26 replies to this topic

[earlpearl]

Have two types of smb's/services.  Sort of bumbled into both of them.  One definitely has a younger demographic...say late teens to about 35.  One has an older demographic and is oriented toward higher income folks.  Say 40 and up with mid 40's to mid 50's being prime.

 

Price points on the smb's for the older generation are way higher.

 

So much of everything about the two types of businesses are extraordinarily different.   There are overlaps though.  High SE visibility for appropriate keywords is similarly important...its just that the over 40's never search for the one type and the under 40's never search for the other type.

[chuckfinley]

Have two types of smb's/services.  Sort of bumbled into both of them.  One definitely has a younger demographic...say late teens to about 35.  One has an older demographic and is oriented toward higher income folks.  Say 40 and up with mid 40's to mid 50's being prime.

 

Price points on the smb's for the older generation are way higher.

 

So much of everything about the two types of businesses are extraordinarily different.   There are overlaps though.  High SE visibility for appropriate keywords is similarly important...its just that the over 40's never search for the one type and the under 40's never search for the other type.

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Out of curiosity, which one buys more, measured in terms of gross margin?

 

Which one is easier to market to?

Edited by chuckfinley, 01 February 2013 - 08:12 PM.

[earlpearl]

gross margin isn't a good metric.  they are services.   Its really revenues against a soft set of fixed expenses which mostly are a reflection of salaries and a different set of other costs.   I see salaries as a fixed cost for the most part in that the smb's can't operate well w/out good people.

 

The one to older folks, when its doing well makes more in all locations.  but it also tends to swing more.

 

We market and sell ALWAYS.  We work hard on revenues all the time.  We monitor cash flow all the time.  

 

They are all hard.  each in different ways.  we have two that have been very good for a long time.  Its always the personnel in these cases.  We haven't been able to always get the right people.  That is the bigger hurdle.  Even the consistently good one's have hurdles.  We are facing one of those in one of the two good ones.

[DCrx]

A great discussion topic for UX practitioners to reveal a weath of knowledge about.

 

I shan't hold my breath for it though.

 

First off, do preconceived notions turn into self fulfilling prophesies? A newspaper was sure younger readers prefered their online edition and older people were stuck on print. The timeworn "old folks don't like change" argument. Surveys told it so.

 

And, as we know, survey results come written on stone tablets.

 

Turns out the designer was in his early twenties, with perfect eyesight. Changing the small (fixed) text size and related changes rendered this notion false. That said, how does the use of iOS devices trend? It's all well and good to dream about large disposable incomes ...but where is the target group spending it?

 

Sure, there may be a vast hoard of 70plusers on Android, because hey, who doesn't love Linux down at the old folks home. "You whipper snappers have it so easy. When I was your age we had to root our phones the old fashioned way!"

 

Um, yeah ... about that ... Android may skew even younger.

 

50 and up have pioneered certain tech adoption, but for very different reasons than younger people. Best to study and understand rather than moon about a magical strap-on income bracket. You may alienate your core audience.

 

Will Facebook's new users push out its core audience? A June study
from online gaming site Roiworld found that 16 percent of younger users
leaving Facebook did so because their parents had joined. Another 14
percent left because they thought there were too many older people using
the site.
Internet Users Over Age 50 Flocking to Social Media

Edited by DCrx, 02 February 2013 - 03:58 AM.

[bobbb]

Guinness sales are down in Ireland among the younger because it's their dad's drink.

[earlpearl]

Chuck:  The two types of smb's in which I'm involved only provide anecdotal examples.  Its nothing I'd hold my hat to in terms of wider issues or questions of how money is spent in general or where there are opportunities.

[chuckfinley]

Chuck:  The two types of smb's in which I'm involved only provide anecdotal examples.  Its nothing I'd hold my hat to in terms of wider issues or questions of how money is spent in general or where there are opportunities.

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I was curious about your experience because I know you focus on Local, thanks. 

 

I suspect there are a lot of factors that make everyone's situation different.  3 important factors -- 1) existing product positioning, 2) locations, and 3) available budget.

Edited by chuckfinley, 05 February 2013 - 11:21 PM.