DEC 02

"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.

June 02
Articles

RTO Magazine
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Rent to Own is Ridiculously Inexpensive
Our critics say Rent to Own is too expensive. I contend that Rent to Own is not only inexpensive, but ridiculously inexpensive. You just have to know what it is that you're selling...more

Keep Rate and the Bottom Line
Does Keep rate matter? How does it affect your bottom line? How can you improve your keep rate? For any Rent to Own, especially mature locations or stores experiencing zero growth, improving keep rate can be the fastest, most effective way of improving your bottom line...more

Complete listing of House Financial Services committee reviewing HR1701 ...more

The Full Committee Markup of HR1701 that began Wednesday, ended Thursday with the passage of HR1701, "Rental Purchase Act", by a vote of 29-9...more

Aaron Rents, the nations third largest Rent to Own, announced today that the underwriters of the recent 2,000,000 share public offering will exercise the overallotment option. The option allows Wachovia Securities, SunTrust Robinson Humphrey and BB&T Capital Markets to purchase an additional 300,000...more

DPI Teleconnect, a subsidiary of Rent Way, has announced the expansion of its relationship with two key players. Cash America Pawn has offered DPI's pre-paid phone service at 59 locations since September 2001. As a result of the successful test...more

RTO Around the Globe Presents
"Hey dad, I want to watch Dexter's Laboratory...can I borrow a quarter?"
That's the scenario for a UK based Rent to Own company, appropriately named, "Buy As You View"...more

RTO Around the Globe Presents
In 1999, Granada Rentals and Radio Rentals joined forces to form Box Clever...more

Bestway Rentals reported quarterly results today. The company reported a revenue decrease of $743,876 (8.1%) from the same quarter last year. Bestway attributes this decrease to the closing or selling of 13 stores in the last 12 months...more

Rent a Center sponsors another KidCare Identification event, this time in Milwaukee...more

Key Result Areas of Rent to Own
A Key Result Area is defined as the result that you absolutely, positively must accomplish to fulfill your responsibilities and maximize your contribution to the Company. It is the reason we are all on the payroll ...more

The Dow slid, the NASDAQ crumbled, and Rent to Own keeps whistling happy tunes. It would seem that investors as well as consumers find the Rent to Own transaction a safe harbor in uncertain times...more

Associated Volume Buyers 'Home Rental Source', the Rent to Own industries newest buying group, has scheduled it's annual Convention & Buying Fair "BrandSource 2002" for August 25th - 29th at the Paris Resort in Las Vegas...more

Flash
Source: Furniture Today
Florida Furniture, supplier to some big name Rental companies, files for chapter 11...more

RTO Online is now offering all advertisers the ability to track their campaigns effectiveness in real time. "Our unique tracking tool allows advertisers to log in and view everything from impressions to clicks from any computer 24/7"..."No other website is more effective at reaching Rent to Own professionals than RTO Online...more

Aaron Rents sets price of public offering at $21 per share...stock currently trading at $22...down 20% since May 15 update
Link to SEC form 424b4, detailing stock offer...more

Rent A Center names Mary Elizabeth Burton to the Board of Directors.
Ms. Burton owns, and serves as the CEO of, B & B Capital, a private investment company. She also serves on the Board of...more

RTO Around the Globe Presents
Thorn is a 'household word' to anyone with more than a few years in the industry. But how much do you really know about Thorn? For example...Jules Thorn was renting electronics in 1933!
...more

RTO Around the Globe Presents
Of all the Rent to Owns in the world, the prize for the greatest name has to go to 'Crazy George's' of the UK. It's like the old Smuckers commercial "With a name like Crazy George...you've got to be good!...more

Most state legislation regarding collections have their roots in the federal Fair Debt Collection Practices Act (FDCPA). It gives a long list of detailed do's and don'ts for the collector...more

Wachovia Securities announced it has initiated coverage of Rent A Center with a 'BUY' rating. Wachovia reports Rent A Center as being covered by 9 analyst. 5 analysts rate Rent A Center a "Strong Buy"...more

