Your APRO leaders are at it again – hanging out together [in Zoom, of course] & doing good work aimed at positively affecting you & your business
While it’s true there is rarely edge-of-your-seat high drama whenever boards of directors assemble, it’s also true that board members are decision-making leaders who frequently take substantive action that can significantly impact you and your business.
So here, submitted for your approval, is a sampling of presentations, conversations, and actions undertaken at this Fall’s meeting of the APRO board of directors, held virtually on October 29, 2020:
APRO’s Pandemic Response
Understatedly, COVID-19 brought a whole lotta bad juju with it – rampant uncertainties, unpleasant reality checks, and clashing priorities, in addition to all the actual illnesses and deaths. But for rent-to-own, the pandemic has proven to have silver linings for the industry, not only in terms of economics, but also in terms of solidarity. The coronavirus crisis brought RTO together in a critical moment – as all businesses were being evaluated by their “essentialness” – and it clearly demonstrated the true value in an industry-unifying and safeguarding entity like APRO.
In brief [you can read all about it in “Why We’re Here: APRO’s Pandemic Response,” page 36], once “essential business” status became the line of demarcation between staying open and shutting down, APRO went to work to determine A) why rent-to-own should be considered “essential,” B) how to help its individual members establish themselves as such, in light of their particular governmental orders, and C) how to help all members handle the continuing day-to-day impact of the pandemic on their businesses, employees, and customers.
First, the entire APRO staff began tracking executive orders from state, county, and city departments all around the country – a total of 182 of them, to be exact. Second, APRO began sending members policy alerts on these executive orders, as well as COVID-19-related operations, employee, and SBA Paycheck Protection Program issues – a total of 63 alerts were issued in 2020 [compared with 23 legislative alerts issued in 2019]. Third, APRO put together resource letters for members to use to explain their essential status to their local authorities. Fourth, APRO set up a webpage especially for members to quickly access pandemic-related resources [www.rtohq.org/resource]. And finally, APRO sent quick and easy coronavirus impact surveys to both dealers and vendors, to collect and share information and experiences among the membership, and to let APRO staff know whether they were on-target with the resources they were providing [they were – see the above-mentioned article for more!].
Finishing Strong
In April 2018, the APRO board of directors thoughtfully developed and debuted a three-year Strategic Plan for the voice of our industry – the association’s first such plan in 14 years.
Now approaching its end date [April 2021], the APRO Strategic Plan has been implemented by four committees and one workgroup, each made up of a few directors and each responsible for ensuring progress on a key goal. All five of these SMART [Specific, Measurable, Achievable, Relevant, & Timebound] Goals were created with a singular objective in mind: Maximizing APRO membership value – and almost all of the goals established within the plan have hit their achievement marks.
GOAL 1: Increasing Membership
Membership Committee: Trent Agin, SKC Enterprises [chair]; Chad Fosdick, CR Fosdick Ent.
To increase APRO membership, the Membership Committee has pursued a dual-prong strategy: First, focusing on established targets. The workgroup has focused on securing the membership of company franchises, such as Aaron’s, Buddy’s, and RNR Tire Express. Currently, the APRO-member company with the highest percentage of franchises as members is The Premier Companies, which includes APRO membership as part of its franchise agreement.
Second, developing materials to help board members connect to potential members. APRO introduced a revamped value proposition last year, highlighting the lead role APRO plays in educating its members and safeguarding the RTO industry. Association members were also reminded of a critical member benefit over the past year: The APRO Legal Hotline. Intended to save APRO members money and time, this online hotline is accessible by members through APRO’s main phone number.
GOAL 2: Improving Financial Stability
Finance & Budget Committee: Terah Vail Munstermann, Best Tire Concepts [chair]; Michael Bennett, Buddy’s; Jonathan Rose, RNR of Virginia
APRO remains financially solid. Not only did the association’s expenses come in 19% under budget for 2020, but APRO also reduced its annual operating expenses from 2016 to 2020 by a whopping 39%. Additionally, for the first time in APRO’s history, Executive Director Jill McClure and the APRO staff had a complete proposed budget ready early enough for the board to review and approve during its meeting. In years past, the budget was often not approved until the following Q1.
