Location goodwill

Location goodwill - rabbits

Rabbits spend their lives in and around a spinach patch and don’t like to venture too far away from home. The rabbit shops by convenience and ease of access rather than by quality or price. Rabbit consumers will only buy a product if it is available within an acceptable radius from home or work. When my local filling station added a convenience store, it began to be patronised by children on the way home from the neighbouring school, and by pensioners who would walk to the store from the old age homes and retirement villages in the area Rabbits won’t go the extra mile to buy better quality or cheaper fruits, vegetables, or groceries. A true rabbit won’t go further than the nearest convenience or department store to make a purchase. Rabbit goodwill is thus based on location. The value of a prime location and venue is reflected in the commercial land value and rental and does not add to the value of goodwill in a retail business.