RTO Online 2003 Rent to Own Indu

RTO Online 2003 Rent to Own Industry Poll Report

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Poll Description	2003 Rent to Own Industry Poll
Running from :	12/01/03 - 01/01/2004
Unique Replies :	200
Additional Info :	Users must vote to view the results Users can only vote once Users may comment this poll

1) How would you rate the future of the Rent to Own industry?
Very Poor	0	(0.00%)
Poor	10	(5.00%)
No Opinion	6	(3.00%)
Good	87	(43.50%)
Very Good	97	(48.50%)

2) Are you satisfied with your company's growth over the past 12 months?
Yes	121	(60.50%)
No	79	(39.50%)

3) Is your customer count higher or lower than last year same date?
Higher	111	(55.50%)
Lower	47	(23.50%)
No significant change	42	(21.00%)

4) All are important, but which of the following do you believe is most important to the profitability of a rent to own company?
Sales	27	(13.50%)
Collections	36	(18.00%)
Customer service	137	(68.50%)

5) In your opinion, is the rent to own industry...
Shrinking	12	(6.00%)
Static	54	(27.00%)
Growing	134	(67.00%)

6) If you could change one thing about your job, what would it be?

Working too many hours

nothing

the hours

Better technology for employees, bar code scanners for inventory, better marketing techniques.

I would spend more time making customers happy and less time making bosses happy.

Larger advertising budget

more talent and attracting more talent

The long hours.

higher pay

Decrease paper work and maintain focus on Renting and collecting.

to have someone else do my paperwork haha

nothing

Make collections more flexible. Be able to work with our good customers when they fall behind instead of picking up the accounts and spreading bad opinions about rto

more money and bonuses

picking up merchandise.

My job changes daily and the challenges and many and the rewards are great.

NO SUNDAYS! EVER.....

try and help out the people who have been paying on there merchandise for along time,then ran into troubles but they do not want to give up on it.

Bonus structure.

treatment of employees

to find better employees that want to work

Fewer Hours

Hours Worked

EXPANSION

make more money

organization

knowing more about whats going on in the company

Better benefits.

This is a tough one to answer. The time issue is not fun but we chase the $$$ and thats just the way it is. I'll just keep my head down and nose to the grindstone.

Nothing

collections

collections practices

more freetime

More control of day to day operations

less hours

The person that I would report to, and the city I am in

Would like to find more dedicated employees with a strong work ethic, motivated by money and success!

THE LONG HOURS REQUIRED OF MANAGERS DO NOT LEAVE TIME FOR A FAMILY LIFE AND ALSO CAUSE BURNOUT IN MANY MANAGERS WHO WOULD OTHERWISE MOST LIKELY STAY IN THE BUSINESS FOR MANY YEARS.

hours per week

To have everyone on the same level working as a team to not only get NEW customers, but keep our existing customers happy.

Nothing

Dealing with low quality employees.

better rental orders

less hours

The focus on a credit number as opposed to a dollars collected basis.

Don't know

PAPERWORK!!!!

Absolutely nothing!!!

the hours

Need more time

To find another one!!!

Rate of pay or better benefits

the hours worked

nothing

The staffing as related to smaller stores need to be looked at. Often times the manager is the only person in the store taking payments and of course making new rentals. An unknown amount or new business is lost when someone your taking payment from is interested in something else but because your busy with others does'nt wait for you. By the time you either see them again or even call them back they have unsold themselves and decided to wait until they pay off the present account. Or maybe have gone to your competitor.

More vacation time

Not be so Boring

raise the companies credit close expectations

the image of the industry

The amount of hours it takes to get the job done

hours

No changes

more freedom with pricing pre leased poor condition merchandise

Stress levels are way too high

????

