Rent-to-Own

Millennial marketing 101: ‘Convenience is king’

A recent study of underbanked Millennials – 18-34 year-olds who utilize non-traditional financial services such as prepaid debit cards or RTO  – challenges the notion of alternative financial service users as exclusively low-income consumers forced to turn to alternative products as a last resort.

The survey by Think Finance — a developer of next generation financial products for the underbanked — found that underbanked Millennials with mid to  high level incomes use alternative financial services at rates similar to, and in some cases higher than, their lower-income peers.

The study, which surveyed 640 Millennials who have used some type of alternative financial services product within the last year and earn less than $75,000 in annual income, also found that the majority were satisfied with the experience and consider the services an important financial tool.

The report found around 15 percent of respondents making less than $25,000 and 17 percent of those who earn $50-$75,000 reported using rent-to-own stores.

"These findings really highlight the need for innovation,"  said Think Finance CEO Ken Rees. "Younger Americans are not being well-served by traditional financial products be it checking accounts or credit cards. Alternative financial products are now part of the mainstream so we need to continue working to develop better, more responsible products which is what we are doing at Think Finance."

Think Finance in 2011 introduced Presta, an online lease-purchase resource for consumer electronics and computers. The company has 11 years of online experience serving underbanked consumers. Since 2001 the company has served more than 1 million customers providing more than $3 billion in service products.

The survey found that Millennials used several alternative financial products at similar rates regardless of income level.

Products and services used at similar rates by Millennials include:

    •    Prepaid debit cards – 51 percent of those making less than $25,000 in annual income reported using prepaid debit cards within the last year. The percentage was the same for those who earned $50,000-$74,999.

    •    Check cashing services – 34 percent of respondents who earn less than $25,000 reported using check cashing services, while almost as many in the $50,000 – $74,999 range (29 percent) turned to check cashers.

    •    Rent-to-own stores – 15 percent of respondents making less than $25,000 and 17 percent of those who earn $50,000-$74,999 reported using rent-to-own stores.

    •    Overdraft protection – 58 percent of respondents making $50,000-$74,999 reported using overdraft protection compared with 31 percent making less than $25,000.

    •    Bank direct deposit advance – 37 percent of respondents who earn $50,000-$74,999 reported using bank direct deposit advance compared with 22 percent of respondents who earn less than $25,000.

    •    Money transfer service – 39 percent of respondents who earn $50,000-$74,999 used money transfer services within the last year compared with 29 percent of those who earn less than $25,000.

"It struck me as odd those would be thought of as alternative financing at all," said Preston Swincher from the Center for Generational Kinetics, who is also a Millennial. "Those just seem normal to me. It seems to me it shows rent to own is something very much ready to be positioned as a mainstream option. Convenience is king. It’s not just the ability to deliver a service but it’s how it’s delivered and we don’t mind paying a little extra if it saves time and is easier to use."

According to some reports, by 2017 Millennials will have more spending power than Baby Boomers.

Swincher will speak at APRO’s 2012 Convention and Trade Show July 24-26 in Memphis on "Crossing the Generational Divide" — how to understand and reach new customers across different generations. He is one of several expert marketing speakers slated for APRO’s 2012 Convention this year in Memphis.

"Stereotypes that paint users of alternative financial products as poor and uninformed are simply not accurate," Rees said. "This study confirms that young people across the spectrum have a need for the convenience, utility and flexibility that alternative financial services provide."

Presta officials say the site and the business model has real appeal for CE early adopters under 40 years of age, those looking for today’s hottest consumer electronics without having to pay the premium price upfront. The look of the Web site was also a key concern for the company. A transparent transaction coupled with a clean non-cluttered web presence is a must for Millennial-appeal.

"The model allows customers to own products outright after making fixed payments for a year, or they may choose to pay products off early at a discount," said Presta Director Brad Ellison. "The lease-purchase agreement also offers the flexibility to return products any time after three months with no penalty, which is particularly appealing for the early adopter who wants to continuously upgrade. Millennials are drawn to sites that have a clean look and feel so we designed Presta’s web presence with that in mind."

Bob Saunders funeral arrangements

Veteran furniture dealer, Bob Saunders of United Furniture, died Tuesday night of a massive heart attack.

