Providing Critical Retail
Delivery Services To Financial
Institutions.
Our New branch design and construction experience exemplify the high quality standards achieved through the use of a full range of GRFI services.
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For a period of just under 50 years we have successfully utilized Two Tier Regression Modeling in the
evaluation of Real Estate, relative to both Market and Sites performance levels at the 95% confidence limit.
Our system applications have been utilized in every Major U.S and Canadian metro area plus assignments
in Europe, Asia and Mexico.
Proven analytical methods
define potential for expanding
both existing and new target
market entries
Existing branch performance measured against increased potential as a basis for delivery system improvement
Identification of high potential markets, as well as voids within existing trade areas.
New site selection with full return-on-investment analysis
Identification of site acquisition candidates and assessment of contribution potential
Identification and consolidation of under-performing low-potential facilities.
Existing branch performance measured against increased potential as a basis for delivery system improvement
Identification of high potential markets, as well as voids within existing trade areas.
New site selection with full return-on-investment analysis
Identification of site acquisition candidates and assessment of contribution potential
Identification and consolidation of under-performing low-potential facilities.
The decision matrix and GRFI’s regression Modeling Effectively Map both the
Commercial and Residential Profit Potential
Location is not the Most Important Factor
In Profitable Project Planning
The time is right to shed some light on a myth that has persisted for many years - that “Location - Location - Location” is the primary key to high profitability for commercial and residential projects.
Obviously there is long standing support for the many benefits of a good location. Unfortunately, too often quest for a “good location” leads a client into a poor program or, at best, marginal market. If, in fact, a site is good, but market potential is poor, it becomes virtually impossible to create a highly profitable operation.
Regression Modeling - Evaluates Sales and
Profit Potential
Market Potential Must be Be Evaluated First, a comprehensive market evaluation study must be implemented and reported upon before a specific site is considered. Maximizing the market potential hinges on an evaluation of the positive strengths of the consumer and retail/commercial business markets, as well as the negative impact of competition, how many and what types are in the trade area.
Trade Area Quality and Density
The evaluation of the positive strengths of the market, whether for existing or potential facilities, includes a study of various market factors. Facility site is an integral, but not a separate, determining factor. Other important factors which positively or negatively affect the the viability of the market include: trade area density, trade area quality, population growth and age profile, plus household income factors.
Logic and Regression Data
Logic and our regression data support the premise that population, demographics and future growth potential in a market would superseded a good location. The relative strength of the market within our regression modeling accounts for 60 % of an existing or potential unit’s score, i.e ultimate sales and profit potential within our Regression Modeling system. Overall Site Related elements account for 40% of the combined elements.
Weighting potential for the GRFI Ltd.
Regression Model*
The GRFI Ltd. Market - Site Analysis Regression Model is divided into four (4) Factor groups as follows:
Point Value
Trade Area Factors
75%
Competitive Factors
-15%
Targeting Score
60%
Site Factors
25%
Special Advantage
15%
Site Score
40%
Total Demand Potential Score:
100%
*GRFI Ltd. has twelve(12) different and separate Regression Models. Each distinct Environmental Classification (i.e. Urban, Suburban, Small town, etc.) requires its own model and subsequent weighting factors to generate accurate sales projections.
GRFI Ltd. / The Frerichs Group
George R. Frerichs
312-856-1444