A serviceable obtainable market (SOM) is the portion of the serviceable available market (SAM) that you can realistically capture. Your current offerings, pricing, and competitors could impact your SOM.
And part of that process involves finding your total addressable market. But what is total addressable market? Why does it matter, and how do you calculate it? We’ll answer all those questions below, and we’ll also provide a TAM calculator further down on the page. On this page, we’...
Service available market (SAM)is the demand for your product or service within the portion of the market you’re capable of serving based on factors like geographical reach, product/service limitations, and regulatory restrictions. Service obtainable market (SOM)is the demand for your product or s...
Total addressable market (TAM), serviceable obtainable market (SOM), and serviceable available market (SAM) are related concepts, but each serves a different purpose. TAM is revenue or sales demand for a product or service. Serviceable available market (SAM) helps you assess how many customers ...
SOM - Serviceable Obtainable Market: Out of that SAM, this is the more refined slice of the TAM you can hope to achieve within the first 1-3 years of opening your doors or trying a new form of pizza in the local market; app, etc. For example, if you don’t sell thick crust for...
Narrowing it down further, you won’t be able to capture your entire SAM. You may have a lot of competing businesses to divide the market with, and not every customer will choose your service over the other competing businesses. The Serviceable Obtainable Market, or SOM, is the portion of...
TAM is a crucial metric for investors, entrepreneurs, and businesses in evaluating the attractiveness and scalability of a market opportunity. It helps businesses understand the revenue potential of their product or service and the potential of a business. It can also guide strategic decision-mak...
This is called Serviceable Obtainable Market (SOM). Once the top line is available using this method, other details such as cost of goods sold as well as overheads need to be calculated in order to derive a financial forecast. Bottoms Up Financial Model: The problem with the top-down ...
Within your SAM is yourService Obtainable Market (SOM)– the number of users you can realistically acquire. There is no one way to get this number other than your own estimations and research, so think back-of-the-napkin product math. ...
That’s why it’s crucial to measure your serviceable obtainable market to estimate how many customers would realistically benefit from buying your product or service. Serviceable obtainable market is most useful for businesses to determine short-term growth targets. It can also help with competitive...