Rent-to-Own

BrightHouse, the U.K.’s leading rent to own chain, is continuing its expansion program with the opening of a new store in Gaolgate Place, Stafford. The new 3,400 sq ft store, which employs seven staff will have its Grand Opening on Saturday 6th March. To mark the occasion BrightHouse, will be hosting a family fun day to welcome the first customers and their families to the new store.

Craig Knight, Store Manager in Stafford has said: “We are very excited about joining the community in Stafford and welcome everyone to our store opening event on Saturday. BrightHouse offers the hottest flat screen TV’s from Philips and Samsung, cutting edge laptops from Acer, the latest washing machines from Whirlpool and up to the minute sofa designs to name but a few of the amazing product available on a affordable weekly payment basis.

We aim to add value to people’s lives every day. With us it’s personal, we like to keep on first name terms with customers so they feel comfortable with our service. When we open our doors on Saturday, pop in and say hi and we’ll be sure to remember your name next time you come in. That’s what makes us different.”

Stafford will be BrightHouse’s 194th store. A further four stores are set to open during March, these stores will be located in Cannock, Mexborough, Bromley and Maidstone.

About BrightHouse

BrightHouse is a national retail chain specialising in the sale of home electronic and domestic appliances, household furniture and related products, on a ‘rent to own’ affordable weekly payment basis. BrightHouse provide customers access to a choice of products, operating without the normal requirement of large deposits and credit ratings. With more than 2200 staff UK-wide, BrightHouse is a major employer in the local communities where its 194 stores are located.

BrightHouse supports NSPCC, the UK’s leading children’s charity that specialises in child protection and the prevention of cruelty to children.

BrightHouse is ranked 219th in the 2009 Sunday Times mid-market top track 250 companies

Toby Littlejohn, ColorTyme championship belt winner.

With the recent economic turndown leaving employee satisfaction at a record low, finding a cost-effective way to motivate the workforce can be a challenge. Fortunately, Jim Aldridge, manager of ColorTyme in Gaffney, South Carolina, discovered a creative approach to recognizing top performers that has sparked much interest and conversation:  The ColorTyme Route Manager’s Championship Belt.

“We’re always striving to motivate employees, and I think we’ve found something that really works,” said Aldridge. “After more than 16 years in the rent-to-own business, I can honestly say I have never seen staff enthusiasm demonstrated so boldly as when we began this initiative.”

The ColorTyme Route Manager’s Championship Belt is a point-based game that uses fun competition to ignite performance. Each week, ColorTyme route managers accrue a set number of points for increasing customer rental agreements and minimizing past due percentages. The person with the most points at the end of the month is awarded with a customized boxing belt complete with the store logo. To keep things interesting month to month, criteria and point values are altered to focus on different store goals.

Jose Escalante and Toby Littlejohn, route managers at the Gaffney ColorTyme, think the game promotes greater accomplishment.

“Earning the Championship Belt is a big deal for us. It’s encouraging to be able to win something you can show for your hard work,” explained Littlejohn. “It’s exciting, too. First, you get into it all in good fun, but then you really get into it to win.”

Coming up with the idea over lunch with Assistant Manager Matt Robertson, Aldridge says the new solution proves more successful than other motivation techniques.

“We needed a way to engage our staff that goes beyond traditional methods,” said Aldridge. “Over the years, I have offered cash bonuses, an extra day off with pay, meals and many other incentives, but nothing has spurred as much daily talk as The Colortyme Route Manager’s Championship Belt. “

Aaron’s named Mitsubishi Digital Electronics America, its Vendor Partner of the Year for 2009 and will race a Mitsubishi-themed No. 00 Aaron’s Dream Machine in the company’s honor.

The racecar, driven by Michael Waltrip Racing No. 00 Aaron’s Dream Machine driver David Reutimann, will make its on-track debut at Atlanta Motor Speedway on March 7 for the Kobalt Tools 500 Sprint Cup Series race.

"It is a privilege to be named by Aaron’s as their Partner of the Year, and the Mitsubishi-themed Dream Machine is icing on the cake," said Max Wasinger, Executive Vice President of Sales and Marketing at Mitsubishi Digital Electronics America, Inc. "It has been a fantastic year thanks to excellent partnerships like the one we enjoy with Aaron’s. We’re proud and pleased to work with such an extraordinary company, and we can’t wait to see our car hit the track at Atlanta Motor Speedway."

