People don’t always buy stuff because they need it; sometimes, they buy it because it makes them feel good. It can be something as grand as the Porsche 918 Spyder or as simple as gourmet coffee beans. The item in question is often expensive, but even when it isn’t, it’s still definitely not cheap.
This is the vanity industry, a niche thriving on the fact that people want to present themselves in the best way possible. Although it has always been part of human nature to strive to be admired and respected, the popularity of sharing lives on social media sites magnifies this need. Celebrities and other rich people are at the forefront, posting photos of them shopping for designer brands, traveling in private planes, and getting pampered. On Instagram, clicking on #rkoi (short for ‘Rich Kids of Instagram’) yields photos displaying luxury. It’s no wonder why the vanity industry is currently valued at $3.87 trillion and is set to balloon to $4.67 trillion in 2018.
Simply put, people with extra money to burn want something to show for it. The bigger one’s disposable income is, the more they are willing to spend. Otherwise, items like diamond-encrusted dog collars, gemstone-embellished iPhone cases, and gold-flaked ice cream sundaes would not have their buyers. For the affluent, these things are aspirational purchases, bought not because they’re needed, but because of the status they represent.
Only a few people can afford them but those who do generate huge sales. It’s not surprising why the vanity industry is growing fast when many entrepreneurs see the potential to earn significant profit. It’s a lucrative venture where you’ll find good returns as long as you tap into the right market.
Due to the luxury quality of the products, transactions in this business involve high amounts of money, even single-item transactions. One purchase from the less expensive end of the spectrum can still ring up hundreds of dollars, examples of which are:
- Falke wool socks for $780– limited-edition socks made from the rare vicuna wool, considered to be one of the warmest fibers in the world
- Versace barocco pet bowl for $754 — a drinking bowl for your pet made from porcelain and adorned with 22-carat gold leaf edging
- Louis Vuitton totem bag charm for $660 — a metallic gold tassel featuring the iconic V signature
- Digestible gold pills for $425 — 24-carat gold leaf capsules meant to be digested to make stool look golden
Other purchases can reach thousands of dollars depending on the items you sell. Thus, expect to be turned down by some payment processors when you send in your applications. High dollar amount merchants are considered high risk according to rules set by Visa and Mastercard, and not all processors are equipped to handle such risks.
But don’t let this discourage you. Though it’s true that your options will be limited by the restriction of the high-risk label, we at Painless Processing are here to help. We are a merchant service provider staffed with high risk payment processing experts, so we know what you need and how to deal with it for the long-term. Whether you want to accept payments through checks, ACH processing, online processing, credit card swipes, or mail order/fax/phone, rest assured that we can accommodate you. Our extensive experience in this business is your guarantee. Contact us now with your inquiries or apply for a merchant account today.