Pomp and circumspect
Lifestyles
Several times in recent years, Stephen and Bonnie Meyers and their two girls have left their Lake Tahoe, Nev., home and headed to Cabo San Lucas, on the southernmost tip of Baja California, to soak up the Mexican sun. When they arrive, a local "host" meets them at the airport, cuts through red tape, and leads them to a serene whitewashed villa with terra-cotta tiles and a pool overlooking the Pacific. The kitchen comes with whatever provisions they've requested--and a chef to cook for them if they wish. Their host acts as a sort of on-call private secretary, arranging golf and dinner reservations, a fishing boat rental, and once, when one of their kids had an earache, a doctor's house call.
A house of their own on Cabo could cost $1 million or more. But the Meyerses have found a simpler solution--and one that's easier on their wallet. They joined Private Retreats, a members-only club with more than 40 properties in the United States, Mexico, and the Caribbean, plus three yachts, a houseboat, and now, exotically, an island off the coast of Belize (203-255-5502, www.private-retreats.com). Members pay a $195,000 initiation fee, plus $7,250 in annual dues and $150 a night to stay at one of the properties. That's not exactly cheap, but Stephen Meyers, 54, president of the Great Outdoor Clothing Co. chain of retail stores, considers the money well spent. "I get to stay in far nicer houses and have a far nicer vacation than I would on my own," he says, remembering the $350 to $500 a night he used to pony up for an unremarkable hotel room or minisuite for the family. "It's comforting to know I've locked into a set price," he says, "so I know what family vacations will cost for the foreseeable future."
In these uncertain times, even the wealthy want more value for their money. The well heeled aren't in dire straits--despite the recession, the number of households with a net worth (not including their home) of over $1 million actually increased from 3.9 million in 2000 to 5.4 million in 2002, according to SRI Consulting Business Intelligence, a consulting and research company in Princeton, N.J. But uncertainty takes a toll, even on the rich. SRI's 2002 survey of financial attitudes found more people at all net-worth levels reporting they were "not very" or "not at all" confident their household would reach its financial goals. "Two years ago, when the market was peaking, everybody was saying they'd retire early," says Larry Cohen, director of SRI's consumer financial decisions group. "Now they're not so sure."
Image and reality. Even if their exuberance was irrational, people still want to live large. "The consumer is saying, `I'm not going to do without. But if I have to cut back, I don't want to look like I'm doing it,' " says Marshal Cohen, copresident of NPD Fashionworld, a market research firm in New York.
Just ask Maggie Edwards. The promotion manager for Wired magazine admired a necklace made of a triple strand of rose quartz, priced at $3,000 in various shops. She got a nearly identical piece for $400 from Femmegems, a store that opened just last November in Manhattan's trendy Nolita neighborhood (212-625-1611, or femmegems.com to place a Web order). At Femmegems, patrons mix and match semiprecious stones to create a look all their own, at a fraction of the regular retail price. "People might bring in something they found in an ad for Bergdorf's for $10,000," says Lindsay Cain, the founder of Femmegems. "We'll figure out how to do it for $300." That's why Edwards is now a regular. "In this economy, you may not want to go out and buy a $1,500 suit," she says. "But with accessories you can buy something new and fresh without making a major investment." Department stores like Bloomingdale's, Lord & Taylor, and Saks have tried to capitalize on accessories' growing appeal by moving these departments to the main floor so customers pass through when they enter the store.
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