"Mitsubishi has been a terrific vendor for many years, duly earning our Partner of the Year distinction," said Ken Butler, Aaron’s, Inc. Chief Operating Officer. "Designing a custom Mitsubishi paint scheme for the Aaron’s Dream Machine is not only an exciting, but valuable means of showing our appreciation for the partnership. Both companies will undoubtedly be pulling for Reutimann to bring the Mitsubishi car across the finish line first at Aaron’s home track."

This is the second year in a row Aaron’s has named Mitsubishi Digital Electronics America, Inc. Partner of the Year. According to Butler, the company continues to surpass Aaron’s expectations, exceeding the award criteria for Partner of the Year: quality, service, creativity with product, volume and dedication to Aaron’s and its customers.

Blockbuster Video said Tuesday it would change its fee policy after reporting a loss of $435 million in the fourth quarter, providing for a rent to own option by default option, according to UPI.

The new policy changes a charge of $5 for a seven-day rental to a $5 fee for five days, after which customers will be charged $1 a day for up to 10 days.
If a customer runs up a $10 charge on top of the $5 rental fee, Blockbuster will charge the full amount and allow the customer to keep the video, according to the The Chicago Tribune.

Insisting that it was not reinstating the late fees it abandoned to compete with NetxFlix Inc., company spokeswoman Michelle Metzger said Blockbuster was adding an "additional daily fee," that would make Blockbuster "consistent with the industry."
 

Premier dealer William Cuthbertson.

Clarksville Premier Rental-Purchase owner William Cuthbertson earned a special award for community service at the recent Premier Annual Convention in Orlando, Florida.

An integral and respected part of the Clarksville, Tennessee community, Premier has been providing furniture, appliances and electronics with both retail and rent-to-own options since Cuthbertson opened as a franchisee in 2006.

Prior to opening his own business, Cuthbertson spent several successful years in management with two large rental-purchase companies. His journey to store ownership followed an unusual path—through Iraq as convoy commander for the Department of Defense. Cuthbertson went to Iraq to earn money to open his own store. “But I’m very patriotic,” he says “The goal to earn money got me there; the purpose of country kept me there for two years.”

Premier was an important answer for him as he broke back into the industry. “Having been away from the industry for a while, Premier made for a helpful transition,” he says. “They are a family organization with a family atmosphere. That is important to me as I view my customers and employees as family.”

True to this philosophy, members of Cuthbertson’s immediate family work side-by-side with him: his partner and wife, LeaAnn, and brother, James, who work in accounts receivable and as store manager respectively.

Through Cuthbertson’s connections in the Clarksville community this past year, his store helped raise $53,000 to support groundbreaking research at the MDA Clinic at Vanderbilt University Medical Center and to send children and young adults with neuromuscular diseases to MDA’s annual Summer Camp at the Center for Courageous Kids in Scottsville, Kentucky.

“It was a very successful effort,” said Cuthbertson. “It was touching to see the gratitude expressed by the recipients and to know that we had been part of something that will change lives and support a good cause.”

The Clarksville Premier Rental-Purchase store is located at 98 Dover Crossing Road. Phone is 931-906-8551. Visit them online at ClarksvilleTn2.premierrents.net
 

Keith Smith of Rent-A-Center, describes the RAC Acceptance program to single store retailer Mo Halawani of XOOM.

Rent to Own and retail are not strange bedfellows.

Rent to own literally rose from the ashes of a denied credit sale under the guidance of Ernie Talley in the 1960’s. Many of today’s most successful rent to own dealers began in retail. Many continue to employ both retail and RTO successfully in their business model.

Now the nation’s largest rent-to-own company is hoping to streamline the hybrid by offering RTO to customers not approved for traditional retail financing — in the store and on the spot.

Rent-A-Center’s thoroughly field-tested program, RAC Acceptance, debuted Monday at the Nationwide PrimeTime! Conference and Buying Show in Las Vegas where more than 3,300 are in attendance for the buying group’s second largest show ever.

See photo gallery.

"If our Nationwide retailers could convert 25 percent of their turndowns to sales, that would equate to billions in additional revenue for our members and vendor partners," said James MacAlpine, executive director of Nationwide’s RTO channel in a conference publication. "Some of these customers are making their way to traditional RTO stores, but most are not."

