Selling Luxury To MillennialsFriday, August 12, 2016
I was recently quoted in an article for The Tennessean, on how "millennials are driving a dramatic change in the food economy." In the piece, the author also shares that Costco is now the number one seller of organic produce in the United States, beating out Whole Foods.
This isn't exactly surprising since:
a) Costco is ubiquitous, Whole Foods not as much, and
b) the average household income of a Costco member is $100,000+.
This is a good reminder for people who sell luxury goods and services in any industry: luxury consumers rarely buy luxury in every category across the board.
Read that last sentence again, because it the number one myth I see my clients buy into. Their thought process tends to be that if a person is wealthy, they'll spend a high dollar amount on everything. This simply isn't true, and embracing this fact can help you understand your clients better and sell more effectively.
Wealthy people often stay wealthy because they're smart with their money. They will spend more on what they value, but they are not into spending just because the price tag is high.
Costco markets to a higher-end demographic because people with higher incomes like to save money. Similarly, Ann Taylor has consistently outperformed among high net-worth shoppers over the past several years. Ann Taylor. Not exactly the first brand that comes to mind when you think of luxury fashion. And yet, these high net-worth women will often pair their Ann Taylor dress with Prada heels and a Balenciaga handbag.
A bride or groom hiring a luxury wedding planner may not see the value in having a high-end cake designer, and vice versa. Value is personal to each client, and part of the initial meeting is sussing out the priorities each couple has.
You can be expensive, and people will pay you handsomely, as long as you're showing the value of what you bring to the table. What you bring to the table goes beyond your portfolio: stylish, beautiful work is now the bare minimum standard, and not a competitive advantage. (Don't believe me? Scroll through any wedding hashtag on Instagram. Gorgeous work for days.) If you weren't talented, the potential clients you meet with wouldn't have reached out to you in the first place.
Dig deeper than talent and price, and focus on selling that. In the luxury end of the market, this is especially more important than ever.