How to Calculate Total Addressable Market and Perform TAM Analysis
Zoominfo
MAY 8, 2020
For example, suppose my beverage company sold lemonade at an average of $30 a case to vendors; they bought 50 cases per year, on average (ACV of $1,500); and there are 1,000 vendors on the West Coast in total. I can calculate TAM for my lemonade: 1,000 vendors multiplied by $1500 equals a total market of $1,500,000.
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