Rent-to-own News - Rent-to-own dealers discuss the industry's hottest issues at APRO's All-Industry Roundtable

More than 200 rental dealers representing both small, medium and large companies attended the new All-Industry Roundtable during the 2007 APRO Convention and Buying Show in Reno on September 26. Discussions centered on the most top-of-mind issues facing the rent-to-own businesses today in an open forum format. Lead by moderator and APRO board member Kevin Quinn of KLQ Enterprises, dba Quality Rentals, representatives from stores large and small sat in a horseshoe-shaped seating arrangement to discuss whether business was up or down, what types of advertising are or aren't working, whether the subprime lending debacle is helping or hurting business, how dealers felt about lifetime reinstatement fees and more.

New for the annual roundtable discussion this year was electronic keypad polling by attendees. For example, when Quinn would ask a multiple-choice question, attendees could keypad in their responses and see instantly what the results were. Here's a sampling of questions (and answers) asked:

• Should the federal government set guidelines on RTO pricing? (87 percent said no)
• How do you feel about lifetime reinstatement? (36 percent said they support lifetime reinstatement; 35 percent support current state laws on reinstatement fees; 17 percent said they support full reinstatement for up to one year or less)
• Does your company offer lifetime reinstatement? (54 percent no; 46 percent yes)
• Have your revenues increased or decreased in mature stores? (70 percent have seen an increase)
• Has your customer count increased or decreased in mature stores? (51 percent decreased; 40 percent have seen an increase)

Lively discussions ensued about exactly how to implement lifetime reinstatement, as well as whether accepting telephone and online payments has negatively impacted store traffic (it has). Here are a few more interesting conversations:

• Television advertising is becoming too expensive on the networks and doesn't generate great returns. However, demographic/neighborhood specific cable TV advertising is affordable and can really target niche markets.
• The high price of gasoline is hurting business. Customers are spending their money at the gas pump instead of renting multiples these days.
• Variable data cards appear to be an extremely effective direct mail marketing approach.
• The quality and performance of a store manager can make or break your business, no matter where your store is located.
• Some of the large chains stopped taking credit card payments over the phone to protect the security of its customers and to avoid potential identity theft lawsuits.
• The industry should take every precaution to combat bed bug infestation as the number of bed bug lawsuits are on the rise.

Finally, discussions ensued about if and when to sue customers as a collections tool and what the ramifications are if stores become too litigious; ways to reduce the high cost of bank fees for credit card and check processing; and whether helping customers build their credit is something the industry would be willing to do. Attendees left the session most likely more informed. But perhaps Gary Ferriman summed up the meeting nicely by saying, “While our customer count is down, our profits are up. What's wrong with that? As I see it, our cups are way more half full than empty.” Click here to view the photo gallery of the event.