Strengthen Your Brand With A Velvet Rope

Would Prada be Prada if everyone owned some Prada? Well, not only would everyone be wearing funny clothes, but the brand would not have the same panache. Prada avoids brand devaluation by erecting a red velvet rope around their brand. They only sell expensive clothing to people who want to look like characters from Sex and the City.

In Book Yourself Solid, Michael Port advises using a red velvet rope policy that “allows in only the most ideal clients, the ones who energize and inspire you.” There is another reason to be selective about your customer base: brand value.

Over time, businesses tend to work with an ever-expanding universe of customers. The theory being the larger your customer base, the more money you can make. The casualty of this practice is a devalued brand. The red velvet rope policy says that you will treat your business with selectivity. You only unhook the rope for those customers whom you deem to be “more attractive.” A tighter, more restrictive customer base produces greater brand value.