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In 1999, Granada Rentals and Radio Rentals joined forces to form Box Clever.
This joining of forces created the UK's largest Rent to Own with over 900 stores
under three brands; Radio Rentals, Granada, and Box Clever. They employ 9,000
people and claims to have more than 2.3m customers. Annual revenue exceeds £700m
($1 billion).
Box Clever
The company operates 180 Box Clever stores in the UK. They are a 'for
hire' business; what we in 'the colonies' call Rent to Rent, but with a
twist. The company has an 18 month minimum rental term, during which, all
service and maintenance is free. Payment terms are monthly, and made by Direct
Debit. Weekly payments are allowed in cash only and customers pay an
administration fee for each weekly payment made. While the company enforces a
minimum contract length, the customer may upgrade to a larger TV at any time
during the agreement.
| Other UK Based Rental
Companies |
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Dial-a TV |
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Forbes Direct |
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Crazy Georges |
While US based Rent to Owns use the 'No Credit Check and 'No long term
obligation' model as a marketing tool, UK based Rental companies tend to focus
on 'changing technology'. "Technology is changing so fast, why get locked
into 'today's model'". This approach has had the effect of broadening the
customer base beyond the 'credit challenged'. Box Clever focuses on the
mainstream consumer who wants to keep up with the latest technology. The goal is
to upgrade a consumer to a better model prior to the end of the minimum term.
There Motto: Great TV Forever!
Add-On's to existing agreements are easy and cheap...Add a DVD player to any
account for £2.31 ($3.40)
per week, or, a VCR for £1.85 ($2.72) per week.
Returned/Exchanged merchandise is re-rented or sold in clearance centers and on
the internet for cash.
Box Clever carries leading edge, high end units that deliver customer
satisfaction and high margin. Their product lineup is almost exclusively
wide, flat, and digital. Although the company offers other merchandise such as
appliances, very little emphasis is placed on non-electronic categories.
Box Clever performs credit checks and charges a one-time setup fee of £20 (about
$30) for new customers. The customer is required to carry insurance on all
products rented.
Sample Products and Rates
rates are monthly
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RTO Online is the official channel for Rent-to-Own Industry News and the
only independent source of news for the rent-to-own, rental-purchase,
lease-purchase trade. RTO Online (Rent to Own Online) represents the choice
of the entire RTO Industry for trusted information, as it happens. |
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