For some entrepreneurs business as usual mean business as boring. The chance to create something completely ground-breaking is seductive. nvohk is a surf-inspired, eco-clothing company aiming to develop a very close relationship with its customers, so close in fact that its customers are the one who collectively decide what the clothing looks like. Launched in December, 2007 and based on a business model called crowd-funding, nvohk is creating a participatory framework for its customers to be involved with every major business decision such as company logo design, product designs and advertising. Essentially for $50 per year, customers – or members as the company calls them – call the shots and management implements the decisions. Members receive a 25% discount on all products and also collectively share in 35% of all net profits via reward points which can be redeemed as products. There’s room enough for 40,000 members in the model. The plan doesn’t go into effect until 5,000 members have registered via the company’s website, Projectnvohk.com, at which time they will all receive an email inviting them to pay.
nvohk's business model is like market-based supply and demand economics traveling at mach speed, cutting out the middlemen and channeling customer preferences, i.e., demand, directly into manufacturing decisions, i.e., supply. Like any new idea, nvohk will surely have its detractors. However, many people are already jumping at the chance to participate on a deeper level with a company that will help build the green economy and also donate 10% of net profits to environmental organizations. To date, 2759 customers have already registered through nvohk’s website. From nvohk’s perspective, there is perhaps no better way to develop brand loyalty and an evangelizing customer base than to give customers a direct say in business decisions. Good luck, nvohk. There are more than just green-minded folks watching.
via* Lazy Environmentalist - Thanks Josh!
