Trading Up vs.Trading Down!
I have read enough to believe that most of us, in the past, have always had aspirations of purchasing better made product, be it a whirlpool, or front door, as better constructed materials will not only last longer, but be more pleasing to the eye. Has this trend headed south? My own philosophy tells me that certain generations that have enjoyed strong economic times have done their thing, and are now sitting back and thinking that they have what they need, and no longer need to buy top of the line materials for their homes. Let’s face it, they have already done it all and their desire has shifted towards other issues in their lives. Sure, certain aspects of the Hardware Designs business has shifted, where top of the line faucetry and door hardware has seen lower sales volume. With that said, other portions of our business have seen remarkable increases! Categories such as kitchen faucetry, cabinetware, and more basic faucetry have lead the way towards keeping our business healthy, even though dollar volume has decreased. The thought comes to mind that what of the next generation’s aspirations? I believe that the emerging college grads, and those who have not yet shared in some of life’s finer things will want their piece off the pie. Recessions run their course, and this current malaise will as well. People will once again slowly return to upgrading, but the pricing of these upgrades will be ultra competitive and the savvy customer will benefit from all the competition from numerous retail outlets as well as internet commerce sites. A lot of adults that are 50 and over, have done their thing, but those consumers out there that have not will want to share in some of the finer things life has to offer. Patience will be a virtue, but times will change, be assured of that. The upshot of this conversation is that upgrading is cetainly not dead but tamed, at least for now. Some of the best product is worth waiting for!