NCVPS

1. Factors Affecting Business
Location

2. Appropriate Locations
for the Sale of Different Types
of Consumer Goods
Convenience goods: Items bought out of habit
and sold in numerous outlets; should be
available close to consumer’s home or along
the route traveled regularly. Examples:
bread, milk, gasoline
•Shopping goods: Items purchased after
comparing prices and features; should be
located where customers can easily compare
prices and features. Examples: cars, clothes,
appliances

3. Appropriate Locations
for the Sale of Different Types
of Consumer Goods
•Specialty goods: Items that consumers purchase
infrequently and will make an extra effort to buy;
location is not a major factor since customers will
go out of their way to make these purchases. Care
should be taken to locate near businesses of
comparable quality and prices. Examples: specific
brands, designer items, or exclusive merchandise

4. •Downtown/central shopping district
•Neighborhood shopping center
•Community shopping center
•Regional shopping center or mall
•Super-regional shopping center
•Industrial park
•Stand-alone/freestanding
•Home-based

5. Downtown Area
•Centrally located and
easily accessible
•Offices and
professional businesses
•Varying rental rates depending on the town/city

6. Neighborhood Shopping
Center
•Close to residential areas to meet the
convenience needs of the nearby
neighborhood residents
• Usually includes a supermarket or drug
store as an anchor tenant
•Suitable location for goods and services
purchased frequently

7. Community Shopping Center
•Serves residents of many
neighborhoods
•Combines convenience goods and
shopping goods
•One or two major stores plus 10 or
more smaller stores
•Variety or junior department store as
anchor tenants
•Rent affordable, but higher than
neighborhood shopping center

8. Regional Shopping Center or Mall
•Combines three or four anchor stores with
40 or more other stores
•Located to serve several towns or cities in
the region
•Less accessible for some customers due to
distance customers due to distance
•Rent may be high

9. Super Regional Shopping Center
• Extremely large - exceeds
750,000 square feet
• Many anchor stores and
hundreds of smaller stores
•Designed to attract customers willing to travel
great distances to shop
•Rent very high
•Not recommended for new business owners
•Example: Mall of America

10. Industrial Park
•Business properties developed on less
expensive sections of land away from
housing developments and downtown
areas
•May be subsidized by communities in
order to attract industrial businesses

11. Stand-Alone/Free Standing
•Separate from other
businesses
•Often, but not always,
located just outside shopping
centers
•Dependent on drive-by
traffic
•Must advertise
•Rent usually lower

12. Home-based
•Located in a private residence
•Suitable for businesses requiring
little personal contact with
customers or where work is
picked up or dropped off
•No rent to pay
•Possible tax savings

13. Before Selecting a Site,
Several Factors to Consider
• Local competition
• Area population
• Chosen land and/or building
• Features
• Proximity to target customers
• Proximity to other businesses

14. Local Competition
•Direct Competition: Businesses selling the
same products or services.
•Indirect Competition: Businesses offering
different products or services yet competing
for the same consumer dollars.
•Complementary Competition: Businesses
that sell products or services that can be used
with other purchases.

15. Area Population
Cultural characteristics – various ethnic backgrounds
Vocation - what the people in that area do for a living
Age – important due to purchasing patterns
Income – how much are the people in the area willing
or able to spend
Mobility - do they have their own transportation or are
they dependant on public transportation
Under-served consumers - people whose needs aren’t
being met

16. Chosen Land and/or Building
Zoning – what types of
businesses or other structures can
build in the area. See zoning
laws.
Cost – highly popular area may
cost more
Traffic patterns - congested,
free-flowing, easy access, etc.

17. Other Features of Importance
• Adequate space
• Safe, well-lighted area
• Easy access and exit
• Adequate parking
• Proximity to target customers
• Proximity to other businesses (helps ensure
customer traffic and may boost positive image)