Funeral Arrangements are as follows:

MRDA celebrates 25th at Heartland of America

The industry’s longest running regional trade show kicks off with extra flair this year as it also commemorates the 25th anniversary of the Missouri Rental Dealers Association — one of the most active, influential and consistently recognized state associations.

Dealers from Arkansas, Illinois, Iowa, Kansas, Kentucky, Oklahoma, Tennessee and Missouri will head to the scenic Lodge of Four Seasons Resort in Lake Ozark, Missouri June 13-14 to mix business and pleasure with vendor meet and greets, product trainings, four man scramble a bass fishing tournament.

Download the brochure with schedule and registration info.

"This is a very exciting year for MRDA and Heartland this year," said MRDA Executive Director Ken Steiner, "Any dealer who has not been to the show in the past two years but is a member of any other state RTO association gets one night’s lodging on us. It’s a heck of a deal. Plus any vendor who brings in a new dealer to the show gets $100 per new registrant."

This year’s show will feature up to 70 booths and a bit of a schedule change with the golf and bass tournament, product training, vendor showcase reception and dinner/awards banquet all taking place Wednesday, June 23.

The trade show opens in earnest Thursday, June 24 and runs 8 a.m. to 2:30 p.m.

An additional benefit of attending the show is specials offered by exhibiting vendors  will be available on orders placed at the trade show ONLY.

Dealers will also have access to “Hot Specials” that can only be purchased in the vendor’s booth. These specials have a greater discount and may be limited. Be certain to look for the signage in the booths of the vendors offering these “specials”. Check out the sign that will be posted during events for the sponsors of those events and go by their booth to thank them.

Product Trainings:

This year’s show features four (4) product trainings on Wednesday, June 13, 2012.

Each dealer will attend all four sessions and each product training.

Presenting companies include:

(1) Pioneer Music Company: This training will mainly focus on building profit through audio add on sales. We will train your salespeople properly so they are comfortable with demonstrating the products to your customers. We will also focus on why our products, Yamaha, Boston and our Stereo Rack Systems can set you apart because of your flexibility in ordering and being able to offer your customer more desirable products. We will be demonstrating the product so you can see and hear how it can not only increase your sales in audio, but in video as well.

(2) O’Rourke Sales – LG Electronics: This training will focus on the features and benefits of LED, Plasma and LCD TV. The new technologies to be discussed are SMART TV and 3D TV. We will also demonstrate new Sound Bars, Home Theater Systems and Blue Ray Players with SMART TV and 3D features built in.

(3) Simmons Company: This training will consist of discussing the new Living Life Fully Charged National ad campaign. Just like you plug in and must recharge different items around your home, The Simmons Beautyrest is the item that Recharges the Human Battery——you! This training will also consist of the features, benefits and advantages of a Simmons Beautyrest mattress and how to get the consumer to understand the Better Sleep of a Beautyrest.

(4) Whirlpool: This session will consist of sales tips and information on how to present value when leasing a bottom freezer refrigerator vs a top-mount or a self-clean range vs a manual clean option. In addition, information regarding warranties and service contacts will be presented. New HE laundry product will be on display in the Whirlpool booth on the show floor.

Four Man Scramble Golf Tournament:

Register now for the 4-man golf scramble to be played at “The Cove” golf course at the Lodge of Four Seasons Resort on Wednes- day, June 13, 2012. Starting time is 8:00 a.m. Cost is $73 per player which includes cart. We thank the Whirlpool Corporation for sponsoring the trophies and Imagery Marketing Group for helping to sponsor the continental breakfast. A lunch ticket will be given to each golfer to be used at the golf course.

Bass Fishing Tournament:

Interested in catching that big bass? Then consider entering the bass fishing tournament at 7:00 a.m. on June 13, 2012 at the Resort Boat Dock. The only requirements are having a fishing license and access to a boat. If you don’t have a boat, consider hiring a fishing guide. To hire a guide, contact Hawg Stump Guide Service at 573-216-6567, if no answer, leave a message. You will receive a call back within one day. The cost is $250.00 per boat, whether it is one or two anglers. Two anglers is the maximum per boat.

