By Mark Taylor
Home Rental Source
Rent to Own industry buying group

Holiday seasons, new store openings and special events always result in increased deliveries and units on rent. The 2003 Holiday season was an exception to this rule according to most RTO dealers I polled.

The culprit was the rapid decline in prices of electronic products at major retailers. VCR's, CD and DVD players that used to be RTO meat and potatoes are now available for purchase at $50. At these prices, name brands and free service don't matter. The rent to own industry's pricing structure is designed to protect the customer if the product breaks down. These products have become throw-a-ways and it's becoming more and more difficult to find products to replace this formerly high profit center.

Customers want cutting edge technology. Drive your electronics business with higher-end items like DVD recorders, digital camcorders, flat screen TV's and computers. Yields are higher and demand is increasing. Laptop computers are the "hot item of the day" and the pricing keeps getting better. Digital cameras and digital camcorders with the capability to send pictures via the internet are also increasing in popularity.

While VCR's, DVD players and 13 to 27 inch TV's are no longer viable as main-line inventory, traffic can be generated and profits made by advertising shorter terms such as three or six months same as cash, or implementing an add-on program.

The easiest way to achieve the proper mix of low and high-end electronics is Brand Source Expert Warehouse online ordering system. A dealer dealer doesn't need to purchase large quantities in order to satisfy a vendor's requirements. Mixing different products and taking advantage of the pre-paid freight requirements takes the burden off dealing with many different vendors and back orders.

It is important to look at the electronics order system as your "electronics vendor." You don't have to load up your barn with products just to meet the vendors minimum requirements. As features are updated on merchandise, you are never loaded down with old technology. The electronics order system in the backroom will help a dealer increase profits and decrease inventory levels; freeing up cash-flow to be used in other areas of the business. This warehouse facility is coordinated through BDI Laguna which also carries computers.

If you have any questions or would like to learn more about Home Rental Source Buying Group, I can be reached at 734-368-2283 mark.taylor@brandsource.com