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Boomers trace their own pattern
Spending, career paths and retirement outlook can take some surprising turns
Deborah Alexander, Staff writer
At the end of 2006, the senior members of the baby boomer generation finished turning 60.
Born between 1946 and 1964, this consumer group of 78 million spends an estimated $2 trillion annually.
For years, the 18-to-49 age group of consumers -- which includes the youngest boomers -- has been pursued by advertisers and businesses. As boomers hit 50, they "aged out" and were no longer considered a desirable demographic.
But that's a mistake, said Matt Thornhill, president of the Boomer Project, a market research and consulting firm in Richmond, Va. Baby boomers are a large and viable consumer market that cannot be ignored, he said.
Thornhill said there has been a long held myth that once consumers establish brand preferences they don't change.
"That may have been a generation ago, but that's not the case today," said Thornhill, who is 47. "If that were true, I would still be wearing Thom McAnn shoes and driving a Plymouth."
Dale Heffer of Irondequoit agrees with that assessment.
When the 59-year-old women's fitness center owner shops, she looks at the value of the product and whether it meets her needs.
"I look beyond the presentation," Heffer said. "I look to see what the products can do for me."
The auto industry appears to understand this as well when producing and marketing new vehicles.
Several new cars have appeal across generations, said Randy Henderson, president of Henderson Automotive Family.
The updated version of the Ford Mustang is one of them. The iconic 1960s muscle car is a big seller among baby boomers, Henderson said.
Henderson, a boomer who grew up in the 1950s and 1960s, estimates that 60 percent to 70 percent of the market for today's Mustang are baby boomers. Nostalgia appears to be driving sales.
"The new model has a retro look and feel that caters directly to baby boomers," he said.
Those boomers who have purchased the Mustang tell him that the vehicle "takes me back to the original (car) and to the days I was doing this and that."
Men are the primary buyers of the updated sports car, though some women have also purchased the vehicle, Henderson said.
The car sells well -- especially in red, which is "always hot," Henderson said, as well as blue and white.
Those boomers buying Mustangs and other vehicles will also need car insurance.
Dale K. Trott, president of DG&M Agency, an insurance company in Rochester, estimates that half of his business -- which includes auto, home, life and disability insurance -- is with baby boomers.
Trott, 48, said boomers are "well established and a good segment of the consumer market which is definitely attractive to the insurance industry. They are homeowners. They have stability in the job market. They have a good credit history."
He noted that the last 10 to 15 years of downsizing at Eastman Kodak, Xerox and Bausch Lomb have led the boomer generation to create mid- to small size companies and other entrepreneurial opportunities.
Thornhill, the market researcher, said it's better for businesses to market by lifestyle or income, rather than by age. The businesses recognizing that will have success in attracting and keeping boomers as customers.
It's hard to predict what baby boomers will do. "They can head off into the sunset for retirement or start new careers."
Heffer, the women's fitness center owner, is an example of this. Instead of planning her retirement, Heffer, who turns 60 in March, opened Way To Be Fit in Irondequoit last year.
"I'll never retire," she said.
She opened the center after losing weight to improve her mobility and boost her energy. Her customers range in age from 20 to 87. The majority are baby boomers.
Heffer said for women in their 40s, 50s and 60s it's about feeling better. "There is more interest in going about life without aches and pains."
Another boomer who doesn't foresee a traditional retirement in his future is Ed Navarro the president of EIC Electronics in Rochester.
At 57, Navarro said he "hopes to make a graceful exit in eight years. I don't see myself retired and playing golf in Florida."
He added that there is nothing wrong with that scenario, noting that several of his retired friends are doing that.
His plans could include some involvement in his company after retirement, volunteer work and travel with his wife, Beth.
The succession plan at EIC Electronics which he owns with his wife calls for their daughter, Nicole, 30, to take over when he retires.
The traditional retirement at age 65 is just one of many options.
Thornhill said age is not a helpful indicator to use when looking at how people are going to behave. Advertisers and businesses must consider factors beyond age to tap into this powerful consumer group.
Boomers don't want to be reminded about age or considered like their parents.
"I don't want to wear the shoes my mother wore" is a comment frequently expressed by customers of the Foot Performance Center in Henrietta, said operations manager Chris Costantini.
The store fills prescriptions from medical doctors, podiatrists, chiropractors and orthopedic surgeons for patients who have general foot pain, diabetes, arthritis and athletic injuries.
Baby boomers make up 70 percent of the store's customers. Women are 60 percent of the boomers while men are the other 40 percent.
"Boomers have been the primary workers on their feet for 30 years as teachers, nurses, mechanics on hard floors with no cushioning," Costantini said. "The wear and tear has started to show on their feet and legs."
Costantini said boomers generally want shoes that are stylish and don't hurt.
In today's society, a 50-year-old can be a parent of a college graduate or the parent of a 5-year-old entering kindergarten.
Thornhill said past generations led linear lives. Some went to college. Some did not.
They were married for 40 years. They worked the same job for 40 years. They retired.
Baby boomers are living cyclical lives. They also graduated from college. Or took a few years off from school. They might marry and divorce several times, start several families, switch careers and return to school.
Heffer, owner of the women's fitness center, reflects the generation's lifestyle and consumer characteristics.
In 1968, she started out as a computer programmer. She has worked in a women's clinic and as a receptionist/interpreter for a deaf counseling agency.
Heffer and her husband, David, have made pottery and owned an electrical contracting business. They have a 23-year-old son and a 20-year-old daughter. After her husband returned to school to become a chiropractor, Heffer ran his office 10 years before opening her fitness center.
When Heffer turned 55, her daughter gave her a birthday card that said, "Now that you're 55 you can get the senior discount at Denny's!"
"I would like the discount," she said. "But I didn't buy into the idea that 55 was considered old. The saying you're as old as you feel has changed a lot."
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