Progressive Rentals August-September 2006

I Read the News Today, Oh Boy by Richard May
Political Insurance by Richard May
Tattoo Blues by Ed Winn III
Are You Neglecting Your Property Assets? by Danny Wilbanks
The Bolin Basics by Kristen Card

I Read the News Today, Oh Boy
by Richard May

Rent-to-own’s handling of media coverage and reporting of the industry has been one of the most challenging, pivotal and detrimental issues in its history. There have been periods where negative news headlines such as “$5,000 VCR,” “couch payments” and “RTO = Ripping Them Off” resulted in congressional action, national media scrutiny and a crippling effect on the industry’s public policy and image. A series of recent negative newspaper articles throughout the country and, in particular, in the Buffalo News remind rent-to-own dealers that the media is a significant factor in the industry’s marketing, growth and— more important—in the legislative and legal arenas. The Buffalo News articles have prompted Buffalo, New York, city leaders to hold public hearings this summer to address companies that “target the poor,” including rent-to-own. A recent report published by the Brookings Institution declares that public leaders can help the poor “by implementing stricter caps on fees and interest charged” through rent-to-own state laws.

The articles have helped fuel criticism and potential advocacy against rent-to-own. New York’s gubernatorial front-runner has stated that, if elected, he will use his power to address more stringent rent-to-own legislation. As with every public aspect that touches rent-to-own, industry leaders are reminded that if we, as participants in this industry, do not control our public message and direction ourselves, outside entities will control the message instead. Again and again, the industry has found itself battling to uphold its reputation during legislative efforts, legal battles and public relations crises—and nowhere is this more damaging than in the media. Media relations is an ongoing effort that must be addressed not only by APRO, but by individual dealers as well.

In the past, media relations for the individual dealer has meant damage control, and in cases such as the recent charges levied in the Buffalo News, damage control may be the necessary tactic for that area’s RTO dealers. In the larger sense, however, rent-toown companies should consider a more contemporary strategy: proactive media relations. Research on potential rent-to-own customers consistently shows that the more familiarity potential customers have with RTO, the more likely they will become customers. That finding, in conjunction with analysis of the industry’s more favorable media coverage over the past year, unveils a better climate for proactive media relations for RTO dealers.

Rent-to- own critics in the media are still out there and dealers need to be ever watchful. But, the overall trend suggests that a more fine-tuned and proactive media strategy is in order. During the past year, there were 293 news articles in which rent-to-own was featured or was a component to a news item. APRO compiled these articles, which were distributed through Internet services such as Google News and Yahoo, and categorized the news into four categories: general, negative, positive and business. Analysis of the types of rent-to-own news circulating across the country can help APRO members review their own media strategies, but more important, demonstrates how best to utilize the media for their company’s promotions.

Business news: Your business IS news The majority of rent-to-own news items featured in local, state and national news fall into the business news category—items reported in the business sections of newspapers and online journals. Therefore, it is important to understand the necessity of a business media strategy to enhance marketing rent-to-own businesses as consisting of successful, independent dealers. While many RTO dealers were featured throughout the year in business sections, 25 percent of the business articles covered one of the three rent-to-own public companies and their public stock reports and analysis. Equal to the RTO public company business news coverage was independent business news coverage regarding promotions and sponsorships by independent rent-to-own companies. Most business sections of newspapers have a policy of free listings regarding store openings, closings or location changes.

Many small newspapers will consider a store opening or moving as a news article. Also, many newspapers list or cover a business’ anniversary, especially as the company grows and thrives in its community. Rental companies that do not celebrate store anniversaries with events are missing a positive public relations opportunity. Stores that do celebrate anniversary events should promote them to the business journals and business sections of local newspapers and media outlets. Negative news: Communicating the value of rent-to-own is the key to overcoming negative stigma Negative news coverage of rent-to-own is nearly twice as prevalent as positive coverage, according to the past year’s compilation of coverage. The three predominant negative news categories were: articles reporting on how rent-to-own is a bad financial choice for consumers, articles critical of positive rent-to-own legislation and news items featuring specific rent-to-own stores. While reports show that negative media coverage does not significantly affect customers and potential customers’ response to rent-to-own, the most significant effect is demonstrated through governmental investigations, oversight and regulations that such news generates. A recent negative media campaign that affected public policy involved 21 news articles addressing the Wisconsin state rent-to-own legislation, 17 of which were specifically negative to the industry and legislation.

