Feb 03

"All Rent to Own...All the Time"

#1 Online Destination For the Rent to Own Industry

Trade portal for companies who rent to own furniture, electronics, appliances, custom wheels, jewelry and other home goods.

FEB 03
Article

RTO Magazine
(Back to Archive Home)
[http://www.rtoonline.com/search/search_small.asp]

Rentcash Reports 136% Revenue Increase From Rent to Own Operations
Revenues from the Corporation's Insta-rent rental-purchase operations increased 136% to $ 668,000 from $ 489,000 for the same time last year...more

From Sexual Harassment to Accommodating Disabilities in the Workplace; The EEOC
Did You Know: An employer is required to reasonably accommodate the religious belief of an employee or prospective employee, unless doing so would impose an undue hardship...more

Aaron Rents Earnings Release Scheduled
Aaron stock Fails to Gain Traction Despite Expected Record Results
Despite an expected 25% increase in revenue over Q4, 2001, Aaron's stock (RNT) has been steadily loosing ground in recent months, down 20% this calendar year and setting a new 52 week low of $17.15 per share...more

Net Speed LLC, to Open First Computer Rent To Own Location
Net Speed, a Global Media Company has decided to take it's computer manufacturing and retail operations to a new level. On March 1st, the company will open it's first Rent to Own location in Greennville Pa, a town with favorable demographics...more

Third Annual Success Strategies for Businesswomen Conference
Live webcast planned for keynote presentations featured at third annual Success Strategies for Businesswomen Conference: The Power of Visions and Values,
February 23-25...more

Is Federal RTO Legislation Wise?
Ronald Reagan considered federal regulation of business "An obstacle to economic opportunity and human liberty"...In an age when other industries are fighting to free themselves from decades of ever-growing federal government regulation, is it wise for the Rent to Own industry to be literally begging for that same burden?...more

Fraenkel Names Ray Crocker President
Fraenkel Company, a major home furnishings distributor based in Olive Branch, MS., has named former Lea Industries exec Ray Crocker as President...more

Black History Month
Medal of Honor
In our third installment celebrating Black History Month, we honor the 7 African American Medal of Honor recipients from WWII. Men like First Lieutenant John R. Fox, who at the cost of his own life, called an artillery strike on his own position to defeat an enemy attack and save the lives of his fellow soldiers...more

Bonus
Black History Month
Biography of Benjamin Oliver Davis
First African American General Officer in the US Armed Forces

New
New Discussion Forums Added
Due to the tremendous success of the Rent Way employee forum, We have added locked discussion forums for Rent a Center, Aaron Rents, Rainbow, and Bestway...more

Whirlpool Declares Quarterly Dividend
The board of directors of Whirlpool Corporation at its regular meeting today in Chicago, declared a quarterly dividend of 34 cents per share on the company's common stock...more

Virginia Prepares to Update 'Used Mattress' Law
A key Virginia State Senate committee today took a big step toward exposing Virginia consumers to unknowingly buying mattresses that are urine or blood stained, contain fecal matter, insects or are filled with harmful allergens...more

It's Not How Loud You Shout
It's not how loud you shout...It's the message you deliver that counts...more

80 % of your profit margin comes from 20% of your customers
We don't think twice about spending 6 hours on the phone taking renewal commitments from past due accounts. When is the last time you spent 6 hours calling your core customers that renew like clockwork?...more

Aaron Rents Creates New Division, Names Bert Hanson VP
Aaron Rents announced that Bert L. Hanson has been promoted to Vice President, Mid-American Operations, Aaron's Sales & Lease Ownership Division...more

Flash
Rent a Center to close 177 (60%) of the acquired Rent Way locations
The agreements will be consolidated into existing Rent a Center locations. These closures will effect over 700 former Rent Way employees...more

From contributor John Day
Reconcile...Reconcile
Bank Reconciliation...Your most important navigation tool

Aaron Rents, Inc. Names Kevin E. Leary Director of Operations Of Sight & Sound
R. Charles Loudermilk, Sr.
CEO
"We are very pleased to bring on board an individual with the retailing experience that Kevin possesses. His retailing knowledge will greatly assist in improving the performance of the Sight & Sound stores...more