06-26-02

Audio WebCast interview with long time industry vet. Dave Dorwart

06-19-02

Keep Rate and the Bottom Line

06-12-02

Key Result Areas of Rent to Own

06-05-02

Rent to Own Is Ridiculously Inexpensive

Reader Comments

06-26-02

Audio WebCast interview with long time industry vet. Dave Dorwart

Helpful
Love the audio interview concept. Do you plan more?
RTO Online Response: Yes, we plan to broadcast audio interviews regularly.
Worthless
Interview sounded like it was mostly Bullsh** and not much fact.
RTO Online Response: Our objective was to provide a history of Dave Dorwart and demonstrate the value of Pre-Paid phone service to the Rent to Own Industry.
I have tears of joy
The audio quality wasn't great, but I love the idea of actually hearing the interview vs. reading it.
RTO Online Response: We are making improvements for future audio broadcasts.

06-19-02

Keep Rate and the Bottom Line

Just OK
Customers will pay for quality. The higher prices create a perceived equity in the mind of the Customer. They will not let go of the item the have just put a chunk of money into. Low rental rates attract a lower strata of Customer. Higher rates attract Customers that can afford $100 in a monthly payment. So you are exactly wrong. Higher rates eliminate short term Customers that destroy a good keep rate. You eat up your bottom line in pick up, delivery, collection, and showroom Customer service costs. Rent a quality product at a good fair price and it will stay out.

Wrong again. There is absolutely Brand loyalty in RTO. I have rented to 4th Generation Customers in the same store. The catch is... You and your staff have to create that loyal following. A return Customer is a free one. You spent no advertising money to get him in the front door.
RTO Online Response: Thank you for the thoughtful response. We learn a great deal from every comment we receive and always post comments with opposing views. Higher quality items naturally bring a higher rental rate. It is the higher quality however, not the higher payment, that creates what you call 'perceived equity'. It is lower quality or a high percentage of used merchandise at discounted rates that attracts the short term customer. As to brand loyalty, every store has it's core customers. But Rent to Own, by it's very nature, discourages loyalty. If there are 5 stores in your market. what percentage of your customers have rented from the competition, and will again someday?
Helpful
I do agree with the lower price = higher keep rate assumption, but the issue is within your model. If 70% of all our stuff comes back, we must make our cost back very quickly--I say by 20 weeks for most products. This is a very convoluted issue, and one that makes our business so much fun.
RTO Online Response: True. I have noticed that stores with higher keep rates generally target cost recovery for 24 to 26 weeks weeks.
I have tears of Joy
Well said! I agree with all the points made. But there is an issue you didn't mention. At what point does a high keep rate cause law makers to start looking at RTO as a glorified installment sale? Also, I think it is worth mentioning service and operational consistency on the Rental Dealers part as factors that contribute to higher keep rates. Good article though!
RTO Online Response: Good point. We mentioned in the article that some dealers report 80% keep rates. This is due primarily to a difference in calculation. As we stated in the article, if you count 90 days SAC and short term 'blowout' agreements, the keep rate will be skewed. While it is impossible to say for certain, we believe actual average keep rates are much lower than reported by the industry and therefore could stand some improvement.

06-12-02

Key Result Areas of Rent to Own

Better than War and Peace
Finally, some specific goals. I like the layout of collection goals by day of the week. Very refreshing
RTO Online Response: We will pass on your praise to Jay
I have tears of Joy
Great article with useful tips
RTO Online Response: We agree. Everyone wins when industry veterans tell it like it is.
I have tears of Joy
Thanks for joining the team of editors. Good Luck at APRO. It's great that your passing on your wisdom.
I have tears of Joy
Amen!!!!!
I am a firm believer that attitude plays a HUGE part in how we perform on the job.
RTO Online Response: If 80% of life is just showing up...attitude is the other 20%.
Better than War and Peace
Impressive Factoids you have there

06-05-02

Rent to Own Is Ridiculously Inexpensive

Helpful
A great comparison!!
RTO Online Response: Thank you! We intend to publish more...stand by!
Better than War and Peace
I have been in Rent to Own for 15 years...I love your site! This article really articulates the reasoning behind our industry. We provide a valuable service to the public and can be proud of ourselves. A great article.
RTO Online Response: Thank You for the kind words.
Helpful
This brings a new perspective to the argument of the prices we have.
RTO Online Response: It has been our experience that those who think Rent to Own rates are too high, don't understand the short term nature of the transaction.