The only people with money to spend are the upper-middle class consumers. Incomes of 100K+. 60% of consumer spending across the USA comes from people in this bracket… and for people under 100K income, spending is going down. Only 18% of USA population makes this level of income…
Hence if you want to make money, you have to move your products up-market to appeal to people who have all the disposable income to spend. This trend is all over the economy. Travel, clothing, food, etc.
The days of appealing to the mass market of lower and middle class consumers, is over, because they are broke, so nobody gives an F about them.
Going forward it’s about fewer sales, but higher margin sales.
Businesses started acting like every product ever is a luxury product and people keep paying the higher prices.
The only way to get prices back down as to not buy them.and hope the little businesses survive long enough.
The only people with money to spend are the upper-middle class consumers. Incomes of 100K+. 60% of consumer spending across the USA comes from people in this bracket… and for people under 100K income, spending is going down. Only 18% of USA population makes this level of income…
Hence if you want to make money, you have to move your products up-market to appeal to people who have all the disposable income to spend. This trend is all over the economy. Travel, clothing, food, etc.
The days of appealing to the mass market of lower and middle class consumers, is over, because they are broke, so nobody gives an F about them.
Going forward it’s about fewer sales, but higher margin sales.
It’s not over forever. We’ve had K-shaped recoveries in the past, which is why we have a name for it.
nobody is investing in the lower or middle classes. they are de-investing.
everyone is investing in the rich people. especially other rich people who are trying to grow their businesses.