Less Repitition

more customers

Less stress to hit credit numbers during holiday season, but keep numbers at a reasonable %

less hours

ADVANCEMENT BASED ON PERFORMANCE

Better quality job market would help.

pass

To have a little more backing legally when a customer skips or disposes of the product.

non paying customers

less hours

Nothing

# of hours worked

To be able to offer customers more variety of products other than traditional items.

hours

Employee Benefits

Increase Staffing

hours of work

I was going to say that I would decrease the work hours for frontline employees, but that would be a double edged sword. Some companies went to paying hourly at a good rate only to increase the turnover by running there people in to the ground and having Managers that make it all to clear that if you dont get the "Numbers" you wont be around very long. And ironically it is usually the Managers bad decisions that have made the employees "Numbers" so hard to achieve. Fortunatley I am not in that positon, although I have been more than once. The only "Universal" change I would make is to change the "Bad Wrap" RTO has been labeled with. The media years ago told stories of consumers paying 3,4,or 5 times the original price of an item. Did they mention how much that TV cost on a credit card? Or how long it would take them to pay it off? Or the fact that RTO dealers tell you straight upfront how much you will pay for that TV? Yes RTO dealers make a profit, that isnt a sin. But RTO got a bad name from people only being shown one side of the coin.

shorter hours, less pressure

The long hours, and having no weekends off.

nothing

support and communications from leadership

Better work hours.....

I would change the primary fallout days from weekly to monthly. 1st, 8th & 15th would be the due dates. REMCO did it that way and it worked very very well. It allowed much more of the month to be focused on sales and customer service issues as well as gave the managers the ability to let co-workers take an occational Sat. off without causing collection problems.

Hours

Incentive pay program

Nothing

I would like to open more stores, therefore, creating a larger workload!!!

Nothing

Too many hours.

the hours

Public Image

I would work less hours.

the way merchandice is being ordered.

Not re-hiring employees that have been fired into management positions

Less hours and more recognition and more support.

Lower taxes

hours

every other weekend off.

The hours and the pay

the long hours

public perception

Regional Managers with no experience

better pay

Long hours, not co-worker friendly, it's all about the numbers.

Nothing, I love this buisness, I do different things every day. Its great.

Less hours or more pay

I don't know

less hours

Better employee retention at Part - Time level.

Collection Laws

location.

Visit more shops more often

less paper work for store managers ...

7) How would you rate your point of sale software?
Very Poor	7	(3.50%)
Poor	20	(10.00%)
Adequate	73	(36.50%)
Good	72	(36.00%)
Very Good	28	(14.00%)

8) Is employee turnover at your company...
Very low	36	(18.00%)
Low	79	(39.50%)
High	73	(36.50%)
Very High	12	(6.00%)

9) In your opinion, what is the primary cause of employee turnover?

