RAMEYRETAILREPORT

      

Trusted Strategies to Successfully Sell Prestige Products and Services 

July 2010
You're never too big or too important to personally serve your customers 18.8
 
Patek Philippe is the iconic luxury watch brand with price points beginning near $20,000 and moving up to over $10,000,000.  This particular advertisement illustrates the essentials of effective marketing today: authenticity, craftsmanship and service.  The message that every watch goes through the hands of Thierry Stern, president and owner before it is released for sale is compelling to those who demand the best.   
 
Consider your personal engagement in every sale as a standard rather than "good service."  Affluent consumers judge you on their collective experiences and knowledge.  Regardless of who you are, you're being judged against the president of Patek Philippe. 
Are Affluent Consumers Back?  
 
Luxury cars sales are growing in the United States.  The following illustrates the revenue growth in June and YTD, as well as the number of units sold YTD:  
 

 

June-10

YTD

# units sold YTD

BMW

14.60%

7.60%

100,632

Mercedes-Benz

24.60%

25%

85,565

Audi

14.30%

28.00%

48,440

Land Rover

43.90%

24.20%

14,964

Porsche 

162.40%

57.50%

8,379

Jaguar

72.90%

-4.60%

5,851

Maserati

62.20%

53.50%

912

Bentley

-5.70%

4.70%

688

Ferrari

13.80%

8.60%

646

Rolls-Royce

193.10%

3.80%

185

Maybach

-20%

22.20%

33

Total passenger cars

9.40%

16.30%

2,887.96

 
Are you participating in the growth that other high-end and luxury retailers are experiencing?  Rolls-Royce, Mercedes-Benz, BMW and many retailers are experiencing YOY double digit revenue percentage increases.    
 
The best merchants are re-merchandising their stores, hitting new lower price points, controlling their inventory and changing their messaging.  
 
Next month we'll look at the margins and costs of business to determine how they stack-up against your business.  
 
The new normal is here.  Call us if you'd like guidance on how you can grow your business and overcome an increasingly difficult and slow recovery.        
Best Practices are Born by Understanding the Marketplace 
.
UBS reports there were 2,662 business jets for sale as of last week.  Much like the yachting and housing industries; supply exceeds demand.  The jet industry has been particularly hard hit since Congress jumped on certain automobile executives requesting a bailout, and watchdog journalists spied at airports trying to catch executives using their jets.  
 
The impact has been immense as companies and individuals attempt to sell their jets.  The price decrease has ranged from "Super Light" jets' price dropping 51% to below $5mm to "Ultra Long Range" Gulfstream G-550's dropping in asking price below $40mm; a drop of 36% off their recent peak.
 
Jets are only one of the myriad of issues specific to ultra high net worth individuals; others range from privacy and security to cultural shifts.  No one wants a target on their back; least of all the affluent.  
 
Do you make it easy for your wealthiest customers to purchase your products privately?  Do you protect their identity?  A best practice for luxury marketers is to suggest a non-disclosure agreement before your customer requires it.  Demonstrating you  respect your customer's privacy illustrates you share common values; one of the first steps in creating a relationship.  
The Inside on Consumer Confidence 
 
  CC final June 2010
 
The Conference Board publishes the widely reported "Consumer Confidence Index" every month. 
 
What isn't widely known is that the report can be dissected into a "Present Situation Index" as well as an "Expectations Index."  For business owners the former is more relevant because Americans are historically an optimistic lot.  The chart above is the Consumer Confidence Present Situation Index published by Market Harmonics. 
 
The lack of consumer confidence is affecting your business.  Consequently, there has never been a more important time to revisit your business model and messaging.  
 
Frightening as it may seem, this may be as good as it gets unless you change the way you do business.  There are more than a few high-end and luxury brands leading the way:
  • Bisazza dropped 3000 dealers to ~50 doors.  The company's revenue increased. 
  • Tiffany, Neiman Marcus and Saks Fifth Avenue introduced new lower priced products from their traditional house and luxury brands.  They're reporting substantial increases in sales. 
A compelling value proposition has never been more important to the affluent.  Retailers must shift their passion from purely product to serving the consumer in a manner consistent with the craftsmanship of their highest quality products.    
 
Marketing to the affluent consumer is our expertise.  Our clients share a common thread: they market, sell and serve the top of the demographic pyramid.  Call us, we'll help you earn your share of the affluent's wallet too.
 
We hope that you enjoyed reading the Ramey Retail Report.  Every month we delve into issues specific to retailers that sell products and services to the top 20% - those who will lead us out of the recession.  This group accounts for 84% of the net wealth in America and more than 55% of all retail purchases.  This small niche is our expertise and we can help you drive revenue and ensure you earn your share of their disposable dollars.           
 
You're welcome to share this email with your colleagues.  You can join our mailing list with the button to the right.  To unsubscribe please email Pat Tisch at pt@affluentinsights.com.
 
We also welcome your insights and suggestions.  What topics and companies would you like to see covered?  Please email Chris Ramey directly at cpr@affluentinsights.com.   
 
Our business exists to help you grow your business.  Please contact us if you have business concerns (and who doesn't these days?) regarding your marketing, messaging, merchandising or selling programs.
  

CPR 1

Chris Ramey is an internationally known business strategist, speaker and consultant.
 
 As president of Affluent Insights and chairman of The Luxury Marketing Council Florida, Ramey is available for speaking engagements or consulting.
 
For Affluent Insights please contact
Chris Ramey at cpr@affluentinsights.com
or 561.876.8077.
 

A few of Chris Ramey's clients include:

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Steinway
 
Bacardi
  
Ritz-Carlton 
 
Blue Star logo 
 
Previews logo
 
Four Seasons
 
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Omphoy logo
 
 18.8
 
Decorative painting logo
 
GreenBrier
 
Hanley Wood
 
Saks logo
 
Chanel logo
 
Design Guild logo
 
bisazza logo
 
MO logo
 
Allied Marine logo
 
Florida Trend logo
 
 Wools of New Zealand Fibers 
 
Bertram logo
 
Big Five Tours
Don CeSar
 
MIA Institute logo
 
SRQ Media Group
 
18.8
 
Sailfish Point
 
ResidenSea
 
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Trusted Strategies to Successfully Sell Prestige Products and Services
 
Hire Chris Ramey to Speak at Your Next Event
 
Chris Ramey is an engaging, passionate, inventive and invigorating professional speaker who demystifies the luxury and high-end segments.  Your attendees will go home with new ideas and concepts to more effectively sell and serve their best clients.  
 
Please call us if you're looking for a special speaker to address:
  • Understanding the luxury market and how to earn your share of wallet.
  • Successfully marketing to the affluent
  • Service techniques specific to the affluent
  • Effective and ineffective messaging to the wealthy
  • Best practices for service providers and retailers.
  • Effective selling to HNWI
As a corporate speaker, Ramey weaves your conference theme throughout his speech to ensure you reach your goals and your attendees have takeaways they won't soon forget.  He is also available for think tanks, one-on-ones, workshops, etc. to ensure a successful event.      
 
Our business exists to help you grow your business.          
 
For Affluent Insights please connect with Chris Ramey at 561.876.8077 or 
cpr@affluentinsights.com