The pyramid of wealth is composed as follows (think of this data as a pyramid that widens as it goes down):
- UHNWI (the super rich): in Italy there are 35;
- HNWI (the rich): in Italy there are about 230,000;
- High income: households with annual earnings above €200,000;
- Middle class: households with earnings of €80,000 a year;
- Low income: families up to € 25,000 a year;
- Poor: households under € 25,000 a year;
- Destitute: below the threshold of survival.
Now, I’ll tell you again: despite being poor and destitute, a significant slice of the population—that is, about 17 million compared to 60 million inhabitants—is not “ALL OF ITALY”.
Setting the prices for your business while thinking about the income ranges of numbers 5, 6 and 7 is MADNESS.
These people either don’t buy, or if they do buy from you, they only do it if you sell below cost (like most incompetent restaurateurs with figures do—which is why they drop like flies and only survive for a bit thanks to the illusion given to them by undeclared business).
No Italian SME can survive by targeting the broad, but poor end of the population. I repeat, no SMEs.
On one hand, you have competition from giants, the internet, Amazon, Eurospin, discount stores, IKEA, etc.
On the other, at an even smaller level, you have competition from the Chinese, Indian, Pakistani and Egyptian, that you can’t beat in the price battle for reasons that need not be repeated.
The only chance you have of survival is to redesign your products and services, not to sell commodities, not to sell the products of others that can be bought for less online or in discount stores and to target the income groups numbered 1 to 4. That’s it.
If your company isn’t able to attract that customer segment, it means that you are already dead or that you will die soon.
Setting prices while thinking of the “poor” will make your company poor and destitute, unable to grow and invest.
You can’t do business in Italy while thinking of low-spenders and adapting your prices to suit those low-spenders.
Giants already do it, the internet does it, as do competitors who can afford to bear those prices.
A small Italian company cannot do it.
It doesn’t have the volume, it doesn’t have the margins, it doesn’t have the purchasing power.
Do you want to end up like pizza chefs who fail because they sell margherita pizzas for €4.50 when they don’t realize that it costs them €5 to get them out of the oven?
Come on, it’s easy:
Sell to the rich = rich entrepreneur
Sell to the poor = bankrupt or poor entrepreneur
How do you completely change the skin of your company and leave the market of poverty that would condemn you to drowning and certain failure?
There is a tested, proven, guaranteed formula that can lead you by the hand in realizing your entrepreneurial dreams.
Check it out by clicking on the button BELOW!
Rock ‘n’ Roll!!!