The characteristics of a dealer’s service area directly impact their addressable market and branch revenue. Principia recently asked a national audience of over 700 building product dealers about the size of their service areas. On average, dealers reported a 65-mile radius around their location.

Dealer service area size varied by population density, parent company footprint, and distribution channel.

  • Dealers in states with higher population density reported smaller service areas. In the example below, 80% of the revenue is contained within a 40-mile radius or 38% of the service area.
  • In most areas, a 65-mile radius is approximately a one-hour drive time.
  • Lower density areas have larger service areas, which helps generate more revenue.
  • National companies reported larger local service areas than regional or local companies.
  • Specialty one-steppers reported larger service areas compared to lumberyards and other/ specialty retailers.

As an example, a 65-mile radius service area in Metro Atlanta market includes $1.9 billion dealer revenue across selected building products. There are nearly 700 dealers competing for the $1.9 billion of product demand.

The analysis above uses exterior building products including decking, doors, insulation, railing, roofing, siding, trim, and windows. Data is also available for interior products such as cabinets, flooring, and wallboard.

Contact us today for more information.