How Can High End Industries Survive in a Bad Economy
When the economy turns south, we all feel it. Especially if our business offers a luxury service or luxury product to middle America. When times are tough, middle America tightens the noose on their budgets and a required to do away with many luxuries to focus on the necessities. Other businesses that target lower budget or discount budgets will obviously thrive. For example; a steak house may have a bit of a hit, while a corner cheap burger joint may flourish. Purchases at the department stores may slack, while business at Ross and the dollar store is booming.
An area that is surprising to most is that of services offered to the ultra rich. This class has so much money, and make money regardless of the state of the economy, that services offered to them can do well in spite of the economy. Examples of these would include Rolex repair, or Lamborghini repair. While hot vacation spots may see a decrease in visitors, the highest class resorts will see no change at all.
You may wonder why this is. Well, the ultra rich do not have jobs to lose. If you are the owner, the investor, the orchestrator, unemployment rates do not affect your paycheck as directly. Business owners understand cycling economies and know how to make money in down markets. Big time investors certainly understand fluctuating markets and have taken emotion out of the equation. They also know how to invest in down markets. That’s how.