There is a huge difference between a debt free consumer and a consumer in debt.
Debt Free Consumer
A debt free consumer is a person that makes purchases with money they have to spend. They know that the purchase is a part of their budget and so they feel good about their purchase. From a marketing perspective, it’s hard to get these people to buy their product.
Why?
These consumers do not want to spend their money unless they truly have to. They buy whatever is necessary. These folks like a bargain and so they are smart shoppers and they have learned the most important law of consumerism, know when to walk away from a purchase. People who have learned to walk from from buying something feel empowered as a consumer and if they really wanted the product or service, they will come back a few days later and make the purchase.
Consumers in Debt
A consumer who is in debt and is not choosing to live debt free shops differently. These consumers are easy to market to because they make purchases based on emotions. It’s true, when they see a product regardless of price, they invision themselves enjoying the product, then they look at the price.
Not only do consumers who are in debt disregard the price but they do not pay attention to the amount of debt they already have to pay off. So a product that reads $30/month becomes appealing to this consumer. When you see companies advertising their products based on monthly payment, they are targeting consumers who are in debt.
How do I know?
Because i’m a debt free consumer and when I see products that have a monthly price tag, I don’t look twice. If that same product had a full price tag, I would consider purchasing. It’s all in how companies want to market their products.
Consumers in debt tend to take out credit cards at time of purchase to save an extra percentage on their current purchase. This too drives me nuts, especially when my purchase is less than a hundred dollars and they want me to take out a credit card, thanks but no thanks. I’ll pay cash for my purchases, and my gas, you can keep your five cents and i’ll keep my sanity.
