Income Distribution Affects Sales Mix

The distribution of household income in the U.S. is slowly tilting toward the top end of the scale. Different trends for wage and self-employment income illustrate this trend. This income change is in addition to the usual tilt toward the wealthy, which always occurs at this stage of a business expansion.

Printers will be affected by accompanying changes in the mix of products and services by price point, and consumer income and spending by geography. Printing customers with downscale products will not recover as much or as quickly as those in upscale businesses. Full-service restaurants are boosting sales faster than limited service restaurants, luxury hotels are increasing sales faster than economy hotels, and upscale retailers are enjoying brisker sales than discounters.

Yes, the rich are getting richer, and there are complaints that any new jobs being added don't pay as well as those lost in 2001. This is caused mostly by the falling of trade barriers, cheaper international transportation, and far cheaper international telecommunications that has forced low-skilled U.S. workers to compete with lower-paid foreign workers.