Choosing a credit card company | Tennessee dealers meet at Opryland | Ohio gears up for 2006 Midwest RTO Training Expo | Aaron's arena football sponsorship a key marketing tool | easyhome organizes Boys and Girls Club of Canada fundraiser | RTO research to be featured at financial conference | APROfile: Wayne Chambers | APRO in search of the RTO Customer of the Year and Employee of the Year | Upcoming meetings | RTO in the news | Contact APRO

Be careful when choosing
your company's credit card provider
++With the increasing use of credit cards in the rent-to-own industry, dealers are trying to find the best rates and banks for such transactions. The dramatic increase of credit card use on the Internet has created an enormous market. But the increased use has also led to alleged abuse by credit card providers and banks, cashing in on their ability to charge merchants exorbitant interchange fees when processing credit card transactions.
++In a recent online forum on APRO’s Member E-communities, Bestway’s Steve Kruse offered some good advice: “The key is to know where your volume is and negotiate your rates on that volume. Saving 25 cents on a transaction you might do every now and then is not worth as much as saving 3 cents on transactions you do every day.”
++Kruse also warns about the companies that offer low percentage rates to reel you in but then add 25 cents per transaction after you're signed on as a customer.
++Merchants are increasingly frustrated by the exorbitant interchange fees. Some of the nation's largest merchant groups, such as the National Association of Convenience Stores, have filed a class-action lawsuit against all the major credit card providers, arguing that the U.S. has one of the highest interchange fees worldwide and that there is no need for fees on merchants to be so high. They also argue that without any controls, the credit card companies will continue to find ways to escalate merchant fees.
++In the meantime, rent-to-own dealers must be diligent in looking for hidden fees and charges that credit cards apply with every transaction. For example, if a rent-to-own customer uses a debit card instead of a credit card, it affects the dealer's interchange fee. After careful research, APRO member Larry Carrico recently changed his credit card provider, a move that will save his company substantially. Carrico and APRO are also exploring the possibility of finding a credit card company that would market directly to APRO members and thus help leverage the best rates for the entire membership. APRO will report on the progress of this program as it develops.
++Log on to APRO’s E-community and click on Rental Round Tables > “Reliable Credit Card Providers” to join the conversation or learn more about the issue.

Tennessee rental dealers meet at Opryland
++Under the skillful guidance of Tennessee Rental Dealers Association President Larry Goad, that state's rental dealers had another successful meeting June 8 and 9 at the Opryland Hotel in Nashville. Thirty-five dealers from the Volunteer state met last year in downtown Nashville and this year’s event at Opryland saw 55 dealers in attendance, nearly doubling attendance in one year—an extraordinary accomplishment considering that TRDA has been holding meetings for just the past two years.
++Dealers began their meeting with a vendor table-top exhibit on June 8. Exhibitors were delighted with the turn-out and a significant number of orders taken. After a banquet that evening, Goad outlined for attendees his goals for the association.
++On June 9, dealers revisited vendors and then attended a full day of seminars with some of the most notable speakers in the rent-to-own industry, including Terry Beville of Buddy’s Home Furnishings in Tampa, Florida; Mike Tissot of Countryside Rentals in Ohio; Sidney Burton of Hometown Ventures in Michigan; and APRO’s General Counsel Ed Winn III.
++According to Goad, this year’s meeting was a big success. “We nearly doubled the attendance from the last year,” says Goad, “and I expect for the Tennessee association to keep growing. It is a good group and they like to get together to talk about RTO store issues.”
++Goad also emphasized the value of the industry’s vendors who support the state associations’ shows. “Without the vendors’ sponsorships and participation, this meeting could not have happened,” says Goad. TRDA thanks Bushline Furniture Inc., High Touch and RentDirect Nationwide for sponsorships and exhibits, as well as to Almo Corp., Bryce Co., Fraenkel Co., Lynnray Financial Corp., RES Accessories, TRIB Group and Welton USA for exhibiting at the conference.

