“Don’t hate them because their rich.”
That is the name of an article written by Daniel Gross that appeared in New York Magazine recently.
Gross writes that while residents of New York used to be able to ignore them, the population of the super-rich has grown so large that it is no longer possible.
Citing signs of the times, he says the average two bedroom apartment now costs $1.2 million. A new building going up will sell every apartment in the building for $35 million each.
Wisely, restaurants, shops, and service industries are catching on to this new wealthy population and marketing products and services tailored just for the rich. Gross mentions a restaurant that serves sushi for $700 and manages to fill the place every night.
He talks about the butcher “who now sells grass-fed lamb from New Zealand” and the dry cleaner “who charges a premium for removing stains from silk ties” and the bistros that “now have fancy wine lists (and sommeliers) of their own.”
His point: don’t hate the wealthy because the effects of this new wealth has created a $488.8 billion economy which drives specialty services and presents a lot of opportunity for business owners.
As Dan Kennedy, who has done extensive research in this market, and continues to do so, says, it takes no more effort to sell to someone with money than to someone without.
I’d even go so far to say that in many cases it takes less effort.
While the explosive growth of the affluent and ultra-affluent seems counter-intuitive in the wake of all of the economic troubles, the numbers don’t lie. The wealthy segment is increasing.
Which is why it only makes sense for you to shift your marketing to target this growing segment of the population, wouldn’t you agree?
I mean the lawn care service company who takes care of yards in a community with $100,000 homes could just as easily service communities with homes in the $700,000 and up range. Sure the lawns might be a little bigger sometimes, but who do you think will pay more? The guy who owns a $100,000 home or the guy who owns the $700,000 home?
Same service yet what it costs for this service is not a significant factor the affluent customer.
And here’s another point to consider. The $100,000 homeowner is more likely to see lawn care as a splurge item—a luxury he can cut from his budget and instead mow the lawn himself to save money.
Additionally the affluent tend to spend more and more frequently. Middle class might splurge at a fancy restaurant once in a while—for a special occasion such as a birthday or anniversary. Wealthy will eat out multiple times a month and don’t need a special occasion to eat at the more expensive restaurants.
In fact, a friend told me about a lawyer she knows that refuses to eat at a restaurant where her bill will be under $100. You may see this as ridiculous, but she believes the food, service and atmosphere are better and it’s something she’s willing to pay for.
Many affluent have more than one home, which means when they buy something for their home, they don’t just buy one, but instead are buying for two homes.
So if you are looking for a strategy that will quickly and easily increase your profits, marketing to the growing affluent market might just be the ticket you’re looking for.
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