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Factors that Influence Trade Areas <br /> Trade areas often extend beyond city or neighborhood boundaries and come in a variety of <br /> shapes and sizes, depending on a community's pulling power and local geography(see the <br /> example trade area map below). A business district may serve a number of different trade areas <br /> depending on a variety of factors such as types of products sold or customer market segments <br /> served. <br /> Example Map of Frazee, Minnesota Primary Trade Area <br /> W�`i� �� ■ ` _-i Major geographic <br /> ,i.111111i'� ;t ir pao,R.,,y features such as rivers, <br /> r-11 i, <br /> ��� � �� � highways,and lakes <br /> ��r rr <br /> i� r,� —yew- are common"cut off"dr <br /> •r�lwie i � - i ��—""�mu l points for a trade area. <br /> ■�T 1 k _° !, Trade area includes a Am,T NAPA , p t >•.mosta sparsely populated <br /> !ii � �. area northeast of IMO <br /> �, I� f� - Frazee that is part of <br /> 10101111M,011/1.1. 1111 Y the town's school <br /> I lily district. <br /> M Frsnee Major competing <br /> roe '��r - business districts <br /> IMvF- , outside the Frazee <br /> ,iW , m trade area. <br /> r <br /> p.04-1 dIllik�"r �f <br /> Important Factors <br /> Various factors determine trade area(s) including the community's population community and <br /> its proximity to other competing business districts(see Reilly's Law below).These factors <br /> include: <br /> • Population of your community: Generally the larger your community's population,the <br /> bigger your trade area is. <br /> • Proximity of other competing business districts: Typically there is a cutoff point where <br /> customers are drawn to the competing center instead of your community. <br /> • Mix of businesses in your community: A critical mass of businesses pulls customers <br /> from a further distance than a more limited mix of businesses. <br /> 2 <br />