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By Rufus Mudsucker (bio)
Most people don't know it, but
before Albert Einstein became a Swiss patent clerk in 1902, he
worked as an account manager for his father at Hermann's Rent to Own.
Young Albert's first
assignment was to find out why the shop next door, Sven's Rental
Emporium, was taking Hermann's customers. Reduced to its basic form, the question was; "How can 2
competitors operate next door to each other, offer the identical
merchandise for identical rates, and not perform identically?"
As any good mathematician does, Albert searched for
differences. He questioned many customers and kept hearing about
"Value." "Wasn't value just a function of price and quality?", he wondered.
"And weren't his father's rates and quality identical?" It must be something else.
There must be a third variable; some heretofore unknown
substance that was unseen, yet exerted great force on a
customers choices.
Albert began pouring over the data and found that the primary
difference between the two competitors was the relationship with
customers. Sven outperformed Hermann because of the relationship he had with
his customer's.
Relationship was the "Dark Matter" of the rent to own
universe. A variable that, like gravity, is impossible to
measure directly, but has a greater effect on a rent to own
business than any other. Albert set about reducing his knowledge
to an equation. Up until this time, the rent to own world looked
at value as containing only 2 variables; Rate and Quality. It
was not until 1901 that Albert Einstein hit upon the
basic formula of rent to own success that governs the industry
to this day; V=RQRe2
. (Value = Rate x Quality
x Relationship2).
Relative to your direct competition, (your rental rates) X
(quality of merchandise) X (your relationship with your customers
squared) = the value you represent to customers. Albert proved
mathematically what good salespeople have known instinctively
since the dawn of time..."customers rent from a person, not a
company. All other factors are secondary." Use the form
below to calculate your Value Quotient VS your competition.
Rate yourself Relative to Your Direct
Competition
Use any scale you like, so long as you rate yourself on the
same scale:
The default scale is 1-5 with the competition
being a 3 in all categories |
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Your Competition |
You |
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RTO Online is the official channel for Rent-to-Own Industry News and the
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lease-purchase trade. RTO Online (Rent to Own Online) represents the choice
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