One common misconception these newbies have, among many, is that the typical payday loan customer is “down and out;” that they’re the “dregs of society.” These entrepreneurs usually begin the conversation by describing a “great location” they’ve already “locked-up” in what can best be described as a “skid row area.”
Man, they don’t get it!
Payday loan customers have jobs. Payday loan customers have bank accounts. Payday loan customers have the ability to pay back their loan!
Our payday loan customer is the Walmart customer; the blue-collar, white-collar employee making $18,000 to $48,000 a year!
And MOST IMPORTANTLY what we all need to understand is that this segment is GROWING!
There is a world-wide shift occurring in the advanced economies! The total number of employees in the service sector and other lower paying jobs is expanding. Higher skilled, higher paying jobs are going off-shore to developing countries where wages are lower.
This shift is so pronounced there is even a name for this market segment; it’s ALICE (Asset Limited Income Constrained Employed).
These are our people! Embrace them!!
As Jeff Weiss with Dollar Financial pointed out in a conference call, “The average wage rate for ALICE is shrinking against the rising tide of higher costs for food, gasoline, health care and other basic necessities.”
“In such an economy, where the margin between personal income and the cost of living is continually narrowing, our products and services can provide a real benefit for consumers and small business owners who may be confronted from time-to-time by an unexpected auto repair bill, a medical bill, or the need to replace broken or obsolete equiptment in order to keep their small businesses operating. The number of ALICE people are increasing around the globe…”
So… bottom line, more and more consumers around the world need our products and services! Banks, credit card companies and economic conditions are literally pushing ALICE right into our arms!
The future REALLY is ours!