My husband Bob is a CPA and he listens to the Business News Hour every day at lunchtime. He came upstairs last week and said “Here is some interesting economic news. Wallmart sales are up. They are hiring 22,000 people to work in their new stores.”
Sales at Nordstroms (a very upscale department store) aren’t through the roof but they are in line with industry standards.
The middle isn't buying right now.
So those selling to the low end market are doing well. The high end market is holding its own. What about folks in the middle of the financial demographic?
The middle is hibernating. They aren’t purchasing a lot right now.
McDonalds – a hamburger place known for low cost fast-food – has decided to tap into an opportunity of this current economy. They currently sell to the lower end of the financial demographic but they decided to see if they could pull the middle out of hiding.
McDonalds watched many gourmet coffee houses closing because the middle has stopped buying. So they created a McCafe – gourmet coffee drinks such as mochas, espressos and iced lattes. Now the middle can get their luxury caffeine for $1.99 for a small and $2.29 for a medium. McDonalds filled the gap – for the middle people who miss Starbucks.
What does this mean for those trying to build a counseling private practice?
If you market your private practice to people who want to buy inexpensive products or those who are willing to pay top dollar, your business will be dong well right now – even in this economy.
If your ideal clients are demographically and financially “in the middle” your business may struggle when the economy is tanking. Unless you can come up with an idea like McDonalds did, it might be time to look at your business model and target market again.
Multiple Streams of Income I think will be the answer.
Wishing you the best!
