Stat of the Day: One in Three Households Can't Afford Your Product
The 2011 Discretionary Spend Report from Experian Simmons finds 34.5% of households have less than $7,000 to spend on non-essential goods. Just over half have less than $10,000 to spend on entertainment, education, personal care, clothing, furniture and more. We've already looked at what rising gas prices will do geographically to cut into discretionary spending but it's certainly important to note just how many houses have so little money for a rainy day or otherwise.
Only 5.8% of household spend $30,000 or more on discretionary goods and services, which accounts for 20% (more than $300 billion) of all discretionary spending in the U.S.
A couple of other interesting findings:
- The lowest spenders are 50% more likely than average to want to use the same products their favorite celebrities use and are far more interested in receiving ads on their mobile device than the average consumer.
- The highest spenders read newspapers and think advertising is a waste of their time, but want to buy what their neighbors will approve of .
- The highest spenders like to drive fast, and are the least likely to think a woman's place is in the home.
There's a lot of great data in the full report.
But if you want to reach the biggest spenders, you need to read this Ad Age White Paper on the Affluent market.