The articles featured critics of rent-to-own and, most damaging, headlines urging Wisconsin Governor Jim Doyle to veto the monumental rent-to-own legislation that passed the Wisconsin state legislature. The articles and editorials critical of rent-to-own obviously had an impact— Governor Doyle vetoed the legislation. Fifty-eight percent of the negative news focused on rent-to-own’s pricing, which underscores the industry’s continuing need to educate the public and media on the value of rent-to-own in the marketplace. Five percent of negative news regarded a consumer complaint that had risen to such a level that it was considered newsworthy. Negative news coverage of bad treatment or consumer complaints are dangerous as these articles have pushed rent-to-own companies into the courts and forced legislation upon the rent-to-own industry many times. “While the number is significantly better than during the years of Public Interest Research Group press conferences, a fourth of total news coverage being negative is still a figure that is a concern to every rent-to-own business owner and needs to be addressed,” says APRO Executive Director Bill Keese.

Positive news: Communicating the value of rent-to-own is the key to recruiting new customers While positive news reflects only 13 percent of total rentto- own news coverage, rent-to-own dealers need to understand powerful and desired results that positive stories can generate and incorporate similar news for their companies’ marketing campaigns. Charitable donations and the “big game” are two of the most important reasons the media reported favorably on rent-to-own over the past year. Nearly half of the positive articles featured rent-to-own dealers contributing to, or participating in, local charities. Many of the charity articles focused on hurricane relief in which rent-to-own dealers participated. Another significant percentage of positive stories focused on the renting flexibility of name-brand, big-screen televisions for the Super Bowl or the college bowl games. If your company participates in a charity, always make certain that the charity recognizes your company in its press releases and promotions. In addition, consider alerting the media yourself about your company’s participation in charitable causes. Research conducted by APRO reveals that 42 percent of your potential customers would feel more comfortable about rent-to-own if they knew the company was involved in a local charity. Be sure to factor in your charitable donations as a part of your media and marketing campaigns. If you are uncomfortable tooting your own horn, then at least be sure the charity includes you in its press and promotions.

Less than 1 percent of all articles focused on the positive financial aspects of rent-to-own—e.g. rent-to-own is the most flexible transaction for consumers and it helps consumers build a credit history through regular payments. While that number is embarrassingly low, it does reflect potential opportunities and a fresh angle when approaching business reporters. Reporters are constantly trying to find the new angle— and the flexibility of rent-to-own has historically proven to be a newsworthy angle. In 1997, when APRO launched its “Take a New Look at Rent-to-Own” advertising and media campaign, several major publications wrote positive feature articles on the flexibility of rent-to-own and renting. Those types of articles have long since gone and a new generation of business reporters are now primed for the new angle of rent-to-own. If you do decide to approach a local business reporter, refer him/her to the Trenholm Market Research Report that demonstrates how powerful communicating rent-to-own’s value and flexibility is in changing the public’s mind. Reporters need statistical context to back up their angle and the Trenholm report is just a tool. The report is available to APRO members by calling 800/204-2776 or e-mailing Richard May at rmay@aprovision.org.

Political Insurance
by Richard May

Every business pays insurance, be it health, casualty, life, property— the list goes on. But, as a small-business owner, are you also investing in your political insurance program? It’s the one that may save your business as it has in the past when various legislative bodies have attempted to outlaw rent-to-own. In fact, when the mayor of a major city such as Buffalo, along with New York’s attorney general and leading gubernatorial candidate, are currently calling for public hearings and proposing legal and legislative action for rent-to-own operators in their city and state, political insurance is just what is needed. Elections are your political insurance. Elections are the one time when politicians need you—so take full advantage by helping out in elections and becoming more aware of the candidates and how their platforms may help or hinder your business.

