One increasingly important aspect of pricing strategy linked to changing customer behaviour is the option to hire rather than buy. In Chapter 7 of
Essential Guide to Marketing Planning, I profiled two high-profile high-fashion hire businesses. This post updates the mini-case on p. 131.
- Rent frock Repeat is based in Canada and markets fashion frocks and accessories for hire online. Like US-based Rent the Runway, Rent frock Repeat operates store showrooms for personalized attention and rentals. The company plans a third showroom and also offers Skype consultations,
not just phone conversations, for customers who want to ask questions
face to face. When customers know they'll need a certain outfit for a
certain day, they can reserve that item up to four months in advance. Looking for ideas? Check the firm's Pinterest boards.
- Rent the Runway began in 2009 as an online-only marketer of for-hire upmarket fashion and accessories. Today it operates stores in Chicago, Las Vegas, New York and Washington D.C. One customer, browsing in Chicago, commented: 'This is a procrastinator's dream!' In fact, the stores offer in-person appointments with stylists who can help customers identify suitable fashions and demonstrate how to create an outfit for a special occasion. With weddings, graduations and other celebrations on the May and June calendars, Rent the Runway provides a cost-effective alternative to buying clothing that will be worn only once or twice. The company's busiest day is Wednesday, when it receives returned dresses from the previous weekend, cleans them and repackages them for the next set of weekend customers. Of course Rent the Runway has an iPhone app (see above).