It is recommended that if you are interested in hiring a fishing guide, that you should do it as soon as possible as fishing guides are very limited. You can cancel later if necessary. Information will be sent later to those who sign up for the fishing tournament. We thank Ad Pro Advertising for sponsoring the trophies.

Registration and Fee:

At only $35 with a pre-May 25 registration, allowing one free member dealer per organization, MRDA is once again offering state dealers the most bang for their buck.

However, advance registration is requested and suggested. This will help avoid unnecessary delays upon arrival. Fees may be paid by check or by using your VISA, MASTER CARD, DISCOVER or AMERICAN EXPRESS. If paying by check, make check payable to MISSOURI RENTAL DEALERS ASSOCIATION.

You may also register by calling 573/442-2963 or (573) 489- 0622 (cell) and charging the registration fee to any of the above-mentioned credit cards. Each dealer member company of their state’s RTO Association will be given a free registration for one (1) dealer.

Dealers must be a member of their state’s RTO Association to also receive the registration discount fee.

Those dealers that just want to attend the Vendor Showcase on Thursday, may do so for FREE. Meal tickets for the other functions may be purchased individually. You may also indicate and pay for a specific number of dealers and guests, but submit their names by June 5, 2012. In addition, the MRDA is offering to first time member companies and/or member companies that have not been in attendance at the MRDA trade show within the past 2 years, one (1) free hotel room night per company.

Lodging:

Participants should make their own hotel arrangements. The Lodge of Four Seasons Resort (888/265-5500 or 573/365-3000) is holding a limited block of rooms for the Heartland of America Regional Trade Show and Seminar until May 14, 2011.

After May 14, 2011, rooms will be reserved on a space available basis only. The room rate is $107 per night, plus tax for one to two persons per room. You can make your reservations on line by using the online link & attendee code as follows: https://reservations.ihotelier.com/crs/g_reservation.cfm?groupID=73 2419&hotelID=17336

Attendee Code: 24040.

(Attendees: Please disregard group coordinator box & request for group code when registering on line)

For full brochure, schedule and registration details click here.

IRDA Team meets with Illinois Governor Quinn

Illinois Governor Pat Quinn (center) with members of the IRDA during their legislative day Wednesday.

The Illinois Rental Dealers team hit Springfield running Wednesday, meeting with 32 Illinois Senators and Representatives, including the Governor Pat Quinn and Senate President John Cullerton, during the annual IRDA Legislative Day.

Association members were able to educate and share the importance of the RTO Industry within the State of Illinois and it’s economic impact which includes over 240 stores, the employment of 1,428, $50,000,000 in annual wages and $7.6 million in annual payroll taxes and annual revenue of over $176 million.
 
It was a jam packed day as the legislature was in session and members were  extremely busy.

The nine member Rent One team led by President Trent Agin, National Rental Team led by National Owner Dan Cole, Past IRDA President Steve Braning, IRDA Secretary Dave Stephens and District Manager Stan Davis, along with Aaron’s/Action Development Team led by APRO Director/Action Owner Gopal Reddy and IRDA Past President Kevin Milliron hit the Capitol running.

The Rent One Team went one direction, and both the National Team and Action Team went another.
 
The Senate and House were so busy, dealers had to pull legislators off both the Senate and House floor.
 
"We successfully met with Legislators from Cairo to Chicago," said IRDA President David Keen. "They definitely know about the IRDA and the RTO Industry and if needed, they are well educated on our Industry and can be called on, should the need arise.
 
Several Legislators stated they wanted to visit some of the dealers’ stores and it our hope to set up visits.

Senator James Clayborne (3rd from left) and members of the IRDA legislative team Wednesday.

Both Senator Clayborne and Governor Quinn are extremely interested in APRO’s new “Bet on a Vet” initiative and the Governor directed his aide to contact his Director of Veterans Affairs, Erica Borggren and arrange a meeting for her assistance and to also keep him updated and informed.

"It is my hope that the IRDA Leadership Team, along with APRO Director Bill Keese can meet with both her and the Governor in the near future," Keen said. "Overall, I am extremely proud that a large showing from our Illinois IRDA Team took the time away from their busy schedules to personally meet with our Legislators and share the importance of the RTO Industry within the state of Illinois."
 
