Dec/Jan 2006

Volume 1 issue 5
January 2006
the
own professionals
professionals
Thetrade
trademagazine
magazine for
for rent
rent to
to own
Consumer Electronics
What’s
HOT
Compare leading RTO suppliers
Plus
10 questions for Badcock VP Albert Kohut
RTO Excellence Profile - Gloria HomeierSchwien - Full House Rentals
Dialing For Dollars; Rent & Collect...&
Collect...& Collect
What’s Your Leadership IQ?
TAKE THE TEST!
BDI-Laguna
D & H Distributing
DSI Systems, Inc
O’Rourke Sales
SED International
Yamaha Corporation
From the publisher
2005 Was a hell of a year. This publication’s website
(www.rtoonline.com) saw a record 52 million hits and
served over 5,000 unique users every day. With the
release of this issue, 50,000 copies of RTO MAGAZINE will have been distributed to RTO professionals
all over North America.
As the sign on my desk reads “that’s nice...now
what?” Here’s a sneak peak of what you can expect in
2006 from RTO Online Inc.
My RTO Online
Top secret....but involves personalization of all RTO
Online functions and services. You will be able to
perform all functions, from job posting to tradeshow
scheduling and registration to self service editorial
publication from a single page.
Payday Magazine
2006 will see the launch of both the online and print
editions of PAYDAY MAGAZINE, a publication
serving all 21,000 specialty finance locations in North
America.
Resource Guide
RTO Online will distribute, free of charge, the most
comprehensive buying guide ever produced for the
RTO and Specialty Finance sectors.
I thank you for your loyal readership and look forward to developing new and exciting ways to serve
you.
Roy Griffaw
Publisher
RTO Magazine
the trade magazine for rent to own professionals
RTO Magazine
4862 Newberry Ct.
Jackson Mo., 63755
Circulation: 9,245
RTO Magazine is
published bi-monthly
by RTO Online, Inc.
Principle office:
4862 Newberry Ct.
Jackson, MO 63755.
All contents © RTO
Online, Inc.
Reproduction in whole
or in part without
written permission is
prohibited.
Subscriptions are free
to anyone directly
involved in the rental
purchase industry. For
non-industry subscribers, the cost is $99 per
year (6 issues).
Make advertising
inquiries to:
RTO Online
Sales and Marketing
Dept.
866-786-7547
sales@rtoonline.com
PAGE 16
RTO Excellence
Gloria Homeier-Schwien - Full House Rentals
How Gloria Homeier-Schwien left the agriculture industry for RTO
and found her cash cow.
“To follow, without halt,
one aim: There’s the
secret of success.”
Anna Pavlova
Contents
p 10
My New Years RTO Resolutions
Ideas to improve your business in 2006
p6
10 Questions For Albert Kohut,
VP New Business Development
for Badcock.
COVER PAGE 30
Electronics
Compare leading suppliers of the hottest rental products for 2006.PAGE 30
p 47
RTO Photo Gallery
Photo Spread.
p 12
Dialing For Dollars
Rent and Collect...and Collect...and Collect
p 20
Bring-em-Back
You may not immediately convert every walkin to a renting customer, but you can guarantee they’ll return.
p 18
What’s your leadership IQ?
What makes a good leader? Answer 10 True/
False questions and determine your natural
leadership ability.
NEW RENTAL OPPORTUNITIES
for the
Digital
Home
Shannon Sholtis and John Alifano
D&H Distributing Co.
D
igital content is everywhere we look and
listen these days, whether it’s in the form
of video, pictures, music or games. It’s inevitable that your customers and clients are using
some form of digital content every single day,
yet, more than likely, they are only touching the
surface of what they could do with all of it.
Here is where you have the opportunity to
expand on that sale of the TV or display that
will forever be the center of their digital universe. You could easily offer them the capacity
to use their TV for digital content beyond that
of sitcoms and movies.
Consider the various applications that
exist today. In the entertainment room one has
the capacity to browse digital pictures on the
television, watch streaming video and multimedia from anywhere in the house, listen to
digital music on the stereo system, access the
Internet to check email and shop online, make
long distance calls on the phone using highspeed Internet, and play the latest games on the
newest video game consoles and even challenge
other players over the Internet. And this is only
the beginning. Every room in the house can be
wirelessly networked to enable multiple users
to not only access the Internet, but to compute,
entertain and share a multitude of various digital files throughout the home as well.
Fortunately for all of us, the products that
create this simple model are easy to set-up
and even easier to use.
To start, Linksys wireless
networking hardware like
the WRT54GX2 Wireless-G Broadband Router
with SRX Speed and
Range eXpansion is really
three devices in one box.
First, there’s the Wireless
Access Point which lets
users connect Wireless-G,
Wireless-B and other performance-enhanced
SRX devices into the network. There’s also
a built-in 4-port full-duplex 10/100 Switch
to connect wired-Ethernet devices together.
Finally, the Router function ties it all together
and lets the entire network share a high-speed
cable or DSL Internet connection. With this at
the center of the home or office network, users
can share the Internet, files, printers and multiplayer games from any room in the house
as long as that room is equipped with a PC,
Entertainment Center or Laptop with a wireless network adapter.
Enter the Ricavision EMC3200D Plix
HD Media Center PC featuring the Microsoft Media Center Edition 2005 operating
system. Once connected to the TV or projec-
tor through DVI, VGA, component video,
S-Video or composite video, users have control of everything from TV, movies and home
videos, to music, photos, and FM radio,…with
a remote…right from the couch.
Blurring the line even more between
computers and home entertainment is the Xbox
360 Console with a platform that also functions
as a Media Center
Extender. So, while
your customers can
use it to primarily
play the hottest games
and go head-to-head
online with a wireless
gaming adapter, the
Xbox 360 also works
with any networked
Media Center Edition
PC to allow gamers to view networked content
like movies, music and photos directly from the
Xbox in another room.
And if it isn’t enough for your customers to
access digital content throughout the home,
then they can also take their TV and movies
with them anywhere they go. Sling Media’s
Slingbox easily plugs into the cable box, DVD
player, VCR and/or digital set top box, the
home PC and wireless network connection.
This award-winning device enables users to
access the content over the Internet, which
means they can watch their favorite shows and
blockbusters from any Internet-enabled PC or
laptop from a remote location and turn it into
their own personal television.
Of course with all of the various devices demanding your customer’s control, the Logitech
Harmony 880 remote delivers the ultimate ease
of programming them. Once connected to the
PC with the included USB cable, the Web wizard walks anyone through a step-by-step setup
that accesses Harmony’s web database which
includes codes for over 10,000 different home
theater devices, along with the ability to learn
new devices. Users simply specify the brands
and models of their
components and the
Harmony ingeniously does the rest.
Whether it’s one
technology or another, all of these
cutting-edge devices
supply digital content in one form or
fashion, and they will always revolve around a
display or television as the centerpiece of any
home theater and computing application. So
while you will always have access to a deep
selection of plasmas, HDTVs, LCD TVs and
more, it’s time you tap into the profit opportunities that exist in adding on to the sales of
your big-picture TVs. Show your customers an
even “bigger picture” that exists in and around
the digital home, and help them discover the
endless possibilities in accessing their digital
content whether it’s through a wireless network,
the latest entertainment PC or newest gaming
console, and even through a gadget that looks
like a mold for a chocolate bar. N
Shannon Sholtis has been writing about computer and electronics
technologies for 9 years and is the Advertising Manager at D&H.
John Alifano is the Manager for D&H’s Consumer Electronics
Division and has been in the CE industry for 24 years. For product
information, contact rto@dandh.com.
You can find all the products mentioned in this article and more at
computing, consumer electronics, home entertainment and video gaming.
D&H. We offer complete, end-to-end digital home solutions. You’ll
To find out more of what D&H has to offer, please visit our website at
find a vast and varied selection of name-brand products across
www.dandh.com or call 1-800-340-1007.
10 Questions
For Albert Kohut
Albert Kohut, Vice President of New Business Development for W. S. Badcock Corporation, heads
the 100-year old furniture retailer’s new “Home Now” rental ownership division. Badcock is the
largest furniture retailer in the South East, and is among the top 25 retailers in the United States.
Prior to joining Badcock, Albert spent 8 years with Thorn (former Rent-A-Center owner). He has
spent the last two years developing the Home Now business plan, store concept and store prototype, which came to life in August 2005 in Clearwater, Florida.
