http://www.azuremagazine.com/magazine/features.php?id=1975

Yabu Pushelberg is arguably one of the best and most creative interior design firms in the world. They have been around for about 25 years and have one of the most substantial client lists and portfolio’s I’ve ever seen.

From my perspective, they were a ‘black box’ firm, meaning that from the outside, you never really knew who they were, how they worked or what they were about. I never read anything in the media that gave much insight into how they did business; they just seemed to get the best high-end international projects. I’m sure this was a calculated persona that reflected their exclusivity, and it appeared to work effectively.

That is why this article in Azure is so great. The partners really expose their story, mistakes and business structure. This is pure speculation on my part, but in this current climate where trust and transparency in businesses, banks and government has been called into question at all levels, why not go out of your way to expose the real story of your business? I think it shows confidence and leadership in a changing market and builds trust. It shows you’re a real business, have real structure and that it’s run by real people. This strategy is not for everyone, but every firm should ask themselves, “Are we transparent enough for a client with ‘trust issues’ to invest in our services?

(this entry was part of  a client presentation)

http://sethgodin.typepad.com/seths_blog/2009/05/luxury-vs-premium.html

This is an interesting way to explain the difference between Premium and Luxury. Godin uses products as an example in this entry, but I believe the same holds true for services. Creative firms that are working in this current market should understand that premium and luxury mean different things, especially after the economic downturn. Great architecture and design have always been premium services, meaning that you pay more and you get more, and if it’s done right, that final product will hold its invested value. Hiring a good architect or designer is not a luxury service; it’s a premium service. The outcome may be a luxury space if that is what the client requires, but it doesn’t have to be.

I don’t think Godin’s definition of luxury will last forever, and luxury is certainly not dead or a bad thing, but it’s meaning has been reduced and washed out in the last few years. I believe there is still confusion in the market, and potential clients who’ve made savvy financial decisions to survive the downturn may believe that hiring an architect/designer is a luxurious expense, rather than an investment that will see long-term returns.

They may view hiring a good architect or designer as a choice that their overspending, heavily financed counterparts would have made. Creative firms need to focus on communicating to potential clients that they have a premium service that maintains its value. Potential clients need to be reminded that you help people live well, not just luxuriously, and that your skills in design and ‘value engineering’ mean you understand how to add real financial value. Your marketing materials and media plan need to reflect this difference.