Rent-to-own academic research
to be presented at financial conference
++The Financial Management Association International (FMA) has invited a team of academics who have studied rent-to-own to its conference in Salt Lake City, Utah, in October. At the conference, Mike Anderson, Ray Jackson and Sanjiv Jaggia will present their academic research on the rent-to-own transaction. Anderson, Jackson and Jaggia are finance and economics professors who have been in the process of analyzing the econometrics of the rent-to-own transaction, customer and industry in the American economy. This is the first financial academic team to research rent-to-own and, as a consequence, it is generating notoriety in financial arenas.
++“It’s an honor to be invited [to the conference]," says Anderson, University of Massachusetts associate professor of finance. "You’re under a peer review of your research and they thought ours was good enough to be presented before the world’s financial academicians and practitioners.”
++Anderson, Jaggia and Jackson are currently in development of three additional academic research publications. They scour through thousands of RTO transactions to establish credible financial data for conclusive economic and financial discoveries. APRO associate member High Touch assists their research with anonymous store-level data.
++The Journal of Applied Business Research and the Journal of Consumer Affairs published the first two academic papers by these researchers. Both papers were circulated to the U.S. Congress to help further educate members and their staffs on the economic value of the no-obligation rent-to-own transaction.
++FMA was established in 1970 and has become the global leader in developing and disseminating knowledge about financial decision making. FMA holds three financial conferences each year. The October conference in Salt Lake City will host an estimated 1,500 financial experts from all parts of the globe.

Ohio set to launch its 2006
Midwest RTO Training Expo
++The Ohio Rental Dealers Association will hold its all-new 2006 Midwest RTO Training Expo, August 8 and 9 at the Concourse Hotel and Conference Center (at the Columbus Airport) in Columbus, Ohio. This year’s expo will focus on rent-to-own training—giving RTO owners, store managers and employees the knowledge they need to enhance their positions and increase profits at their stores.
++The expo will feature rent-to-own product training provided by more than 40 vendors expected to participate, offering valuable resources that will help dealers increase store rentals. The educational seminars led by industry experts will address the legal aspects of employment practices and the latest workers’ compensation issues. And don’t miss the bowling party on Tuesday evening, August 8, with a chance to win prizes, have fun, mingle with friends and make some new friends as well. The cost to attend this year’s expo is only $25 (including the bowling party). Click here to register for the 2006 Midwest RTO Training Expo.

Arena football provides Aaron’s
and rent-to-own future opportunities
++Aaron’s sponsorship of Arena Football League games has put that company's name in front of nearly 3 million weekly television viewers during the past season, culminating in Aaron’s recent sponsorship of Arena Bowl XX on June 11. Aaron’s sponsorship of this increasingly popular sport demonstrates key elements for recruiting new customers and broadening rent-to-own’s presence in the marketplace.
++Arena football draws a tremendous number of viewers between the ages of 18 and 34—more viewers per game than for the National Football League, Major League Baseball, the National Basketball Association or NASCAR. Arena football also rivals the NBA in the diversity of audience demographics and it claims to have a more loyal audience than NASCAR.
++Aaron’s sponsorship is broadcast on network television, the industry’s most prevalent image source. According to market research findings from the Trenholm Research Group, the majority of Americans generate their image of rent-to-own through television advertising. While arena football sponsorship is, strictly speaking, not television advertising, it is significant because Aaron’s is creating a top-of-mind awareness for its company.
++Among the advantages of Aaron's Arena Football League sponsorship, the company's logo banner is displayed at each game and Aaron's organized a cheerleading "Dream Team," comprised of the top cheerleaders throughout the league wearing a uniform featuring the Aaron's logo. Also, Aaron's mascot, Lucky Dog, was often in attendance at games, during fan days and at the Arena Bowl.
++Aaron’s marketing efforts also include touting its selection of brand names, new merchandise, competitive prices, variety of merchandise and automatic approval. These efforts help assuage many image concerns from which rent-to-own suffers, according to the potential customer survey results from the Trenholm Research Group study. Combining the television network broadcast to nearly 3 million viewers weekly with a progressive message has Aaron’s capitalizing on a potential market of new and future customers through the youthful and diverse audience arena football is attracting.