With a 313 retail store backbone, Albert intends to leverage Badcock’s infrastructure and open 100
Home Now stores in ten years. This is the first time a major retailer has entered the rent to own
industry.
With over 300 retail locations,
Badcock retail is the 400
pound gorilla in the southeast. Why get into rent
to own as opposed to
expanding your existing model? For over
100 years, the W.S.
Badcock Corporation has focused on
its core business as
a furniture retailer.
In the last 5 years
the company has
undergone an
image upgrade and
we have attracted a
higher-end customer
base. We wanted to
make sure that we
were able to take care
of the damaged credit
customer as well.
What is Home Now’s
biggest competitive
advantage? We carry a
huge selection of product
in our distribution centers.
Our distribution system allows us to deliver twice weekly
to all stores. Badcock’s catalog
allows us to meet the special
order needs of our customers
within 3 to 4 days.
Albert Kohut, Vice President of
New Business Development, WS
Badcock Corporation
Your first model store has been open for
several months. Is it meeting expectations?
Being a new player in the business, our name
took longer than we expected to get out to
the consumers. We had a slow start, but
are rapidly gaining momentum. We are very
pleased with the customers’ reaction to our
look and the proposition we offer.
You spent a two years developing your
Home Now model. What did you gain by
taking that time? I come from a traditional
rent to own background and have been away
from the business for over 8 years. This is
not the same industry that I knew. Aaron’s
has changed the perceptions of the RTO
customer. Fortunately, I was able to recruit
a bright, out-of-the-box thinker in Dan Companion, whose experience in the industry as
an independent operator and consultant kept
us fresh in our ideas as we developed the
proposition.
You made use of consumer focus groups
during development. What was the biggest
surprise? Our biggest surprise in the focus
groups was that 80% of consumers want
to pay monthly or semi-monthly. They also
wanted to eventually establish credit. Our
program that gives RTO customers instant
credit at any Badcock retail store, has been a
home run.
How many dealers in the existing Badcock
network are interested in opening Home
Now locations? Eighty percent of our stores
are owned and operated by our Dealer
network. Many of our Dealers are excited to
open a Home Now Rental Ownership store.
We will develop a franchise offering both for
our Dealers and the general public.
There are approximately 9,000 RTO locations in the US and Canada. Is there room
for significant growth and what is the
potential number? Rent-A-Center states that
they believe there is potential for another
6,000 stores across the country. Surely there
is enough opportunity to open 100 stores in
the southeast.
How many stores will Home Now operate in
2015? By 2015, we will have 75 -100 stores.
How will Home Now transform the RTO
industry? We believe we have a proposition
that can help consumers have a legitimate
opportunity to establish or repair their “FICO
Score” with our Credit Builder Program.
What makes Home Now different? We’re
listening to the customer and offering what
they want with awesome customer service.
What will be written on your
tombstone? NEVER LOOK
BACK. You can learn from
the past, but never
dwell on it.
RTO magazine page: 8
January 2006
www.rtoonline.com
My RTO New Year’s
Resolutions
pany’s commitment to improving the knowledge and skills of its workforce. The personal
development classes demonstrate the company’s
commitment to improving the quality of life for
its employees.
By Mamie Salazar-Harper
t’s that time of year again. A perfect time to
commit a set of New Year’s Business Resolutions. Set attainable and measurable goals
that will improve your business and your bottom
line. Enlist the help of all of your employees.
Spread around the accountability for these new
commitments and set a definite timeline. Then
establish a reward. It might be a company picnic,
barbecue, or fun day. Get started and get after it!
I
Training- This is probably the most needed
and yet most neglected component of the
rental purchase store. Set up a regular training
schedule and stick to it. Make a calendar and
get your employees to buy into a program of
company training and self development. Lunch
time training is an idea that has worked well for
our company. It is a voluntary program that we
enacted that makes training classes available to
employees during a pre-set lunch hour. In exchange for volunteering their allotted lunch time,
the company provides a free lunch, the trainer
and the materials. The subject matter can be
business specific such as sales, collections, and
operations training and it can also include
personal self development classes
such as personal finance and
nutrition. A true investment in training emphasizes the
com-
RTO magazine page: 10
Time Management- This is such an important aspect in our day to day activities. Provide
a class and daily planners. Develop time-frames
defining specific tasks. Get all the employees involved in analyzing lost and wasted time that can
be converted into productive and profit seeking
endeavors. Document improvements and follow
up on a regular basis. Ask for employee feedback
and stress the importance of incorporating good
time management skills into their professional
and personal lives. Make procrastinator a dirty
word and deed in your company.
The Right Person for the Job- Fight off the
Peter Principle and put the right person in the
right job. Management’s primary role in human
resources is to match a person’s skill level to
their job description. There are employees
who are placed in positions that will not allow
them to become successful because they lack
the skills and experience to accomplish the
tasks. They feel overwhelmed and
are often afraid to seek help
from management.
Evaluations
that are conducted more frequently than annually
will help pinpoint this problem. Get the employees involved in developing self-evaluations that
can be real eye openers for management and
the employees themselves. Discovering true
strengths and weaknesses will help both parties
decide where the employee can contribute the
most.
Fresh Marketing Plan- Make a commitment to create a fresh new marketing plan for
your rent to own store. Instead of rehashing the
same old promotions, broaden your scope and
creativity. Look to other industries for promotion
and sales program ideas. Ask each employee to
bring in an idea from a retailer with no ties to the
rental purchase industry. Entertain co-branding
ideas with other companies in a joint advertising
campaign. Use another form of media on
a trial basis to test drive your new
marketing and advertising
program. Think change
and realize that
change
can
“Management’s
primary role
in human
resources
is to match
a person’s
skill level
to their job
description.”
January 2006
www.rtoonline.com
be the best thing that can happen to your
business. Stagnation stinks!
Get Kinky!- I know this one got your
attention! What I mean is, get a little crazy
with your in store displays. Challenge
your employees to come up with the most
outrageous way of displaying your inventory. Keep it clean and legal! Setting up an
eye-catching window display can be a great
store project and loads of fun, incorporate
a fully clad mannequin. Hang objects, drape
fabric, wear theme clothing, play exotic
music- the only limitations are your own
creativity.
Rework Your Store Goals- Instead of
just dusting off the regular employee bonus
program, revamp it. Get feedback from
employees and jointly noodle on different
ideas. Contact business groups and the
chambers of commerce in your area for
names of successful business leaders who
can provide advice and recommendations.
Contests are always fun tools to use in jump
starting rentals and new sales programs.
Whoever has the best contest idea gets a
free dinner for two.
Customer Advisory Board (CAB)- The
best way to stay in touch with your customer base is to create a customer advisory
board. Pick five to ten customers and ask
them to participate. Tell them you want to
hear the Good, the Bad, and the Ugly parts
of your business, and then mean it. Invite
them for coffee or lunch off site and ask
them for honest opinions and views. Get
their input on new product line offerings
and ask them for improvement ideas. Rotate
your CAB on a regular basis to interact with
the greatest number of customers. Don’t
discriminate between “good and bad”
customers. So called “bad customers” can
be your best resource.
Implement Personal Strategic Planning- Business strategic planning is a must,
but have you considered taking it a step
further? Your employees are your most
valuable asset. Most employees are never
taught to deliberately plan their lives. Demonstrate your commitment to your team by
offering career and personal planning. See
if the company can assist in accomplishing personal goals. Can the company offer
flexible schedules to allow the employees to
attend college? Set aside time at a company
meeting or retreat to discuss the importance
“Get Kinky! Challenge
your employees to
come up with the
most outrageous
way of displaying
inventory.”
of having wills, life insurance and a retirement
plan. Our company assists in helping employees
plan for their annual vacation. Internet research
and voluntary payroll deductions help employees
realize their plans for family vacation travel.
Faster, Cheaper, Better- Every employee in
every company should be challenged to analyze
their business transactions and find better ways
of accomplishing them. How can we do things
Faster, Cheaper, and Better?
Look at other industries to get ideas. Find
out what the rest of the world is doing to handle
the challenges. What trends should you be
watching? How will local unemployment affect
your business in the upcoming year? Will it have
a positive or negative impact? What can you do
to prepare your business for increasing interest
rates? What about technological advances?
Read More- The more you read, the more
knowledge and information you have at your dis-
posal. Read a variety of printed material. Life is
too short to compile all the life experiences you
need, so learn from the experiences of others.
