By Bill Lassiter
Lynnray Financial

You need not worry about cash flow when you use LFC’s 27-month program. That $1,000.00 living room set will cost you nothing for the first ninety days and only $48/month for the following 24 months

An irrefutable fact: Lost rentals are costing you money. It happens all the time to every rent-to-own store in the country. There are a myriad of reasons a customer walks out of your store with his money still in his wallet including: poor customer service, lower competitor prices, and out of stock items. Poor customer service is easily addressed by providing proper training for your sales force and/or eliminating personnel unwilling to adapt to company policy.

Offering better service can neutralize lower competitor prices. But what is the best method for making sure you always have the item a customer wants when he walks through the door? Especially problematic is stocking high-end electronics and expensive furnishings due to high carrying costs.

While carrying costs can be high, how high are your losses due to customers leaving your store empty handed? Consider the following example: A customer comes in to rent a living room set. Unfortunately, your store doesn’t stock that particular brand due to expense and the customer is forced to go to a competitor. Let’s take a look at what that just cost your store. The loss is dramatic. The living room set at your cost is $1,000.00. At a four turn, you just lost $3,000.00!

Let’s assume you only lose one customer a month in this fashion (and you probably lose more), which translates to a $36,000.00/year loss. Obviously, the only reasonable solution is to carry o wider selection of the inventory your customers want. However, in the past, traditional short-term financing has negatively affected cash flow and inhibited growth. You need not worry about cash flow when you use LFC’s 27-month program. That $1,000.00 living room set will cost you nothing for the first ninety days and only $48/month for the following 24 months.

Take a careful look at your operation. Identify the reasons customers leave your store unhappy and empty handed. Stop them in the parking lot and determine exactly why they left, and then correct the problem. Call LFC today to start the process to increase your inventory and avoid lost rentals. Your showroom will look more impressive, your customers will be satisfied, and your bottom line will improve dramatically!

Call Bill Lassiter at Lynnray Financial Corporation at 800-535-4138.