NEWSLETTERS - London RTO company looks to U.S. for software, industry insight

British RTO company looks to U.S. for software, industry insight

No matter how good you are, there's always room for improvement.

APRO Legal Counsel Ed Winn III and Executive Director Bill Keese with UK visitors Hamish Paton and Leo McKee of BrightHouse.

That's the philosophy that guided leaders of the United Kingdom's largest rent-to-own company, BrightHouse, to meet with APRO officials Friday morning as part of their transatlantic mission to get a better understanding of rent-to-own in the U.S.

BrightHouse CEO Leo McKee and Business Developer Hamish Paton met with APRO Executive Director Bill Keese and Legal Counsel Ed Winn III to discuss rent-to-own software, public perception, staffing and contract issues that impact RTO dealers.

The visit topped off a week's worth of meetings and networking with top U.S. RTO company heads aimed at gaining a broader view of the industry to better meet market demands in England.

"We've come to learn from the best practitioners," McKee said, noting he and Paton had met with company heads from Easyhome, Rent-A-Center, Aarons and RSSS among others.

Formerly known as "Crazy George", BrightHouse came into being in 1996. McKee and Paton, along with a team of gung-ho executives came on board in 2005, infusing the then flailing company with new life, increasing store count from 135 to 167 and making BrightHouse the $300 million per year company it is today.

In just over two years, Brighthouse's customer base bloomed from 94,000 to 132,000.

McKee credits attention to retail price as one of many factors contributing to the success of the company.

"In the UK, we focus on retail price and we must keep it competitive," McKee said. "If you address retail price, it is very powerful, and it's a proactive way to take the criticism away from the industry."

Because almost 70 percent of BrightHouse customers do not have access to a car, they pay primarily on weekly contracts. High foot traffic brings customers near stores two to three times per week, making such payment options convenient, McKee said.

BrightHouse stores are smaller that their typical U.S. counterparts, averaging 1,600 square feet, mostly located in high traffic urban areas. And the company makes the most use of that space. McKee describes his store's homey room settings as on par with the typical Easyhome design.

"Our philosophy is the product is the hero," McKee said. "We present a clean, well lit, retail like environment. We want the madam of the house to browse and buy."

BrightHouse Business Developer Hamish Paton with CEO Leo McKee.

First and foremost on BrightHouse's to do list is to enlist a U.S. software company to design a system to run its in-store RTO operations. McKee and Paton are currently discussing system demands with top RTO software providers.

BrightHouse plans to open 30 new stores this year and eventually expand into Eastern Europe.

Like U.S. RTO dealers, BrightHouse has taken steps to improve the public perception of the industry through its commitment to the community, customer service and through its marketing of the many benefits rent-to-own offers credit strapped customers, especially as consumer lending becomes increasingly tight.

"We have changed or philosophy about how we deal with the media," Paton said. "We now can deliver a very positive message about what we do."

No credit checks, flexible payment plans and reinstatement options, along with the fact that customers walk away debt free if they are unable to make payments, are just a few of the benefits BrightHouse uses to grow its customer base.

"We are customer obsessed," McKee said.

mevans@rtohq.org