Thursday, June 8, 2023

34 TMND : DULL-NORMAL” BUSINESSES AND THE AFFLUENT

“DULL-NORMAL” BUSINESSES AND THE AFFLUENT


A recent article in Forbes had an interesting lead:


Dull companies with steady earnings growth may not make for stimulating cocktail party chatter, but over the long term they make the best investments (Fleming Meeks and David S. Fomdiller, “Dare to Be Dull,” Forbes, Nov. 6, 1995, p. 228).


Later in the same article, the authors mention that in the long run high-tech companies can and often do fall down on the performance scale. Typically, it’s the companies in what we call the “dull-normal” industries that consistently perform well for their owners. Forbes lists several top-performing small businesses that have had great endurancefor the past ten years. Some of the industries represented include wallboard manufacturing, building material manufacturing, electronics stores, prefab housing, and automobile parts.


No, these industries don’t sound very exciting. But typically it’s these mundane categories of businesses that produce wealth for their owners. Often dull-normal industries don’t attract a great deal of competition, and demand for their offerings is not usually subject to rapid downturns. We recently developed our own list of businesses that are owned by millionaires (see Appendix 3). We would like to list just a sample at this juncture (see Table 8-3). What businesses do the affluent own? A wide variety of dull-normals.


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RISK—OR FREEDOM?


Why do people operate their own businesses? First, most successful business owners will tell you that they have tremendous freedom. They are their own bosses. Also, they tell us that self-employment is less risky than working for others.


A professor once asked a group of sixty MBA students who were executives of public corporations this question.


What is risk? 

One student replied:

 Being an entrepreneur!


His fellow students agreed. Then the professor answered his own question with a quote from an entrepreneur:


What is risk? Having one source of income. Employees are at risk.... They have a single source of income. What about the entrepreneur who sells janitorial services to your employers? He has hundreds and hundreds of customers ... hundreds and hundreds of sources of income.

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TABLE 8-3, SELECTED BUSINESSES/OCCUPATIONS OF SELF-EMPLOYED MILLIONAIRES 

Advertising Specialty Distributors

Human Resources Consulting Services

Ambulance Service

Apparel Manufacturer-Ready-to-Wear

Auctioneer/Appraiser

Cafeteria Owner

Citrus Fruits Farmer

Coin and Stamp Dealership 

Consulting Geologist 

Cotton Ginning

Diesel Engine Rebuilder/Distributor

Donut Maker Machine Manufacturer

Engineering/Design 

Fund Raiser

Heat Transfer Equipment Manufacturer

Industrial Chemicals-Cleaning/Sanitation Manufacturer

Janitorial Services-Contractor

Job Training/Vocational Tech School Owner

Long-Term Care Facilities 

Meat Processor

Mobile-Home Park Owner 

Newsletter Publisher

Office Temp Recruiting Service 

Pest Control Services

Physicist-Inventor

Public Relations/Lobbyist 

Rice Farmer 

Sand Blasting Contractor


Actually, there is considerable financial risk in being a business owner. But business owners have a set of beliefs that helps them reduce their risk or at least their perceived risk: 

◆ I’m in control of my own destiny. 

◆ Risk is working for a ruthless employer. 

◆ I can solve any problem. 

◆ The only way to become a CEO is to own the company.

◆ There are no limits on the amount of income I can make.

◆ I get stronger and wiser every day by facing risk and adversity.


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To be a business owner also requires that you have the desire to be self-employed. If you hate the thought of being outside the corporate environment, entrepreneurship may not be your calling. The most successful business owners we have interviewed have one characteristic in common: They all enjoy what they do. They all take pride in “going it alone.”


Consider what a multi-millionaire once told us about being self-employed:


There are more people [employees] today working at jobs that they don‘ like. I'll tell you honestly that the successful man is a guy who works at a job, who likes his work, who can’t wait to get up in the morning to get down to the office, and that’s my criteria. And I’ve always been that way. I can’t wait to get up and get down to the office and get my job under way.


For this fellow (a widower without children), it’s not the money. In fact, his estate plan calls for all his wealth to go to the undergraduate scholarship fund at his alma mater.


How did this fellow and others like him select the businesses they wanted to start? He was well trained in college by engineering and science professors, many of whom were also entrepreneurs. These professors were his role models. Most successful business owners had some knowledge or experience with their chosen industry before they ever opened their own businesses. Larry, for example, worked for more than a dozen years selling printing services. He was the top performer for his employer. But after growing tired of the constant fear that his employer would go bankrupt, he considered opening his own printing company. He sought our advice in this regard.


We asked Larry a simple question: “What’s the number-one thing that printing companies need?” He immediately responded, “More business, more revenue, more customers.” Thus, Larry answered his own question. He did start his own business, but not his own printing company. He became a self-employed broker of printing services. He now represents several outstanding printing firms and receives a commission on every sale he makes. His business has little overhead.


