How to Calculate Total Addressable Market and Perform TAM Analysis
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MAY 8, 2020
A survey by an online magazine Kitchn showed that 97% of grocery shoppers use a list. My ACV for enterprise, midrange, and SMB might be $5,000, $2,000 and $500 respectively. Therefore, I would calculate the sum of (659 SMB x $500) plus (166 MM x $2,000) plus (175 x $5,000) to equal a total addressable market of $1.7M.
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