RAC Acceptance program is not the first rent to own crossover program offered to Nationwide retailers. Another program, whynotleaseit.com, is an online process that helps declined retail customers acquire the products they need through RTO.

What makes RAC Acceptance different is the in-store RAC Acceptance co-worker Rent-A-Center provides to help smooth the transition from financing disappointment to rental satisfaction.

According to Keith Smith, director of business development for Rent-A-Center, the program works best for companies experiencing 60 to 70 financing application denials per month.

From the point the application is declined, the customer is handed over to the RAC Acceptance salesperson who fits them with a rent to own contract on a furniture set, appliance or television of their choice from the retailer’s inventory.

Since rent to own agreements do not incur debt, no credit check is needed and all applicants who meet the basic criteria are approved.

"We then buy the product for a discounted price, the retailer handles the delivery and after 72 hours, Rent-A-Center does all the work for the remainder of the contract including service," Smith said. "We also believe in diversification of the (RTO) model and this fits that perfectly."

The program is currently in place in 92 locations in 12 states and Puerto Rico. Rent-A-Center joined RentDirect late last year.

"We are looking to expand our RAC Acceptance footprint," Smith said.

MacAlpine said the set up is a win for the rent to own industry, the retail sector, — which has been pummeled over the last year as a result of the credit crunch — vendors and the customer.

"All of these programs are good for our retail dealers because they expose more customers to the rental/lease-purchase transaction," MacAlpine said. "They are good for our vendors because they allow all of us to move more products. They are good for our retail members because they help them capture more sales."

Nationwide Marketing Group — a mega buying group whose members generate a combined $12 billion in sales annually — concludes its buying show and conference in Las Vegas Tuesday.

See photo gallery.

NMG Executive Panel: Les Kirk, vice president, Ed Kelly, president and vice president Robert Weisner at a press conference Monday.

The U.S. Environmental Protection Agency (EPA) has recognized Nationwide Marketing Group (NMG) with a 2010 Excellence in Appliance Retailing Award for its outstanding contributions to reducing greenhouse gas emissions by marketing and promoting energy efficient products.

NMG Executive Vice President Robert Weisner announced the award at the opening session of the Nationwide PrimeTime conference and buying show in Las Vegas Sunday.

"80 percent of customers in America recognize the ENERGY STAR logo and say it was important in their decision making," said Ed Kelly, NMG president. "There are many advantages the independent dealer can have in the marketplace and one is they can take time to tell the ENERGY STAR story to customers.  Let’s lead, not follow."

NMG is the nation’s largest buying group for appliance, electronics and furniture for independent dealers. The organization will be recognized for its accomplishments at an awards ceremony in Washington, D.C. on March 18, 2010.

NMG, was named for the award for successfully increasing sales and messaging of ENERGY STAR qualified products, engaging in ENERGY STAR promotional opportunities, educating customers about the benefits of energy efficiency and participating in various ENERGY STAR campaigns.

Nationwide Marketing Group’s contributions to energy efficiency have had national impact.  Last year alone, Americans with the help of ENERGY STAR and its partners, saved nearly $17 billion on their energy bills and reduced greenhouse gas emissions equivalent to those of more than 30 million vehicles. 

“Nationwide Marketing Group and ENERGY STAR have a mission critical partnership,” said Richard Weinberg, Vice President of Appliance Merchandising “More and more of our customers are looking for innovative ENERGY STAR qualified products that save money and protect the environment. By offering products that have earned the ENERGY STAR we are working to fulfill our customers’ needs while helping address climate change.”

The 2010 Excellence in Appliance Retailing Award is given annually to one organization for efforts to improve energy efficiency and reduce greenhouse gas emissions, resulting in significant cost savings.  All ENERGY STAR ward winners were selected from over 17,000 organizations that participate in the ENERGY STAR program.

“Today, EPA is recognizing Nationwide Marketing Group for its commitment to addressing climate change through greater energy efficiency,” said Gina McCarthy, EPA Assistant Administrator for Air and Radiation. "Through the sales and marketing of quality products Nationwide Marketing Group is helping customers increase their energy efficiency while reducing our nation’s emissions of greenhouse gases.”

