Something we all might have to concede is that.... there's a fracturing of the hobby based on wealth.
Originally Posted by Anthonylewis50
There’s something for everyone at every price point, but not everyone is affected by the economy in the same way.
At the top, you have UHNWI’s who can easily spend 5-6 figures without thinking twice. For them, the current economic situation doesn’t really matter. They’re still flying private/FC and booking luxury experiences. But these clients aren’t browsing sites like Tryst, LC, or OH2.
Next, you have hobbyists earning in the low to mid six figures. This group is starting to feel the squeeze from rising real-world costs. As a result, they’re cutting back on their hobby budget, but still spending a fair amount.
Then there’s everyone else. A few years ago, someone in this group could afford to spend around $2-300 a month on the hobby. But that’s no longer as possible as it used to be. A car payment might have jumped by $200. Grocery bills have gone up by hundreds. For many, there’s simply no room left in the budget for the hobby.
Providers who target the top 1% are doing just fine. Those who focus on the middle-income crowd can still survive, but they’ll likely need to adjust their strategy. The ones struggling the most are those who served the lower end of the market. Many are raising prices in an attempt to make up for lost income, or offering specials to attract more clients. But in most cases it’s not enough.