Rent Way Q1 Conference Call Summary
As expected, the long promised re-financing of the company's high interest debt was the major topic of the call. Several investors expressed impatience at the continued lack of a firm re-finance deal...more

Vendor Spotlight
Tritronics Inc.
Tritronics, Inc. was established in 1975 as a direct replacement parts distributor. Since then, Tritronics has grown to become the Nation's foremost parts and accessories distributor for the Rent to Own market...more

Rent-Way Reports Fiscal 2003 First Quarter Results
Revenue decreased $2.3 million mainly due to a 1.5% decline in same-store sales ...more

Flash
Sale Final!
Rent-A-Center announced that it has completed the acquisition of substantially all of the assets of 295 rent-to-own stores from Rent-Way, Inc. and its subsidiaries. The aggregate purchase price paid for the acquired stores was $100.4 million in cash. The Company funded the acquisition from cash on hand...more

Rent-A-Center Reports Record Q4 and Year End 2002 Results
Rent a Center has opened 10 new stores during the first quarter of 2003 and intends to open 80 to 100 new stores during 2003 ...more

Rent a Center Accounting Irregularities Rumor "Unfounded" company states
Early today, someone began circulating a rumor regarding possible 'Accounting Irregularities" at Rent a Center. The rumor set off a firestorm of trading. By 4:00 pm nearly 5 million shares had traded hands and RCII stock was down 5%

Carolina Rent to Own Expands
Carolina Rent to Own opened its first South Carolina location in Rock Hill on Feb 1st. The store, owned by Danny Ziegler, will be managed by Jason Walker of Rock Hill. It will employ six...more

Ten Things RTO Professionals Do To Mess Up Their Lives
By: Dr. Nora
Dr. Nora is a syndicated columnist, talk show host, author, rent to own owner, Nascar driver , and Ambassador to Norway.

RTO Q & A
How do I determine the selling price for my store?
My husband and I have owned our Rental Company for over 10 years and we've been thinking about selling. I'm finding it hard to come up with a price. Generally, I know that if you depreciate all your rental equipment through the years, you have to pay back the depreciation. I know I can get Goodwill just for the name. What is a good way to set a price on a rental business? I would greatly appreciate any advice you could give...more

Rainbow Schedules Q4 Conference Call
Rainbow Rentals Q4 earnings release and conference call is scheduled for Wed. February 26...more

Rent Way Schedules Q1 Earnings Release and Conference Call
Rent-Way announced it will host a conference call in connection with the release of financial results for its first quarter, ended December 31, 2002. The call will take place at 4:30 p.m. (EST) on Tuesday, February 11, 2003...more

Bassett to Close Georgia Plant, Cut 300 Jobs
Bassett Furniture will close it's Dublin, Ga. bedroom furniture plant, cutting 300 jobs...more

RTO Online Celebrates Black History Month
Little Known Figures In Black History
In our second installment celebrating Black History Month, we wanted to focus attention on some names you may not be familiar with. People like Robert Smalls, a slave who, after being forced to join the Confederate Navy, led 12 other slaves and seized control of the Confederate Navy ship "Planter" in the middle of Charleston harbor in May 1862...more

Interview With David Ingram, CEO of RTO Enterprises
With 136 locations, RTO Enterprises is Canada's largest rent-to-own. The company recently announced a 're-branding' effort that will consolidate all 6 six retail banners into a single brand name- easyhome.

Following is an interview with David Ingram, President and Chief Executive Officer of RTO Enterprises Inc on the planning, execution, and public relations effort associated with this major undertaking...more

Zenith Recalls Large-Screen, Analog Projection TV
Zenith Electronics Corp. has recalled an additional 80,000 large-screen, analog projection televisions manufactured between 1995 and 1998. This recall is an expansion of a 1998 recall program involving 111,000 projection television sets...more

Aarons Re-Affirms 02 Guidance...Sight & Sound Acquisition A Drag On Earnings
Fourth quarter revenues for the Company will be up 25%..."Sight & Sound stores experienced declining retail sales during the quarter...and will negatively effect earnings slightly more than expected"...more

No Date Yet For Rent Way/Rent a Center Deal Close
Rumors abound as to the actual date the 295 Rent Way stores, acquired by Rent a Center, will change hands. As of today, they are only rumors...more

History of Black History Month
February is Black History Month. We're going to kickoff 'Black History Month' a week early. We begin with a 'History of Black History Month'.

