Well - yes and no. There’s still the regular, “low cost” version. But there’s also the new Tampon “Radiant” which costs 59 percent more per unit and comes in “designer packaging and wrappers.” Same product inside but a new look on the outside. As I said, “yes and no.”
Then there’s the new Bounty “Dura Towel” with thicker plastic packaging and embossed print resembling a dish cloth. Procter & Gamble says it’s “3X cleaner than a germy dish cloth - fresh and clean.” It’s also a nickel-a-square-foot more expensive - nearly double the cost of regular Bounty towels still made for the poor folk. Same paper. New design is all.
P&G has a new Cascade “Platinum” dishwasher soap on the market called “the ultimate clean for dishes” that “keeps the dishwasher sparkling.” Costs 12 percent more than the regular stuff. There are the new Tide Pods for “a great new way to wash clothes” for the rich and a new, lower-priced version of Tide called “Simply Clean” coming for the rest of us. Same basic stuff.
Yes, Virginia. There’s a point here. And it’s this. Major companies have been watching the spending patterns for the upper and middle classes. And those patterns are heading in starkly different directions. The U.S. Census Bureau figures our national “real median household income” in 2012 was $51,017. That figure is - wait for it - 8.3 percent lower than 2007 and 9.0 percent under the income peak in 1999.
Boiling down all the numbers, the middle class has less buying power - is buying less - and is buying cheaper. But the “upper class” is willing to pay more for what’s being hawked by manufacturers as “superior quality” or “top-of-the-line.” You know. Some guy buys a Lexus while the rest of us buy Toyotas. A lot of the same engineering but better packaging. (more…)