The Impact of Inflation on Business and Target Demographics

Inflation is a term that is thrown around a lot these days, and for good reason. It has had a significant impact on various aspects of our lives, including the economy and the way we conduct business. In a recent episode of the Kid Contractor podcast, Caleb Auman discussed how inflation is affecting their business and the demographics they cater to.

Caleb first pointed out that business owners should not assume that they are too expensive for their target market right away. Instead, they should consider whether they are catering to the right demographic. For example, if a business owner is targeting the blue-collar, suburban purchasing class, they may be facing significant challenges due to the impact of inflation on their disposable income.

Auman notes that this demographic is getting "crushed" by inflation, with their disposable income being severely impacted. As a result, they may not be able to afford the same level of discretionary spending that they once did. This means that businesses catering to this demographic may need to reconsider their pricing strategies and find ways to appeal to this audience in more affordable ways.

One way to do this is by targeting demographics that are not as impacted by inflation. For example, Caleb suggests that business owners focus on white-collar job owners in nicer neighborhoods who still feel the effects of inflation but not to the same extent as the blue-collar, suburban purchasing class. This could include targeting more affluent areas with higher-priced services or products.

Caleb also mentions that some business owners may be feeling the impact of inflation, with fewer people calling to book their services. However, the host points out that they are still fully booked, suggesting that despite the challenges of inflation, there is still a demand for their services.

In conclusion, inflation is a significant challenge that businesses face in today's economy. As a result, business owners must carefully consider their target demographics and adjust their pricing strategies accordingly. By targeting demographics less impacted by inflation and finding ways to appeal to audiences in more affordable ways, businesses can weather the storm of inflation and continue to thrive.