By Rufus Mudsucker (bio)
Rent to Own Maven

"...Rent to Own customers don't go away, they just go somewhere else..."
Rufus Mudsucker

My 8 year old son called me at work to ask if he could shave the cat. I explained the dangers inherent in such a maneuver, and convinced him that playing basketball would be a better use of his time. He seemed satisfied and asked what I was doing. I told him I was writing an article about "Growing BOR". He laughed and told me he had learned all about this in school. I could almost hear his eyes rolling as he said, "dad, all you have to do is plant it, water it, and make sure it gets plenty of sun." I started to explain BOR, then it occurred to me that he was absolutely correct.

Writing an agreement is like planting a seed. It's just the first step in a long process. If done incorrectly, the agreement will not bear fruit.

There are two ways to plant BOR. Some use the shotgun approach; Rent anything and everything to anybody and worry about their ability to pay later. This method grows BOR very quickly, however, it will also result in a lot of short agreements, used merchandise, and ex customers.

Others choose their ground more wisely. They attract the best customers by providing service that is superior to the competition. This method involves such minutia as verifying employment and references, learning to say no occasionally, and not overloading customers. Your BOR will not grow as quickly, but the roots will be deep and your growth will be long term.

Once the seed is planted, it must be cared for. It's the little things that make the most impact. Personal contact is everything.

• A follow-up phone call the day after delivery to make sure the merchandise meets the customers needs.
   
• View every customer contact as a selling opportunity. Keep in mind that your customer can rent a TV anywhere, what you should be selling is your superior service. Remind your customers that all service is included in the rental payment. This fact is a good reason for a positive phone call every few months..."Mrs. Smith, I just wanted to call and remind you that we provide service on your merchandise at no charge. Is your _____ still working properly?"..."Is there anything else you need?"..."I know there are a lot of choices out there, I appreciate you choosing us"...'Don't hesitate to call if you need anything".
   
• Birthday cards, monthly mailings, personal phone calls to every customer when a new product is added to your lineup...all these are necessary to grow the relationships necessary for a healthy agreement.
   

It is infinitely less expensive to keep an existing customer than to gain a new one. Whether or not a customer rents another item after a payout is completely dependent upon you. The process of keeping a customer past their first agreement begins with the first delivery...and it never ends. Rent to Own customers don't go away, they just go somewhere else. Give your customers value and they will be customers for life.

Anybody can grab a handful of seeds and throw them in the air. A few will grow, but most will wither and die. With careful planning and execution, the words, "the decrease in revenue is primarily due to..." will never cross your lips.

Printable Version