Separating the (Rich)Men from the boys

Meeting an entrepreneur who believes in exclusivity without charging a bomb!

The other day I visited the factory and sales outlet of a good friend of mine who specializes in customizing formal wear for ‘men with an eye for detail’. True to the spirit of Mumbai’s entrepreneurial class, he believes in creating and retaining a niche for himself in every sense of the word.

The location of his set-up is in a high security zone which also houses India’s most valuable prisoner (or should I say costliest?)!

What astounded me about his entire business, I will capture as briefly as possible – value for money without losing out on the quality of fabric (he showed me some real exclusive stuff from France & Italy too, in addition to the best of Indian fabrics), customizing the most minute detail (bespoke is the trade name for it I learnt) and guess what, choosing his clients exclusively by referrals!

Now, ask any successful entrepreneur about the exclusivity of his services and he will highlight the same without failing to mention the premium his services command. Yet, here was somebody for whom the premium came from the select list of clientele that he caters to.

If you are wondering about the logic of his approach – take a step aside and think.

• Does it make sense for someone to base his business on referrals only?
• Does it make sense for someone to choose his clients to ensure the referrals are also of a similar quality and bracket?

Aren’t you asking yourself, if he is so good then why is he pricing himself low? Let it suffice to say, he understands that if he can keep a tight control on his overheads and his inventory, his pricing will never be a ‘deal-breaker’ – excuses like it’s too far off from where I stay you know, will simply not work!

Lastly, can’t help resist making the statement – Even Mr. Buffet would not say ‘I buy expensive suits. They just look cheap on me!’

Power to Richman’s Clothing!

On value-investing - There are plenty of similar good businesses around us. Instead of chasing over-valued stocks in the market, ever thought of investing your money with such entrepreneurs? I don’t know if such deals are easy to source and structure, but what I know is the growth and returns potential which such (low-risk) investments offer can put many ‘blue-chips’ to shame.