Creativity is one of the best skills that any small business owner can do to increase their profitability and market share. At times just being able to find creative ways to sell products and services can make the difference between success and failure.
A recent article in the New York Times showed how two young entrepreneurs took the Netflix business model and applied it to designer dresses. This new venture called, “Rent The Runway”, allows customers to rent designer dresses for a fee of $50 to $200 for a four night loan. Just like Netflix they ship the dress to the customers home and provide a prepaid return envelope that allows for the customer to just drop it in the mail. The dry cleaning expense is built into the cost of the rental, and customer can even buy insurance to protect the garment if something should happen to it.
Most of the dresses that are available retail from $1000 to over $2000. Given the economic uncertainty that most people are experiencing, this business model is appealing. Now, women can have the perfect dress for that special occasion and not feel that they have to break the bank to look good.
In order to make their service more appealing Rent The Runway has decided to offer the service by invitation only. The exclusivity factor has increased the desirability of the service along with protecting the pricing model.
Truly these folks understand their clientele and the opportunity that the change in the economy can bring. If you want to find creative ways to grow your business why not take a Test Drive of our mastermind meetings and see what the possibilities can be.