Wednesday, April 4, 2012

Raanan Katz "High End, High Quality" Shopping Plazas?

What Raanan Katz considers as a "high quality, higher end business"?

After careful review of some of Raanan Katz and RK Centers (former RK Associates) lease agreements, I noticed that they have one common condition and shopping plaza presentation as "HIGH END, HIGH QUALITY".

Low priced Asian Nail Spas, Dollar, Discount Stores are not unusual to see in RK Centers Plazas.

Probably the meaning of "HIGH END, HIGH QUALITY" is simply related to the rent amount.

Why neighbouring Aventura Mall has not rented the space to Asian Nail Spa next to Louis Vuitton store or Bal Harbour Mall did not invite Dollar Tree Store business to their Mall?

However, Aventura and Bal Harbour Malls offer valet parking services, vs to RK Centers "1 hour parking only" and tow-away services.

Aventura and Bal Harbour Mall websites present new businesses, fashion trends, social scene, videos, business directories, and whatever could potentially attract customers, making shopping experience pleasant.

RK Centers publications dedicated to promote Raanan Katz and his publicity.

Are RK Centers and Raanan Katz desperate to attract tenants into their plazas who will just sign RK Centers lease agreement with "gotcha", automatic lease renewal, and acceleration clauses?

Well, all the marketing approaches I have learned over the years also apply to attracting high-end clients, but there are a few steps that should be met:

1. To attract high-end clients, you need to design high-end services. It is like selling a Mercedes instead of a Hyundai. The commitment, time and energy is a must input into developing high-end services and programs that will deliver higher end results.

2. Marketing messages, materials, and marketing strategies need to communicate the message that higher-end services are offered. Perception is essential when you say "I offer high quality".

3. Then you have gained the right to charge more for your services. After all, you have organized your plaza to produce higher-end results, and done it in a way that makes your tenants feel special. They feel like they are at the Ritz-Carlton, not the Holiday Inn.

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