Make it a point to read biographies of successful
business and political leaders. You may benefit
from their mistakes and advice. Read your local
newspaper and identify new customers and
business opportunities. Read about demographic
research and then analyze your own customer
data. How does it compare to your competitors?
Research your market penetration. How much
of your market do you really have? You might
be surprised with your findings. Read the annual
reports of the large public companies. How does
your operation compare? What are they doing
that you should be doing? Learn from others and
don’t be afraid to ask questions. Knowledge is
power. Use it!
A new year presents us with a fresh opportunity to start with a clean slate. Make a
commitment to try something different and fun.
You might just surprise yourself!
“Knowledge is power”
www.rtoonline.com
January 2006
RTO magazine page: 11
Dialing For Dollars
Rent and Collect ...
...and
and collect ...and
collect ...and collect ...and collect
...and collect ...and
collect
By Bud Holladay
RTO magazine page: 12
January 2006
www.rtoonline.com
y home telephone rang off the
hook most of last summer.
Seems I somehow made the
All-Givers List with my last check
to the Little Sisters of Perpetual
Regret, or one of their many affiliates. What
struck me was not the number of causes looking
for my hard-earned money, but the fact that
they are so good at what they do. The solicitors
I talked to were uniformly more assertive and
more determined than their brethren who dial for
dollars in rental stores every day. How can these
people maintain the same level of intensity day
after day working twelve hour shifts from dismal
little cubicles in some industrial park? And then
it struck me: Intensity - of course! Calling is what
they are trained to do, it’s what they are good at,
it is how they earn their living, and only the very
good survive. They work carefully selected phone
lists with a proven script, activity is measured
against results hourly. The guy who calls you at
dinnertime on behalf of the local firefighters is
certain of his objective. He is calling to get the
money. No introductory chit chat, no friendly
banter about anything except the size of your
check and the date you are mailing it (unless you
prefer to do a credit card now, Sir). Odds are that
is quite different from the phone work in many
RTO stores.
M
Getting our money without losing the customer should be the goal of every store manager
and anybody else who wants to get ahead in the
company. Being successful requires equal parts
of patient explanation, serious convincing and
savvy negotiating, along with pre-planning and
close follow up. It is more than just filling in our
charts and writing down the numbers. It is all
about intensity, timing and approach - knowing
just when to apply each tactic so we move the
customer closer to our objective. And that is
where, lately, we have got collections all wrong.
Too often we start out all nicey-nice and
then get progressively more hardnosed as the
account ages. Of course this does not mean we
should round up the villagers and go out with
pitchforks and torches hunting down first-time
fallouts. But there are certain things we can do to
ensure that we end each day with more money
in the till and fewer returns on the truck. The
surprising thing is, nearly all of us know what
those are. In our haste to be the good guys we
have over-compensated collections to the point
where nobody takes us seriously when it is most
critical that they do.
First understand that it is impossible to
collect a payment over the phone. That is, unless you have a valid credit card number and a
compliant cardholder (whenever possible, one
should belong to the other). The other 99%
of our calls involve restating terms, exploring
options and setting appointments that are likely
to be kept and result in full payment. The Law
RTO magazine page: 13
of Diminishing Paychecks demands that this be
done early and efficiently. No manager can grow
a store when the workforce spends as much time
dealing with past due customers as it does finding and keeping new ones. So prevention is as
important as resolution. Unfortunately, most of
our training and development focuses on sales,
which is the easiest thing to do in a rental store.
Look at it from the customer’s perspective:
“This store has exactly what I want. They don’t
care how I pay my bills or even if I pay them.
They promise to make delivery tonight and my
cash outlay is less than a night at the movies.”
How much training does it take to bring that
prospect to closing?
Now look ahead a couple of weeks or a
month when the first renewal payment has not
been made. The same guy we romanced earlier is
about to be called by a store associate who has
a near-impossible task: reduce our past dues by
half without creating returns, while at the same
“Getting our money
without losing the customer should be the goal
of every store manager
and anybody else who
wants to get ahead in the
company.”
time updating the customer information on those
deliveries we slung out last summer. Do you
think that employee’s approach will be (a) Firm
and direct; (b) Respectful but demanding; or (c)
Whatever it takes to get a commitment? Guess
(c) and you are both a winner and a loser. If you
don’t believe it, just check your call logs and past
due records.
After the customer breaks three or four
commitments and fails to return our calls for
another week, management steps in and cranks
things up. Now we’re mad. It’s M&M time: Merchandise or Money. Of course by this time the
customer owes so much he can’t possibly pay
it all in one sum. So he simply stops responding and hibernates. No callbacks, no answering
the door, no money orders through the slot on
Sunday night. And sometime later the account
will be charged off or repossessed and all parties
will swear never to go through that again. But
of course we know they will, and probably with
each other (because our sales staff has now
been trained to call pickups and returns for new
deliveries).
How different could attitudes, productivity and growth rates be if we recognized that
January 2006
customers who aren’t strongly encouraged to
take this new agreement seriously the first time
are highly unlikely to do so later? Maybe we
have just become lazy in the way we train for
good account management because the results
are seldom immediate and nearly always result
in a few more returns. Thus we experience the
see-saw thrills of throwing out bad deliveries to
offset returns from past bad practices, only to
tighten up later when charge offs get out of line.
Whatever happened to consistent execution of
our basic business plan, regardless of temporary
swings in traffic or payments?
The psychographic and demographic profile
of today’s rental customer demands that our
strategies change as the status of the account
changes:
Stage I: Close the agreement in a way that
sends only one message: “We want your business, but that means having your payment on
time. When you pay on time, we are your source
for whatever you need and you are always approved.” Then follow up.
Stage II: The first time the customer falls
out, we revisit our agreement close. That is, be
firm and unyielding and agree on a time today
when the customer will be in to take care of
business. While payment is still within reach and
nobody’s angry, we reinforce and restate, making
it clear that our company requires its customers
to live up to the promises they’ve already made.
This signals that we aren’t calling to get another
promise but to establish a payment time. We
are a real business, we keep our word, and our
agreement with the customer is paramount. It
is everything. If a commitment is in order, the
customer should come to the store to negotiate
that (yes, this sounds scary but it’s a tactic that
is very effective when executed properly).
Stage III: When the customer owes more
than he can pay right now but still has the ability
to make future payments, negotiation - not irritation or exasperation - is required. An effective
negotiator is a great listener who can remain
focused on the objective. He can identify motives
and fears. All this leads to solutions that bring
the other guy around to our point of view; but
we must be prepared to move a little as well. We
are “Just lookin’ for a way we can both get out of
this mess we’re in…”
Every new account holder loves us. We
have filled his needs and fulfilled her dreams.
If he ever turns a few weeks past due, he sees
things differently. But think about this typical
customer’s experience with planning and finance
up to now: something has probably been his
fault everyday of his life. So let him feel like he’s
ahead on this one. If we misplace our common
sense and let Macho Man out of his cage, we’re
unlikely to produce the kind of results that we
can put in the bank. And putting it in the bank is
the whole idea.
www.rtoonline.com
Change & Choice–how you can benefit.
The new year continues to bring changes in the world
of home entertainment. The trend of entertaining at
home, which had been building for a number of years
and spiked after 9-11 continues to thrive, seemingly
unabated. In the last two years alone, the consumer
electronics industry grew over 20%. Some of the
industry statistics are staggering, and impact not only
electronics but everything they affect, including
furniture storage systems, entertainment centers and
multi-use armoires. According to a study by the
Consumer Electronics Association, the average U.S.
household owns about 100 music CD’s, 40 DVD’s
and 16 video games. What does this mean for the
home furnishings industry… specifically, entertainment
center manufacturers and sellers? To paraphrase
George Carlin, everyone needs “a place for their stuff.”
In the past, choice was not a part of the television
rental equation. Henry Ford was reputed to have
commented that customers could have a Model “T” in
any color, “as long as it was black.” And so, the
venerable 19” became the rental standard. Now, it is
just one of many choices the consumer at large–and
the renter in particular–has. There is an alphabet soup
of options, from the traditional CRT to LCD and
Plasma. Flat screen
video monitors are
aesthetic–both in their
picture quality and in
their design, which
showcases the technology beautifully. Similarly,
the new shape and
configuration of the
monitors has created innovations in entertainment
center and armoire design.
of woods and finishes that
not only offer function, but
enhance the entertainment
experience as well as
upgrading the entire living
environment.
