1) The document discusses the nightlife industry and how nightclubs make money from different customer groups like regular patrons, VIPs, and desirable crowds. 2) It introduces Bespoke Group, a company that brings desirable crowds to clubs in exchange for VIP treatment and payment from the clubs. 3) Over time, Bespoke Group expanded its services but growth stagnated as it relied only on the desirable crowd. To continue growing, it needed to gain more control over the lucrative VIP market.

1. By Eddie Wharton,
HayleySerebransky and Holly Lagasse

3.  Started off as a child model
 Played in bands
throughout High School
 Started Hosting Tables
 In 2009, Started
The Bespoke Group
with Doug Rand

4.  Nightclubs exist to make money
 They make money mainly from the paying
crowd – cover and drinks at the bar
 And from VIP´s who spends thousands for
alcohol that may only cost 1/20 of that
 They are not just buying alcohol, they are
buying other forms of value
 Value: Ambiance, Music, Status and belonging
 How do clubs create these other forms of
value?

5.  Higher items on the pyramid
are supported by things
lower down
 Blue signifies a revenue and
red a cost, with shade
indicating magnitude
The Nightlife Formula
 Loosely speaking, blue is the
target market and red is the
value proposition
 The larger a section is,
themore important it is
relative to others
 The pyramid represents a
club´s strategy for making
money an creating value to
justify the markups in prices
 Note the high value of VIP’s
and that they are on top of
the desirable crowd

6.  DJ is most important
and largest cost
 Desirable crowd and
VIP’s are less important,
but still produce
revenue
 The non paying
customers (college kids
having fun - us) are paid
for so that the paying
techie conference
members do not feel
awkward
 Everyone pays or is
meant to create a value
that someone else will
pay for

7.  Pyramid is a club’s strategy
 Clubs pay employees to
execute different parts of
this strategy
 Bespoke started by
executing on the goal to
bring out a “desirable
crowd”

8.  Brings out the “desirable crowd”
 Their ability to bring out this crowd is their
product
 Their target customer is nightclubs
 Started out merely hosting a table for 20-30
people
 Goes do a different club each night of the week
 Offers their desirable crowd VIP treatment in
exchange for coming, which builds a long term
relationship with them and sustains the model

9.  Ballooned to 80-200 people
 Bespoke was allowed to book DJ’s
 Starting managing and booking their own DJ as
a separate line of business
 Allowed Bespoke to control more of the
pyramid and therefore get paid more by clubs
because they delivered more value

11.  Bespoke can only grow by hosting more events
per week or by making more money per event
 Already host 6 events per week
 Growth has stagnated
 Without bringing in revenue producers, cannot
get paid more
 Clubs need VIP customers and are only willing
to pay more that

12.  The VIP’s do not follow Bespoke around the
way the desirable crowd does
 When they do come it is sporadic
 Clubs are forced to secure these VIP’s outside
of Bespoke through other channels

13.  In nightlife, it is necessary to move up as
you age
 You become too old for positions
 Nobody likes a 40 year old promoter, but a
40 year old club owner is respectable
 Without increasing revenues and executing
more of the nightlife formula it is impossible
to move up and stagnation is not sustainable

14.  How does Bespoke continue to grow?
 How can they execute on more of the nightlife
formula?
 How do they gain control over the elusive VIP
market?
 Should Cody start applying for a 9 to 5 job?

15.  Decided he needed to build a relationship with
VIP crowd just as he had with desirable crowd
 Scouted out big spender in clubs, lounges, bars
to find a central person in the groups
 Approached central person and traded him
access for his control over VIP’s
 Used him to build a relationship with VIP’S
 Before: strangers; Now: know Pruitt, his
partners, their crowd, models, etc.
 Increased Profits

16. SHORT TERM LONG TERM
 Expand private and  Open a restaurant in the
special events division next two years
 Build public relations  Gives him credibility with
and publicity business State Liquor Authority
 Eventually will open
club or lounge