Question
Allison has a horse stall cleaning business that has been growing rapidly since she started it three years ago. She estimates the total number of
Allison has a horse stall cleaning business that has been growing rapidly since she started it three years ago. She estimates the total number of horse stalls in her market to be5000, owned by a total potential population of1500. Currently, there are only two competitors in the market, Allison, who has532stalls that she cleans, and Sam's Hayfaring Maneger, that cleans1,260stalls. The remainder of the stalls are cleaned by their owners rather than by a service. Allison prices her cleaning services at$7per stall per month and Sam charges$8for the same service. Allison's sales are derived from113customers while Sam's are from75customers, meaning that Sam's customers have more stalls on a per capita basis.
What is the market penetration rate based on potential customers?
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