More often than not, couples who come in to rent
both furniture and entertainment products divide their preference based on
their interests. The men fancy themselves “tekkies,”
and think they are more qualified to make the right
decision when it comes to size,
technology and brand of television. The women, on
the other hand, are usually the arbiters of both good
taste and practicality, and have the final say when it
comes to furniture decisions. For you, this presents
a great win-win situation, fulfilling the promise of onestop renting by enhancing every television rental with
the addition of renting a furniture piece. In this way, the
television instantly becomes more.
Sandberg Furniture and The Platinum Collection
makes the win-win opportunity easy, by offering the
renter more than just a “place for their stuff,”but a
true choice of armoires and entertainment centers
perfect for bedroom, den or family room. Each of the
entertainment centers and multi-use armoires have
been designed around the current selection of video
monitors and various home entertainment components
as well as relevant software–CD’s, DVD’s and video
games. The entertainment centers have been
engineered to optimize viewing, and allow for preferred
speaker placement. In addition, all have cam-lock
adjustable shelving and adjustable leveling bases.
And there are a number of sizes available, from the
compact, feature-driven armoires to the full-size home
theater scale entertainment centers.
Same entertainment center. Different TV.
You can benefit by capitalizing on the choices
available in the home entertainment field and the
trends in lifestyle.
Today, select furniture manufacturers are responding
to the challenges and opportunities of the new
technology with fashion-forward designs, married to
multi-application functionality. There is high quality
entertainment furniture available, made of a variety
With so much going for these entertainment centers–
you may want to consider them the key rental piece
and not an accessory or afterthought
to the TV rental.
863.534.8915 • 323.582.0711 • www.sandbergfurniture.com
Why rent televisions...
when you could be offering home entertainment?
Sandberg Rental Express is known for up-to-the-minute, fashionable style. We’re famous for
bringing your customers the looks they want and the prices they’ll love, with no waiting! Unique
features and special touches sets every Sandberg Rental Express entertainment center apart.
• A variety of configurations to fit
almost any Television
• Exclusive Ultra Gloss on most styles
• All merchandise in stock for
immediate delivery
• Cam-lock adjustable shelves
• 32mm European style dowel
construction
• Adjustable leveling feet
Contact: Dave Humphrey, Matt or Wayne Harris
ph: 863-534-8915 fax: 863-534-3009
323.582.0711 • www.sandbergfurniture.com
RTO Magazine Presents
RTO Excellence
Recognizing excellence among independent rent to own dealers
A Woman’s Prerogative
How Gloria Homeier-Schwien left the agriculture industry for RTO and found her cash cow
By Lucille Farkas
I
t was supposed to be a two-week job. A young Gloria Homeier needed temporary part-time work and found
it working for the federal government measuring grain bins and counting cows of the local farmers. “I was
not the person the farmers wanted to see coming. I monitored compliance, so they were always nervous
when my truck pulled onto their property,” says Gloria. Fifteen years (and many cows) later, Gloria knew she
needed a change.
“I have to admit, I had a good job. I eventually became the County
Executive Director for the Farm Services Agency in the US Department
of Agriculture. I implemented all of the farm programs in my part of
Kansas. The government was good to me, but I was bored. After you
master your tasks, there is no challenge. And I needed to be challenged.
I really wanted to go out on my own.”
Luckily for Gloria, she had a close role model. In 1990, Gloria’s
father, Richard Cross, had begun opening Hometown Brand Center
stores in Kansas and Nebraska. A long-time Sears dealer, he needed
a new concept when Sears started to consolidate and close his
stand-alone rural locations.
Since Gloria’s US Department of Agriculture position only
required a four day work week, she would often spend a day or
two working under the tutelage of her dad. Eventually he maxed
out at five locations.
“He’d have kept going, but my mom wouldn’t let him open
any more!” says Gloria.
Bit by the entrepreneurial bug and intrigued with the
possibility of opening her own stores, she started to look for
locations near her home in Russell, Kansas.
“My very first thought was Beloit, Kansas (population: 4,000). I looked at the push-pull factors published by
Kansas State University and felt there was enough stability
despite the rural location and seemingly small population.
Beloit had a rather high pull factor, meaning people were
going in to conduct business there from other towns,
making it all the more attractive.”
So in November 2001, Gloria Homeier-Schwien
became Owner/President of G-5 Retail, Inc. and
opened her first RTO store, A Full House.
“From day one, we did payday loans, rentto-own, retail, 90 days same as cash, you name
it. The way it breaks down is that 30% of the
Beloit transactions are retail purchases and the
rest are rent-to-own. And frankly, the payday
loans complement the business wonderfully.
Continued on page 50
RTO magazine page: 16
January 2006
www.rtoonline.com
Glo r ia Homeier-Schwien
Full House Rental
w
www.rtoonline.com
January 2006
RTO magazine page: 17
Leadership Strategies for the
21st Century in RTO
By Jay Roberts
Vice President of Operations for
National TV Sales & Rental
leader is anyone that is
responsible for a result of
any kind. In a rent to own
company, we are all leaders to
some degree because we are all
responsible for achieving a measurable result.
A
Leadership Defined:
“ Leadership is the challenge
to become something more than
average.”
“ Leadership is getting people
to do, what you want them to do
because THEY want to do it”
“ Leadership is the ability to
get extraordinary achievements
from ordinary people.”
The foundation of leadership in
our business has two key elements.
Character and Skills. Great leaders
must have both. A major survey
found there are ten character traits
that make a great leader.
The 10 Character traits of a
great Leader
Integrity: Do the right thing, at
the right time, for the right reason,
regardless who’s watching.
Generosity: Be generous with
your time and with your money
because you always get back more
than you give.
Friendliness: Simply put, be
approachable. The three C’s of
Leadership are Consideration, Caring and Courtesy.
Gratitude: Be grateful for the
opportunity that life has given you
and absolutely committed to taking
full advantage of the opportunity.
Attitude: Attitude is Altitude.
Life is 10% what happens to you
and 90% of how you respond to
it. It is your positive attitude at the
beginning of a difficult task that
determines its successful outcome.
Perseverance: Keep on Keeping on. We all get knocked down
occasionally. Leaders get back up.
RTO magazine page: 18
Passion: Love what you do,
Do what you love and deliver
more than you promise. Be passionate about the industry you
are in and the people you serve.
adership IQ?
Test Your RTO Le
Dedication: Be dedicated
to the people you lead and the
people you serve. Exceed customer expectations, every time,
every day. Work as hard for the
personal and professional development of your subordinates as
you do for your own.
Excellence: Going far beyond the call of duty, doing more
than others expect. Excellence
comes from maintaining the
highest standards, looking after
the smallest detail, and going the
extra mile. Excellence means doing your very best in everything
and in every way.
True / False
2
True / False
3
True / False
True / False
4
Optimism: See the light at
the end of the tunnel as the goal,
not a freight train about to run
you down.
Setting the tempo
The greatest challenge of a
leader is discovering something
in our people, some skill, quality
or attribute that they themselves
did not know existed.
“The objective of leadership
is to help those who are doing
poorly to do well, and those who
are doing well to do even better.”
-Jim Rohn
Scoring
1
___
A score of 8-10 points: You
would be or are an effective
leader. You are sensitive to the
needs of those you direct. If you
are not in a leadership role now
you are not developing yourself
to your fullest potential.
A score of 4-7 points: You have
an average ability to lead a
group of people. You can improve your abilities to lead with
additional leadership training.
5
True / False
6
True / False
7
True / False
8
True / False
9
True / False
10
True / False
True leaders are born
not made.
When I take on a
leadership role it will
improve my popularity.
The very best leaders
understand the importance of maintaining a
low profile.
When you usually get
along with the people
in charge, you will
probably be a good
leader.
The very best leaders
always know what to
do in every situation.
An effective leader
must always try to
maintain a forceful
personality.
My physical appearance has very little or
nothing to do with me
becoming a leader.
I prefer reading fiction
to non-fiction.
I usually stick to my
decisions even when it
is unpopular with the
group.
Being a quick decision
maker is an
important trait of a
good leader.
Adapted from a test written by Dr. Salvatore V. Didato Ph.D.
