which had a lot of vendors of all different things to sell, one thing I kept noticing was that at the end of every block, there was a churro stand. I must've went past 3-4 in a very short time, but the interesting thing was, all of them were making sales, there wasn't any churro stand with no customers.
I am a very curious person and this got me asking the question why? Why go through this trouble of opening a churro stand a block down from another one, and then more people decide to open more a block away from you.
It's because each block has its own moving traffic, some people start the street from halfway etc, but the convenience of it being "right there" and it sounding good "in the moment" is what makes the sale.
I am sure if you were pre planning on getting them, you would know where to go, and who to go for, perhaps its the nearest one to you, or maybe you want the one with the best ratings. These particular stands generate demand for the products by being there at the right time, right place.
It does not matter if you have 20 more of them down the block, you were there where the traffic was.
Now if the churros were literally standing right next to each other, then you have to ask the question, why me and not them? or the other way around. That's where saturation takes place.
But if you can position yourself in your own block, you will get traffic.
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