Before starting his own business, Larry told us he did not have the courage to be an entrepreneur. He told us that every time he even thought about “going it alone” he encountered fear. Larry believed that the self-employed were fearless, that fear never entered their minds.

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We had to help Larry adjust his thinking. We began by explaining that his definition of courage was wrong. How do we define courage? Courage is behaving in a way that conjures up fear. Yes, Larry, courageous people, entrepreneurs, recognize the fear in what they are doing. But they deal with it. They overcome their fears. That’s why they are successful.


We have spent a considerable amount of time studying courageous people. Certainly Ray Kroc had enormous courage to think he could market food to the world. Remember that he was an ambulance driver on the front lines in World War I. So was Walt Disney. Lee Iacocca had to have enormous courage to tell Congress and the world that Chrysler would come back “big time.” He does not fit the strict definition of an entrepreneur, but in our minds he has entrepreneurial blood in his veins.


Fear abounds in America. But, according to our research, who has less fear and worry? Would you guess it’s the person with the $5-million trust account, or the self-made entrepreneur worth several million dollars? Typically, it’s the entrepreneur, the person who deals with risk every day, who tests his or her courage every day. In this way, he learns to conquer fear.


*


We saved the following case study for last, because in our minds it encapsulates the differences between PAWs and UAWs. Throughout this book, we have stressed that the members of these two groups have distinctly different needs. PAWS need to achieve, to create wealth, to become financially independent, to build something from scratch. UAWs more often need to display a high-status lifestyle. What happens when members of these two groups attempt to occupy the same space at the same time? As the following case study demonstrates, the likely result is conflict.


Mr. W. is a self-made millionaire with a net worth conservatively estimated to be over $30 million. A typical PAW, Mr. W. is the owner of several companies that produce industrial equipment, testing instruments, and specialty gauges. He is also involved in many other entrepreneurial activities, including real estate ventures.


Mr. W. lives in a middle-class neighborhood surrounded by people who have only a small fraction of the wealth he has accumulated. He and hiswife drive full-sized General Motors sedans. His living and consuming habits are quite middle class. He never wears a tie or suit to work.

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Mr. W. enjoys venturing into, as he calls it, luxury real estate:


I make money outside of the [equipment] business ... in real estate.... God continues to make more people, but he doesn’t make any more land.... You will make money if you’re smart and you’re choosy where you pick the spot.


Mr. W. is very picky indeed. He buys property outright or in partnership only when the price is right. He typically purchases property or a part ownership from an owner and/or a developer who is in great need of financial assistance.


Recently he uncovered yet another “superior investment opportunity in sun country”:


Some poor guy was putting together a _ luxury high-rise condominium.... For a builder to build, he had to have 50 percent of the units sold.... So I went in and made a deal with him.... [I] bought all of the units of the same style ... floor plan ... with a lot of leverage, and he got his money. And he built. Because I bought all the one style,

... anybody [who] wanted to buy that style had to see me.... Like monopoly, nobody else competes with me.... I sell ‘em all right out, all but one.


But Mr. W. does not even keep the one remaining unit for very long. He and his family use it for a short vacation or two. Occasionally, he invites his close friends to use it. Otherwise, he rents the remaining unit until it is sold. Why doesn’t Mr. W. maintain a more permanent presence in these condominium complexes? It’s not his style.


Most of the people who buy Mr. W.’s vacation condominiums are uppermiddle-class UAWs. Mr. W. and many of the buyers of his condominium units have had a number of disagreements. In several of the complexes where Mr. W. previously bought units, his buyers passed so many restrictive covenants that Mr. W. was uncomfortable even spending vacation time in his condominiums. Thus, he felt compelled to sell that “one remaining unit” in each of these complexes.


I have a dog.... Call him the six-figure doggie.... I have sold several condominiums because ... the people passed dog laws. [They told me,] “You know, you’ve got to get rid of the dog....” I’ll sell an entire building before I get rid of my dog.


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Mr. W. anticipated that the status-conscious buyers of his latest venture would also be insensitive to his desire to have a dog. So before construction on the complex was even started, he listed his dog in the building’s declaration. It stated that Mr. W. and his family would have the right to have a dog with them when they were in residence.


All the buyers, according to Mr. W., were given copies of the declaration. Thus, they were all aware of Mr. W.’s right to have a dog in the complex. Not one owner objected at the time they purchased property. But shortly after the complex was completely sold out, excluding Mr. W.’s “last available unit,” the owners banded together and formed an action committee. Its purpose was to develop and enforce an expanded list of restrictive covenants. Certainly these new covenants would not restrict the rights of Mr. W. and his dog? After all, these rights were specified in the original declaration.


The action committee passed a dog law. It sidestepped the original declaration concerning dogs and stated that dogs would be allowed on the complex, with certain restrictions, if they weighed less than fifteen pounds. So much for doggie rights and original declarations. Mr. W. felt that this was a subterfuge to encourage him to sell out. His six-figure doggie weighed thirty pounds. He felt that even if the dog dieted, it could not come into compliance. Mr. W. was particularly disturbed that he was never allowed to cast a vote for or against the dog-related covenant. Nonetheless, he was determined to keep his dog in spite of the covenant. After all, he had been a major investor in the building before construction even began.