Not enough recognition for a job well done
No turnover in last year
Not enough money for the job
jobs
inadequate training
Not qualifying the right employee to a position. Poor chance of advancement or significant pay raises.
Some people are not suited to make the business decissions necessary to run a good rto store
NOT ENOUGH ROOM FOR ADVANCMENT
None yet
Lack of training
not a fit with business
long hours, mostly with no overtime.
overworked underpaid
Lack of support from upper management
lack of dedication
Pay
Lack of training, expectations set too high on new employees, Better paying jobs in the market that don't require you to work weekends and evenings
hiring idiots
burnout. not enough time off. lack of training
Lack of character recognition. Good people can be trained anything. Arrogant people can't learn anything. To be able to determine confidence vs. arrogance is the trick. Managers who shout how good they are should not be hired. Managers who prove how good they are have a track record and quietly rise to recognition within the company. Raises lure them; praises keep them...
PAY
training
Poor training.
treatment of employees
cant handle the job
Training
poor upper management
Lack a large enough pool of competent employees to hire from.
Employees being treated as a non asset
THIS BUSINESS IS NOT FOR EVERYBODY
Lack of Flexibility
NOT INVESTING TIME AND TRAINING IN EMPLOYEES
Wages and Benefits
not being screened on the front end of the hiring process
poor performance; motivation to learn the job
too many hours
time off and how they feel they are treated
rate of pay or poor treatment
Lack of wage/promotion opportunities
Abuse of time vs pay (labour standards issues) and for some reason some managers not treating their employee's as mental equals. Sweat the big things and the little things will fall into line, Don't micro-micro analize every detail everyday...
Lack of direction from Front line supervisors. Lack of real opportunity to grow.
abuse
poor training program
management
People want to get paid, but no body wants to work!
long hours
Gentlemen has issues dealing with a female manager in the Rent to Own business
Full employment in our area, and semi-poor training/management by our company
PRESSURE TO HIT THE NUMBERS REQUIRED AND THE CUSTOMERS LACK OF COOPERATION.
lack of quality people
Miscommunications and long working hours.
Lack of job satisfaction due to lack of training.
The nature of the RTO Business. Most of our employees, more or less, supervise themselves... and most people are ill equipped to do so.
do not care about employees
performance
Money
Hours and pay
NOT PROPERLY TRAINED AND MOTIVATED!!!!
Improper training, including focus on earning advancement.
hours
Poor supervision
Stress
Management making poor hiring decisions because they feel that they can't wait a few days and properly interview and select applicants.
the hours worked, and some of the conditions encountered
Untrained Managers
Waiting until we need someone rather and looking for a body, rather than taking the time to look for the right person when you don't need them.
Salary, conflict with management
Salary
poor pay (company expectations)
selection process / filling the opening vs. waiting for the right person
work is very challenging
Low pay for our area
When you don't do what you promised the employee
training/feeling unappreciated
lack of training lack of recognition better wages elsewhere
lack of clearly defined expectations and poor training.
Competition - employees that have been trained can hop back and forth between companies - competitive wages, benefits, etc.
getting in the wrong people...
High Expectations and Moderate Pay combined with poor leadership
not right for the job
they get tired of the non-ending battle to get more done in less time for no increase in pay.
Not properly trained leading to more hours leading into burnout
no room for growth
weaker upper management
don't like the boss
THE HOURS OF THE DAY WORKED, WORKING EVERY WEEKEND, AND HAVING ON AVERAGE ONE DAY OFF FOR MAJOR HOLIDAYS
poor training
Pay and store working enviroment.
pass
Unsatisfied with treatment by supervisors
more income
lack of pay
None
Lack of Training
New employees getting into a very stressful work enviornment.
lack of training, pay
Poor pay and employee benefits
Poor Training
lack of respect
Long Hours, unkept promises, and job stress created not by the employees performance but by bad decisions made by people above. Divisional Managers know exactly what will happen if they go on a massive "Bor Push" or "Dangle a Carrot" in front of employees to motgivate them. High credit, Skip/Stolens, and the front line employee suffering in some way shape or form . But you still see it doen all the time. "When you get it to 1,000 bor I can guarantee you more money", "Credit will come down, just get the product out the door". Yeah Right !! 2 months later the frontline is working till 9 pm to fix what you already knew would happen.
constant heavy pressure from superior to do better.
The long hours and inflexability of having Saturdays off of work.
training
hours, wages, lack of opportunities
too many hours worked...employees need time for family
Hours and lack of management support.
Work Ethic
other opportunities outside rent-to-own
Low Pay
Managers are not hiring the right entry level people.
Better pay or better hours
Lack of development/lack of challenging work
Too many hours, pay inadequate.
Work Hours
Inadequate job descriptions and unreasonable expectations.
lack of preparation and communication when developing the goals of the store as well as the goals of the employees
Lack of recognition.
i feel that people just dont want to work, they rather make 5:15 per hour and collect government assistance and if they make 8,9 10, 11 dlls per hour all that would go away because of the system here in the usa
poor wages
inadequate leadership from middle level management
Not enough of the right training, and not enough support and recogntion for doing things right and too much criticism.
Poor human relations
bad tranning
LACK OF TRAINING
there pay
The hours and you being judged on people not opening their doors
stress
hours
job satisfaction
Rate of pay
The pressure of quotas and job being threatened by that
low pay, long hours
lack of positive reinfocement
Long hours and not co-worker friendly
Employee dishonesty, and not caring for the customer or their job.
wages
low quality workers
looking for something different
Ability to improve ones career. Part - Time Empoyees, Failure to put for an effort.
Incompetency
relationship with upper management
low pay long hours
Lack of training
finding qualify people for RTO ... not for everyone...