The mid-term elections this November are significant for rent-to-own dealers in two arenas. First, as small-business dealers, most RTO owners support Republican candidates— and the current election analysis does not bode well for Republicans. The elections are still a ways off, but here’s what some of the polls and experts are predicting: 33 U.S. Senate seats and all U.S. House seats are up for grabs in the 2006 elections. According to a recent USA Today poll, Americans would elect 16 more Democrats than Republicans this fall, which would switch control in the House and potentially the Senate as well. According to the polls, there are five hotly contested U.S. Senate seats: Montana, Ohio, New Jersey, Pennsylvania and Rhode Island. Four of those are currently held by Republicans. In the U.S. House, the National Journal reports that 40 of the 50 most vulnerable U.S. House seats are held by Republicans. What can I do about it?

You only have one vote in November, but you have more than one opportunity to help your desired candidates toward a victory. How can you make a difference? Well, consider your inventory, for starters. Furniture, televisions and refrigerators—every campaign office needs them to create a comfortable and effective campaign headquarters for the victory party or as a comfortable environment in which to commiserate should there be no victory. Historically, rent-to-own has been a tremendous ally and much-needed asset in the election process. The home furnishings that rent-to-own provides are what every campaign office needs. Former APRO President Gary McDougal has used elections to the fullest, furnishing campaign offices for both Republican and Democratic candidates, thereby demonstrating support for the winner regardless of the outcome. Another former APRO President, Lyn Leach, first ensures that the candidate supports and understands the rent-to-own industry, then uses his stores and furnishings to help the candidates.

Elections offer small businesses, corporations, associations and individuals an ideal opportunity to generate leverage with elected officials. So use the opportunity wisely. You have more to offer than you realize Here’s how to best accommodate—and thus take advantage of—the upcoming elections: Who needs your help? Contact the state or local Republican and/or Democratic campaign offices to find out the election dynamics of the races of most concern to you. Tell them you want to help their candidates during the campaign and are wondering who best to help. You’ll likely get an immediate reply, as the contested races are where the political party’s energy and money are spent. You also want to help politicians who need help. If you furnish Senator Kay Bailey Hutchison’s (R-Texas) campaign offices, she may yawn when thanking you, as she is leading her Senate race in the polls at nearly 70 percent and, frankly, she’s got all the help she needs at this time.

But, if you offer your services to re-elect Senator Rick Santorum (R-Pennsylvania), you will be helping a senator potentially save his job for six more years and he and his campaign officials will be very grateful. So, choose your elections wisely. Start at the beginning . An ideal strategy is to find open seats—be they state representatives or U.S. senators—and contact those campaign offices with an offer to furnish their headquarters. If you can help a politician when he/she is at the beginning of a legislative career and is still unknown, you will create leverage and political insurance that can be very powerful if the candidate continues to win and move up the political ladder. APRO founding member Jim Brown learned that valuable lesson from his late partner, George Parsons, when Parsons helped out state legislator Sam Brownback in his early years.

As Brownback rose to prominence, it was no surprise to see Parsons stroll through the U.S. senator’s offices and receive welcome arms and support. Offer your products for election night. When calling candidates’ offices, offer to supply televisions, furniture and the like for election-night parties where the candidates gather to watch the returns. A big-screen television before a group of candidates on election night can give you a big bang for the buck. And the state Republican and Democratic candidates tend to assemble in one spot for the election-night coverage, so you may be able to cover much ground through such an event. One drawback to this strategy, though, is that if you don’t attend the election-night gathering for a higher profile and a chance to visit directly with the candidates you support, your political insurance doesn’t cover you as well.

Your show of support by supplying a big-screen television will be recognized by the Republican or Democratic party instead of directly by your candidates. In other words, it’s your leverage with specific politicians that you may need down the road when those politicians are considering RTO legislation and not simply the party’s gratitude for your election-night contributions. When it comes down to it, you’ll profit more from the help of elected officials than you will from political parties. Volunteer and Contribute. Candidates need money to promote their message and visibility. Attend a local fundraiser in the name of small business and rent-to-own. If you like a candidate, sponsor or host a fundraiser. Contributing money and/or time to a candidate’s race is one of the most advantageous opportunities to create a real relationship with your elected official.

