We'll begin by assuming you’ve laid out a Model Floor Plan. Now it’s time to move towards inventory purchasing. Limited space and the need to offer many categories present unique challenges to Rent-To-Own buyers. 

Rent-To-Own stores carry many product categories in a small amount of square footage:

Each category contains sub-categories

The sub-category process filters down to the specific Models you carry from the hundreds of brands available to you. Without careful consideration, the buying process can quickly get out of control. Hence the challenge of squeezing enough categories to fill up a Wal-Mart, into a 2,000 to 8,000 square foot box.

KEEP IT SIMPLE
You have to be realistic about how much inventory you can carry. Draw your Model Floor Plan with the layout that makes sense for your store. Pick the categories, sub-categories, items, and models. Once you have decided the depth in each category, calculate the total cost, cost of each category, and the cost/square foot. Closely tracking total cost of "in-stock" merchandise allows you to know "at-a-glance" when you're over or under-stocked during the year. Watch the inventory cost per category so you know exactly where you are overstocked. (Tracking the avg. cost per item, per category is the best way to go.)

List your categories and sub-categories. Select ONE brand for each. Show a good cross section of a brand. For example, choose RCA for all TV's. Display a 25", 27", 32", and a 46" RCA Projection. Your ability to produce an effective showroom is about keeping it simple. Carrying too many brands and models is inefficient for you, and confusing for customers. A good selection doesn’t mean you have to carry a wide array of manufacturers.

The Buy
Where should you buy? What you should buy? Finding the Vendors, Manufactures, and Distributors that service your area should be your first step. Your ability to create a TEAM relationship with vendors will help your inventory flow, product selection, and overall service.

Know your Vendors
Shipping Time, Return Policy, and Freight and Pricing Policies are the ingredients that make up service to a dealer. With a small amount of showroom, and not a lot of warehouse space, it’s crucial to know when, as well as what, to order from a vendor. Vendors that can’t replenish product timely can kill an entire month for a rental dealer. Always have a back up plan of vendors so you don’t get caught with an empty store.

Did somebody say "SERVICE"
Being able to refurbish and service a product economically can make a huge difference to the bottom line, and give you a solid reputation with your customers. Only carry brands you can service timely and economically. Get a list of certified Service Centers for every brand in every category. If a vendor can't supply a list of local service centers...drop them as a supplier. Service is what we do.

The Best Price
Paying the best price for product is no-brainer for owners, but not so for every employee. Buying is an acquired skill. It involves careful study of each category. With so many different categories, vendors, and specials, it’s difficult to know if you’re getting the best price if you're not seasoned. ALWAYS ANALYZE LANDED COST. Freight can be a "margin eater" and is not disclosed well by vendors on price sheets. Never assume your getting the best deal. Always ask for a better one. 

Buying Groups
Buying groups can be a Godsend to Rent to Own Dealers. They offer timely delivery and discounted pricing. AVB and TRIB are the largest groups with specific Rent to Own programs. Groups offer discount buying, volume rebates, and great networking among rental dealers. You should measure the cost savings against the fees and dues for group membership. Ask solid questions about joining a group: 

• What brands to they represent? 
• Do they represent the brands I know?
• What rebates and price discounts will I see from the brands I sell?
• What are the initial fees and monthly dues?
• What type of networking events do they hold?
• Do they have special buying fairs?
• What is the total buying power of the group?
• How many dealers do they service?

The merchandise that you carry is the reason customers walk through the door and spend their hard earned money. Carrying the products they want, at the prices they can afford, and with the least amount of service is your most important job. The buying process is crucial to your success.