Free Tool for Calculating the Total Addressable Market for Your Local Government Offering
Developing new products or services for local governments is a gamble. Hedge your bets by first understanding if the local government market is large enough to serve profitably. If it is, then decide how to dole out your product development, marketing, and sales dollars, being clear about:
- the problem you’re solving
- who has the problem
- what to build for them
- how to go to market and
- whether the market is large enough to serve – profitably
Fortunately, Power Almanac has built a 100% free Local Government Total Addressable Market (TAM) calculator that you can sign up for online. In this post we’ll show you how it works by explaining TAM and walking through an example.
What is a Total Addressable Market (TAM)?
Sometimes referred to as the Total Available Market, TAM is a calculation that helps companies determine the overall revenue potential of their product given a certain market size.
TAM = (Average Annual Contract Value) X (Total # of Accounts)
As you’re filtering the 20,000+ local governments (with populations greater than 1,000) that Power Almanac covers, ask yourself:
- What are the characteristics of our current and potential customers?
- What local governments are we likely to sell into?
- Which departments are we likely to sell into?
- What roles do we need to connect with?
- Where are these governments located?
- What size populations buy our solutions?
- How many employees do they have?
- What size are their budgets?
Here’s a local government example to help you understand TAM better.
Local Gov TAM Example: Acme Paving Corporation
What Acme Sells: paving equipment to local governments for an Average Annual Contract Value of $350,000 per year
Market Sizing:
- Which departments is Acme likely to sell into? Public Works
- What roles do Acme need to connect with? Head of Public Works
- What size populations buy our solutions? 25,000+
- Where are these governments located? U.S. Counties
- How many employees do they have? n/a
- What size are their budgets? Medium to large budgets
TAM: $350,000 x 1,185 local governments = $415 Billion
From here, Acme would go on to calculate its:
- Serviceable Available Market (SAM) which is the segment of the TAM targeted by their products and services which is within their geographical reach.
- Serviceable Obtainable Market (SOM) which is the portion of SAM that they can reasonably expect to capture in a given period of time.

In the case of Acme Paving, they may only have dealers in certain regions, to sell and service their equipment, thus shrinking their Serviceable Available Market. And because North America is a mature market for paving equipment, they have to time their sales and marketing activity to the retirement of existing equipment further drilling down to their Serviceable Obtainable Market.


Why You Can Trust Power Almanac’s TAM Tool
The Dataset is COMPLETE
Power Almanac includes all general purpose local governments (counties, townships, and cities / municipalities) with populations of 1,000 or more.
The Dataset is ACCURATE
Power Almanac’s research team calls all 21,000+ local governments every 90 days ensuring that you have the most up-to-date information possible.
The Dataset is Highly STRUCTURED and FILTERABLE
Power Almanac includes a host of local government specific filters to help you hone in on your Total Addressable Market and your Serviceable Available Market.
Power Almanac Filters Include:
- 17 Local Government Roles
- Population
- Location by State
- Location by ZIP Code / Radius
- Government Type: Cities / Municipalities, Townships, and Counties
- Government Full Time Employees
- Government Spend
- Fiscal Year End
- Month of Elections
Leverage Power Almanac’s TAM Tool to Prospect Local Governments With Confidence
Once you’ve filtered down to your Total Addressable Market, Power Almanac allows you to download the decision-making contacts that you need to start conversations.
Power Almanac is the #1 source of accurate local government contact information, including email addresses and phone numbers for hundreds of thousands of top local government officials.
