Business Beat: Grandparents Mean Business and Bucks

It's an old number but the most accurate number of grandparents accounted for in the United States is 56 million, according to a 2001 panel of the Survey of Income and Program Participation (SIPP). A survey by AARP estimated that number would grow to 80 million by 2010. That's a good number for someone wanting to start a business with a built-in clientele. With 56+ million grandparents some savvy entrepreneurs have tapped into that market. Are you next?

If selling to grandparents appeals to you, or if you sell children's items and want to set up a marketing campaign for a different market, take a look at what's out there. Get some ideas from what exists, but better, figure out what is missing, then fill the need. Here are some examples of what exists and what you might do.

The Internet is full of businesses marketing to grandparents. The site www.grandparents.com is a great example. Jerry Shereshewsky, chief executive. In a study they conducted, those at Grandparents.com found that grandparents spend $400 million a year on diapers for their visiting grandchildren. That's a large number to overlook, and a huge business opportunity lost. Grandparents.com goes beyond the gift giving grandparents to include appropriate video content, tips on kid-friendly places and even relationship advice.

The site www.SmarterKids.com targets the growing grandparenting population. This was an existing business that recognized the importance of this market. SmartKids is noted as the leading online education store and resource for parents...and through savvy marketing strategy decided to pick up its share of the grandparenting market.

Part of its SmartKids marketing plan involves offering gift giving advice for grandparents. They set up a Grade Expectations! Guide which offers gift suggestions. Grandparents enter the grandchild's age and the amount they want to spend, and they'll receive recommendations based on the facts.

Everyone knows the grandparent's job is to spoil the grandchild. Arvey Krise built a business out of pampering grandkids. Like many who started catering to grandparents, Krise's business came after she became a grandmother. She wanted to share her joy of pampering the wee ones. Her business www.spoiledgrandkids.com is pretty much what it sounds like. She has an online store that offers special gifts and clothing aimed at "stylish" grandchild.

Krise also represented a common breed of grandparent, the absentee grandparent who must love from afar. She always felt that the presents she mailed missed the mark, so she started doing research. In 2008, she launched a SpoiledGrandKids.com with the aim of "making grandparents cool".

As hers is an online business, she has stated that the key is finding the right Web developer. That is, find a person who knows how to build an SEO rich site that will lead customers to your products. You may take care in handpicking products, but unless someone is drawn to your site via a search engine, it's all for naught. Ultimately she said, "the world is your audience in e-commerce." Krise is a firm believer in ignoring the fear of failure and remaining flexible

Brian Gordon and his partners knew that people in the grandparenting demographic tend to have disposable income to spend so that was a driving force in starting his business ebeanstalk.com, which sells children's learning toys online.

Originally Gordon thought his business would come from younger people, but what he soon learned was that age group, people with kids, didn't have the money to spend on the extras for children. He turned his sights on the older market, the grandparents. It meant an extra revenue stream for his business.

I worked in the pre-senior and senior market in newspapers for more about 15 years, and for many years business owners have made a critical error in regard to that demographic. Business owners get the image of older folks, subsisting on cat food dinners, with no money to spend. When I served as editor in chief of Maryland Lifestyles, aimed at the 50+ age market, we were initially inundated with ads from wig makers, funeral homes men's hair transplants and the like. We were shut out initially by the likes of auto dealers, makers of consumer goods and the like. By the time we ceased publication, we'd turned that image around, attracting lots of ads from mainstream advertisers. But savvy entrepreneurs are catching on.

Do not underestimate this demographic, which actually follows 3 distinct demographics: the 50+ market (not seniors), seniors and olders seniors. These are the people who have lived frugally and saved their money. When it comes to their grandchildren, all bets are off. The smart business owner will take advantage of that. Also remember that since Americans are living longer, you have great grandparents who will take advantage of your service as well.

It's not just consumer goods that will sell to grandparents. Back in 2003, Disney, a marketing giant, recognized the impact of the grandparenting market early and started catering to them with getaway weekends for grandparents who wanted to take grandchildren on vacation. The ads read: ``A Getaway for Grandparents: There is nothing more precious than the time spent between grandparents and their grandkids. Here is your chance to delight in these special moments."

Whatever your business, see if that market fits in. If you sell scrapbook or craft supplies, for example, a good marketing campaign could aim at grandparents wanting to preserve grandma or grandpa and me memories.

I have a friend whose grandchildren live in another state. Each year when they would visit, Celeste would have the kids put together a scrapbook of their time with her to keep throughout the year. It was great for her and them.

Christine Crosby and her husband, Jonathan Micocci, launched GRAND Magazine, a bi-monthly publication targeted at well-to-do Baby Boomers with grandkids. It may surprise people to learn that then new grandpa Billy Crystal appeared on the cover. Such is the face of the grandparenting market which is why so many businesses have missed out. They equate grandparents with old and feeble. It's a critical business mistake.

While the information is older, 1991, the fact is spot on: according to an article in American Demographics, "Grandparents' generosity to their grandchildren is another reason why they are a hot commodity."

Likewise, according to a 2002 AARP study, grandparents buy gifts to the tune of 30 billion annually. Shouldn't your business be getting a piece of that action?

If you are looking to start a business, particularly if you're a grandparent yourself, consider launching a business aimed at grandparents, you'll have a built-in market, as well people who have the money to spend and the will to spoil. As Jerry Shereshewsky of Grandparents.com so eloquently put it: "Someone once told me, 'You can't go broke chasing the boom.'"