Editorial
By: Mamie Salazar-Harper
Fiesta Rent To Own, El Paso, Texas

On Friday, April 14, 2006, I received an overnight package (dated April 12th) regarding TRIB's proposed merger with AVB. I assume all TRIB members received the same package. At first glance it sounded good, but once I mulled it over, I had more questions than answers. There are more choices out there that we as members, are not being allowed to see. The choice is essentially between AVB and Nationwide RentDirect.

Buying Power
As the letter from TRIB states, buying more means buying better. Nationwide has over 3 times the buying power of AVB. In fact, I believe Nationwide has more buying power than all other buying groups of it's kind combined.

Commitment
It is my understanding that AVB formed HRS, Home Rental Source, almost six years ago and only has a few members. Nationwide (RentDirect), on the other hand, has made a solid commitment to the RTO industry in terms of dollars and time (TARA knows this first hand). As a result of their serious commitment to the industry, Nationwide (RentDirect) has gained over 160 rent to own members in the past 18 months. When comparing the real commitment of the two groups, I think the results speak for themselves.

Nationwide (RentDirect) has made it clear, by their words and actions, that they will support industry efforts, legislative and other important RTO issues, even outside the buying arena. AVB, to my knowledge, has no such intention. The letter from the TRIB Board supporting AVB's proposal said “AVB’s proposal had by far the most positives”. Question: Of those “positives” which ones, if any, would not have been agreed to, supported by or firmly negotiated by Nationwide (RentDirect)?

Autonomy?
The word on the street is that the TRIB Board would have made a deal with anybody to maintain control. That's understandable I suppose, but at some point the board should set aside personal agendas, embrace change and do what's right for all members and the industry.

Federal Legislation.
APRO conducted a comprehensive survey questioning what was most important to rental dealers across the country. The overwhelming response was getting federal protection to secure our industry. Nationwide (RentDirect) has already offered to assist the RTO industry's goal of federal legislation in a BIG way. I’ve seen their legislative commitment on the state level in Texas and I am sure that I, and others, can work with them on the federal level in the same dedicated and successful fashion.

That being said, why on earth would any TRIB member, board or at large member, vote to accept a proposal that falls short of every rental dealers’ wish and biggest hope? Talk about “have our cake and eat it too”, this is what every TRIB member should want. Not the cake that the TRIB board is obviously prepared to eat.

In my opinion, as a TRIB member and an industry supporter, the right decision for TRIB would be to merge with Nationwide RentDirect, not AVB.

I will caveat my opinion with these important points:

If anyone out there thinks, even for a moment, that Nationwide (Rent Direct) has put me up to this, then you are dead wrong. Those folks at Nationwide will be as stunned as you are to see this letter out in the public forum. My opinions, as APRO can attest to, belong to me alone.

Why the Rush?
So fellow rental dealers, I challenge you to question the commitment of the TRIB board to help present the best option and decision out there for you and I. Additionally, I am concerned that we are being required to make what I consider a hasty and perhaps uninformed decision. The deadline is April 18th and I received my ballot Friday, April 14th. Is this “great” AVB deal going to “expire” or just “go bad” in 4-5 days? Someone please tell me what the rush is all about. I hate it when someone tries to force an important decision on me, in the name of what? The TRIB convention in Cincinnati commences May 18th, Why the rush? Are there by-laws that stipulate drastic decisions must occur 30 days before the convention?

Why not let have AVB, RentDirect and Mega attend the convention and give their proposals directly to members? This could be followed by a vote from all attendees.

Making this decision at the convention would give members more time to research and ask questions before casting their ballot. A convention presentation by AVB, MEGA, and Nationwide (RentDirect) would allow direct questioning by TRIB members. This can only result in giving us better terms than what the TRIB board could do. Is that a Bad thing?

Proxy voters could have a 30 day window to vote before the convention. All with the goal of giving us more time to choose the right thing.

The best deal that I am offering my good friends and colleagues out there is that, guess what, if we don’t take this deal, right now, within 4 days (for me anyway) over a federal holiday, no less (Happy Easter everyone), is that we can always form or recreate a New TRIB. I just can’t guarantee that the new entity will have the same board members.

That’s just my opinion on this subject. Feel free to participate in this dialogue.

Again, Happy Easter, and let us all be thankful that we live in the greatest country in the world, with free speech and the opportunity to express our individual thoughts.

Happy Renting,
Mamie Salazar-Harper
Fiesta Rent To Own, El Paso, Texas