Lessons from the 1%

If I had one penny for each and every time someone blamed the economy for everything from layoffs to the lack of soy milk at my local coffee shop (don't laugh, it's happened), I would not have to make my living begging for your attention. However, there is an entire rarified demographic out there who are reaping some serious financial benefits even during these tough economic times. Yes, these folks would be the ultra-wealthy, and those who market to the ultra-wealthy.

I dug up this YouTube video highlighting a iPod shuffle that is blinged-out beyond belief. Who needs this stuff? More importantly who's buying this stuff? Now, I would shudder to think of the type of person who is able to intelligently justify the need for an mp3 player draped in precious stones, but I know someone out there can and is buying one right now.



Nevertheless, this example of overindulgence points out a good basic marketing lesson when it comes to segmentation, positioning and strategy that we can all use. You too can sell a $99 product for $40k by establishing trust (in this example, Apple has established brand equity), offering value and customization (the diamonds). Nadine Wong of Morgan Stanley's Private Wealth Division states it best in this BusinessWeek podcast "Selling to High Net Worth Clients": it's the little things that make a big splash and count the most. Good rule of thumb.