The foundation of Rent-To-Own is built on knowing the characteristics of our customer. To serve any customer base you must know their needs, wants, desires, and habits.
The rent-to-own customer’s habits:

• Impulsive
• Loyal
• Unique life-style circumstances
• Has a difficult time with finances
• Bad credit history

Identifying the customer is only the first step in creating a successful RTO business. The products you carry and your ability to manage this inventory separates the good from the great.

Rule 1: The Model Floor Plan

Keep it organized
A logical floor plan can have an amazing affect on your business. Keeping the product categories together will help your displays, employees, and more importantly your customer’s ability to recognize products and values. I see so many rental stores with electronics all over the showroom.

• How can you be logical about selling your best deal when seven 27" TVs are spread across a 3,000 + square foot showroom?

Ask Yourself these questions:

• Are you carrying the right merchandise in your store?
• What MODELS are turning?
• Have you lost great customers because you have chosen not to carry big screens, computers or any other product the customer desires?
• Do you track your new-to-used percentage?
• Do you have a plan for moving idle inventory that’s 90+ days idle other than giving them discounted cash sales.
• What dollar amount of "in stock" inventory is most effective in your location?

Listen to your customers
Create a model floor plan based on your vision. Adjust this vision by being attentive to your customer’s renting characteristics: what they say, what they do, and how they respond will allow you to modify the plan towards maximizing inventory turns, margins, and new agreement rentals.