Tattoo Blues
by Ed Winn III

The rising popularity of tattoos and other body modifications can lead to friction in the workplace. As an employer, what are your rights in limiting those indelibly stamped? The culture and employment policies are increasingly in conflict. The personal appearance of employees is of considerable concern to both employers and employees. At some point, employers, including rental dealers, have to assess their attitudes toward employees with tattoos, piercings or other voluntary body modifications. According to the Academy of Dermatology, nearly 25 percent of Americans between the ages of 18 and 50 and more than one-third of all 18- to 29-year-olds have a tattoo—and the percentage is on the rise.

Rental dealers may be more focused on the experience, honesty and work ethic than the appearance of prospective rental employees. Many might gladly hire an account manager with Maori facial tattoos á la Mike Tyson if he or she can deliver a refrigerator to a third-floor walk-up apartment single-handedly. But for dealers who do care about the appearance of the store’s work force, what, exactly, are the rules? There are no state or federal statutes guaranteeing the right to sport tattoos in the workplace. In fact, South Carolina still has a criminal statute on the books outlawing the giving of tattoos in the state. The District of Columbia has a municipal ordinance prohibiting discrimination based on “physical appearance” and the city of Santa Clara, California, prohibits discrimination based on “physical characteristics.”

Courts, however, have generally allowed employers to dictate the dress and appearance of employees despite various constitutional challenges brought by employees who did not fit the employer’s mold. As a general proposition, employers can have policies concerning dress codes, hair length, the wearing of jewelry for health and safety reasons, to promote a productive work environment and project a positive, professional image to customers and the public. Employees have made discrimination claims based on the disparate treatment of males and females. Men have sued for not being allowed to wear earrings when the company policy allowed earrings for women.

The Iowa Supreme Court in just such a case decided that the earring rule had a minimum impact on employment and did not rise to the level of sex-based discrimination. Several federal courts around the country have agreed. Those courts noted that most discrimination cases have focused on certain immutable characteristics of the employee, like race, sex and national origin—factors over which the employee has no control—and not on mutable characteristics, that is, aspects of a person that can and do change over time. However, in a 2001 Massachusetts case, a woman sued her company for sex discrimination and won when the company told her that she had to wear long sleeves to cover the hearts tattooed on her arms while a male in the company was not required to cover his Navy tattoos on his arms. The company explained that the reason for the rule was that tattoos on a woman “symbolized that she was either a prostitute, on drugs or from a broken home.” The man’s tattoos identified him as a hero.

The court ruled that the company’s policy constituted an unlawful basis for treating men and women differently. Aggrieved employees have argued that their tattoos are protected under the First Amendment’s guarantee of freedom of expression, but courts have consistently ruled that tattoos are not protected speech under the First Amendment. This is so even when the tattoo bears a political message. In an Ohio case, a nurse bore the tattoo “HIV Positive” and wanted to display it. The hospital said no and the nurse sued. The court ruled in favor of the hospital holding that the hospital’s interest in not upsetting patients outweighed the employee’s interest in showing the tattoo. Courts have likewise consistently ruled that policies forbidding tattoos, body piercings and the like altogether or requiring them to be hidden at work do not violate an employee’s freedom of expression or privacy rights.

Lately, and perhaps more promising for decorated employees, are claims brought by employees on freedom- of-religion grounds. An interesting example of such a claim comes from a 2004 Massachusetts case, Cloutier v. Costco Inc. When she was originally hired by Costco, Cloutier had 11 ear piercings and four tattoos on her upper arms, which she covered with a shirt. After she had worked there for a while, Cloutier joined the Church of Body Modification, which was founded in 1999 (www.uscobm.com). Church members, who number about 1,000, believe in the practice of body modification and manipulation, piercing, tattooing, branding and flesh hook suspension as means of “strengthening the bond between mind, body and soul.” Shortly after joining this “church,” Cloutier came to work with several eyebrow rings. The Costco dress code provided that employees cannot have any visible jewelry on the face or tongue.

