Recent trends have seen a distinct rise in current demands for personal services. This specifically refers to small firms, entrepreneurs, and individuals who provide particular services that support the day-to-day lives of their affluent customers. These personal services can encompass everything from tutors and dog-walkers to house cleaners, personal cooks and assistants. Not only are these types of services increasingly in demand, but the going rate has increased exponentially, spelling good news for the small business world. For instance, according to a recent Huffington Post article, many NYC nannies bring in up to $180,000 per year, as well as a bonus and allowance for such things as rent and incidentals. Furthermore, many experts predict that if the economic recovery strengthens, the price of this type of personal service is only going to go up.
According to the analysts at Small Business Labs, there are 4 trends at work driving this demand for high-end personal services. First, there are simply a growing number of affluent consumers out there, with the number of U.S. millionaires increasing in 2011 for the third year in a row to 8.6 million. Second, most of these millionaires and affluent consumers work long hours, resulting in a lack of time that leads to the immediate need to outsource personal tasks, such as child rearing and household chores.
A third influencing factor is the growing complexity of life. These days, nothing is simple, which raises the need to bring in professionals who specialize in particular tasks. Finally (and this applies primarily to parents), there is a distinct growing fear within affluent communities of allowing one’s children to “fall behind.” This, coupled with growing pressures on children in everything from sports to music to academics, has sparked a need to bring in tutors, coaches, and other professionals to give the children of affluent consumers that extra leg-up and competitive edge they need to be successful.
Berman, Jillian. “NYC Nannies Fetching Six-Figure Salaries, Plus Bonus and Allowance.” Huffington Post. 3/21/12. (3/27/12.) http://www.huffingtonpost.com/2012/03/21/new-york-nannies-salaries_n_1370124.html.
King, Steve, and Ockels, Carolyn. “The Rise of High-End Personal Services.” Emergent Research/Small Business Labs. 3/27/12. (3/27/12.) http://www.smallbizlabs.com/2012/03/the-rise-of-high-end-personal-services.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+SmallBizLabs+%28Small+Biz+Labs%29.