Geographic Distribution of Your Customers (in U.S.)?

And what to do about it.

[jsinger]

I compared the populations of each U.S. state with our sales to people in those states to determine whether web sales varied with: 1) buyer's state sales tax rate; 2)degree of urbanization; 3) geographic proximity to us (faster ship times, maybe).

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I saw:

1) No increased business from states like NY with high rates verses a state like NH with zero sales tax (we don't charge sales tax outside our own state). Surprising, I think.

2) No increased business from the Dakotas/Wyoming etc with far fewer local outlets for our products than Mass/Ohio/NJ and other densely urbanized states.

3) Increased business from within 400 miles compared with areas more than 1,000 miles from us. Perhaps customers take shipping times into account. Maybe people just like to buy from a neighbor.

Our per capita sales were about five times higher in our best state verses our worst! While my methodology and sample base was statistically far from ideal, that difference was huge.

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Is my experience typical?

How can a web merchant benefit from such studies? We've considered doing more print advertising in states where we do especially well, for one thing.

[hannamyluv]

1) No increased business from states like NY with high rates verses a state like NH with zero sales tax (we don't charge sales tax outside our own state). Surprising, I think.

I have not run an analysis on the web, but I do know that with our traditional DM business, we find this to be true. Most people really don't care about the sales tax.

[Essex_boy]

Yeah this is true Im based in teh UK so foreign orders stand out and I find ship shed loads of games to HI. Surly they have better things to do than stay in doors and play games?

[plumsauce]

Essex_Boy

I wonder if you ship lots of games to Hawaii
because US sites typically surcharge shipping
to AK and HI, bringing your all-in cost to
something that is more attractive than a
domestic mainland supplier.

[Essex_boy]

Oh right I didnt know that, explains quite a bit.

Thanks

[hannamyluv]

Surly they have better things to do than stay in doors and play games?

They get island boredom. Can you imagine being confined to say a 50 mile radius (think about it)? A lot of peolple move to HI thinking it will be cool only to leave a few months later b/c they are so darn bored.