easyhome organizes Boys and Girls Club of Canada “Backpack Challenge” fundraiser
++easyhome, Canada’s largest rent-to-own company, will present its second annual "Backpack Challenge" throughout all 180 stores on July 14 and 15. The event focuses on preparing the children of the Boys and Girls Club of Canada to return to school with the necessary tools needed for a successful education. All easyhome stores will be promoting the "Backpack Challenge" to reach its goal of supplying 2,000 backpacks, fully stocked with school supplies, for the children.
++In 2005, the “Backpack Challenge” raised more than $53,000 and distributed over 1,500 backpacks and a check for $28,731 to Boys and Girls Clubs of Canada. Over all, easyhome raised more than $81,600 last year through its employee payroll-deduction program, "Backpack Challenge," community fundraisers and a company-sponsored Christmas fundraiser.
++If easyhome reaches its 2006 goal of $100,000 in fundraising and employee contributions, easyhome President and CEO David Ingram will contribute an additional $50,000 to the Boys and Girls Clubs of Canada.
++“I am more determined than ever to see us succeed [as a fundraising entity],” says Ingram. “This year, our achievements will allow us to purchase 2,000 backpacks, supplies and support after-school activities for families that struggle to send their kids to school with the tools they need to learn.”
++There are more than 100 Boys and Girls Clubs in Canada, which serve 21,000 young people in 600 community-based locations in 28 different languages. easyhome Ltd., with more than 180 locations, is the fourth largest rent-to-own company in North America.

You can go home again:
An APROfile of Wayne Chambers
++After 30 years away, High Touch’s Wayne Chambers, a former APRO president, has returned—to Kansas and to rent-to-own. Read his complete profile by clicking here to download a PDF of an article published in the June-July 2006 issue of Progressive Rentals magazine.

APRO is in search of the
RTO Customer of the Year and Employee of the Year
++Are you the rent-to-own industry's 2006 Employee of the Year or does one of your customers qualify as the industry's 2006 Customer of the Year? Now's the time to submit nominations for this year's competition. Click here for details on how to enter the RTO Customer of the Year and/or Employee of the Year contest. Winners will receive a free trip to Orlando, Florida, where each recipient and a guest will be honored during APRO's Convention and Buying Show, September 20-23. APRO is looking for customers or employees who go beyond the call of duty, who inspire, help or sacrifice for the betterment of their families and/or communities—just like the previous recipients listed here have done.

June 19–21
Missouri Rental Dealers Association Second Annual Heartland of America Regional Trade Show, Lodge of Four Seasons Resort, Lake Ozark, Missouri. For more information, contact Ken Steiner, 573/442-2963.
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June 22
Rent One 12th Annual Vendor Appreciation Golf Outing, Green Hills Golf Course, Mount Vernon, Illinois. For more information, contact Kris Lowe, 618/242-8448, ext. 218.
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July 5–9
ColorTyme 2006 National Meeting, Peabody Hotel, Memphis, Tennessee. For more information, contact Rhonda Davis, 972/403-4945.
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July 14–16
NAMM—The International Music Products Association Summer Session 2006, Austin Convention Center, Austin, Texas. For more information, contact NAMM's tradeshow coordinator, 760/438-8001
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July 21–22
American Rentals Trade Expo, Season's Hotel Conference Center, Nashville, Indiana. For more information, contact David Powell, 812/333-7496
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July 24–28
Las Vegas Market Summer Furniture Market, World Market Center and Pavilions and Las Vegas Convention Center, Las Vegas, Nevada. For more information, contact Dana Pretner
888/416-8600, ext. 3060