Answers On Page 46
A score of 0-3 points: You are a
solid follower and not a leader
of others. This does not mean
you will not be successful in any
endeavor you choose, but only
that the odds are against you
in achieving your goals if they
January 2006
involve getting done through
others. People with low scores
usually work better on their own
or as team members rather than
as a leader. Substantial leadership training can change your
ability to lead others.
www.rtoonline.com
•
•
•
•
•
•
Experience the M & B
Profit Advantage
• Diamond Importers Prime Jewelry
Manufacturers
• Over a Century of Jewelry
Manufacturing and
Marketing Experience
• Exceptional Inventory
Management
• In-House Repair,
Refurbish, Sizing
• “Quick-Turn” Shipping
Advantage
• Special Orders - No Problem
• Turn Key Jewelry
Department Set-Up
.D.
• Experienced In-Store
Training
• Customized In-Store
P.O.P.
• Flyer/Mailing Program
6040 Century Oaks Drive • P.O. Box 23227 (37422) • Chattanooga, TN 37416
Telephone: 423-894-4480 • Toll-Free: 800-251-7640 • Fax: 423-894-5122
Bring
-em-
natural
manner?
Did the associate make the
shopper feel important? If other
sales associate’s
were observed, what
sort of overall impression was given?
Presentation of store: Was
the outside of the store attractive? Signage was neat and
clean? Inside was clean and well lit?
Furniture was in groupings? Electronics neatly displayed with TVs and radios
on? Used appliances clean and odor-free
inside and out?
By Pam Leach
Shoppers View
Y
ou might not immediately
convert 100 percent of
walk-in traffic into paying
customers, but you can absolutely
guarantee 100 percent of the
walk-in’s will be future customers.
Let’s break down each question. Assess
yourself on each of the following points:
1. If this location were convenient for
you, how likely would you be to return?
Absolutely.
The associate gave an excellent sales presentation and established an excellent rapport with the shopper. The store was
clean, well lit, nicely laid out with products displayed well.
It’s hard to get bad news, so let’s get it out of the way right up
front.
Probably.
No matter how good you are at sales, no matter how stellar
your customer service -you will not make a sale each and
every time. No matter what you do or how nice you are or
what incentives you offer, some potential customers will walk
without signing on the dotted line.
Likely the associate gave a very good to excellent presentation,
but perhaps did not volunteer much information. Could also be
that the store or merchandise presentation was good, but not
excellent. A lot of times this rating indicates that not enough
new stock was on the floor.
There, that wasn’t so bad. Did you catch the magic words? If you
said “potential customer,” give yourself a gold star!
Maybe.
Probably the associate was friendly enough, but did not
establish a good rapport and likely did not ask for the order.
Overwhelmingly when this rating is given, it is due to a poor
interaction with the associate, but the merchandise and store
is presented well. The only thing that would bring the shopper
back as a customer is a convenient location, merchandise they
wanted, or a good company program.
While you might not convert 100 percent of the people who walk
in your store to an actual customer today, you certainly can make 100
percent of the people who walk in your store a future customer. In
fact, you have the power to make their experience so positive that they
recommend your company and your store to family and friends.
While your sales presentation and ability to build rapport with
people is most important, it is not the only thing that will bring people
back. The way your store is presented is a factor as well.
Never.
Dirty diapers were left in used washers, food was left in used
refrigerators, electronics were dusty, carpeting was stained,
floors or walls were dirty, and the sales associates were apathetic at best. Luckily this is rarely given.
Our on-site score sheets contain three overall questions to be
answered with “Absolutely,” “Probably,” “Maybe,” and “Never.”
If this location were convenient for you, how likely would you be
to return?
2. Would you recommend this location to family and
friends?
Would you recommend this location to family and friends?
Would you recommend this company to family and friends?
Absolutely.
We ask that our shoppers consider:
The shopper’s experience is tied to this location. The shopper is
impressed with the company and the merchandise, and, most
importantly, has made a personal connection with the sales associate. Even though this was a shop, this shopper may return
as a customer and will certainly recommend to others.
Sales presentation : Was complete information about the product
and program volunteered, or did the shopper have to ask questions.
Rapport: Was the sales associate friendly and attentive? Did the
associate introduce him- or herself and ask for the shopper’s name?
Did the associate use the name throughout the presentation in a
RTO magazine page: 20
January 2006
www.rtoonline.com
• Present one or two products that particularly met her needs?
Probably.
• Give features and benefits of the product?
Likely the associate gave a very good to excellent presentation, but perhaps
did not volunteer much information. Could also be that the store or product
presentation was good, but not excellent. A lot of times, this rating can
indicate that not enough new stock was on the floor.
• Did you relate how the product features and benefits would meet his
specific needs?
• Explain your company program features and benefits?
Maybe.
• Explain how the company program features and benefits would meet
her specific needs?
Probably the associate was friendly enough, but did not establish a good
rapport and likely did not ask for the order. Even if there is great merchandise and the company program is impressive, the shopper is not likely to
subject his family and friends to a poor interaction with the associates.
• Make sure she understood how the program works?
• Offer to have it delivered today?
Never.
• ASK FOR THE SALE?
Dirty diapers were left in used washers, food was left in used refrigerators,
electronics were dusty, carpeting was stained, floors or walls were dirty,
and the sales associates were apathetic at best. Luckily this is rarely given.
• Use product or program features and benefits to overcome objections?
3. Would you recommend this company to family and
friends?
• ASK FOR THE SALE?
Absolutely.
• ASK FOR THE SALE?
• Offer last-ditch deals or incentives?
• Offer him your card and an order form?
The shopper’s experience is tied to this location, but it was such an excellent interaction that the shopper would be happy to recommend any location to family and friends. The shopper assumes the same excellent service
will be given to family and friends no matter what store they visit.
• Ask for her address and phone number so you can follow-up with
her and/or mail him brochures?
Most importantly, did you:
Probably.
Likely the associate gave a very good to excellent presentation. Could also
be that the store or product presentation was good, but not excellent. The
shopper had a good experience
Maybe.
MAKE YOUR CUSTOMER FEEL IMPORTANT-valued as a person and
as a potential customer?
Trust that even if you did not make the sale today, you made a customer for life. Remember, too, that people do business with people, not
corporations. Make them remember you.
Probably the associate was friendly enough, but did not establish a good
rapport and likely did not ask for the order. Even if there is great merchandise and the company program is impressive, the shopper is not likely to
subject his family and friends to a poor interaction with the associates.
Never.
Dirty diapers were left in used washers, food was left in used refrigerators,
electronics were dusty, carpeting was stained, floors or walls were dirty,
and the sales associates were apathetic at best. Luckily this is rarely given.
So, if your store and merchandise is presented well, the only time you
should feel badly about someone walking without buying is if you did not
do all you could to get the sale without resorting to high-pressure tactics.
Did you:
___
“You get what you INSPECT, not what you EXPECT”
Shopper’s View supplies RTO Mystery Shoppers
www.shoppersview.com
800-264-5677
Greet the person warmly as soon as he entered? (Even if you were
with another customer?)
• Come out from behind the counter to speak with her?
• Introduce yourself?
• Ask for his name and use it throughout your presentation?
• Ask questions to determine her needs?
• Listened to his speech patterns and observed his body language so
you could tailor your presentation to match his habits?
RTO magazine page: 21
January 2006
www.rtoonline.com
just the right mix
DLP, LCD and Plasma is your greatest sales tool.
More knowledge = more deliveries.
Not Having
the Right
Product
Mix
Can Be
Hazardous
To Your
Health
When you bring a new electronic product
into your showroom, give your employees the
manual and the remote and let them study and
use the remote for thirty minutes. The remote
is taken for granted and most employees do not
know what features can be activated until they
have a chance to actually use the product.
HAVE THE RIGHT MIX
A Good-Better-Best
product line is a must in
all RTO locations. Your
deliveries will increase
simply because you have
eliminated their reasons
for objections by providing a greater selection of
products to fit their needs.
From 13” TV’s to 65” Big
Screens, Flat Screen TV’s to
DLP’s, LCD’s and Plasmas,
DVD players, DVR recorders, Home Theaters in a Box,
Washers, Dryers, Refrigerators, Freezers, Stoves, Air
Conditioners and Accessories, DSI can supply your
locations in a timely manner, as we
stock the hottest Good-Better-Best products.
