Background The table below depicts an isolated industry located in your sales territory, broken down by NAICS code designation. The example table provides the NAICS designation (column 1), the Industry Type (column 2) and the number of firms of that 1 industry (column 3) located in your region. Look at the column that says "Cost of Materials" in 10003. Let's isolate the first row which says: Pharmaceutical & Medical Manufacturing (NAICS 32541). The cost of materials for the 8 firms in your sales area is listed at $149, 346 (in thousands)....which means that the 8 firms in that industry buy $149,346,000 (that's $149 million) worth of total inputs. In other words, in order to manufacture their product (Pharmaceutical drugs) those 8 firms spend close to $150 million on materials used in the manufacture of drugs. Your firm is a supplier of a single input product used in the manufacture of their product---pharmaceutical drugs. Let's imagine that your firm sells specialty chemicals. As noted, your chemical products are used as an input product purchased by each of the 8 firms in the Pharmaceutical Manufacturing listed below. Note, not all of that Cost of Materials figure ($149,346 million) is associated with the product you sell (chemicals). Think about that.,. even if the main product being produced was packaged orange juice, not all of the cost of materials would be oranges (even though most of the cost of input would probably be oranges), The fact is, we can only estimate what the % of the total cost of materials associated with any product would be. ... primarily because the firms that are doing the buying don't reveal what their purchase costs are. Table 1: North Carolina NAICS Industry # Firms Cost of Tot # of Avg. Rev. % MKT Type materials purchases Accts. per account Share by ($1,000 from your Accounts firm $ 32541 Pharmaceuti 149 346 $2 128 $2.021,333 cal & Medicine mfg Your firm has accounts with 47 out of the 162 firms available in the Triad Region in these 5 NAICS codes. Let's just assume that the average COGS for each industry associated with your product is 20%. Hence, out of the approximately $1 billion in materials purchased by all firms, your Market Share by sales would be around: $1,031,987,000 x .20 = $206,397,400 (Total Sales potential) $112,316/$206,397 - 54% of the total sales potential (which is not bad)