They [the action committee] wrote me a letter [and] stated that I had to get rid of the dog because it was over fifteen pounds.... So I went to one of their meetings.... I complained about their voting system.... I had no representation.


Just prior to leaving the meeting, Mr. W. addressed the committee:


How do you know he’s over fifteen pounds? ... How do you know? He could be hollow.... I won't get rid of the dog.


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A few days after the meeting, the head of the action committee cornered Mrs. W. while she was walking her dog. He told her in a legalese tone: “Get rid of the dog. You’re in violation of our covenant.” Later that afternoon, Mrs. W. told her husband what had transpired. She was noticeably upset about the encounter. He advised her to stay calm.


Several weeks later, Mr. W. received a letter that demanded that he remove his dog. It also stated that legal action would be initiated if he did not comply with the dog-related covenant. Two more letters followed. Each contained statements that were even more threatening than the first.


Mr. W. was not impressed with these requests. The author of the letters was the chairman of the action committee. He was also an attorney. But as Mr. W. discovered, the chairman was not licensed to practice law in the state where the complex was located. Thus, Mr. W. “promptly ignored” each of the action committee’s demands.


However, Mr. W. and his family began to feel that they were out of place even just vacationing at this condominium complex. Was the action committee using the dog as leverage to evict his entire family? Mr. W. was convinced this was the real issue. He and his family were not what some would consider to be “beautiful people.” In contrast, the complex was filled with (in Mr. W.’s parlance) the best-scrubbed condominium owners one could ever imagine.


Mr. W. was growing increasingly angry with the members of the action committee. He felt that its members were going out of their way to be rude to him. He was especially annoyed that the chairman of the committee had embarrassed his wife in front of several other condominium owners, Mr. W. devised a plan.


At a meeting of the condominium owners, at which all the members of the action committee were present, Mr. W. stood up and introduced himself.


I’m the guy that you have been sending letters to ... about our dog.... I have given your proposal some careful consideration.... I’ve decided I’m not going to get rid of my dog, nor am I going to sell my condominium.


This statement drew anticipated boos and hisses from the audience. After gaining the undivided attention of his targeted audience, he outlined his counterproposal: to turn his condominium unit over to his company’s profit sharing and pension plan and allow assembly-line employees to use the unit as a vacation resort fifty-two weeks a year. He asked his audience: “Would that be okay with all of you folks?”

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Numerous members of the audience moaned. They were undoubtedly envisioning Mr. W.’s blue-collar employees invading their space fifty-two weeks a year! Some attendees shouted out, “Keep the dog, keep the dog!” The chairman of the action committee proposed that a committee meeting be held immediately in the adjoining conference room. Five minutes after this behindclosed-doors meeting, the committee members filed back into the room. The chairman told the audience of condominium owners that the action committee had made a decision.


After reviewing all the elements of this situation, the action committee recommends that the W.s be allowed to keep their dog. I ask that the covenant be so amended. All in favor


Not long after this brilliant victory, the W.s sold their condominium unit. They did so because, as Mr. W. observed:


I don’t want to live in a building with people who don‘ like dogs.


According to Mr. W., his dog was very important to him and his family. So much so that they sold the unit at a bargain price. They have sold other units in other complexes in which people were hostile to their dog. So how much is that doggie in the condominium worth? To the W.s, it’s worth several hundreds of thousands of dollars. That’s how much he estimates he lost in selling his units at below-true-market value. A hostile environment, even in an atmosphere of beautiful people, is not a good place for dogs—or for prodigious accumulators of wealth.


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ACKNOWLEDGMENTS


The comerstone for The Millionaire Next Door was put in place in 1973, when

I undertook my first study of the affluent population. This book reflects the knowledge and insights that were gained from that initial study and from many studies of the affluent that followed. Most recently, my coauthor, Bill Danko, and I conducted a survey from May 1995 through January 1996 that we consider to be most revealing. We underwrote the study ourselves. This allowed us to have complete control in focusing on the factors that explain how people become affluent in America.

Along the road of gathering intelligence abut the wealthy, I have been assisted by truly extraordinary people. Bill has been my most important and valuable “wing man” since the beginning of this research. No one could ask for a better coauthor than Dr. Bill Danko.


I am indebted to my wife, Janet, for her guidance, patience, and assistance in the development of the early forms of the manuscript. A very special thank-you is accorded Ruth Tiller for her outstanding job in questionnaire formatting, interview transcription, editing, and word processing. I owe a deep debt of gratitude to Suzanne De Galan for her extraordinary work in editing the manuscript. I also wish to acknowledge the contribution of my children, Sarah and Brad, for their assistance as student interns on this project.


