During my MBA program I remember we got this market sizing:
How many members are there in a certain gym during a day? And the followup question was; how much revenues does this chain of 50 gyms make annually?
I guess nr 2 will be ok if I could figure out how to solve nr 1, but I have no clue. My only solution is:
- x % of the population in the area goes to the gym
- They go on average 2 days a week
- Divide by 7 (days a week), and multiply by 2 in order to get how many that works out each day (alternatively divide by 3 for simplicity?)
This sounds way to simple and not precise.
How would you guys do it?