By Tim Moore
DSI Systems, Inc.
ontrolling your inventory dollars, depreciation and increasing your deliveries
are constant battles in the rental business and can easily be overcome by having the
right mix of the right product at the right time.
Below are five focus areas that will maximize the
return on your RTO business.
C
WHAT’S HOT, WHAT’S NOT
Stay abreast of the trends in electronics
by attending one of the many RTO trade shows
throughout the country. This is an easy way to
see, test and decide what products are right for
your customers and your stores and take advantage of any specials. Your electronic supplier
should be someone who has RTO knowledge,
truly understands the RTO business, supports
the Rental industry and is committed to providing you with the service you expect.
DON’T TIE UP INVENTORY DOLLARS
IN YOUR BACKROOM
Monday is not only an important day in
controlling collections in the RTO business, it
is also the best day to control your inventory dollars. With high deliveries on Friday
and Saturday, stock is at its lowest level
on Monday and you need to plan for the
deliveries you will have later in the week.
Review your current level of inventory for
the right mix. Conduct stock balancing
with other stores if appropriate. Determine
what inventory will be picked up with collections and then order only what you will
need to cover your deliveries over the next
week. Inventory dollars sitting idle in your
back room can kill the bottom line.
HAVE ACCESSORIES AVAILABLE
CAN SAVE YOU MONEY
Occasionally during a pick up, the remote
is not returned by the customer. While the
TV without a remote sits in your back room,
it costs you depreciation and isn’t generating
any income. Always have spare 3/1 remotes
available as a replacement to save time and
money. Include a surge protector with every
big screen rental to protect your product
and supply ample plug-ins for the add on DVD
player or HTIB.
PRODUCT TRAINING
The more confident your employees
are with their products, the better sales
people they will become and your deliveries
will increase. Providing your employees with
information on the newest technologies of
RTO magazine page: 22
For more information, please call Tim
Moore @ 937-423-1030, Jewell Dolton @ 614286-3420 or Tracy Locke @ 254-592-6728.
January 2006
www.rtoonline.com
Co n s um e r E l e c t r o n i c s
DNA
What you need to watch DTV
Unraveling
The
Mysteries
Of CE
Terminology
By Jay Nardone
BDI Laguna
s we enter into another new year of electronics, it is a good time to identify key
terminology for 2006. Though you may
be familiar with the following topics, I
should point out that these technologies will continue to drop in price. As a result of these drops,
most of these products will be hitting your rental
rate zone. The following glossary of terms should
prove helpful when explaining these digital
categories to your renting customers.
A
Digital Television
Digital Television (DTV) is the newest
revelation which is replacing analog television.
Digital signals are broadcast using computer
codes, are less susceptible to interference and
provide a much higher quality picture and sound
as compared to analog. DTV comes in three levels of picture quality: standard definition (SDTV)
(good), enhanced definition (EDTV) (better) or
high definition (HDTV) (best). Standard definition
is more or less the same resolution of today’s
analog signal, or 480 lines of resolution scanned
in the interlaced method (480i). Enhanced definition (EDTV) is 480 lines progressively scanned
(480p). High Definition TV (HDTV) is the highest
quality of DTV pictures.
High Definition
True HDTV is in the widescreen 16x9 format, offers Dolby Digital sound and uses a video
format of 720P, 1080i or 1080P. A 720p display
is 1280 x 720 pixels @ 60 frames per second. A
1080i display is 1920 x 1080 pixels at 30 frames
per second. A 1080p display actually has higher
resolution than any HDTV format at 1920 x 1080
pixels @ 60 frames per second.
RTO magazine page: 23
DTV is available over-the-air using a
standard antenna or via digital cable or satellite. No matter how you receive your TV signal
(cable, satellite or over-the-air), you will need
DTV equipment (set top box, integrated DTV
or digital-cable ready TV) to watch the DTV
programming.
Set Top Box
These components capture and convert
analog or digital video signals to be played on a
display. Outboard DTV tuners are set top boxes,
as are satellite receivers and receiver boxes from
a cable TV provider.
Integrated DTVs
Integrated DTV sets with built-in tuners are
an all in one solution for DTV - they include a
digital tuner to receive over-the-air DTV broadcasts and a monitor to display the programming.
Digital-cable ready TVs (DCR)
This TV is an integrated HDTV that can not
only receive broadcast HD by antenna, but it can
also receive digital cable programming without
using a box. A cable card that can be plugged
into the set is needed for certain cable programming.
Now that we have talked about digital signals, let’s now discuss the different large screen
options we can choose from to view these digital
signals. The most common choices are CRT rear
projection, microdisplay rear projection, plasma
and flat panel LCD.
CRT Rear Projection
CRT based Rear projection TVs are becoming a thing of the past as most manufacturers
have discontinued this technology and have
made the switch to Microdisplays. If you can still
secure CRT-based sets, you will see substantial
bargains. Selling points of CRT rear projection
are:
- Less expensive than competing technologies.
- Reliable. CRTs have been in service for more
than 50 years.
- Best potential of any technology for deep
blacks and clean shadows.
Microdisplay Rear Projection
Microdisplay rear projection encompasses
three similar technologies called LCD (liquidcrystal display), DLP (Digital Light Processing)
January 2006
and LCoS (liquid crystal on silicon). These new
sets shave about a foot off the depth of a traditional CRT-based set. Selling points of microdisplay rear projection are:
- Much brighter images than conventional CRT
big screens.
- Sharp picture with fewer convergence issues.
- No danger of burn-in.
- Cabinets are lighter and much less bulky
than CRTs sets.
Plasma
Everyone loves the look of plasma and flat
panel LCD. These two categories will be huge in
RTO in 2006. This thin look is totally changing
the way TV fits into our lives. We traditionally
associate plasma with a 42” and larger screen.
Presently, we are seeing 42” ED plasmas in the
$1,300 to $1400 range. Selling points of plasma
are:
- Slim design and large image size.
- Uniformly bright picture over a wide viewing
angle.
- Excellent image quality, especially compared
to LCD.
Flat Panel LCD
Once only available in compact small
screens, LCD TVs continue to be poplar for
computers, kitchen counters and night stands.
However, LCD TVS just keep getting bigger, better and cheaper. Now, bigger screens and lower
prices will give LCD sets a big boost this year.
The sweet spot for RTO will be in the 26” to 32”
size as price erosion should continue to occur.
The current price range for a 26” is between
$699 and $949, while a 32” is between $999 and
$1,299. Selling points of LCD are:
- Only a few inches deep.
- Higher resolution than plasma at similar
screen sizes.
- Uses less power, runs cooler and weighs less
than plasma.
Trends
We will continue to see prices dropping and
picture quality improving. From an RTO perspective, microdisplay units are lighter to carry and
are easier to maneuver into your customer’s
homes. Plasma and LCD TVs are space savers
and offer great flexibility. Check pricing from
your vendors regularly as there should be a good
amount of price erosion.
www.rtoonline.com
Don't Get Left Behind
Keeping up with the fast
moving consumer electronics
market pays big dividends
By Bill French
O’Rourke Sales Company
ang on to your hats, folks; it’s going to be
a wild ride! As a national supplier to the
rent-to-own industry for many years, it
is my opinion that there has never been a more
exciting time than now for our industry; and it is
only going to get better and better.
H
The products that are being supplied to the
rent-to-own consumer base are changing at warp
speed, today more than ever. The reason for that
is the advent of HDTV - High Definition Television - and the government’s mandate to include
HDTV tuner capability in all television products
that are 27” and larger effective March 1, 2006.
The future lies in the new technologies of LCD,
Plasma and Micro Display and it is imperative
that the rent-to-own industry embrace these new
technologies as we herald in a whole new era of
home entertainment options for our consumers.
The older technologies pale in comparison to the
wide variety of new products currently available
and in the works for the future. As more and
more of these products become available, the
economy of scale will bode well for the rent-toown industry and our consumers and allow for
an economical, yet technologically advanced,
solution.
However, there are those customers
who, in some cases, are not ready for change.
Therefore, the rent-to-own industry should not
abandon products like CRT based Projection
Televisions or CRT based Direct View Televisions.
With that in mind, as an industry, we are walking
a fine line and need to carefully watch product
availability and pricing. We need to be mindful
of what products the consumer asks for throughout the transitional period. During the 2006 calendar year, we will still see a very high demand
for CRT based Projection Televisions while the
rental consumer base will simultaneously begin
to gravitate towards the new technologies of
Plasma, LCD, and Micro Display (which includes
DLP, LCD and LCOS based products).