Finally, I would like to acknowledge the thousands of people who have contributed to our work through their candor, willingness, and interest in telling “their story.” They are truly the millionaires next door!

Thomas J. Stanley, Ph.D. Atlanta, Georgia



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Many people fostered my career. I am particularly grateful to my core set of

supporters from the University at Albany, State University of New York. Professors Bill Holstein, Hugh Farley, Don Bourque, Sal Belardo, and others have consistently contributed to an atmosphere of collegiality at the University that allowed this work to come to fruition. And, for certain, if it weren’t for Bill and Don bringing Tom Stanley to teach at the University in the early 1970s, this book and other fruitful efforts by the Stanley/Danko team would never have come about.

The laborious tasks associated with much of the empirical research necessary to complete the book were cheerfully completed under my direction by my three children, Christy, Todd, and David. Their diligence and attention to detail could not have been and was not motivated by a “fee for service.” They executed their tasks as if they had a true equity stake in the project. I trust that this exposure to marketing research will make them informed consumers when shaping their careers.

Finally, I must recognize and applaud my mother, who instilled in me discipline and faith. Through her living example of hard work in spite of adversity, she taught me how to live an honorable life of perseverance and courage guided by God.

William D. Danko, Ph.D. Albany, New York


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The Millionaire Next Door

APPENDIX 1 

HOW WE FIND MILLIONAIRES


How do we go about finding millionaires to survey? A “C” student of ours once tried to answer this question in a marketing research course. He suggested that we merely obtain a list of people who drive luxury cars. As readers know by now, however, most millionaires do not drive luxury cars. Most luxury car drivers are not millionaires. No, this method will not work!


TARGETING BY NEIGHBORHOOD


The method used in our most recent study, as well as many others we have conducted, was developed by our friend Jon Robbin, the inventor of geocoding. Mr. Robbin was the first to classify—or code—each of the more than 300,000 neighborhoods in America. Using this system, one can code more than 90 percent of America’s 100 million households.


Mr. Robbin coded these neighborhoods first according to the average income for each. Next, he estimated the average net worth of each neighborhood by first determining the average interest income, net rental income, et. al. generated by households in each neighborhood. Then, using his mathematical “capitalization model,” he estimated the average net worth that would be required to generate such incomes. Once he had determined the estimated average net worth for each neighborhood, he assigned each a code. A code of one was assigned to the neighborhood with the highest estimated average net worth; a two was assigned to the neighborhood with the next highest average net worth, and so on. (Also see Thomas J. Stanley and Murphy A. Sewall, “The Response of Affluent Consumers to Mail Surveys,” Journal of Advertising Research [June/July 1986], pp. 55-58.) We use this estimated net-worth scale to help us find millionaires to survey. First, we select sample neighborhoods that rank significantly higher than average along the estimated net-worth scale. A commercial mailing list company calculates the number of households in each of our chosen high-net worth neighborhoods. Next, the list company randomly selects heads of households within the selected neighborhoods. These are the people we survey.

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In our most recent national study, conducted from June 1995 through January 1996, we selected 3,000 heads of households. Each received an eight-page questionnaire, a form letter asking for his participation and guaranteeing the anonymity and confidentiality of the data we collected, and a dollar bill as a token of our appreciation, along with a business reply envelope in which to return the completed questionnaire. A total of 1,115 surveys were completed in time to be included in our analysis. An additional 322 surveys could also be accounted for: 156 address unknown, 122 incomplete, and 44 otherwise usable surveys returned after data analysis had commenced. Overall, the response rate was 45 percent. Out of the 1,115 respondents, 385, or 34.5 percent of the total, had a household net worth of $1 million or more.


TARGETING BY OCCUPATION


We supplemented this survey with alternative surveys. Often we employ what is called the ad hoc method, in which we survey a narrowly defined population segment, as opposed to people who live within affluent neighborhoods in general. These population segments include affluent farmers, senior corporate executives, middle managers, engineers/architects, health-care professionals, accountants, attorneys, teachers, professors, auctioneers, entrepreneurs, and others. Ad hoc surveys are useful because even the best geocoding methods typically ignore affluent people who live in rural areas.


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APPENDIX 2 

1996 MOTOR VEHICLES: ESTIMATED PRICE PER POUND


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MAKE AND MODEL; APPROXIMATE LIST/ RETAIL PRICE;  WEIGHT IN POUNDS; COST PER POUND;   RELATIVE COST INDEX (AVERAGE = 100) .