Costco offered to let Cloutier cover the rings with a bandage during work or to replace the rings with clear plastic retainers so that the holes would not close up. Cloutier refused these offers, insisting that her religion required her piercings to be on display at all times. Costco fired her and she sued the company for $2 million, arguing that Costco had discriminated against her on account of her religion. Determining what is or what is not a religion is never an easy task and the United States First Circuit Court of Appeals admitted as much: Determining whether a belief is religious is more often than not a difficult and delicate task, one to which courts are ill-suited. Fortunately…there is no need for us to delve into this thorny question in the present case. Even assuming, for argument’s sake, that Cloutier established a prima facie [evidence that is sufficient, if not rebutted, to prove a particular proposition or fact] case, the facts here do not support a finding of impermissible religious discrimination. It was important to the court that Costco had been willing to accommodate Cloutier’s “religious” practices.

The court pointed to Title VII in the U.S. Code and noted that an employer need not waive dress codes as religious accommodation when another accommodation is available that balances religious observance with an employer’s legitimate business interests. Costco argued that it had a legitimate business interest in having its employees present a “neat, clean and professional” image and in catering to its customers’ preferences. This might have been a harder case for the court had the employee not been so adamant in her refusal to cooperate with the company. Advice for employers for whom this issue is one of concern is to develop a policy that fits the company’s desired image. Offer reasons for the rules so that employees can understand the company’s point to view. Develop the rules so that they focus on reasons like personal hygiene, safety, professional appearance or the company’s image. Finally, be sure to apply the policy consistently to all employees.

As the desire to conform in Western culture wanes and the society continues to see the rise of personal expression in all of its occasionally aberrant forms, employers can expect to see candidates with unique and curious habits, modes of dress and lifestyles that employers do not want in their companies and employees do not want to leave at home. So far, employers can dictate reasonable rules for employees’ appearance, but the attacks are mounting, the arguments are getting increasingly creative and they will certainly continue into the future.

Are You Neglecting Your Property Assets?
by Danny Wilbanks

Great companies always provide excellent service to their customers and take exceptional care of their employees— that is what makes them great. But more often than not, great companies excel in all facets of their business, no matter how big or small. Every detail of their business is important to them. All businesses, whether they are great or mediocre, focus on critical assets such as cash, inventory and accounts receivable—these are the assets that allow the company to make payroll. Managing property or fixed-asset inventories is often an afterthought, falling way down on the priority list. Why is it important to manage your property and equipment assets? Over time, mismanagement of these assets goes straight to your bottom line.

For example, customers or employees may walk off with a laptop computer, trucks that are not maintained break down during critical deliveries or pickups, delivery personnel buy tools and dollies over and over and over…we have all seen the neglect. My experience is likely similar to many other dealers. When I started my last business, I used an Excel spreadsheet once a year to keep track of the fixed assets of the business. Sound familiar? As we moved from the first five stores to ultimately 21 stores, my spreadsheet became unwieldy and inefficient. There are many hidden costs associated with poor records. One significant cost is the unnecessary and expensive hours paid to your tax accountant to prepare your annual tax returns.

Another reality about fixed assets is that they are not truly fixed. Many times they are transferred from one location to another. Sometimes they “walk out of your stores” with aggressive employees or customers. Try this simple experiment to determine if your experience is similar to mine. Go into your store with your spreadsheet—assuming you have one. Select 10 items from the list and find them in your showroom. Then select 10 items in your showroom and find them on your list. If your experience is as I expect, it will be clear to you that a little attention to these assets can save you money. Maintaining good property records is important in several ways and assists you in:

• Tracking details, such as cost and age of significant assets;
• Accelerated deductions may be available for federal, state and franchise tax purposes; S
• ome lenders use fixed assets as collateral for their loans;
• Property insurance costs are a function of the underlying property assets; and
• Property taxes are based on the assets on hand as of January 1.

An old joke points out another reason for managing these assets: Three applicants for one job were being interviewed— an Aggie, an engineer and an accountant. The employer asked each applicant the question, “What is the sum of 1 + 1 ?” The Aggie said “3,” the engineer said “2.000” and the accountant said, “What do you want it to be?” As the joke points out, when it comes to valuing fixed assets, one must consider the purpose. For tax purposes, proper records allow you to report the highest deductible value. For property and casualty insurance purposes, you can save significant amounts by ensuring that you do not insure improper values, or that you do not duplicate some coverage. Some policies provide blanket coverage for computer hardware and software, eliminating the need for separate coverage for these items.