“This year has been just a grand slam for Jill [McClure, Executive Director] and the APRO staff. I couldn’t be prouder or more pleased with this team, and how they have executed an incredible amount of work and communication and financial management. It’s just amazing.”
APRO President Chris Kale Sr.
To continue to improve APRO’s financial stability, the committee has developed and is maintaining a healthy reserve for the association; reserves have not been used for operating expenses since they were established in 2018. While APRO was forced to cancel both its annual Legislative Conference and the in-person component of RTO World in 2020 due to the COVID-19 crisis, the association was able to negotiate the combined $300,000+ in cancellation fees down to zero.
GOAL 3: Assessing Industry Health
Industry Survey Workgroup: Michael Helton, CPA, Rivero, Gordimer & Co. P.A.; Chris Kale Sr., CPL Group; Gopal Reddy, Action Development
It has been several years since APRO conducted an industry-health survey, and the board agrees it’s part of the association’s charge to collect and analyze qualitative and quantitative data for the rent-to-own industry – and especially so for brick-and-mortar stores as the digital age advances.
But while the Industry Survey Workgroup had high hopes of rolling out a quarterly online survey program in 2020, it just didn’t come to fruition. Rental dealers are appropriately sensitive about how they share information, so there are still concerns to be worked through in order to create a survey everyone will be comfortable responding to. The workgroup will continue to move toward an industry-health survey APRO members can use to gauge their own company’s health within a bigger perspective, demonstrate the robustness of the business to prospective financiers and investors, and legitimize the success and wellbeing of the industry overall.
GOAL 4: Maintaining a Safe and Legal Business Environment
Government Relations Committee: Robbie Kamerschen, Aaron’s [chair]; David Harrison, Rental Concepts; Ed Winn III, General Counsel
APRO remains the RTO industry’s devoted legislative watchdog. Prior to its pandemic-related cancellation, the association’s annual Legislative Conference was preparing to happen with a White House tour and record numbers: a 92% increase in new advocates and a 141% increase in sponsorship dollars.
Of course, much of the policy-watching in 2020 happened around the coronavirus crisis. As noted, the APRO staff tracked 182 executive orders nationwide and sent 63 policy alerts to members during 2020. Additionally, for the first time, Ed Winn’s annual Legal Update was presented to the membership as a webinar – and one of the association’s most popular ones to date.
GOAL 5: Enhancing Active Member Engagement
Engagement Committee: Shirin Kanji, Impact RTO Holdings [chair]; Adam Sutton, RNR
To get more members more involved in APRO, the Engagement Committee has been striving to both increase involvement in existing activities and introduce some new ways to engage the association’s membership.
First, the committee and staff worked to increase attendance at both the APRO Legislative Conference and the RTO World convention. As noted, before it was forced into cancellation, the 2020 Legislative Conference was set to reach a record-setting number of attendees. And at RTO World Virtual, total attendance was the highest of any APRO annual convention and tradeshow held during the past decade.
Second, the workgroup sought to raise response rates to APRO member surveys up to a minimum of 30%. APRO sent out 16 member surveys in 2020, and the response rate average was above-goal, at 32%. Third, APRO debuted 10 webinars in 2020. Ed Winn’s Legal Update, as noted, was particularly popular, as were webinars covering the SBA Paycheck Protection Program.
“Rent-to-own is essential. That’s not going to change, no matter who gets elected.”
APRO General Counsel Ed Winn III
Fourth, APRO launched a new virtual feature, the RTO Classifieds. This new member benefit is free and offers a useful forum for APRO members to buy and sell equipment, services, and stores. RTO Classifieds are distributed via weekly email to the APRO membership, reaching an audience of 5,000+ rent-to-own colleagues. Fifth, the APRO Today e-newsletter began a new recurring feature: A Day in the Life of RTO, which is designed to highlight the wide variety of careers available in the RTO industry and spotlight the people who work behind the scenes to make RTO businesses run smoothly.
