"...used furniture that smells good is a weak substitute for a sound relationship with your customer"

The following story about the power of relationships was adapted from a reader email. The reader was a bit perturbed about the term 'dirty storefront' used to describe some past and present Rent to Own dealers in another publication.

Ever wonder how that 'dirty storefront' guy makes a living? You know the one I mean; 2500 square feet on the wrong side of the tracks. The one you turn your nose up at when you drive by. It's probably because he knows the name of his customers, their children, and their neighbors. He can recite from memory every piece of merchandise they ever rented. His customers know that he was there 5 years ago, and he'll be there 5 years from now and they will not be greeted by a different manager every 5 months.

He survives because his customers know that a simple phone call will result in actual service being performed the same day. His customers know from experience that he says what he means and means what he says. Does he do this because it's fun? NOT. He does it because his survival depends on it. This is how he competes with you. This is how he takes your customers.
Sincerely
T.H.

Maximizing turn has become an art form. Our industry spends millions on refurbishment to gain a few basis points on turn. A good investment to be sure, but used furniture that smells good is a weak substitute for a sound relationship with your customer.

Encourage weekly agreements
It is difficult to develop a meaningful relationship with a customer you see for 5 minutes 12 times a year. Weekly agreements, while requiring more effort, will lead to stronger relationships.

Relationship Retention
Take a look at your advertising budget. Carve out a portion for 'Relationship Retention'. You should invest at least the same amount of time into maintaining customer relationships as you do maintaining your inventory.

Having a good relationship does not mean allowing collections to suffer or becoming friends with your customers; both of which will cost you money in the long run. It means simple things like knowing your customers name, coming out from behind the counter and greeting the customer with a smile and a handshake, asking about their family, sending them personal handwritten thank you notes for no reason.

There are very successful Rent to Own operators who do no advertising whatsoever. How can this be? What is it that sustains them? It's funny, but the one thing that will improve a rent to own business the most is absolutely free.

Advertising is an important aspect of any business. But if you find yourself having to spend more and more time and money 'hooking' customers, perhaps it's time stop looking for the next customer and start appreciating the one you already have.