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“Sutton’s Law” - Go Where The Money Is!

June 29, 2009


My wife and I have had this discussion.  Have you had the same? 

I came across a high-end furniture manufacturer that is not represented in Oregon or in the design center in Seattle.  I asked her to take a look.  She liked it, but wonders if the high end luxury furniture will sell in this climate.  Later, she is visited by another furniture manufacturer that wants her tocarry a line with a lower price point than we normally have on the floor.  She wonders if she should add the line.  I can only pitch her on exclusivity!

A recent study in eMarketer, When the Going Gets Tough, the Rich Get Online, may offer a clue.  The article says

...the number of affluent households in the US (defined as having a net worth over $500,000) dropped last year, falling from 16.4 million in 2007 to 15.6 million in 2008. Nevertheless, the rich still have money to spend, which is more than many customers can say.

In other words, follow the advice of bank robber Willie Sutton, who was asked why he robs banks?  He responded, "Because that's where the money is!"  The article says that the affluent are on the internet more than ever: "over 50 million people with household incomes of $100,000 or more were online in March, up 3.4% over March 2008."

We know everyone has suffered in this economy.  The affluent are no exception and many fear more losses.  However, in order to meet the demands of the affluent,  retalers still must offer "superior customer service, personalized products, and exclusive offers and invitations.“  In addition, retailers must explain "how their products or services fit in with the ‘new’ affluent lifestyle.”

To me that means your product has to be unique.  It goes without saying, it nust be quality made.  And, maybe it must be gentle on the earth. 

Thoughts?  You can comment directly, email me at landfair3554@comcast.net or follow me @landfairfurnitu. 

Posted by Mike Landfair on June 29, 2009 | Comments (0)