And finally, the association was able to increase member donations to the APRO Disaster Relief Fund by 33%, while member donations to the APRO Education Scholarship Fund increased by 10%.
State-side Support
State Association Coordination Committee: Dennis Adams, Full-O-Pep Appliances [chair]; Phillip Bumbry, Mid-Atlantic-Wolfpack; Mark Connelly, Arona Corp.
In addition to the APRO Strategic Plan, the board discussed rent-to-own’s state associations, and how APRO might offer them closer and more meaningful support. Even when there isn’t RTO-related legislative activity at the state level, keeping these associations alive and active is still vitally important for the rent-to-own industry, as bad bills do happen, and can come up abruptly and unexpectedly. So, as ever, it pays to be prepared.
APRO staff has been working to grow the number of state associations that partner with APRO, and to provide member state associations with the tools they need to keep going strong, even when things are quiet. They are updating APRO’s State Association Handbook, which will be shared with state presidents in early 2021.
Additionally, APRO helps many state associations, as part of their membership, manage their administrative functions – tasks such as accounts payable and receivable, dues and sponsor invoicing, financial reporting, legal advice, membership services, and recordkeeping. These associations can also choose from APRO’s feebased services, which include design and printing, direct mail, email marketing, event photography, invoicing for booths and sponsorships, marketing and membership services for meetings, and meeting registration services.
APRO currently manages 20 state associations – a 20% increase over the strategic plan’s 2018 baseline [welcome, Arkansas, Florida, Illinois, and Oklahoma rental dealer associations!].
Virtually Invaluable
RTO World Committee: David P. David, Full-O-Pep Appliances; Chris Kale Sr., CPL Group
Finally, board members spoke early, often, and positively throughout their meeting about RTO World Virtual, the gargantuan pivot APRO and co-host TRIB Group had to execute once it became clear the pandemic wasn’t going to let this annual national event happen in-person and in Tampa, as originally planned.
The APRO team researched 20 different online platforms before the committee selected among three finalists, providing the exceptional virtual experience everyone enjoyed during RTO World Virtual. Several board members mentioned the ease and presentation of this event platform was superior to others they had used. As noted, attendance was as high as it’s been during the past decade. Compared with 2019’s event, participation of store managers rose 48%, while participation of rental dealers was up 44%. The event spurred 764 one-on-one meetings and 5,655 vendor booth visits, and more than 50 different videos were collected and edited to honor the winners at the 2020 APRO Awards Celebration.
The last word belongs to the RTO World Virtual attendees who responded to APRO’s followup survey; asked If faced with a virtual convention and tradeshow option in the future, would you participate?, only 10% answered “No.”
Kristen Card has been a contributing writer for RTOHQ: The Magazine for more than 15 years.
APRO Achievements by the Numbers
39% APRO’s annual operating expenses have been reduced by 39% since 2016, including 2020 expenses coming in 19% under budget.
20% APRO currently manages 20 state associations, a 20% increase since 2018.
92% APRO’s 2020 Legislative Conference – prior to being COVID-19 cancelled – had a total registrant count of 102, including a 92% increase in new advocates and a 141% increase in sponsorship dollars over 2019’s event.
182 APRO tracked 182 separate executive orders and issued 63 alerts to its members during the COVID-19 crisis.
$0 Needing to postpone both its Legislative Conference and the in-person part of RTO World, APRO negotiated the combined $300,000+ cancellation fees down to zero!
48% RTO World Virtual had a 48% increase in store managers and a 44% increase in rental dealers over the 2019 in-person event.
20 The APRO team researched 20 different online platforms before the RTO World Committee selected the exceptional experience everyone enjoyed during RTO World Virtual.
10 APRO offered 10 webinars in 2020, with General Counsel Ed Winn’s Legal Update webinar and SBA Paycheck Protection Program webinars among the most popular.
32% APRO issued 16 member surveys in 2020, with a 32% average response rate.
33% Despite a difficult 2020 all around, APRO’s Disaster Relief Fund had a 33% increase in donations, while APRO’s Scholarship Fund had a 10% increase.
