A Touch Too Much? No Such Thing!

By Christopher Zoukis

What makes a customer affluent? How much money does someone have to make or have to be considered affluent? How is wealth defined? For the sake of convenience, this book defines three categories of wealthy customers.

            The moneyed customer.

            The rich customer.

            The ultra-rich customer.  Photo courtesy gawker.com

Later on, each of these categories will be divided into sub-categories, such as women, men, same-sex, baby-boomers, and the self-made. But generally speaking, the three basic categories are defined as follows.

Moneyed customers. The people in this category make $200,000 to $1 million dollars per year. They are usually young professionals, what used to be called “white-collar workers.” More often than not they are highly educated, having graduated from colleges or universities. However, this is not always the case. There are many exceptions. Some have graduate degrees, and many attended professional schools, where they received specialized training in a specific discipline. This group includes doctors, lawyers, computer sciences and dentists. Others graduated from professional business schools. Some are entrepreneurs, who hope to grow their small-businesses into large corporations. In reality, this category is difficult to define, other than the fact that they are motivated to succeed.

Read More


Exclusivity, Experience, and Esteem

By Christopher Zoukis 

At the beginning of 2009, Forbes reported that 30% of “wealthy” people owned more than one residential property. Breaking this number down even further reveals that 30% of the rich own two or more residential properties, and 37% of the ultra-rich own three or more residential properties. The majority of these second, third and fourth homes were purchased for $500,000 or more, and many of them for more than $1 million.

This means that rich and ultra-rich customers are spending money on their homes almost constantly. What are they buying? According to the 2012 Luxury Brand Status Index survey (LBSI), which identifies the top brands that are truly luxurious, the two primary categories in which the rich are making luxury purchases are home appliances and bathroom fixtures. The reason for this is because the rich regularly modernize their kitchens and bathrooms.  Photo courtesy online.wsj.com

Those participating in the survey were asked which luxury home appliance brands deliver the best combination of quality, exclusivity, experience, and peer esteem? Wealthy participants rated Wolf, Viking, and Sub-Zero the “Best of the Best” out of 20 brands that were mentioned. In response to the same question about bathroom fixtures, Hansgrohe, Showhouse by Moen, and Franke were rated tops out of 16 luxury brands.

The individuals surveyed ad an average income of $345,000, and an average net-worth of $3.2 million. Over 63% owned two or more residential properties. Based on participants’ responses, LBSI concluded that true luxury reflects a combination of design, quality, craftsmanship, and especially service. Successful luxury brands are “radically creative innovators.”

Read More


Marketing to Daddy Warbucks

By Christopher Zoukis

What makes a customer affluent? How much money does someone have to make or have to be considered affluent? How is wealth defined? For the sake of convenience, this discussion defines three categories of wealthy customers.

            The moneyed customer.

            The rich customer.

            The ultra-rich customer.

Later on, each of these categories will be divided into sub-categories, such as women, men, same-sex, baby-boomers, and the self-made. But generally speaking, the three basic categories are defined as follows.  Photo courtesy top5s.net

Moneyed customers. The people in this category make $200,000 to $1 million dollars per year. They are usually young professionals, what used to be called “white-collar workers.” More often than not they are highly educated, having graduated from colleges or universities. However, this is not always the case. There are many exceptions. Some have graduate degrees, and many attended professional schools, where they received specialized training in a specific discipline. This group includes doctors, lawyers, computer sciences and dentists. Others graduated from professional business schools. Some are entrepreneurs, who hope to grow their small-businesses into large corporations. In reality, this category is difficult to define, other than the fact that they are motivated to succeed.

This category is experiencing rapid growth, and is in the upper 3 percent based on income. In other words, they make more than 97% of the population in the United States. Unique to this category are the baby-boomers, who are not young. Indeed, they are close to retirement. Some are from blue-collar backgrounds. Nevertheless, they have tremendous wealth.

Read More