October 16, 2015 — I read a posting on Wikipedia.org last week that said the “Boston Consulting Group’s 2015 study” is reporting that there are about 6.9 Million households in the United States of America that are of millionaire status. According to another Wikipedia posting: “The Boston Consulting Group (BCG) is a global management consulting firm with 82 offices in 46 countries. The firm advises clients in the private, public, and not-for-profit sectors around the world, including more than two-thirds of the Fortune 500.” Sounds like BCG knows a couple things and maybe our industry can learn from their research.
So Here’s The Scoop: Take for example those 6.9 Million households that are classified as high-net-worth individuals (HNWI). For illustration purposes let’s say that a savvy developer has a timeshare vacation plan that would appeal to that niche market. And let us further say that this wise developer reached out to them with an awesome marketing program and an invitation to those HNWI and the developers’ goal was to only ‘tour’ 100 HNWI’s (aka: ‘Q’s’; make that HNWIQ’s) per day.
Of course this forward thinking developer couldn’t snag all of them but if s/he could everyone on the developer’s sales staff would have to roll up their sleeves and get ready to make a lot of money and work a very long time because it would take 69,000 non-stop working days (189 YEARS) to ‘meet/greet’ all 6.9 million HNWIQ’s.
But, like I said, 100% of these highly desired sales guests could not be swayed to accept this developer’s inducements for a ‘meet/greet’. However, in the USA there ARE millions more of those specific prospects out there for the
taking asking, from the extremely wealthy, the super rich, the rich, and the affluent all the way down that food chain to households with incomes at & exceeding $100,000 (annually).
So if all that is true then just in the USA there might very well be 24 Million “households” that have a better likelihood affording a timeshare vacation plan than all those households in the nation grossing (e.g.) $40-$50 or $60-K annually.
It should be noted that myself and many other industry insiders have repeatedly advised what the bankrate.com article also points out, which is: “Due to the rising costs of food, energy, college tuition, health insurance and the growing ‘necessities’ of a middle-class life, a $100,000 salary in some parts of the country covers little more than the essentials.”
Nonetheless there is no shortage of those with household incomes of $100-K (and above) to go around. And to my way of thinking that means, from (e.g.) an OPC’ing perspective and in regions like (e.g.) Las Vegas, Orlando, the Hawaiian Islands and all over Mexico and the Caribbean etc. – those are the folks ‘checking-in’ and/or walking about town who need to be enthusiastically targeted and NOT (e.g.) a ‘kid’ who just turned 25 – or an elderly couple in poor health using walkers with oxygen tanks attached.
My final thought for today is that CNBC.com is reporting, “Climbing stock markets and rising real estate values helped create nearly 500,000 new millionaires in the U.S. in 2014, according to a new report.
“The study, from market research and consulting firm Spectrum Group, found that there are now 10.1 million households in the U.S. with $1 million or more in investable assets, excluding the value of their primary residence.”
And, they go on to suggest: “The number of households worth $5 million or more also set a new record, jumping to 1.3 million from 1.24 million in 2013. And there are now 142,000 households worth $25 million or more, up from 132,000 in 2013.”
Either way you cut it, with all them thar HNWIQ’S up for grabs ya gotta wonder why so many developers cling to those costly low annual gross income requirements such as (e.g.) $40-K for sales guests to be deemed qualified. It’s as if they oppose everyone, including themselves, from bringing home a lot more bacon, so to speak.
Oh well, NEXT!
Good Luck Out There
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