We are living in a rapidly ageing population across the globe, with the expected number of people aged 60 and over to more than double by 2020. This population is growing at a much higher rate to younger age groups, which comes down to several factors. Improved healthcare means people are living longer, and the increasing costs of having large families, as well as restrictions on the amount of children families can have in certain countries, has meant that the number of young people has decreased in recent decades. So, should businesses be cashing in on the so-called ‘Grey Dollar’?
According to recent research, the older generation controls 80% of the wealth as they have built up a larger bank balance and have the lowest amounts of debt. So, businesses that want to ensure sales growth should be tapping in to the older generations spending power. Here are some ways to make sure you take advantage of the Grey Dollar.
Accessibility is Key
To take advantage of the grey Dollar, business owners must ensure that their premises are fully accessible to all. The world has adapted to ensure that those with mobility issues can live independent lives, from wheelchair accessible vehicles to public transport assistance, and business owners need to ensure they keep up. Installing ramps and railings and a wheelchair/scooter friendly layout will ensure those customers can access your store with ease. You can make these adjustments at relatively low cost and will see an increase in the number of customers in your store, in turn increasing your turnover.
Appeal To The Target Market
As much as business owners are tempted to slash prices to please millennials with little cash in the bank, it is important to consider the older generation who generally have a bit more cash to splash. Usually, the over 60’s would rather invest in good quality products or services than botch-job bargains, so make sure your business is appealing to this target market. Stock a wide range of good quality items rather than niche or bargain products that narrow your sales opportunity. Going for quality will also ensure customer satisfaction is high – less complaints and happy customers leads to a booming bank balance.
So, to maximise your potential profit, make sure you take advantage of the spending power of the older generation. They hold the largest disposable income across the entire population, so it will hugely benefit your business to tap into the demographic.