Other policies may provide separate and specific coverage for signage and customer property in your store. Without good records, the dealer may purchase insurance on these items when they are already covered. Good records allow your insurance agent to scrutinize your assets and to report the correct values to the carrier. Similarly, for property tax purposes, your objective is to report the lowest legitimate values to the authorities. There are many opportunities to minimize property tax values with the correct records. All too often, dealers simply turn in the values from their incorrect and unwieldy spreadsheets. It does not have to be this way. There are many inexpensive, PC-based software programs available today that make managing fixed assets simple. One product I discovered about the time we reached 10 stores is Fixed Asset Keeper.

It is simple to use and tracks values for financial reporting purposes and for federal, state and AMT purposes. It has excellent reporting features and automatically provides all necessary year-end reports for your accountants, insurance agent and property tax purposes. This is not the only great fixed-asset software available, but it is a very efficient piece of software. With the abundance of good software available and their ease of use, there is really no longer an excuse for mismanaging your fixed asset inventory.

The Bolin Basics
by Kristen Card

After years of dealing with the complexities of rent-to-own’s big guns, Chris Bolin keeps it simple, on his own terms. For Bolin, owner and president of Bolin Rental- Purchase in Clarksville, Tennessee, his success boils down to one simple truth: “I know people,” Bolin says. “I know how to talk to people, how to show respect for people. I got it from my dad and my grandfather and it’s taken me a long way in life.” Bolin is all about boiling it down. Born and raised in Clarksville—also home to the creator of the present-day supermarket concept and the inventor of the corn-sheller—the 42-year-old entrepreneur is a man who believes in the basics: hard work, good relationships and grit. In whatever direction the conversation begins, it seems to return to these core themes again and again. And why not?

They’ve served, and continue to serve, this native Tennessean well as he climbs the ladder of rent-to-own success, rung by unpretentious rung. Bolin doesn’t spend a lot of time delving into the details of his childhood and upbringing, so it’s understood that when he does make mention of some event or person specifically, it must hold significance. Bolin’s quick to note that his parents, William and Patricia, were and are wonderful, and even quicker to mention the immense influence his maternal grandfather, John Powell Jr., had on him. “He was a life-long, over-the-road truck driver,” says Bolin. “And he had a wood business on the side. When he was in from the road, we’d go out and cut firewood for people to burn in their fireplaces and wood stoves. Boy, he kept me busy as a kid and that really stuck with me. That’s where I got a lot of my work ethic from.”

Powell and Bolin clearly shared a special cross-generational appreciation of one another. When Bolin expressed a liking for motorcycles, his grandfather signed for him to get his first motorcycle at the age of 16—which led to his first job, at Buddy Appleton’s Harley-Davidson dealership. Bolin also had a love for law enforcement and about five years after getting that bike, he earned his way onto the Clarksville Police Department. Bolin showed plenty of promise as an officer and at 25 was one of the department’s youngest members to be promoted to sergeant. With the 101st Airborne Division located in nearby Fort Campbell, Kentucky, Bolin found his first experience as a supervisor a little intimidating. “It was a unique experience being a supervisor for officers who were either retired or had done military service. Many of them had seen combat duty,” Bolin recalls. “It really gave me a distinctive perspective on managing people.” With seven years on the force under his belt, Bolin says he left the CPD under “unfortunate circumstances,” again, not providing much detail, except to relate it to the next phase of his life. “I just sat down and thought to myself, ‘I can either file bankruptcy and sit here in misery,’” says Bolin, “‘or I can get out there and find a job.’” Little did the dejected young man know he was about to discover not just a job, but a whole new career.

