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BONUS: Online Spreadsheet

• Helpful
  The spreadsheet is GREAT!
  
• I have Tears of Joy
  We have needed a decent discussion group for a long time. Thanks!
  PS: Why do we have to register?
  Response: Registration is meant to reduce the odds of 'slammers' entering the discussion group.

RTO Online offers FREE chat rooms for industry pro's

• Just OK
  What's with the flashing screen?
  Response: Chat functions require the screen to 'refresh' often in order to display replies. We are working on a less...annoying solution
  
• Helpful
  Nice, but it's hard to find anyone there
  Response: It's best to email or instant message a colleague to let them know your going to be on the board. There is a link on the login page that allows you to email friends.
  

Audio Webcast: Jay Roberts on the importance of maintaining a tight Card Close

• I have tears of Joy
  Jay, your statements are "spot on" and your level of understanding about collections inspiring.  Thank you for putting it out there!
  
• Helpful
  Consistency is the single biggest issue when it comes to communicating with our customers.  The industry has a huge problem with vocabulary which is evident in this interview.  Jay refers to collections as credit and yet we never had debt. So what is it: Past due rent, Delinquency Dollars, or just plain old MONEY OWED for services rendered.  The industry refers to renting an item as sales, yet we never transfer ownership.  Our own worst enemies are the wonderful marketing departments that look to lure the consumers into a false sense of understanding. The million dollar question is: Is there really a rent-to-own transaction or just a week-to-week rental agreement offering a quasi-sale opportunity.  90 Days Same-As-Cash, Pay One Week get three free, and own it 6 months.  It's this inconsistency that turns what seems like pure and simple 3 1/2% close transaction into a wild 8%-12% close transaction.  Not to mention the customers unwillingness to ever look at your store again because you enforced the perfect rental agreement perspective.  Not to mention your competitors could be sending a much different message to the same customer, Say "Those guys are just not very customer friendly."   It's what makes a complete system across the board so important.
  Response: I felt compelled to respond for clarification purposes. I agree that consistency is very important when communicating with our customers. Communicating effectively the rent to own philosophy. What is acceptable and what is not. Carrying the account 3 or 4 weeks past due is not acceptable under any circumstances. .
  
  As to our worst enemies, there is two types of advertising in our industry. Price driven and value driven. It is the lack of understanding of this concept on the part of the marketing departments that looks to lure the consumer into the store. If the customer does not fully understand the transaction, who's fault is it? The answer is everyone up the chain of command from the employee that dealt with that customer all the way to the CEO.
  
  To answer your Million Dollar Question; YES there is, and it is a week to week or month to month Agreement that is required to be renewed in advance, whereas ownership of the item is transferred into the name of the customer in the form of a "Paid In Full" receipt upon them making their final renewal payment or exercising their right to acquire ownership by paying the item off early, if that option is available in the Rental Agreement. Every Rental Agreement with every customer I have ever closed gave the customer three options; 1) Renew the Agreement 2) Buy the Property or 3) Return the Property to the store. That is what I'm talking about when I discuss the enforcement of the Agreement.
  
  In closing, I must address the unwillingness of the customer to ever look at your store again. Is this in the event we pick up the item they were renting? If so, it is vitally important that the last contact with the customer sends the message that we're not mad at them and above all things we want their business. Close the contact in a manner that motivates the customer to come back in a re-rent the items when their financial situation improves.

Another Way to Measure Delinquency

• Better than War and Peace
  Being an independent owner, I learned some of these on my own, but I love the great new points system, and yes, the number one mistake is the renewal.  Now we have been calling our customer and saying "it's time to renew" and they say...what's that.  Most people are used to... "Make a payment on your couch "instead of renew your agreement on our leased furniture".  Thanks!
  
• Better than War and Peace
  You're 100% correct about blurring the line with multiple rates and terms on the same item. [Pre-Rented Merchandise Reducing Rate vs Reducing Term] However as we must control inventory in order to be profitable, there has to be some rate reduction to motivate the customer to accept the Pre-rented item. If the pre-rents are the exact same weekly rates as the new ones most customers are going to want the BRAND NEW ONE. Before long the store is overstocked with only pre-rents and Customers can see the difference! Since you have already recovered some of your cost back I see no problem reducing the rate. You must be mindful of your gross margin when using the rate reduction method!
  
• I have tears of Joy
  Thanks for a great article! I have set due dates to match day after customers payday for years and it has always worked! Imagine That...set the due date for the convenience of the customer instead of the account manager! Point system is interesting as well! Thanks for sharing!
  Larry S.
  
  
• Helpful
  I thought your story [Pre-Rented Merchandise Reducing Rate vs Reducing Term] was insightful.  However, while I agree with the premise that multiple rates and terms for comparable merchandise is a risky proposition for RTO, I also think I can make a pretty good case for different rates and terms for identical types of merchandise based on condition.  For example, a TV functions as a TV regardless of cosmetic blemishes on its exterior.  However, I think it reasonable to expect that a pristine used TV could command a slightly higher rate than one that shows wear and tear.  After all, our customers most often are at least contemplating the potential to eventually acquire ownership and therefore may be willing to pay a premium for the TV in better condition, even if it's just because it has a nicer appearance.  Similarly, a customer who has a defined short term need may jump at a better bargain even though the TV has a lower cosmetic appeal.  Don't misunderstand, I'm 100% opposed to multiple rates and terms for the same piece on the same price card!
  Ron D.
  
• Helpful
  I can't give this a rating.  When I click on the printer friendly version it links me with the article on delinquency.
  RTO Online Response: Sorry about that...the link has been repaired. NOTE: The printer friendly versions are very popular. They are used for store meetings, training sessions etc. We will be happy to supply printable versions of any past RTO Online article. Contact us here
  
• No Rating
  Very Refreshing Scott, I have been practicing this program for 12+ years. Good to know someone else understands it’s merits. Just curious as to where you were exposed to this philosophy.
  
• Better than War and Peace
  I am the person who introduced Scott to this delinquency program.  It’s great to see others learn and be successful. 
  Lindsey S.