 

Re-energized LRDA mixes business, pleasure

Louisiana dealers and vendors during their tour of Tiger Stadium Wednesday. The group wrapped its annual meeting with a crawfish boil later that night at the Cook Hotel on the LSU campus.

Close to 80 Louisiana rental professionals dealers and vendors Wednesday, settled into the conference room at the Cook Hotel on the LSU Campus for a rousing talk from Jerry Stovall, former All-American running back and head football coach for LSU.

Stovall was also a star defensive back in the NFL for the St. Louis Cardinals.

Stovall discussed the importance of giving employees the opportunity to become the best they could be and accepting no excuses either from themselves or others. Stovall’s "no nonsense" approach to life, family and work rounded out with a question and brief question and answer session with the group who peppered him with questions about life on and off the gridiron.

An autographed football featuring Stovall’s signature will be part of a silent auction later on Wednesday.

"I was looking for someone of that caliber that everyone would appreciate. His life experiences, hard work ethic, and being a former LSU hero he fit the bill," said Louis Bacille, LRDA President. "I feel like having great speakers and promoting our scholarship fund will be two priorities of this organization moving forward."

Bacille said he was working on having a former governor address LRDA’s meeting next year.

Prior to Stovall’s talk, Bacille discussed LRDA’s new scholarship initiative which will award two $1,000 awards: one to a customer of a member company; the second to an employee or dependent of an employee.

"In our company we talk about giving back and I don’t think there’s anyone in this room who doesn’t know Ricky Brooks, who worked for Wayne Sutton, and hired most of us," Bacille said. "We wanted to establish something in the name of his son, Austin, who was killed in a car accident in the prime of his life. That’s why we’ve established this fund in his his memory to help others."

Later that afternoon Bacille bussed attendees to the LSU campus for a tour of Tiger Stadium before closing the meeting down Louisiana-style at the Cook Hotel with a crawfish boil.

See photo gallery and download hi-res images here.

LRDA cranks up the heat in Baton Rouge

Gary Jones, Jeff White and Mitch Fontenot at the LRDA Welcome Reception Tuesday.

More than 50 dealers and 24 vendors headed to Baton Rouge, Louisiana Tuesday for the Louisiana Rental Dealers Association Annual meeting at the Cook Hotel on the LSU Campus.

Dealers kicked off the meeting with a golf tournament at the University Club before heading back to the hotel for refreshments and a welcome reception.

LRDA President Louis Bacille of 1st Choice Rentals, said the association’s new scholarship program got off to a healthy start with close to $1,000 being raised from the sale of mulligans on the golf course alone. Participants will get further opportunities to chip in for the new fund Wednesday with a silent auction.

"We’re very excited to bring this many rental dealers together for this opportunity," Bacille said. "We’re very happy about our vendor turnout as well and we’re thrilled to have their support. It’s a good day for LRDA."

In addition to a vendor fair, attendees will have the opportunity to hear a keynote address from Jerry Stovall, former All-American running back and head football coach for LSU. Stovall was also a star defensive back in the NFL for the St. Louis Cardinals and is now a high demand motivational speaker.

"We’re very excited to have Jerry here," Bacille said. "This is going to be one to remember."

After the association’s annual business meeting, Bacille is transporting attendees to the LSU campus for a tour of Tiger Stadium before closing the meeting down Louisiana-style at the Cook Hotel with a crawfish boil.

"I like to come to these things to learn about what everyone else is doing," said Mitch Fontenot of Budget Rental Purchase in Ville Platto. "It helps to hear where others are cutting back or increasing stock, the trends they see happening and just get a feel for the rental business climate across the state."

See photo gallery.

APRO Scholarship Recipient to Give Commencement Speech

APRO Scholarship recipient Jafon Fearson will be the undergraduate Commencement Speaker for the University of Alabama at Birmingham graduation ceremonies.

Fearson received a $2000 APRO Education Scholarship last year. He will be graduating with a Bachelor of Science degree in Biomedical Engineering. Fearson is the son of RAC employee Shirley Fearson.

"Thank you and all of APRO who have helped to make this day possible," remarks Fearson.