10) Are there more or fewer competitors in your market than last year?
More competitors	76	(38.00%)
Fewer competitors	27	(13.50%)
No Change	97	(48.50%)

11) What is the average number of agreements per customer? (round up)
1	2	(1.00%)
1.5	72	(36.00%)
2	78	(39.00%)
2.5	32	(16.00%)
3	7	(3.50%)
More than 3	4	(2.00%)
Don't know	5	(2.50%)

12) What percentage of your customers pay weekly? (round up)
10% or less	30	(15.00%)
20%	4	(2.00%)
30%	12	(6.00%)
40%	3	(1.50%)
50%	13	(6.50%)
60%	23	(11.50%)
70%	29	(14.50%)
80%	59	(29.50%)
90% or more	21	(10.50%)
Don't know	6	(3.00%)

13) What percentage of your customers pay monthly? (round up)
10% or less	53	(26.50%)
20%	55	(27.50%)
30%	24	(12.00%)
40%	14	(7.00%)
50%	10	(5.00%)
60%	7	(3.50%)
70%	8	(4.00%)
80%	8	(4.00%)
90% or more	15	(7.50%)
Don't know	6	(3.00%)

14) Which category of rental merchandise is more difficult to re-rent as used?
Electronics	17	(8.50%)
Furniture	134	(67.00%)
Appliances	8	(4.00%)
Computers	15	(7.50%)
Jewelry	20	(10.00%)
Tires and Wheels	6	(3.00%)

15) What percentage of new agreements include "free rent" as an incentive? (first week free etc)
Less than 10%	62	(31.00%)
10 - 20%	19	(9.50%)
20 - 30%	25	(12.50%)
30 - 40%	24	(12.00%)
40 - 50%	6	(3.00%)
50 - 60%	11	(5.50%)
60 - 70%	13	(6.50%)
70 - 80%	16	(8.00%)
80 - 90%	10	(5.00%)
90 - 100%	14	(7.00%)

16) Have rental rates (overall) increased or decreased over the last 12 months?
Increased	62	(31.00%)
Decreased	52	(26.00%)
No significant change	86	(43.00%)

17) Which of the following ancillary services do you offer?
Pre-paid dialtone	81	(40.50%)
Tax preperation	39	(19.50%)
Check cashing	27	(13.50%)
Payday Loans	14	(7.00%)
None of the above	89	(44.50%)

18) Do you offer extended warranties?
Yes	86	(43.00%)
No	114	(57.00%)

19) Do you charge for delivery?
Yes	17	(8.50%)
No	183	(91.50%)

20) Do you offer "Lifetime Reinstatement?" (credit for rent paid on returned merchandise)
Yes	111	(55.50%)
No	89	(44.50%)

21) Do you believe the image of the Rent to Own industry is...
Improving	117	(58.50%)
No change	69	(34.50%)
Getting worse	14	(7.00%)

22) Do you believe the Rent to Own industry gets fair treatment in the press?
Fair	44	(22.00%)
Unfair	156	(78.00%)

23) What is your average monthly rental rate per AGREEMENT? (round to nearest)
$50	3	(1.50%)
$55	8	(4.00%)
$60	13	(6.50%)
$65	22	(11.00%)
$70	19	(9.50%)
$75	9	(4.50%)
$80	20	(10.00%)
$85	20	(10.00%)
$90	26	(13.00%)
$100 or more	60	(30.00%)

24) What percentage of your customers rent NEW merchandise until ownership is acquired?
Less than 10	9	(4.50%)
10 - 20	27	(13.50%)
20 - 30	62	(31.00%)
30 - 40	38	(19.00%)
40 - 50	23	(11.50%)
50 - 60	18	(9.00%)
60 - 70	13	(6.50%)
70 - 80	5	(2.50%)
80 - 90	5	(2.50%)

