Why Low-Income Customers Are Your Best Bet
I’ve seen it over and over again: companies targeting their latest and greatest product to the masses making over $100k or more, per household. If the products that don’t catch on, they totally get thrown into the dumpster, and the companies starts anew or goes bust.
If we follow the current trends of businesses, they have always produced something for that climate, then waited until the middle-imcomers start to buy, before they have produced what they so affectionately call the “economy version” of XYZ. This is backwards. And wrong.
Most people only want to buy something that they can: A) Use regularly, and B) Improve their lives. They will buy that thing, in droves. But we often skip right over low-income earners in favor of getting rich quick. What about getting rich, steadily?
The problem with high-income earners is that they have choice. It’s not a “bad thing” problem, just a real world issue. If you have a choice, then you’re going to chose what you’re most comfortable with, even if it inconveniences you. Think of all the times you had a choice of what food you wanted, what item you wanted to buy, and you opted to, instead, drive out or take public transportation to your favorite haunt because you knew exactly what you’d be getting, and bypass the convenient store option or online variation.
With low-income earners they have very little choice, and want the best quality for their price — even if it costs a little more. The misnomer is that low-income earners want cheap things. Not so. They want the best bang for their buck.
For instance, I recently happened upon a company that makes a nutrionally-complete ramen with 27 grams of protein, half a daily allowance. Holy crap, right? Instead of being 25 cents, it’s around $3. It also contains about one fourth the daily total of calories an average person needs per day. That equals to someone being actually full at lunch or dinner with only a few bucks, and not having to worry about the side effects of not feeling all that great after eating the unhealthier equivalent.
Something to take note on all this is time. Low-income earners are used to not having a lot of time. They’re very much used to cramming a lot of tasks into the very little spare time they have. Why do they have so little time? Because they’re trying to do everything themselves that middle- and high-income earners can pay people to do. So, anything that cuts down prep time while still getting the same or better benefits is well worth it. And that will trickle up to the middle- and high-income earners who wish to shave off a little of their time, as well. Their larger income will have a greater, steadier impact than trying to top load just from them, alone.
In short, low-income earners will pay more to spend less time. I’m sure there’s a lot of charts and bells and whistles and prestigious institution reviews to tell you one thing or another, but experience is really a true teacher in this area. And we already know how biased studies can be, and in essence, how much time we have to spend thoroughly vetting one to make sure it reflects the whole round numbers we feel are indicative to the community. Or else, we post, basically, fake news.
So take it from me, a 42 year-old who spent half their life in poverty, almost half in middle-class America, and a smidgen in the upper ranks (which, surprisingly, has a lot in common with low-income earners, believe it or not): the new business market is going to target and benefit low-income wage earners, first and primarily. And for anyone that can key into that demographic, they’ve got it made.