New Feature
Idaho Lease-Purchase Agreement Act
Interesting Factoid: Advertisement disclosures are not required unless the ad states both a payment amount And the right to acquire ownership "FOR ANY ONE SPECIFIC ITEM"...more

RTO Enterprises To Consolidate All Brands
RTO Enterprises, Canada's largest, and North Americas fourth largest rental-purchase company, announced that it will consolidate its six retail banners into a single brand - easyhome...more

Rent Way Employees Ponder the Future
Snippet: "The 'not knowing' is the worst part". So says one Rent Way Store Manager who's store is being sold to Rent a Center. The store manager, who wishes to remain anonymous, adds, "Very little information has been shared since the initial conference call in December". The biggest question being asked, and not answered, is 'when'...more

Show me the Money!
What is Cash Flow?
In his latest installment on Rent to Own accounting, celebrated author John Day answers the eternal question "If I made so damned much money...where is it?..more

Issue

Date

Title

02-26-03

Rent to Own Risk Management

02-19-03

Is Federal RTO Legislation Wise?

02-13-03

80 % of your profit margin comes from 20% of your customers

02-05-03

Ten things RTO Pros do to mess up their lives

Reader Comments

Rent to Own Risk Management

Helpful
Articles like this one are especially powerful when presented to the younger associates in my company
Helpful
I enjoy and look forward to your publication-always helpful and
informative
Helpful
A very good article
I have tears of Joy
This is something I can use every day. Thanks

Is Federal RTO Legislation Wise?

Worthless
In 1983, states RTO legislation did not exist. Today, we enjoy 47 states with adequate RTO laws. It makes sense to have federal legislation acting as a floor to make sure that we can control those off the air in New Jersey, Wisconsin and Minnesota. Only three states out of
fifty that just don't get it. One might think that these three states might take inventory on other states views.
I have tears of joy
Anyone who watched C-Span on that miserable day would never be giving democrats any credit for H.R. 1701. The democrats demolished us in the spotlight of national TV. Not enough money from our fine national association.
I have tears of joy
Rent-A-Center is the company which is single handedly trying to pass H.R. 1701. I am hard pressed to think of any industry that wants to regulate itself [and it's] 6,000 rental dealers into a corner. This would put us all at the mercy of Rent-A-Center. Maybe a list of all the litigation over the past 15 years would take away those warm fuzzy feelings the association gets about this bill Rent-A-Center wants so badly.
Worthless
There are many Democratic House and Senate members that support and have voted in favor of our industry. Stop making these broad, untrue statements that all "Democrats" are against us. This should not be the forum to bash Democrats. Or are you so simple minded that you don't understand that we need their votes too!
Sincerely
Craig S. (Oklahoma)
Where Congressman Brad Carson (D) voted for us!

RTO Online Response
Craig,
I assume you are referring to the only sentence in the piece that mentions Democrats ...

From our article
"There are countless consumer groups and Democratic activists that want our industry to vanish."

The article in question does not state (your words) that "all "Democrats" are against us" (Although such a statement would not be far from the truth). The article does highlight the undeniable fact that it is the Democratic Party that is leading the public relations effort to defame our industry.

Suggestion: Make a list of the House and Senate members that stood on the floor during public debate and called you and I "thieves, loan-sharks, gangsters, and predators". Are they Democrats or Republicans?

As much as I appreciate Mr. Carson's (D-OK) vote, he was 1 out of only 46 Democrats who voted for the bill, compared to 157 who voted against. This hardly qualifies as, in your words "...many Democratic House members that support and have voted in favor of our industry." It would appear that Rep. Carson has more in common with the 169 Republicans that voted in favor of HR1701 than he does with the party he claims to represent.

