A few years ago we had a Zoom call with a guy at a really reputable firm who was simultaneously smoking a cigar and putting a golf ball into a mug in his office.
He said: “Can you guarantee me that my price per square foot will go from [x dollars] to [x more dollars] with your brand work? If not, we’re done here.”
Other than the gentleman being unsavory, and the whole scenario feeling a bit Rodney Dangerfield, the question was a stumper.
How do you value a brand? How do you assign premiums to a really good brand?
What about a brand that gets you occupancy or guests because of market dynamics but falls short in every other way?
We danced a bit on the call, and reflected afterwards. Here’s where we netted:
You can’t.
Estee Lauder bought Tom Ford for $2.8 Billion. A good chunk of that purchase price is “intangible assets” (brand and other value).
People spend more money on Lexus than Toyota, but it’s basically the same thing.
Most of us have been buying one toothpaste brand for life.
Erewhon smoothies are a lot more expensive than the next competitor because influencers drink them.
We make consumption choices because of brand, not with brand in mind. It’s that powerful, and its value is equally elusive.
And when it comes to the projects that are successful despite a weak brand, they’d be better served with a strong brand in the following ways:
More focus on what’s in and out (saving $ on off-brand amenities and designs)
Less expensive customer acquisition because your message breaks through the noise
More likely to retain customers because they feel connected to your experience
If you’re still skeptical, think about the brands you buy outside of spatial products, why you really buy those brands, and why you stick with those brands, and you’ll quickly reverse engineer a similar perspective.
🚨 WHO IS NO WALLS STUDIO (AND WHAT DO WE DO)?
No Walls Studio is a design and brand consultancy that helps placemakers create spaces that people love.
Our mission is to make sameness extinct in real estate, which means that everything we do comes with new ideas and unique angles — all, grounded in a deep understanding of culture and consumers.
We do three things for our clients (often, all in the same project):
Research
Brand Development
Spatial Experience Design
Want to work with us or learn more?