According to Weinberg, selling ENERGY STAR qualified products not only increases sales by giving an outstanding value to consumers, but most importantly, positively impacts our communities and the environment we live in. In 2010, NMG will continue to search for new ways to support ENERGY STAR and increase awareness of the program.
 

Rent-A-Center and the Washington State Attorney General’s office late last week, reached an agreement on a case that was headed to trial March 23.

The Washington AG’s Consumer Protection Division filed claims against Rent-A-Center in July 2009 asking King County Superior Court to declare Rent-A-Center’s collection practices and rental contracts in violation of the state’s Consumer Protection Act and Lease-Purchase Agreements Act.

Rent-A-Center consistently denied the allegations.

Download consent decree here.

As part of the consent decree, Rent-A-Center agreed to "enhance what’s already on the books regarding collections practices and training," said Ron DeMoss, Rent-A-Center general counsel.

In addition, the world’s largest rent to own company will reimburse the AG’s office $243,000 for fees and court costs and pay an additional $100,000 to a fund for monitoring and enforcement of collection practices.

"We maintain that our collection practices and policies are better than anything in the business, and we’re proud of our track record," DeMoss said. "We’re relieved to have this resolved and to be able to put it behind us."

ColorTyme, the nation’s oldest rent-to-own franchisor, was chosen from more than 800 companies as a top business opportunity in the 2010 AllBusiness Allstar Franchises ranking.

Backed by analysis from parent company Dun & Bradstreet, AllBusiness.com’s ranking assesses the strengths of franchising companies based upon criteria including Web visibility and financial strength. The AllStar list of 300 “best of the best” franchises is the most transparent of its kind, allowing potential investors to surface information such as unit growth rate and the cost and financing of a brand they might be considering.

For the complete AllBusiness AllStar Franchises ranking, visit: http://www.allbusiness.com/allstar-franchises.

ColorTyme was chosen for many positive aspects including a respectable financial health ranking, in-house financing for franchisees and the ability to draw interest from outside of the rent-to-own business. In the last year, ColorTyme signed on new owners from various industries including insurance, restaurant and real estate.

The ranking’s description also noted that ColorTyme performs well even in a challenging economy as more Americans on a budget look for affordable ways to get the furniture, appliances and electronics they need. The company has attracted so many multi-unit franchisees that it recently developed a multi-unit management training course.

“The strength and stability of our rent-to-own franchise system is validated through our recognition as an AllStar Franchise,” said Bob Bloom, CEO and president of ColorTyme. “Now is a great time to join our franchise family. We give franchisees the freedom to run their own businesses while backing them up with financing assistance, complete one-stop inventory purchasing, comprehensive training, as well as real estate and legal support."

ColorTyme is America’s oldest franchisor of independently owned-and-operated rent-to-own stores. ColorTyme franchisees operate 193 rent-to-own stores in 33 states, and the company’s custom-wheels-and-tires franchise brand, RimTyme, operates 24 stores in 12 states. ColorTyme is headquartered in Plano, Texas, and is an independent, wholly owned subsidiary of the largest RTO company in the world, Rent-A-Center.

Rental Dealers at RentDirect Nationwide PrimeTime! kickoff Sunday.

Close to 3,000 retail and rent to own dealers packed the convention center at the MGM Grand in Las Vegas Sunday night for the kickoff of Nationwide Marketing Group’s (NMG) PrimeTime! conference and buying show.

More than 3,300 are registered for the show — the second highest attended Nationwide event ever — including dealers from 175 rent to own companies under NMG’s RentDirect division.

"I know that in our channel, in rental, things picked up in December and they’ve been pretty solid ever since," said RentDirect Executive Director James MacAlpine. "We’ve all been experiencing a decline in our APU (average price per unit) but I think that’s going to pick up as well."

See photo gallery.

The introduction of new technology this year will be key to boosting electronics sales, he said.

Nationwide Executive Vice President Robert Weisner Sunday, announced that Nationwide was selected as a 2010 ENERGY STAR Award Winner for excellence in appliance retailing.

"There is a tremendous amount of new products here," Weisner said. "Make sure you go to each booth and even if you don’t plan to buy anything, evaluate if it will be good for your business over the next year."

Some 150 vendors will showcase their wares in furniture, appliance, electronics and computer categories and a variety of specialty lines and services as well.

The 150,000 square foot exhibit hall opens Monday at 10 a.m.

See full schedule.