Dodge Ram $17,196   4785  $3.59   52 

Hyundai Accent $ 8,790  2,290  $3.84  56 

Isuzu Hombre $11,531  2,850 $4.05  59 

Chevrolet S-Series $14,643   3,560 $4.11 60 

Dodge Dakota $15,394  3,740  $4.12  60 

Ford Ranger $15,223  3,680  $4.14  60 

Mazda B-Series $15,320  3,680  $4.16  61

Ford Aspire $ 9,098  2,140  $4.25  62 

Dodge Neon $11,098  2,600  $4.27  62 

Plymouth Neon $11,098  2,600  $4.27  62 

GMC Sonoma $15,213  3,560  $4.27  62 

Geo Metro $ 9,055  2,065  $4.38  64 

Ford Escort $11,635  2,565  $4.54  66 

GIMC Sierra C/K $17,394  3,829  $4.54 46 

Hyundai Elantra $12,349  2,700  $4.57  67 

Ford F-Series $20,143  4,400  $4.58  67 

Plymouth $18,703 3,985 $4.69 68 

Plymouth Grand Voyager $18,958 

4,035  $4.70  68 

Mercury Cougar $17,430  3,705 $4.70  69 

Ford Thunderbird $17,485  3,705  $4.72 69 

Pontiac Grand Am $14,499  3,035  $4.78 70 

Mitsubishi Mirage $11,420  2,390 $4.78 70 

Plymouth Breeze $14,060  2,930 $4.80 70 

Mercury Mystique $15,018  3,110 $4.83 70 

Sotum $11,695 2,405 $4.86 

Al Nissan Truck $15,274  3,125  $4.89 70 

Ford Aerostar $20,633  4,220  $4.89  70

Eagle Summit $11,712  2,390  $4.90  71 

Chevrolet Astro $22,169  4,520  $4.90  71 

Jeep Wrangler $15,869  3,210 $4.94  72 

Dodge Stratus $15,285  3,085  $4.95  72 

Engle Summit Wagon $15,437  3,100 $4.98  73 

Oldsmobile Gera $15,455  3,100  $4.99  73 

Pontiac Trans Sport $19,394  3,890 $4.99  73 

GMC Satori $22,562  4,520  $4.99  73 Chewolet C/K $19,150  3,829  $5.00  73 Suzuki Swit $ 9,250  1,845  $5.01 73

Mazda Protegé $13,195  2,630  $5.02  73 Chevrolet Cavalier $14,000  2,765 $5.06 74

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MAKE AND MODEL; APPROXIMATE LIST/ RETAIL PRICE; WEIGHT IN POUNDS; COST PER POUND; RELATIVE COST INDEX (AVERAGE = 100) .

Dodge Avenger $16,081  3,175  $5.06  74 

 Chevrolet Lumina $17,205  3,395  $5.07 74 

Mercury Tracer $12,878  2,535  $5.08  74

GMC Yukon $27,225   5,343   $5.10   74

Geo Prizm $12,820   2,510   $5.11   74

Chevrolet Lumina Van $19,890   3,890   $5.11   75

GMC Suburban $28,855  5,640  $5.12  75

Ford Bronco $25,628   5,005   $5.12   75

Hyundai Sonata $15,849  3,095  $5.12  75

Toyota Tercel $11,128   2,145   $5.14   75

Dodge Caravan $20,505  3,985  $5.15  75

Ford Contour $14,978   2,910    $5.15   75

Oldsmobile Achiewa $14,995  2,905 $5.16  75

Chevrolet Corsica $14,385  2,785  $5.17 75

Ford Probe $15,190  2,900  $5.24 76

Saturn SC $12,745  2,420  $5.27  77

Chevrolet Caprice $22,155  4,205  $5.27 77

Pontiac Sunfire $14,419  2,765  $5.29  77

Dodge Grand Caravan $21,375  4,035 $5.30  77

Eagle Talon 517,165  3,235  $5.31  77

Chevrolet Monte Carlo $18,355   3,450 $5.32   78

Nissan Sentra $13,364  2,500  $5.35  78 

Pontiac Grand Prix $18,970  3,535  $5.37 78

Chevrolet Suburban $30,340  5,640   $5.38  78

Jeep Cherokee $18,411  3,420  $5.38  78

Chevrolet Beretta $15,090  2,785  $5.42  79

Buick Skylork $16,598   3,055  $5.43   79

Ford Crown Victoria $21,815  4,010 $5.44  79

Isuzu Rodeo $22,225  4,080  $5.45  79

GMC Jimmy $23,876  4,380  $5.45  79

Chevrolet Tahoe $29,337  5,343  $5.49  80

Honda Civic $13,415  2,443  $5.49  80

Toyota 1100 $19,013  3,460 $5.50  80

Ford Windstar $21,675  3,940 $5.50  80

Toyota RAV 4 $15,998  2,905  $5.51  80

Oldsmobile Cutlass Supreme $18,808 3,410  $5.52  80

Suzuki Esteem $12,649  2,290  $5.52  81

Nissan 200SX $14,259  2,580  $5.53  81

Toyota Corolla $14,143  2.540  $5.57  81

Ford Mustang $19,338   3,450  $5.61  82

Toyota Tacoma $17,078  3,040  $5.62  82

Honda Passport $22,935  4,080  $5.62 82

Mercury Grand Marquis $22,680  4,010 $5.66  82 

Oldsmobile Silhouette $22,005  3,890 $5.66  82

Suzuki Sidekick $15,949  2,805  $5.69  83

MAKE AND MODEL; APPROXIMATE LIST/ RETAIL PRICE;  WEIGHT IN POUNDS; COST PER POUND;   RELATIVE COST INDEX (AVERAGE = 100) .


