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Don't be scared to Rent it and Don't be scared to Collect it!

• Brian lays out a solid plan for realizing the potential that any rental store in the country could have.  It's about recognizing every opportunity. Brian gears his mind set towards the tremendous opportunity we have with every customer and how even the tough moments really can be great moments.
  RTO Online Response: We agree. Brian is a focused renting machine. It is our humble opinion that Brian may well be on the Board someday.
  
• Good Article
  RTO Online Response: Thanks...please send a comment next time, we love to here from readers and it helps us do our job better.
  
• Right on with your philosophy and approach. I have been trying to teach this for years. Some have a very hard time learning it. Only critical comment, we have worked very hard in this industry to be able to call ourselves a true lease-it is important to our P&Ls and future legislation, not to call "collections", "credit". This industry does not do "credit". Be careful. 
  President
  Showplace Inc.
  RTO Online Response: Collections are the most difficult RTO skill to master. Meeting goal while treating all customers as individuals is a balancing act not suited to all people. 
  

Plan, Do, Check, Act...
The PDCA Cycle for continuous improvement

• Pending

You're like...so immature!
When is a Rent to Own store "mature"

• I have tears of Joy
  Very Good...Very True...Nice Job.
  RTO Online Response: 3 "at-a-boys" in a single note...Gracias Amigo
• Helpful
  What are some specific ways to get fired up again after maturity is reached?
  RTO Online Response: Good question. A good first step is to go back and look at your business plan for your first 6 months in business. What did you do then that made you so successful? What activities can you repeat now to give yourself a "boost". 
• I have tears of Joy
  Recognizing the cycles of business allows you to judge your performance. Understanding these cycles can make an avg. store a top producer every time.
  RTO Online Response: Most industries only deal with seasonal cycles. The rental industry must deal with the inventory cycle...wrapped inside the seasonal cycle...it's enough to give you a headache. 
  
  

Squeezing Card Close...
Illusion or reality?

• Just OK
  Your article forgets a few important issues...the customer. The account managers success is truly revealed when you focus your measuring stick on the customer. For example:
  
      How many customers did the account team "pick-up"?
         (I don't like the term "pick-up". The team does not p/u a    
           customer...the customer returns the items) 
      How many customers charged off that month?
      How many customers acquired ownership of the item?
      How many customer complaints on the account team?
      What was the teams revenue %? 
  
  When you focus on pure AOR etc. You treat the customer like a number, not a person. Focus on building relationships with your customer base, work on communication skills, and above all help the customer acquire ownership. The RTO business is not difficult at all....we make it difficult. I have been in the industry since 1987 and have seen it all. I can go on for hours ......maybe later.
  RTO Online Response: It was not our intention to minimize the importance of maintaining a good relationship with the customer. The focus of the article was "the many ways we "massage" the numbers to lower card close percentage. As for our use of the term "pick up"....While it is true that a customer who's agreement has terminated due to non-payment "returns the merchandise"....they do so at your request. Therefore the term "picked-up" is a more accurate term than "returned". A customer who voluntarily terminates an agreement "returns" merchandise. 
  
  
• Better than War and Peace
  RTO Online Response: Thanks, but next time send along a comment
  
• Worthless
  Articles like this will only confuse any new-comers to the RTO industry. Sounds to me like the person who wrote this article hasn't the ability to close consistently at 3.9% or less.  Best of luck to him/her
  RTO Online Response: Thank You! You're absolutely correct, calculating card close can be very confusing! Our point is...it doesn't have to be. By removing everything except "How many customers renewed this week" from the equation, it is possible to get a more accurate read on an operators ability to maintain a relationship with a customer.
  
• Just OK
  The article was not confusing...however being an old credit hound myself I must disagree that by keeping credit as tight as possible, one cannot grow.
  RTO Online Response: This comment is part of an ongoing correspondence with Brian Mohamed, a current ______Store Manager. Brian will be a regular contributor to RTO Online in the future with his own column. He is extremely knowledgeable on store operations and has a knack for getting to the root of any issue.
  

• AMEN. Customers are not paying for the merchandise, they are also not only paying for use of the merchandise, they are paying for your service. I disagree, however, about your comment on retail sales. First of all, a retail sale is much harder. More importantly, however, is that the sale is NOT over in 10 minutes. Retailers need that repeat business as much as RTO dealers. Service brings in that repeat business. Also there are many times a retailer finances items. They also need to service items. That is why TIRM has a service module in the retail version. Now as far as giving away VCR's...stupid idea. They may rent one. Give away something you don't rent!
  
  
• FANTASTIC ARTICLE