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What are threshold and range?

Updated: 4/28/2022
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14y ago

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every shopping centre or service has its own threshold population. This is the minimum number of people who are in the market area to make the shop profitable.

A Porsche show room has a very large threshold population. This is because not many people in any area buy many cars.

A sweet shop has a small market area because people buy sweets and newspapers regularly, so the shop can make a profit with a fairly small threshold population.

The range of a shop is the distance people are prepared to travel to visit a shop.

Porsche buyers have a long range because people do not but Porsche's very often so they are prepared to travel a long distance. The sweet shop has a much smaller range as people will not travel a great distance to but a newspaper.

Hope this helps!

J

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Q: What are threshold and range?
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