Bottom line; the Democratic party has never, does not currently, nor will it ever support legislation that is seen as beneficial the Rent to Own industry. RTO Online does not support those that wish to outlaw our chosen profession, nor do we separate a politician from his/her party. You are who you associate with.

As to my simple mind...I will leave that for others to ponder.

Equally Sincerely
Roy Griffaw
President
RTO Online
Just OK
You forgot "adds value to all rental businesses". One of the major reason for bank loan denials for companies with multi locations is an unleveled playing field for dealers in different states.
Helpful
Don't forget that creating a safe harbor for today's rto dealers creates one as well for any major retailer...uncertainty is all that's prevented their commitment of resources, not a lack of knowledge. Knowledge can be acquired; protection can only be legislated.
Worthless
Lacks even basic common sense and threatens the very life of the industry.
Better than War and Peace
I'm perfectly happy following the current state statute. APRO worked hard to put it in place. I think a federal law might be too much of a good thing.
No rating given
It has more or less already happened with Henry B. Gonzalez. In the early '90's, when he was Chairman of the Banking Committee, he did everything he could to put RTO out of business. Only because rental dealers were organized through APRO, and could rely on a grassroots effort, was he unsuccessful.

His son, Charlie, now holds his father's old seat. I, and other rental dealers, have visited him many times in Washington. Originally hesitant, he now understands and has a supportive view of RTO. He voted for HR1701.

You mentioned former Texas Senator Gramm's reluctance to support the Senate bill, but you noted he was friendly towards RTO. I've been in that office a number of times as well and can assure you he was friendly and supportive only because of grass roots' educational efforts to push through federal legislation. There were a number of reasons Gramm withheld his endorsement in the end-- not the least of which was his pending retirement.

There may be arguments to be made for and against federal legislation. Without the considerable efforts spearheaded almost exclusively by APRO, I doubt there would be any reason for anyone to question the value of federal legislation, since RTO would likely not exist at all without those efforts.

Respectfully,
Kelly S.

Aarons Creates New Division

Helpful
Sounds like Aaron's is really growing. are they going to buy out rainbow rentals?

Virginia prepares to Eliminate the Mattress Police

Helpful
Very Informative

Rent a Center to close 60% of the stores acquired from Rent Way

Helpful
Thanks for the timely news. You continue to be the first I hear of many such industry events... Thanks
I have tears of joy
What are the 177 locations?
Just OK
I am a Regional Manager for Rent Way, and yes we are continuing to move forward. But at the expense of some outstanding performers who have been given limited options due to a short period of mediocre performance due to a severe lack of marketing and advertising that the company continues to say that we have. Where is it? Our local or in store
marketing has been limited to a budget of $0. and I continue to see the competitions fliers in my mailbox, on TV and on the radio. Frustrated....
Worthless
For the good people like myself who have been with Rent Way for over five years this hurts. Not much more to say.

Rent Way Q1, 2003 Results

Helpful
Why hasn't there been any talk of replacing top management, i.e., the CEO? The shareholders aren't gaining value under the present regime. Maybe a change would be good. What does the rest of the RTO community think? I'm sure that there are a lot of investors among those folks.

Ten things RTO Pros do to mess up their lives

Better than War and Peace
"Praise the Lord!"
Better than War and Peace
The Owner of my store is very guilty of # 9

How do I determine a selling price for my store?

I have tears of joy
Good basic understanding laid out...thanks
Better than War and Peace
Crystal clear clarity of message. Great article. Thank goodness
you are not an accountant !
Helpful
Thank you for the insight
I have tears of joy
What is not explained is whether the multiple (be it 6 or 10) includes stock in store, vehicles etc?

Rent Way Employees Ponder the Future

Helpful
We are being left in the dark! No news, or merchandise to stock our stores! This has been a nightmare from the word go! It seems no one knows what's going on, not even at the corporate level! Trust me, I've tried! Charge offs have been through the roof and merchandise is being transferred to stores that are not sold! Sad thing is I've only been onboard for a few months!