In an economy where retail credit denials can exceed 60% in some sectors, there is an increasing amount of interest from traditional retailers in the Rent to Own transaction.

Trooper Earle, founder, president and CEO of Premier Companies, believes strongly in blending rent-to-own and retail. "The typical rent-to-own store shuns retail. We do not," Earle said in an interview with RTO Online Sunday on the eve of Premier's 3rd annual convention in San Antonio, Texas. Click play at left to view the video podcast interview with Trooper Earle  - Running time 15:33.

RTO Online will publish daily updates, videos, photo galleries and interviews from San Antonio all week. Please check www.rtoonline.com for updates.

Retail sales in a traditional RTO operation are negligible. In contrast, Earle said that up to 15% of revenue at a Premier Rental Purchase comes from retail sales.

In an economy where retail credit denials can exceed 60% in some sectors, there is an increasing amount of interest from traditional retailers in adding a rent-to-own option. Three of Premier Companies' divisions are targeted at delivering a model that can satisfy the demands of all consumers, from high-end custom wheel buyers to sub-prime consumers looking to furnish an apartment.

Rent-N-Ride - a Rent to Own automobile franchise - is Premier's latest venture. "There are huge challenges involved in rent-to-own cars," Earle said. "We're working through those now with our franchise partner SEADRA and are very excited about the concept."

Earle said that Premier will market the Rent-N-Ride franchise to both traditional RTO owners and automobile retailers. "[RTO cars] is a largely undefined industry," said Earle. "We believe that the transaction appeals to the same customer base as traditional RTO. From a franchisee's perspective, the business is similar to traditional RTO, but the service and maintenance needs are very different."

Earle believes that a retail car-lot offering traditional credit and rent-to-own transactions will have an advantage in any market. "There is a lot of competition in cars, if you can add a rent-to-own option to satisfy those customers who cannot qualify for credit, then you can have a distinct competitive advantage."

Wheel Workz also blends retail and Rent to Own. Premier Companies recently partnered with Wheel Workz to franchise Premier Wheel Workz. Dale Ingram, CEO of Wheels Workz, and Tommy Crenshaw, VP Operations, have dominated the Memphis, Tennessee retail custom-wheel market for many years. Earle believes that Wheel Workz' retail approach, coupled with the flexibility of a traditional RTO option, opens up a world of possibilities.

U-Getcha Cash, Premier's payday loan division, is focusing on co-branding locations - operating inside existing Premier franchise locations. 2007 was a tough legislative year for the Payday Loan industry, Earle said that, in addition to business efficiencies, a co-branded location provides a simple exit strategy in the event of legislative issues.

The Premier Home Furnishings flagship store has been open in Iowa nearly one year. Like Wheel Workz and Rent-N-Ride, the Premier Home Furnishings franchise markets itself as retail with a rent to own option. "We continue to refine the model," said Earle. "It's an art to blend retail and rental. Traditional RTO operators tend to focus too much on rent-to-own and retail suffers. Traditional retailers can focus too much on retail and RTO can suffer. Achieving excellence in both areas in the same location is an art and we believe the Premier Home Furnishings model makes that happen."

Premier Rental Purchase opened its first Colorado franchise in 2007. Within 60 days, Earle said the company will have three additional locations open. "Colorado is our big development state right now for our rental-purchase division," Earle said.

Premier's target franchisee is a "seasoned multi-unit or single-unit operator". "The most important thing is experience," Earle explained. He said that as long as the experience is there, Premier will assist in obtaining financing for the franchise. "If you have the talent, we can get the money," he said.