Customers are looking for products that are not only functional but also make a statement about their sense of style

Bill Lassiter of Lynnray Financial Corporation emphasizes that for the independent RTO dealer to be successful, he must merchandise a product assortment that not only makes fiscal sense but appeals to his customer’s desire for the best product they can afford.

Lassiter says that many rent to own dealers lose sight of their customers’ expectations and desires when the store is merchandised with entry level products only. Short term financing causes a cash flow squeeze that hurts the store’s ability to carry upscale products.

All RTO product categories fit into what is often characterized as a "pride purchase". Customers are looking for products that are not only functional but also make a statement about their sense of style. These products placed into their home speak volumes to friends and family about the owner’s taste and personal success.

It is important for dealers to maintain strong beginning price points, but branded names and upscale products are equally important to maximize appeal to customers.

According to Lassiter, "To have the proper product mix (upscale & standard) you must have the proper financial mix of programs to insure cash flow is positive."

Long term financing (24 month) is necessary if the store is going to carry more expensive inventory. Lynnray Financial offers programs that solves the "cash flow squeeze" problem and do not conflict with other loan covenants.

Contact Bill Lassiter at LFC today.
800-535-4138 or e-mail: blassiter@lynnrayfinancial.com