Bolin’s first job as a civilian came as an account representative for Alrenco. Ambitious as ever, Bolin was promoted within only three months to assistant manager. In another three months he was dubbed store manager and, by his own account, became one of Alrenco’s top managers. Bolin was considering becoming a multi-unit manager when he accepted an offer from his former boss, Mike Foley, to work in Chicago for a Michigan-based ColorTyme franchise. Bolin moved on up to the Windy City to run five stores—and learned some hard lessons in rent-to-own. “If you’re very naïve, boy, that place will wake you up,” Bolin says. “What a great, dynamic city. It’s great, but it’s a very, very competitive, tough market there. Fixed costs are high, labor costs are high and it’s just plain hard to find good help. “When I got there, the stores were in terrible condition, with no bench,” he continues. “So I had to hire, train and develop people and, at the same time, reconcile inventories and get managers to practice the policies and procedures of the company. Boy, was it a challenge. But it made me a much better supervisor, a much more dynamic leader, for sure. “I had all kinds of experiences and very little close supervision, so I had to make a lot of decisions on my own,” Bolin says. “Some of them were wrong, but a lot of them were right. We really improved that operation there a great deal.”

He had been in Chicago less than two years when Bolin got a call from Alrenco Chief Operating Officer Bud Holladay, wanting him to return at Alrenco. “He said if I was happy, then that was fine,” says Bolin, “that he’d just call me again next winter.” But Bolin had already had his fill of the big city and definitely didn’t need an engraved invitation to escape another bitter Chicago winter. He returned to Alrenco as a multi-store manager, working from a Nashville base. Bolin rode the wave as Alrenco went public, merged with Home Choice, which then merged with RentWay. “I changed companies three times in six years, but kept the same job,” says Bolin. Despite supervising as many as 13 stores at once and working in six different states, Bolin just couldn’t seem to get that elusive next promotion. So in 2000, when Bestway Rent-To-Own made him an offer to be a regional manager—with the potential of becoming a vice president for the company—Bolin accepted and went to work overseeing 10 stores in Middle Tennessee. The bottom unexpectedly fell out of that deal when structural changes eliminated the promise of promotion for Bolin. He briefly returned to RentWay to run eight stores in Lexington, Kentucky. By that time, though, he was already thinking ahead. “I didn’t see myself being promoted by the current RentWay bosses, so I thought, ‘Maybe I should do something for myself,’” he says. “I knew how to select sites, negotiate leases, set up software, control expenses, buy product and advertise effectively, so I figured, ‘Why not?’”

So Bolin came full circle, going home to Clarksville to open up his new store, named, simply, Bolin Rental-Purchase. It was February 2004 and Bolin says he hasn’t regretted a moment since. “Boy, what a home run,” says Bolin. “It’s been great. I got so much upfront help and support from owners and operators like Brownie Calvin, Bill Kelly, Eric Marlin and Jeff White. The only real concern I’ve had was back between about month six and month 10—I still don’t know how all the checks cleared, all the invoices got paid on time and the store stayed full of inventory. It was just a miracle that all that happened, because our cash flow was just virtually nothing.” However it happened, it doesn’t seem likely to need repeating. Today, Bolin Rental-Purchase has a healthy cash flow with minimal advertising and myriad referrals. The company still consists of only the flagship store with four full-time employees renting computers, electronics, appliances and furniture. Bolin says that while he plans to expand his business, he wants to pay off debt first. Meanwhile, Bolin claims the bulk of his business success to date can be tied to a single underlying and recurring concept: strong, positive relationships—with colleagues, employees and customers. “Our showroom looks and feels crisp and clean, it has a good feel about it, and our product looks good, feels good, is priced reasonably,” says Bolin. “But really, it’s about the people.

Our employees have a terrific attitude and we just take care of our customers. We just love our customers. My employees know if you don’t love our customers, then you just can’t work here. I make sure my employees treat my customers the way I want to be treated when I’m standing on the other side of the counter.” Bolin’s customer-is-king philosophy is clearly working. Within the first half of the year, Bolin Rental-Purchase had more than 200 rental agreements pay out, while continuing to increase rental revenue. But while customer relationships are the company’s top priority, Bolin understands it takes happy employees to make happy customers. “One of the things I knew would help me build a great organization was taking care of my employees,” Bolin says. “I pay very competitively, I offer health and dental plans—which the company pays half of—I pay for life insurance, they receive holiday and vacation pay.

