Millennials (age 18 to 34) have not only surpassed Baby Boomers as the largest generation in the U.S., they have developed spending habits making them richer than their parents (Gen Xers age 35 to 54) and grandparents (Boomers age 55 to 72). How you ask? We have the #deets (Millennial slang word for details).
1. Quality Matters to Millennials
82% of Millennials said the quality of the product they were buying was most important compared to 63% that said price is most important. Millennials may not be running out and buying china like their grandparents but thanks to mid-century modern, farmhouse, and antique furnishing making a huge comeback, they are buying higher quality furniture.
68% of Millennials are shopping in consignment stores and thrift stores for major purchases like furniture instead of major retailers because they realize the quality is much better and so are the prices. 62% of Gen Xers and only 49% of Baby Boomers say they value quality when making a purchase. This combination of a mid-century modern Hopsack sofa, solid oak farmhouse end table, antique chair and serving tray, paired with a modern bench ottoman and rug would look amazing in any style home. Everything pictured here can be found at The Estate Center.
2. Millennials Are More Likely to Make Big Purchases
You might be asking if Millennials are spending more than their parents are right now how is that making them richer? 81% percent of millennials said they made a single purchase of $500 or more in the past year compared to only 61% percent of Baby Boomers.
The answer is simply they are shopping smarter. A Millennial will spend $500 dollars in a consignment store and walk out with an entire living room collection that will last for over 20 years. Baby Boomer will walk in a big box store and spend three times that amount on a sofa that may last five years if they're lucky. This sofa and marble coffee table sold for $495.00 dollars at The Estate Center. What a bargain!
3. Millennials Aren't Shopping Online
This may be shocking, but only 41% of Millennials are shopping online for a majority of their purchases. The reason is because in-store shopping is more of a social activity for Millennials. So, how is this saving them money? It reduces the tendency towards impulsive and excessive buying by 32%.
Thanks to companies like Amazon where you can purchase whatever you want at the click of a button, Gen Xers and Baby Boomers choose convenience over quality almost every time and their pocketbooks are suffering because of it.
4. Millennials Are More Creative
Do It Yourself (DIY) blogs and videos are readily available for everything under the sun from rehabbing furniture to wiring your own house (please hire a professional!) and Millennials are taking advantage of the free tutorials. Instead of running out and buying brand new furniture, Millennials are purchasing quality pieces from consignment stores and putting their personal touch on the pieces and some are repurposing altogether. Like this armoire that was purchased for $150 dollars at The Estate Center and turned into a chic, farmhouse style coffee bar. Now that's creative! In Millennial terms, #Icanteven (too amazing to describe).
5. Millennials Invest in Precious Metals
Millennials love all that glitters especially when it comes to their jewelry. This is evident in the diamond size increase of most engagement rings purchased today. The average size diamond in the 1970's was .5 carats. Today the average size diamond in an engagement ring is one carat.
Precious metals are rare and carry a high economic value due to their scarcity, use in industrial processes, and role throughout history as a store of value. The most popular precious metals with investors are gold, platinum, and silver.
Millennials are investing in these precious metals by purchasing gold and silver coins as well as gold, platinum and silver jewelry at a rate of 11% higher than their grandparents (Baby Boomers). Investors say Millennials are finally catching on to the inherent value of expanding their portfolios to include precious metals as a hedge against inflation. The Estate Center has a great selection of coins and jewelry at the lowest prices around thanks to the owner, Dr. David Schaub, who is a certified appraiser with over 50 years of experience.
6. Millennials Are Smarter Shoppers
Retailers have become more and more cunning with their sales tactics and Millennials aren't buying it due to the marketing and branding education offered today. Millennials are aware that big box retailers mark up their prices before advertising a sale and use gimmicks like shipping minimums (designed solely to make you spend more money), bulk doesn't always equate to more bang for your buck (checking unit prices is crucial), and the classic buy-one-get-one (BOGO) sale is designed solely to trick you into spending more money (shopping around and knowing the actual original price of the item is key).
How do Millennials shop and score actual sales prices? They shop at transparent retailers like consignment stores whose drop down prices are listed on the tag. For instance, these gorgeous La Z Boy sofas in pristine condition are $749 dollars each at The Estate Center. However, La Z Boy is currently offering a "sale" and the exact same sofa on sale in their store will cost you $1,529 dollars with an original price listed as $2,039 dollars. Now do you see why Millennials are shopping at consignment stores? They are getting the exact same merchandise as the Gen Xers and Baby Boomers at a whopping $780 dollars cheaper! In Millennial terms, these deals are #lit (excellent or exciting).
7. Millennials Don't Get Store Credit Cards
Most Millennials have learned the hard way that sales associates push store credit cards because they receive incentives for each customer they sign up, but more importantly they know why. Retail credit cards generally offer a one-time discount of 10 to 20 percent because retailers know that shoppers are 58% more likely to buy more in that single transaction to maximize that one-time savings and will continually spend more every time they swipe their store card. They also know that their store cards come with blatantly offensive APRs (Annual Percentage Rates) and retroactive interest fees equating to one late payment, making that initial discount obsolete.
8. Millennials Avoid Stores that Use Psychology
Millennials are in the know when it comes to retailers purposely causing them distress due to strategic store layouts based on human psychology. What do we mean? It is no accident that candy, toys, and gadgets are on the endcaps and in checkout lines which is why a shocking 72% of Millennials say they avoid those stores at all costs when shopping with their children.
Studies have proven that most consumers turn right when they walk into a store due to the fact that the majority of the population is right handed. Retailers purposely put their most expensive merchandise on the right side of the store. They also use lighting and music to coerce you into spending money. They use self checkout lines to put people out of jobs all the while offering you less customer service and charging higher prices for merchandise. Retailers with spinning bag fill racks are designed to keep you loading your own goods instead of paying attention to the prices of the goods because they know consumers are 41% less likely to dispute the price of an item if it isn't caught at the register.
Maddening isn't it? However, not all chivalry is lost when it comes to retailers. The Estate Center purposely has their more affordable merchandise on the right side of the store, they will never play psychological games with candies and toys at the checkout line, and a smiling team member will always be willing to give you as much face-to-face time as you need. No wonder Millennials love us! 😊 #theestatecenter
Come to The Estate Center and save!
1517 W. Thomas St.
Hammond, La 70403
By: Stacie Triche