Along with these new products, there is a
tremendous potential for add-ons with Home
Theater in a Box as well as an increasing need for
home entertainment furniture in which to display
the television and other home theater products.
Manufacturer’s are well-aligned with the changing marketplace and are offering a full lineup
of quality products suited to the lifestyles of
today’s consumers. Many new home theater
products reflect the sleek designs sought after
to compliment the environments found in
today’s modern homes.
Due to the continuous demand for CRT
based Projection Televisions, O’Rourke Sales
Company will continue to be the industry’s
largest provider throughout the 2006 model
year. Additionally, O’Rourke Sales will stay on
top of the curve by offering brand name Micro
Display’s, Plasma’s, and LCD’s to compliment
cutting edge technologies in home theater
systems, bookshelf systems and camcorders.
Cognizant of the consumer’s desire for
integrated digital displays and consumer
electronic components ready built into appliances, major appliance manufacturer’s
are now bridging the gap between consumer
electronics and appliances by incorporating
both within a single unit. From cooking to
cleaning to refrigeration, there are a multitude
of appliances available to the rent-to-own
consumer. Therefore, O’Rourke Sales Company
also offers economical home appliance solutions
to finish off a well-rounded lineup of rent-to-own
products.
For over 40 years, O’Rourke Sales Company
has prided itself in offering quality products,
quick delivery, continuous availability and the
highest customer service in the industry. With a
division dedicated solely to supporting the rental
industry for 15 years, O’Rourke Sales Company
has the dedicated infrastructure to support their
customer’s needs.
Bill French brings over 30 years of experience to the industry and makes customer service
to his valued rental dealers his #1 priority.
Contact Bill French today at 800-800-8500 for
excellence in products, pricing and customer
service to the rent-to-own industry.
Mystery Solved
Microsoft’s
Media Center
By Mike Bertolani
SED International
Benefits
or years the computer industry has been talking about connecting
computers to big screen TV’s and stereo systems. That day has
come and the system does even more than what we all originally
said it would do.
F
1. One central command center.
2. The ability to catalog and burn your video and audio collection while
creating play lists for all occasions.
Windows XP Media Center Edition Overview
This operating system does everything retail Windows XP home
computer does and much more. The biggest strength is the integration
of home entertainment system components. You can play DVDs, record/
play/copy live video signals (including HD signals) from multiple sources,
record/copy and play audio files, listen to the radio, view, edit and record
home video footage, and download/view and record digital images all from
the same unit. To get started, all you need is a TV or monitor, internet
connection, video signal, speakers, and a computer that has Windows XP
Media Center Edition pre-installed on it.
3. Advanced DVR capabilities (your system becomes a video recorder so
you can see all the shows you missed while on vacation or at work).
4. Enhanced Photo Album features (ease of use when searching for those
family vacation videos and pictures).
5. Multi-application use (watch TV while using your computer without
needing 2 screens and separate sources).
6. Changes the way you work and play (using wireless keyboards and mice
you can sit in your La-Z-boy and work).
Things to know about Windows XP Media Center Edition
Setup is easy:
Take a look at the back of your computer and connect your video
signal (cable, dish or antenna), plug in your internet and then select how
you want to send your video signal (big screen, LCD, Plasma, monitor or
projector) and you are ready to flip the switch. Starting the system up is
as easy as turning it on. Once the system is set-up, you can download the
latest TV guide listings (from a content provider like Yahoo) and customize
features and components such as the radio and speakers.
- Not all computers can be Media Center Editions units.
- You can not upgrade from Windows XP Home SP2 or Pro (32x or 64x), all
units must be built for Media Center.
- Media Center can work separately from the operating system.
- You can sync your system with a portable player and watch shows, movies, sporting events, videos and listen to music.
For more information call your SED International representative at
1-800-444-8962.
RTO magazine page: 25
January 2006
www.rtoonline.com
A
D
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Yamaha Technology Helps People
Play and Compose Music – Anywhere
M
P3 players have taken the country by storm
but they’re not the only musical products
narily real and responsive instrument voices for its
that can be played with sticks or Latin-style—with
keyboards and digital pianos.
hands. Because the instrument is entirely digital, any
to benefit from advanced technology. Yamaha
Tom Murphy, a 20-year veteran of the RTO
jam session can be played through headphones,
portable keyboards and electronic drum sets
industry and president of Motivated Marketing, sees
allowing dusk-to-dawn activity for the drummer and
harness the company’s digital power to help people
the huge potential of Yamaha digital instruments:
total tranquility for everyone around them.
create their own music.
“Many famous songwriters in Nashville, Los
Angeles and New York use Yamaha keyboards to
compose and arrange their hit songs,” says Jan
Luna, General Manager of Yamaha’s Consumer
Products Division. “Our digital instruments are
incredibly powerful. Even the low-end models
include stereo grand piano sounds and hundreds
of high-quality instrument voices. For a small
investment, anyone can sound incredibly good
very quickly.”
Thanks to Yamaha, even non-musicians can
sound like pros. The Yamaha Education Suite
(Y.E.S), on many of the company’s keyboards,
teaches note reading, timing, chords and more. It
even grades performances. Computer connections
on many models also allow keyboardists to
interact with educational software on their PC
Yamaha portable keyboards allow aspiring and accomplished musicians to take their instruments wherever
inspiration may strike to compose, practice or perform.
or the Internet. For those demanding instant
gratification, the EZ-150’s keys light up to show
“Yamaha is ideal for RTO. Musicians, who are
The DD55C’s additional digital features include
which notes to play and when to play them.
notoriously strapped for cash, would love to get
computer connectivity via MIDI, reverb and chorus
“No one else can offer what Yamaha does,” says
their hands on a Yamaha keyboard. And people
effects to give the feel of playing in a nightclub or
Luna. Indeed, Yamaha is the only company in the
who’ve always wanted to play—pretty much the
stadium and total portability; it’s far easier to pick up
and move a DD55C than a seven-piece acoustic set.
“Musicians, who are often strapped for cash, would love to get their
hands on a Yamaha keyboard. And people who’ve always wanted
to play – pretty much the rest of the population – can learn directly
from their Yamaha instrument.” - Tom Murphy, Motivated Marketing, Inc.
“Grand pianos and acoustic drums will always
have a vital role in music but digital instruments
have proven their value to both aspiring musicians
and seasoned professionals,” says Luna.
Motivated Marketing, Inc. is the exclusive sales
world with more than 50 years of music school
rest of the population—can learn directly from the
and marketing company for Yamaha musical
history, over a century of acoustic piano experience
instrument. Lessons are not required.”
products in the RTO industry. They can be reached
and 20-plus years of digital keyboard leadership.
It’s not just keyboardists who benefit from
Yamaha is also the only music company to create
Yamaha technology. Professional and aspiring
its own LSIs (circuit boards). In designing its own
drummers can use Yamaha digital drum sets for
electronics, Yamaha has made technological leaps
practice and performance, and their neighbors will
that have helped it create popular synthesizers,
thank them for it. The DD55C features seven
advanced ring tones for cell-phones and extraordi-
touch-sensitive pads and over 50 virtual drum kits
RTO magazine page: 26
January 2006
toll-free at (800) 386-8774.
©2006 Yamaha Corporation of America, www.yamaha.com
www.rtoonline.com
Dealing
Direct Offers
RTO Dealers
Reciprocal Value
notebook manufacturers. The increasing demand for laptops reduces the
amount of overall computer inventory dealers need to carry.
By renting high quality notebooks that are durable and provide greater
reliability, dealers achieve even greater profit margins due to a reduced
number of service and repair calls. RTO Dealers are recognizing that
budget-priced notebooks lack the durability required in the harsh RTO
environment, and provide a weak value proposition for both the dealer and
consumer; limiting the potential for success.
The RTO market is not just about competing for upfront dollars. It is
about achieving strong and lasting relationships with consumers. The firsthand feedback the dealer provides on new product enhancements enables
the manufacturer to provide a better product that achieves a greater return
on their computer investment.
By David E. Rios - Twinhead
In a good manufacturer/dealer relationship,
purchasing and servicing of your notebook
computer directly from a manufacturer
is much simpler and more cost
effective then working through
a distributor. Ideally the
manufacturer calls and
visits its dealers to
continually demonstrate the value
of the product,
provide training,
and reinforce
their commitment to the
individual relationship
and
anufacturers are increasingly recognizing that the success of a
product depends on the
relationships formed with dealers.