Ford Taurus $19,998  3,516  $5.69   83

Suzuki X90  $14,249  2,495  $5.71   83

Geo Tracker $14,340  2,500  $5.74   84

Chevrolet Blazer $23,995  4,180  $5.74  84

Chrysler Sebring $18,296  3,175  $5.76  84 

Buick Century $18,063  3,100  $5.83  85

Mitsubishi Galant $17,644  3,025  $5.83 85

Chrysler Cirrus $18,525  3,145  $5.89  86

Chevrolet Camaro $19,740  3,350  $5.89 86

Volkswogen Jetta $17,430  2,955  $5.90 86 

Mazda MPV $24,510  4,150   $5.91   86 

Dodge Intrepid $20,353  3,435   $5.93   86

Toyota Paseo $13,038  2,200  $5.93  86

Mercury Villager $23,165  3,900   $5.94   87

Buick Regal $20,623  3,455   $5.97   87

Nissan Quest $23,299  3,900   $5.97   87

Ford Explorer $26,558  4,440   $5.98   87

Nissan Altima $18,324  3,050  $6.01   88

Chrysler Concorde $21,410  3,550  $6.03 88

Mercury Sable $20,675  3,415  $6.05   88

Pontiac Firebird $21,489  3,545  $6.06   88

Eagle Vision $21,540  3,550  $6.07   88

Mitsubishi Eclipse $19,713  3,235   $6.09 89 

Honda Accord $20,100  3,255   $6.18  90

Volkswogen Golf $16,563  2,635  $6.29 92

Subaru Impreza $15,345  2,425  $6.33  92

Buick Roadmaster  $26,568  4,195  $6.33 92

Volkswagen Passat  $20,375  3,180 $6.41   93

Toyota Camry $20,753  3,230  $6.43   94

Pontiac Bonneville $23,697  3,665  $6.47 94

Chrysler Sebring Convertible $22,068    3,350 $6.59  96 

Nissan Pathfindes $27,264  4,090   $6.67   97

Toyota 4Runner $26,238  3,930  $6.68  97

Oldsmobile 88 $23,208  3,470  $6.69  97

Mazda 626 $19,145   2,860  $6.69  98

Cheysler Town & Country $27,385  4,035 $6.79   98 

AVERAGE  $23,992  3,450  $6.86  100

Buick Le Sobre $23,730  3,450  $6.88 100

Toyota Previa   $28,258  4,105 $6.88  100

Subaru Legacy $20,995  3,040  $6.91  101

Acura Integra $18,720   2,665 $7.02  102

Oldsmobile Bravada $29,505  4,200 $7.03   102

Nissan 240SX $20,304  2,880  $7.05  103

Honda Odyssey $24,555  3,480   $7.06 103

(271 of 277)

