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The American Middle Class is a Lie – Cardone Zone

In this Show

In this episode, Grant Cardone talks about how there is no money in the middle. He sites an article “The Middle Class is Steadily Eroding” which includes a Price Waterhouse Coopers study and examples of retail stores who are failing because they target middle and lower income customers as opposed to the higher end retailers who offer exceptional service to a higher end clientele with money to spend. Grant equates the mythology of the middle class to that of Hercules and urges people to watch what the wealthier people do and mimic it. According to Grant people must think about where the money is and follow it. There is a reason $3500 washer and dryers are selling yet $500 ones remain in the stores. People with money have money to spend. Grant offers these key tips:

1. You need profit margins.
2. Do not strive to be the cheapest and lowest.
3. Provide great service to a high-end clientele.

Grant takes callers and discusses how middle class values keep people stuck. He mentions how stores like JC Penney’s and Sears are struggling yet Nordstrom is doing great. The high end is thriving and they are the ones spending. Grant explains over 65% of Americans are living paycheck to paycheck.