Saturday, March 10, 2007

An Interesting Market Niche

Rich people. Those with money are more than an interesting niche: they're exerting a disproportionate economic impact on Internet sales. In 2005 alone, they accounted for only 2% of online shoppers, but contributed 7% of the money spent online ($12 Billon). Plus, wealthy shoppers are 36% more likely to use a credit card online than a bargain shopper.
    I'm fascinated with the pathological trance many IM folks are trapped in. They only seem comfortable selling to other IM folks. While some are very rich, most of their customers are not. They quibble over whether to price yet another eBook at $7, $27, $97, but fail to grasp that producing a product and service worth $9997 will actually be easier to sell if it's worth it.
    Trying to get inside the mind of a customer that's worried about getting 50 bucks by the end of the month is actually tiresome. I'd rather contemplate the concerns of someone for whom a bargain is a kick, not a dire necessity. The luxury shopper who seeks comfort and exclusivity is generally happier than the bargain shopper scouring the 'Net for a few bucks off the price of a staple item. I've decided who I want to spend my time contemplating. Like I said, it's an interesting market niche.