Thursday, June 24, 2010

Men's Wearhouse is missing a major business opportunity.

Every male in the U.S. who goes to a prom or is someone's groomsman has likely been fitted for a tuxedo at the Men's Wearhouse. Theoretically, the Men's Wearhouse should have the most comprehensive database of men's sizing information of any company. There have been a lot of weddings among my close friends this year, and I assumed that after the first fitting I'd be able to rent subsequent tuxes without going to the store in person. Amazingly, according to one of the attendants, they throw away all information about the customer after 6 months.

This loss goes beyond convenient tuxedo rentals. With this much information about me, they could be delivering clothes custom-tailored overseas to my doorstep at a price no other company could match. That much opportunity is certainly worth the cost of a few dozen more machines. Ancillary data produced by your business can become more valuable than the profits from the business itself. Don't throw anything away.