Mitsubishi Montero $31,437  4,445  $7.07   103

Jeep Grand Cherokee $28,980  4,090 $7.09   103

Isuzu Oasis $24,743  3,480   $7.11   104

Mazda MX-6 $20,372   2,865  $7.11  104 

Honda Civic del Sol $17,165  2,410  $7.12  104

Isuzu Trooper $31,657  4,365   $7.26  106

Land Rover Discovery $33,363  4,535 $7.36  107

BMW 318ti $20,560  2,790  $7.37  107

Toyota Celica $20,568  2,720  $7.56  110

Toyota Avalon $25,453  3,320  $7.67  112

Nissan Maxima $23,639  3,070  $7.70  112

Acura SLX $33,900  4,365  $7.77  113

Toyoto Land Cruiser $40,258  5,150 $7.82   114

Buick Riviera  $29,475  3,770  $7.82  114 

Oldsmobile 98  $28,710  3,640  $7.89 115

Honda Prelude  $22,920  2,865  $8.00 117

Audi A4  $26,500  3,222  $8.22  120 

Cadillac Fleetwood $36,995 4,480  $8.26 120

Acura CL $25,500 3,065 $8.32 121 

Buick Park Avenue  $30,513  3,640  $8.38 122

Chrysler LHS $30,255  3,605  $8.39  122

Oldsmobile Aurora  $34,840 3,995 $8.73 127 

Infiniti G20  $25,150 2,865  $8.78  128

Mazda MX-5 Miata  $20,990  2,335  $8.99  131

Subaru SVX  $32,745  3,610  $9.07  132 

Volvo 850  $30,038  3,285  $9.14  133

Lexus L450  $47,500  5,150  $9.22  134

Mazda Millenia $31,560  3,415  $9.24   135

Mitsubishi Diamante $35,250  3,730 $9.45  138 

Lexus ES300 $32,400  3,400  $9.53  139

Cadillac De Ville $38,245 3,985  $9.60 140

Mercedes-Benz C-Class $32,575  3,370 $9.67   141

Acura TL $31,700  3,278  $9.67  141 

Lincoln Town Car $39,435  4,055  $9.73  142

Audi A6 $33,150  3,405  $9.74  142

Infiniti 130 $31,300  3,195  $9.80  143

Volvo 960 $34,610  3,485  $9.93  145 

BMW 3-Series  $33,670  3,250  $10.36 151

Lincoln Mark VIII  $39,650  3,810  $10.41 182 

Lincoln Continental $41,800  3,975 $10.52  183

Saab 900 $33,245  3,145  $10.57  154

BMW Z3 $28,750  2,690  $10.69  156 

Cadillac Eldorado $41,295  3,840  $10.75 157

Saab 9000 $36,195  3,275  $11.05  161

Toyota Supra $39,850  3,555  $11.21  163

(272 of 277)

Infiniti J30 $40,460  3,535  $11.45  167 

Cadillac Seville $45,245  3,935  $11.50 168 

Nissan 3002X $41,059  3,565  $11.52 168 

BMW 5-Series $43,900  3,675  $11.95 174 

Range Rover $58,500   4,875   $12.00  175

 Lexus GS300 $45,700   3,765  $12.14  177 

Acura RL $45,000  3,700   $12.16  177 Chevrolet Corvette $41,143  3,380 $12.17  177

Mitsubishi 3000 GT $47,345   3,805 $12.44  181 

Mercedes-Benz E-Class $44,900  3,585 $12.52  183 

Lexus SC400/SC300 $47,900  3,710 $12.91  188 

Mazda RX-7 $37,800  2,895  $13.06  190

 Infiniti 045 $56,260  4,250   $13.24   193

 Lexus LS400 $52,900  3,800   $13.92  203 

BMW 740iL $62,490   4145  $15.08  220

Jaguar XI6 $61,295  4.040  $15.17  221


(273 of 277)


APPENDIX 3

BUSINESSES/OCCUPATIONS OF SELF-EMPLOYED MILLIONAIRES


Accountant

Accounting/Auditing Services

Advertising Agency

Advertising Specialty Distributor

Advertising/Marketing Advisor

Aerospace Consultant 

Agriculture

Ambulance Service

Antique Sales

Apartment Complex Owner/Manager

Apparel Manufacturer-Sportswear

Apparel Manufacturer-Infant Wear

Apparel Manufacturer-Ready-to-Wear

Apparel Retailer/Wholesaler-Ladies’ Fashions 

Artist-Commercial

Attorney

Attorney-Entertainment Industry

Attorney-Real Estate 

Auctioneer 

Auctioneer/Appraiser 

Audio/Video Reproduction 

Author-Fiction

Author-Text Books/Training Manuals 

Automotive Leasing

Baked Goods Producer 

Beauty Salon(s) Owner-Manager 

Beer Wholesaler 

Beverage Machinery Manufacturer 

Bovine Semen Distributor 

Brokerage/Sales Builder

Builder/Real Estate Developer 

Business/Real Estate Broker/Investor 

Cafeteria Owner

Candy/Tobacco Wholesaler 

Caps/Hats Manufacturer 

Carpet Manufacturer 

Citrus Fruits Farmer 

Civil Engineer and Surveyor 

Clergyman-Lecturer

Clinical Psychologist 

Coin and Stamp Dealer 

Commercial Laundry

Commercial Real Estate Management Company 

Commercial Laboratory 

Commercial Property Management Company 

Commodity Brokerage CompanyOwner 

Computer Consultant 

Computer Applications Consultant 

Construction 

Construction Equipment Dealer 

Construction Equipment Manufacturing 

Construction-Mechanical/Electrical 

Construction Performance Insurance 

Consultant (274 of 277)