25) What percentage of your customers rent USED (reduced term) merchandise until ownership is acquired?
10 or less	8	(4.00%)
10 - 20	18	(9.00%)
20 - 30	56	(28.00%)
30 - 40	43	(21.50%)
40 - 50	28	(14.00%)
50 - 60	27	(13.50%)
60 - 70	6	(3.00%)
70 - 80	11	(5.50%)
80 - 90	3	(1.50%)

26) What is your company goal for end of week Card Close? (past due)
5% or less	22	(11.00%)
5% - 7%	52	(26.00%)
7% - 9%	57	(28.50%)
9% - 11%	34	(17.00%)
11% - 13%	15	(7.50%)
Higher than 13%	20	(10.00%)

27) In your opinion, are your company goals for Card Close (past due)...
Too low	16	(8.00%)
About right	153	(76.50%)
Too high	31	(15.50%)

28) What category of merchandise do you spend the MOST time servicing?
Furniture	29	(14.50%)
Appliances	25	(12.50%)
Electronics	56	(28.00%)
Computers	88	(44.00%)
Jewelry	0	(0.00%)
Tires and Wheels	2	(1.00%)

29) What category of merchandise do you spend the LEAST time servicing?
Furniture	72	(36.00%)
Appliances	47	(23.50%)
Electronics	18	(9.00%)
Computers	8	(4.00%)
Jewelry	54	(27.00%)
Tires and Wheels	1	(0.50%)

30) How often do you visit the RTO Online Website?
More than once per day	6	(3.00%)
Daily	25	(12.50%)
Weekly	98	(49.00%)
Monthly	20	(10.00%)
Only when I receive email	51	(25.50%)

Poll Comments
Date	Comment
01/12/2003	I want to see more of these!
01/12/2003	Thanks for your existence!
02/12/2003	Great job with the Rufous person
02/12/2003	n/a
02/12/2003	i am excited to see where rto is going
02/12/2003	Thank you.
03/12/2003	Informative web site, thanks!
03/12/2003	From Bill Kelly, Director of Operations, EBRO Int'l dba ColorTyme. Thanks for a great year of information. I have sign up at least 10 people up for your website.
04/12/2003	good site
04/12/2003	Any questions or comments contact Brian R. Mohamed @webmaster@mohamed.net
04/12/2003	I must say some articles I have found very useful
05/12/2003	I work in a new store only open since Oct 2003 so some of the answers are estimates. Thanks
05/12/2003	i enjoy reading the articles i even print out a few and post them for my employees
05/12/2003	your content / information / coverage continues to improve....
05/12/2003	Keep renting and collecting
06/12/2003	I feel RTO Online is a benefit to my staying informed of whats going on in the industry. And I appreciate your efforts. It seems your biggest challenge would be getting more folks to use it. Part of the issue is a lot of the industry leadership is not from the "computer age" but trying (slowly) to adapt. There are things you might do to gain exposure that I'm not sure you have tried or not - You might consider a mailing to perhaps the APRO almanac of RTO dealers and or stores to introduce RTO Online. Also take a vendor spot at the APRO annual meeting. If you sponser some type of "Dealer of the Year" deal that would get some attention too. Just a couple ideas to try and help. I think as time goes on RTO Online will become more and more popular with folks in the biz. You guys do a nice job. Thanks, Mike Houseworth ColorTyme Franchisee
09/12/2003	RTO is coming out the "Dark Ages" and is here for the "Long Run" as long as we focus on doing "Good Business" not "More Business"
10/12/2003	None
10/12/2003	N/A
10/12/2003	We need to have representation in every state.
10/12/2003	keep on doing this excellent job you guys are doing
11/12/2003	It has to be a better way to get the customers to pay, and for us to keep employees
12/12/2003	none
14/12/2003	great site!!!!
28/12/2003	RTO DONE IN THE RIGHT WAY PROVIDES A GREAT SERVICES TO ITS CUSTOMERS ... BETTER THAN MOST RETAIL SERVICES ..IE BEST BUY, FURNITURE STORES...