Trying to treat people right and give them a job with perceived value has helped me retain good people who treat our customers really well.” Bolin says his approach to people is somewhat instinctive, but was naturally shaped by his family and raising, and has been dramatically refined by many mentors during his dual careers—people like Alrenco’s Bud Holladay. “Bud was really tough,” says Bolin. “But if you did the right thing, if you worked smart, focused on your job and did what you were supposed to do, then he made sure you weren’t overlooked. He was very inspirational to me. “I’ve made a lot of relationships in this industry,” Bolin continues, “And a lot of those people I still go to today for advice, information, encouragement. I’ve had some relationships for five, 10 years or more, and it’s still an excellent exchange. As long as you’re honest with people, shoot straight and treat people like you want to be treated, generally, you’re going to do okay.” Bolin says one of the most valuable pieces of wisdom he has gleaned from industry cohorts is to find other people like himself and teach them everything he knows. “I think too many times, managers are very reluctant to share information with other people because they’re insecure, and that, I think, is a fatal flaw,” says Bolin. “If you don’t try to find people as sharp or sharper than you are and show them everything, then you’re failing at your job and you’re failing at developing that other person.

Especially in larger companies, you see managers keep their cards very close to the vest, because that information is their special thing, their security. But they’re really hurting only themselves—the person they’re supposedly training, yes, but ultimately, themselves. When you share information, a whole new dynamic opens up and you’re able to accomplish twice the work in the same time, as well as motivate people and develop careers.” Bolin believes this type of information-sharing is essential to success; he also believes it’s the single greatest value in industry trade organizations. A member of the Association of Progressive Rental Organizations since the day his doors opened and vice president of the slowly-andsteadily- blooming Tennessee Rental Dealers Association, Bolin is continually awed by the overwhelming knowledge among these groups’ members and their utter openness to impart it all. “Wow!” he exclaims. “This industry is so different from so many other industries in that owners and managers and vice presidents will tell you all sorts of information and share it with you freely. That doesn’t happen much in other businesses. “Every time I go to an association conference, someone comes up to me and says, ‘I didn’t know this,’ or ‘I didn’t realize that and I’m really glad to have gotten this information today,’” Bolin says. “There’s a ton of information you’ve got to have to run your business and it’s freely available at these member events. It’s really good; I think it really makes rent-to-own unique and dynamic.”

Bolin, inspired, is happy to share his own nuggets of advice with would-be rent-to-own entrepreneurs, gleaned from that iffy premier year of his nowflourishing store. “Don’t plan on paying yourself much money, at least for that first year or so,” he counsels. “Plan on working sun up to sundown, six or seven days a week. Plan on that being your only focus. And if you’re married or have children, make sure your family understands and supports what you’re doing.” Luckily, Bolin’s wife, Zulima—a native of Medellin, Colombia, whom Bolin met via the Internet—understood and supported the intensity of both Bolin’s dream and the demands associated with launching a new business. “I think back now on some of the stress and pressure— even though it was a good sort of pressure, I was doing something really good for myself,” says Bolin, “and I realize, if I’d had a wife who didn’t get it, or was upset or angry whenever I was gone all day and half the night, or who didn’t come into the store sometimes and bring me lunch or other things like that, boy…then that would have been a super-tough time for us. Thinking back at it now, though, this is probably the single best decision I’ve ever made in my life.” The couple have been married for more than four years. Today, with a little more flexibility in Bolin’s work schedule, he and Zulima enjoy gardening together and frequent trips to Colombia. Bolin also searches for opportunities to scuba dive and water ski whenever possible, and retains his love of motorcycles.

Hard work, good relationships, grit. Elements that seem so simple, so basic, yet seem to cover so much ground in Chris Bolin’s life and success. While the first two are evident to those around Bolin from day to day, the third—the grit, the determination, the tenacity—might escape those unfamiliar with the continual pullings of the proverbial rug from beneath him. But it isn’t lost on Bolin. “You’ve got to persevere,” Bolin says. “There have been lots of obstacles in my life and if I would have just sat down and given up, then nothing good would have happened. Instead, I found ways to go around and instead of feeling sorry for myself, I sought something new and different, something I could be good at and I can try to make my life better and make the lives of those around me better, too.”