Fearson was one of 17 scholarship recipients who collectively were awarded $30,000 in scholarship awards from APRO’s Education Foundation last year.

2012 Awards Update:

This year, thanks to APRO donors and TRIB, APRO will award 16 scholarships totaling $50,000 with the following breakdown – three $5000 scholarships, two $4000 scholarships, five $3000 scholarships and six $2000 scholarships.

For more information and to apply for this year’s scholarships, go to APRO’s Education Scholarship Web page.

APRO 2012 Exhibitor Webinar #2-Getting the Most from your Exhibit Leads

Join us for a Webinar on May 10
 

This complimentary webinar presents the secrets of getting meaningful sales leads, not just business cards, and following them up to make sales. You’ll also gain insight into how to leverage the basics of body language in the booth and what’s needed for your brand enhancement will be covered.

 Space is limited. Reserve your Webinar seat now:

 If you want better Return On Investment (ROI) for every exhibit dollar you spend, if you want to successfully increase sales and enhance your branding, if you plan to leverage social media in achieving customer growth and satisfaction, then YOU need to sign up for this second APRO 2012 Exhibitor webinar.

Title:
APRO 2012 Exhibitor Webinar #2-Getting the Most from your Exhibit Leads

Date:
Thursday, May 10, 2012

Time:
1:00 PM – 2:00 PM CDT

After registering you will receive a confirmation email containing information about joining the Webinar.

"The webinar today was excellent. Content, delivery and forum. I believe it helped everyone that attended get clarity on objectives from someone other than their boss. Good job to APRO."

Jay B. Roberts
Trainer / Coach after first Webinar

System Requirements:

PC-based attendees

Required: Windows® 7, Vista, XP or 2003 Server

Macintosh®-based attendees

Required: Mac OS® X 10.5 or newer

APRO Scholarship Winner Jennifer DeBouse on Oprah Network

Jennifer DeBouse, one of 17 APRO Education Foundation Scholarship Winners this year, earned the second installment on her $2,500 scholarship award with a 3.0 grade point average on her fall coursework at Capella University in Menatta, Georgia.

DeBouse, a single parent of three girls, has worked for Aarons’ for the past three years. She manages the Aaron’s University database, schedules training sessions and provides technical support for Aaron’s University issues. She helped create an alliance with Aaron’s and Capella University creating and Alliance Partnership Agreement to help Aarons associates attain a college degree.

When she isn’t helping at Aaron’s, she volunteers for Second Chance Career and Development Center, Project Healthy Grandparents and Hope House for Women.

"Helping other people has been such a huge drive," DeBouse says. She balanced motherhood and going back to school to get an MBA—not an easy feat. She is now using her Capella University degree to train and mentor adults and to put her family "in a better place."

Watch the video here.

Apply for an APRO 2012 Scholarship here.

RentDirect Nationwide introduces 2-Year product warranty for RTO dealers

James MacAlpine of Nationwide and Chris Penn of Warrantech at the PrimeTime! buying show held in February at the Gaylord Palms in Orlando

At Nationwide Marketing Group’s PrimeTime! event held in February, NSI Warranty administered by Warrantech, talked about the upcoming release of a brand new warranty extension that would give RentDirect Nationwide members an additional year of coverage after their 1 year manufacturer parts and labor warranty expires.
 
“We are very pleased to offer this exclusive member benefit that can potentially save members thousands of dollars in service costs,” said James MacAlpine, Vice President of Rental & Business Development at Nationwide. “This program is a more profitable solution for rental dealers because it gives the dealer ownership over the warranty so that the product can be rented out to multiple customers and still be covered.”
 
To date, there are a few rent to own suppliers that offer extended product warranties that can be purchased by the dealer but they are severely marked up and have category limitations.
 
“Our program covers most major appliances, televisions, and computers,” said MacAlpine. “So, the potential to attract more customers with brand name recognition and increase ticket sales is enormous, and will definitely give our members the competitive edge needed to compete against the nationals.”
 
RentDirect Nationwide members can register for the program through MemberNet, the group’s online communications site. For additional help getting started or for a complete list of RentDirect Nationwide member benefits, contact James MacAlpine at 336/722-4681 or email questions to jamesm@nationwidegroup.org