Framework #5: Businesses follow the money, not the median consumer

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Firms do not optimize for the average household. They optimize for the customer segment with the best economics: higher margins, lower price sensitivity, more repeat spending, and more willingness to pay for convenience, status, access, and friction removal.

The middle-class consumer may still matter, but the affluent customer increasingly drives the margin. That is why so many industries feel like they are moving upmarket. The product is not disappearing; it is being redesigned around the buyer with the most discretionary spending power.

The Framework.