PURCHASING POWER

OUR DEFINITION OF PURCHASING POWER / INCOME DATA

Purchasing Power refers to the disposable income (i.e. income after taxes and social contributions, including received transfer payments) of a certain region’s population. Consequently, Purchasing Power consists of net incomes from employment and assets (after taxes and social contributions), pensions, unemployment benefits, benefit payments and other national transfer payments.

A per capita index of 100 indicates the area’s purchasing power is in line with the national average, an index above or below this average shows the amount of deviation from the average, positively or negatively.

Our data is subjected to a strict quality control and constantly updated by means of comprehensive research by our in-house statistical & geographical department.

Purchasing Power – The key indicator for sound location and sales territory planning

In today’s competitive retail market, sales, optimization, and growth are critical to survival. All businesses need to know where their customers are located and how much disposable income their target groups possess. Basically, the understanding of what the population in a given area has available for consumption. The Purchasing Power allows companies to zero in on their regional markets with increased precision and accuracy.

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Add-on:
Purchasing Power Trends

While numerous analyses can be conducted at a given point in time using Purchasing Power Data, MBI Purchasing Power Trends allow you to observe a period of time. They provide information on how Purchasing Power has changed compared to the last MBI data update.

License this add-on if you want to analyze developments and trends accurately.

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EXAMPLE PURCHASING POWER

Purchasing Power on municipality level for the Czech Republic

Admincode

Name

Population

Purchasing Power

Municipality/Obce

year average

per mill
of country

in Mio.
Euro

per mill
of country

Euro
per capita

Index
country = 100

500496

Blevice

285

0,027

1,89

0,025

6.624

92,7

505188

Buštěhrad

2.791

0,265

20,51

0,273

7.350

102,9

505587

Dřetovice

500

0,048

3,07

0,041

6.137

85,9

505927

Koleč

623

0,059

3,84

0,051

6.156

86,2

507016

Otvovice

674

0,064

4,31

0,057

6.397

89,5

511382

Slatina

444

0,042

2,98

0,040

6.710

93,9

513750

Stehelčeves

723

0,069

4,93

0,066

6.816

95,4

523704

Třebusice

510

0,048

3,47

0,046

6.809

95,3

529303

Zákolany

541

0,051

3,48

0,046

6.429

90,0

530883

Kralupy nad Vltavou

17.726

1,685

136,62

1,818

7.707

107,9

…

Czech Republic

10.518.570

1.000,000

74.892,62

1.000,000

7.120

100,0

Potential Business Applications

Quantify regional sales opportunities / market potentials
Focus on marketing activities locally
Formulate realistic and quantified objectives
Identify unused market potential
Restructure and optimize market and sales areas
Develop expansion strategies
Evaluate areas for strengths and weaknesses
Map marketing campaigns

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Strict quality control

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Continuous updating

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