Consulting Geologist 

Contract Feeding

Contractor

Convenience Food Stores Owner 

Cotton Gin Operator 

Cotton Farmer

Cotton Ginning Owner/Manager 

CPA (certified public accountant)/Broker

CPA/Financial Planner 

Curtain Manufacturer 

Dairy Farmer

Dairy Products Manufacturer 

Data Services

Dentist

Dentist-Orthodontist 

Department Store Owner 

Design/Engineering/Builder

Developer/Construction 

Diesel Engine Rebuilder/Distributor 

Direct Mail Services 

Direct Marketing

Direct Marketing Service Organization

Display and Fixture Manufacturer 

Donut Maker Machine Manufacturer

Electrical Supply Wholesaler 

Employment Agency Owner/Manager 

Energy Production Engineer/Consultant 

Energy Consultant

Engineer/Architect

Excavation Contractor

Excavation/Foundation Contracting

Executive Transportation/Bodyguard Service 

Farmer

Fast Food Restaurants 

Financial Consultant 

Florist Retailer/Wholesaler 

Freight Agent

Fruit and Vegetable Distributor 

Fuel Oil Dealer

Fuel Oil Distributor 

Fund Raiser/Consultant 

Funeral Home Operator 

Furniture Manufacturing 

General Agent Insurance Agency 

General Contractor

Grading Contractor

Grocery Wholesaler

Grocery Store Retailer 

Heat Transfer Equipment Manufacturer 

Home Health Care Service 

Home Builder/Developer 

Home Repair/Painting 

Home Furnishings 

Horse Breeder

Human Resources Consulting Services

Import-Export

Independent Investment Manager

Independent Insurance Agency 

Industrial Laundry/Dry Cleaning Plant

Industrial Chemicals-Cleaning/Sanitation Manufacturer 

Information Services 

Installations Contractor 

Insurance Agent 

Insurance Agency Owner 

Insurance Adjusters 

Investment Management 

Irrigated Farmland Realtor-Lessee 

Janitorial Services Contractor 

Janitorial SupplyWholesaler Distributor

Janitorial Contractor 

Jewelry Retailer/Wholesaler 

Job Training/Vocational Tech School Owner 

Kaolin Mining, Processing, Sales 

Kitchen and Bath Distributor 

Labor Arbitrator

Labor Negotiator

Laminated and Coated Paper Manufacturer 

Land Planning, Designing, Engineering 

Lawyer-Personal Injury 

Lecturer (275 of 277)

Liquor Wholesaler

Loan Broker

Long-Term Care Facilities 

Machine Design

Machine Tool 

Manufacturing 

Managed Care Facilities Owner 

Management Consulting 

Manufactured Housing 

Manufacturer-Women’s Foundation Wear 

Marina Owner/Repair Service

Marketing/Sales professional 

Marketing Services 

Marketing Consultant

Mattress/Foundation Manufacturer 

Meat Processor 

Mechanical Contractor

Medical Research

Merchant

Micro-Electronics

Mobile-Home Park Owner 

Mobile-Home Dealer

Motion Picture Production 

Motor Sports Promoter 

Moving and Storage Newsletter Publisher 

Non-Profit Trade Association Management 

Nursing Home Office Furnishings

Office Temp Recruiting Service 

Office Park Developer 

Office Supply Wholesaler 

Office Machines Wholesaler 

Oil/Gas Investment Company Owner 

Orthopedic Surgeon

Oversize Vehicle Escort Service 

Owner/College 

President 

Paint Removal/Metal Cleaning 

Patent Owner/Inventor 

Paving Contractor

Pest Control Services 

Petroleum Engineering Consulting Services 

Pharmaceuticals

Pharmacist

Physical and Speech Therapy Company 

Physician

Physician-Anesthesiologist 

Physician-Dermatologist 

Physicist-Inventor

Pizza Restaurant Chain Owner 

Plastic Surgeon

Poultry Farmer

President/Owner Mutual Fund 

Printing, Self Storage, 

Farming Printing

Private Schooling

Property Owner/Developer 

Public Relations/Lobbyist 

Publisher of Newsletters Publishing

Race Track/Speedway Operator Radiologist

Rancher

Real Estate Agency Owner 

Real Estate Broker

Real Estate Developer 

Real Estate Investment Trust-Manager 

Real Estate Broker/Developer/Financier 

Real Estate Auctioneer 

Real Estate

Restaurant Owner

Retail Jeweler

Retail Chain-Women’s Ready-to-Wear Retail Store/Personnel Service 

Rice Farmer (276 of 277)

Sales Agent

Sales Representative Agency 

Salvage Merchandiser 

Sand Blasting Contractor 

Sand and Gravel

Scrap Metal Dealer

Seafood Distributor 

Seafood Wholesaler

Service Station Chain Owner 

Ship Repair-Dry Dock 

Sign Manufacturer

Soft Drink Bottler

Software Development 

Specialty Steel Manufacturer 

Specialty Oil Food Importer/Distributor 

Specialty Tools Manufacturer 

Specialty Fabric Manufacturer 

Speculator in Distressed Real Estate 

Stock Broker

Store Owner

Tax Consultant/Attorney 

Technical Consultant/Scientific Worker 

Technical/Scientific Worker 

Textile Engineering Services 

Timber Farmer

Tool Engineer

Tradesman

Trading Company

Transportation/Freight Management 

Travel Agency Owner/Manager 

Travel Agency Owner 

Truck Stop(s) Owner 

Trustee Advisor

Tug (Boat) Services Owner 

Vegetables Farmer

Vehicle Engines & Parts Wholesaler 

Water Supply Contracting 

Welding Contracting 

Welding Supply Distributor 

Wholesale Distribution

Wholesale/Distributor 

Wholesale Grocery

Wholesale Produce

Wholesale Photo Franchiser 

Xerox Sales/Service

(277 of 277)


End of The Millionaire Next Door 




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