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Ethical AND Effective Collection Practices...part Deux

• Better than War and Peace
  This is excellent and well written. The only thing I would add
  is the importance of constant updating and verification of customer phone numbers and reference numbers. The best way to close a route is on the phone, that way the field work can be focused on deliveries. Running customers should be kept as a last resort and the customer should understand it as a serious situation that requires prompt action. Follow up to this is saving the customer is very important, as customer retention is very essential to build the business. When pick-ups are made, there should be an attempt to give the customer a chance to pay past due payment and get their (our) merchandise back in their home.  Thanks
   
• Helpful
  Good Article, Thanks!
   
• Better than War and Peace
  The Pop trick will be a valuable tool
   
• I have tears of joy
  Just goes to show you can do the right thing AND make money
   
• Better than War and Peace
  Strong, Great, Honest

Professor Files Lawsuit Against RTO Online!

• Better than War and Peace
  Loved it...funny stuff...but hits very close to home.
   
• Better than War and Peace
  Long live Ziggy! Do you have a phone number for Killem, Cookem, and Eatem ?
   
• I have tears of joy
  Very Funny! Good Luck, your e-zine has some good stuff! Write On!
   
• I have tears of joy
  Nice 'n meaty.

Rent to Own Accounting for Non Accountants

• Helpful
  Looking forward to more 'nuts and bolts'

Zen And The Art of Idle Inventory Management

• I have tears of Joy
  The RTO Online newsletter is probably the only email newsletter I open & read on a very regular basis -- always informative and interesting, with very insightful suggestions (I own 3 RTO stores in PA)
  D. Fisher
  Majik RTO
   
• Helpful
  Struggling operators should pay attention to the numbers, eat their pride and take the trash out.
   
• Better than War and Peace
  Having a 3000 square foot warehouse to serve 2 locations is the worst mistake a I made.
   
• Helpful
  Nice to see the rental industry tracking more than BOR and card close...keep the fires burning

Organized Strategy for Moving Pre-Rented Merchandise

• Just OK
  Good but, this should be somewhat obvious to anyone in this business. Where's the magic answers? I think we are all doing what was discussed but point to the obvious problem with lowering payments to make them more attractive while keeping the original term as discussed in the article, that is the added cost in providing service on out of warranty goods or goods that may not wear as well after multiple users. It seems that a combination of both ideas at times works best. Another suggestion is to package your pre-rented items. It moves multiple used items at once and as we all know offers an easier purchasing decision to the consumer along with real value. We seem to do best with offering great cash values on our used goods and offering "tagged" 90 day terms to attract that buyer and keep you floors fresh with new goods. Keep them coming you guys are doing a good job and its fun reading.
   
• I have Tears of Joy
  Great Job. Inventory Turns is one of the most under utilized ratios for this
  industry.  A risk management strategy of inventory management must reveal turns on inventory.  We all start with set amount of inventory and the whole point is to move that inventory into dollars with the margins we find acceptable.  If a store buys more inventory you can be rest assured it's because it's doing more business.  It is inexcusable for stores to have a
  lot of used unutilized inventory.  Idle Inventory by days idle reveal a lot
  about a stores buying, merchandising, and turns.  Dealers who choose not to discount rate most likely have an extremely high level of used merchandise and have low inventory turns.
  
  The response that..."as a large volume store"... should allow me to look at the following ratio's.
  
  1) Age of the store.
  
  2) Avg. Idle Inventory on the floor.
  
  3) Annual Store Purchases for the store.
  
  4) 100+ Days of idle inventory dollar amount as a percentage of total
  inventory.
  
  If they are doing it without discounting rate than they must be A GREAT
  MERCHANDISER.  But only numbers reveal the truth.
  
   
• Better than War and Peace
  It is about time that someone is addressing the customers perspective instead of what they think is best for them!! In the long run what's best for the customer is always best for us!!!! On one hand we want to argue that most of our customers do not go to term and then we come out with a discount program that does nothing for 80% of our customers!! Then we wonder why some people still do not trust us! Did it ever make any sense to charge the same weekly rent for the used one as the new one? Not unless you think your customer is stupid!!! They are not and its about time someone made sense on this subject!! Great job whoever you are!!
  The Reverend
  Response: Amen brother...
  
   
• Just OK
  Each individual item must be treated different depending on it's "current used value" . A 2 year old item that has already reached 4 turns can still have a high used value because of its current condition.
   
• Helpful
  We need more detailed and easier to manage strategy. Right now it's just hit and miss. (mostly miss!)
   
• Worthless
  I disagree with reducing rates.  If you have a large volume store, reducing rates might work.  It takes income to pay the bills.  I see to many companies reducing rates instead of term getting into trouble.  You need to learn how to sell.