Market Sizing
Use Case: Price Analysis
Optimize pricing strategies with our self-serve Market Sizing app. Input scenarios, calculate TAM, SAM, SOM, and make data-driven decisions instantly.
A new entrepreneur used Olympus Intel to answer investors questions on market sizing and nail the pre-seed funding pitch.
Naomi, a passionate entrepreneur, was on the verge of pitching her innovative health-tech startup to a group of potential investors. Her product aimed to revolutionize remote patient monitoring, but during preliminary discussions, the investors emphasized the importance of solid market sizing data—specifically, Total Addressable Market (TAM), Serviceable Available Market (SAM), and Serviceable Obtainable Market (SOM). Unfamiliar with these concepts and pressed for time, Naomi needed a solution that could quickly and accurately provide the necessary insights without requiring her to become a market analyst overnight.
Discovering Olympus Intel, Naomi was relieved to find a user-friendly platform designed for entrepreneurs like herself. Instead of spending hours researching just to put her best guess in the pitch deck, she’ll have actual answers and data sources to back up her claim.
Naomi has a clear idea of her ideal market, which focuses on patient care outside of hospitals and doctors’ offices. She creates a custom market segment by typing keywords and selecting the relevant sectors from the results. She chooses the following segments:
- Home health care services
- Nursing care facilities/skilled nursing facilities
Guided through defining her revenue model, she input her pricing plans.
- One-off: Naomi charges a one-time $2,000 fee for purchasing the patient monitoring hardware.
- Subscription-based pricing plans: A buyer can choose three different monthly plans, depending on what vitals and stats they want to monitor. Naomi takes the average cost of her pricing plan for this model and enters $75.
Naomi could gut-check the first round of data when the Olympus Intel platform displayed the total market size and total addressable market for the given segments.
Naomi was particularly intrigued by digging into the detail table at the bottom of the page, where she could view information such as the number of firms, establishments, employees, and annual payroll of each segment. She thought it would be powerful to include the deep dive list of top companies within the “home health care services” to show investors an example of the specific companies she will target.
At the start of this endeavor, Naomi was most concerned about narrowing down her TAM and getting an accurate idea of the service addressable market and most importantly, her service obtainable market. She was relieved to see the Olympus Intel platform distill the complex data crunching into a few easy-to-answer questions. Naomi proceeded through the questionnaire entering constraints that affected her ability to sell her remote patient monitoring product.
For example, she was asked about geographical areas where she could sell. Though Naomi could potentially sell to any state in the U.S., it would take a lot of time to check HIPAA compliance and she does not have the staff to reach out to all those places. That is why, for current sales geographies, she only selects states with vital health-tech ecosystems and chooses California, Massachusetts, New York, and Texas.
She proceeds through the questionnaire, adding company size constraints as her initial price point is for medium and large businesses. She’ll wait to target small businesses (49 employees and under) when she has a lower-cost version.
The Constraint Questionnaire further helped her refine her SAM and SOM by considering factors like market competitiveness and regulatory barriers.
With Olympus Intel’s comprehensive database and powerful calculations, Naomi was then able to explore both an overview and detailed information on her market segment, starting with her market summary:
- TAM: $96,024,800
- SAM: $25,697,549
- SOM: $2,010,103
Naomi used detailed market data to make her case to investors, saying that though her obtainable market was limited, with investment help, she could expand her operations to capture a $25 million market share. To help prove her point, she sorted her SAM by “Establishments”, to show the top states with the largest numbers of businesses in this sector. It revealed interesting results, like Missouri and Michigan landing in the top 7 for “Home Health Care Services.” With few people targeting these areas, Naomi can make a case to investors about why getting her product out into the world is essential.
Armed with detailed graphs and easy-to-understand data from Olympus Intel, Naomi confidently incorporated her market figures into her investor presentation. The visualizations highlighted not just the market's vast potential but also her realistic share within it. During the pitch, the investors were impressed by her thorough understanding of the market landscape. Thanks to Olympus Intel, Naomi transformed a daunting requirement into a compelling strength, significantly boosting her credibility and increasing her chances of securing the investment.
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