As a rental purchase professional, your market influence
and sales expertise creates
arenas of opportunity
the manufacturer cannot develop on his
own.
M
When the
manufacturer
works closely
with the dealer
on marketing and sales
strategies, the
manufacturer
has the opportunity to
demonstrate
first-hand the
quality and
value of its
products,
and to-
industry as a whole. In return,
the dealers provide more than just
revenues; they provide market share and
extend distribution… as well as provide valuable
feedback to improve products and services for the future.
gether they create sales strategies
that benefit both companies.
In the Portable Gigabyte World
As notebook computers continue to be positioned
as desktop replacements, the market for notebooks is beginning to
surpass desktop computers. In today’s mobile world the combination of
portability, computational power and durability makes a notebook computer
the perfect product for home computing and business applications.
This dominance opens new profit opportunities for the Rent-ToOwn dealer and increases their dependence on a strong relationship with
RTO magazine page: 27
Twinhead Corporation is today’s premier notebook manufacturer
servicing the RTO channel. By eliminating distributor involvement, you as a
dealer will benefit from a more profitable direct relationship with Twinhead.
At Twinhead…our dealers are just as important as our product. That’s a
guarantee!
January 2006
www.rtoonline.com
The power in numbers to buy better, r
Join us...
Grow with
your top resource
for RTO success!
• Powerful group negotiated pricing
• Vast national network of 38 warehouses
• Superior range of national brands
• High impact advertising and promotions
• Comprehensive training programs
See Ba
ck
Page F
or
More D
etails.
• Premier member conferences – PrimeTime!
• Unparalleled array of member support services
r, rent smarter, compete tougher.
6500 Stores
2400 Members
38 Warehouses
$9 Billion in Sales
Tap the power in numbers. If you
operate an independent RTO
dealership – or plan to – consider leveraging the strength, buying power & full support of the
nation’s Number 1 marketing
group for electronics, appliances
and furniture.
Exclusive RentDirect Member Services
Furniture Smart
MemberNet Website
The Hiring Connection
Buy top brand furniture
brands factory direct.
Purchase on-line, direct
ship to your store.
FREE web page with
membership . Access
member information
instantly 24/7.
Your resource for screening and assessments. Hire
better employees.
Ad Builder
Store Fixtures
Training Programs
Complete fixture design
and installation services.
Store signage assistance.
State-of-the-art sales and
product training available
on DVD and on-line.
Free downloadable
advertising elements plus
customizing services
available on-line.
As a division of Nationwide
Marketing Group, RentDirect
Nationwide delivers the strength
of 2400 members, 6500 storefronts, and more than $9 billion
in annual sales. For members,
this means aggressive pricing,
superb promotions, and financial
initiatives that are second
to none.
Look into us. Learn more about
RentDirect Nationwide, the one
organization ideally positioned
to help you buy better, rent
smarter and compete tougher.
Call
1-336-714-8802
Or Visit
www.gorentdirect.com
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Rent TO Own Electronics
What’s Hot In 2006
Consumer Electronics (CE) is the cornerstone of rental purchase
inventory. CE distributors and manufacturers provide the RTO
industry a steady stream of new merchandise necessary to capture and hold the attention of rental customers.
New technologies are being introduced at such an astounding
pace it’s difficult to keep up, much less become expert on any
given CE category. That’s where your supplier must shine.
H
As owners, we rely heavily on our vendors to keep us abreast of
the latest and greatest rental merchandise. In no other category
is that job more critical than consumer electronics. As retail
prices for new technologies fall by more than 50% per year, our
vendors must not only provide us with today’s best values, they
must look into the future and be able to accurately predict what
retail prices will be in 12 or 18 months. A good “electronics
crystal ball” will help any RTO dealer avoid a backroom full of
outdated merchandise.
RTO Magazine is proud to present the definitive comparison of
all six of the rent to own industry’s largest consumer electronics
vendors. Combined, these six suppliers provide the overwhelming majority of the RTO industry’s electronic inventory.
In addition, we are featuring the six products each company
believes will be “The Hot Products” of 2006.
Each product is listed with a “Recommended Rental Rate. This
rate was calculated by RTO MAGAZINE based on cost and may
differ from your company’s pricing structure. It is for comparison purposes only. The calculation used on all merchandise is
3.5 turns x 104 weeks.
BDI Laguna
D&H Distributing
DSI Systems Inc.
O’Rourke Sales
O’R
SED
ED Internatio
International
Yamaha
ENTER...
Rent to Own
RTO Electronics Distrib
Company name:
BDI Laguna
D&H Distributing
DSI Systems Inc.
Address:
3960 Royal Drive
30144
2525 North Seventh Street, Harrisburg,
Pa 17110
9882 E 121st St Fishers, IN 46038
Contact name:
Jay Nardone
John Alifano
Tim Moore
Phone:
800-241-5641
800-340-1007
614-871-1456
Fax:
678-255-4580
717-255-6793
614-871-4643
Website:
www.bdilaguna.com/rto
www.dandh.com
www.dsisystemsinc.com (password:
2save)
Email:
jnardone@esend.com
RTO@dandh.com
tim.moore@dsisystemsinc.com
Years Serving RTO
industry:
13 years
20
Over 20 years
Product Categories
Carried:
TV CRT, Rear PJTV, Combos, DLP TV,
LCD TV, Plasma, Home Audio, Portable
Audio, MP3 Players, VCRs, DVDs,
Portable DVD, Camcorders, Telephones,
Fax machines, Copiers, GPS Navigation, Memory, Digital Cameras, Printers, Multifunction, Projectors, Desktop
Computers, Notebook Computers, PDA,
Scanners, Monitors, Microwaves, Home
Appliances
Consumer Electronics, Computing, Net- Consumer Electronics, Satellite, Appliworking, Security and Home Automation, ances
Video Gaming, Education
Kennesaw, GA
x4537
RCA, Toshiba, Pioneer, Akai, Yamaha,
Sirius, Directv, WildBlue, Amana, Magic
Chef and many more
Manufacturers/Brands Hewlett-Packard, Compaq, Samsung,
Carried:
Toshiba, Sylvania, Syntax, Sharp,
Panasonic, Akai, Mintek, Initial, Canon,
Lexmark, Olympus, Infocus, DXG, Epson, Sandisk, Palm, Macvision, Tripplite,
Optoma, AStar, TomTom, JWin, Magellan, Proview, LG
Astar, Audiovox, Canon, Cobra, Coby,
JVC, Kenwood, Logitech/Harmony, Intel,
Linksys, Magellan, Microsoft, Monster,
Motorola, Olevia, Optoma, Oregon
Scientific, Panasonic, Philips, RCA,
Russound, Samsung, Sennheiser, Sirius,
SVA, Toshiba, Viewsonic, XM, and many
many more.
New & Refurbished?:
New and Refurbished
New
New
# Warehouses:
3 - Georgia, Nevada, New Jersey
5
30 warehouse and sales offices
Minimum Order:
No Minimum
$150
No Minimum
Minimum Order for
Pre-Paid Freight:
2 Computer packages or $2500 of mixed
electronics
$2,000
$3,500
Mixed Shipments?:
Yes
Yes
Yes, mix products and brands
Minimum Order Shipping Time:
Same day shipping
Same Day
Pickup or overnight shipping
Truckload Order Shipping Time:
3 to 4 days
Same Day
Pickup or overnight shipping
FOB (What City?):
N/A
closest warehouse
30 locations - Atlanta, Baltimore, Baton
Rouge, Columbus, Dallas, Denver, Des
Moines, Evansville, Grand Rapids, Houston, Indianapolis, Kansas City, Knoxville,
Little Rock, Los Angeles, Manchester,
Miami, Milwaukee, Minneapolis, Orlando,
Phoenix, Pittsburgh, Raleigh, Sacramento, St. Louis, San Antonio, Savannah,
Seattle, Syracuse, Tulsa
Damage/Exchange
Policy:
30 day swap on DOA
With
regards to Freight Damage, must notify
carrier within 5 days on visible damage/24 hours for concealed damage
Varies by manufacturer
Handled on local level
Dedicated RTO Service Department:
Yes
No
Yes
Warranties:
Extended warranties available on computers
Varies by manufacturer
Manufacturers’
RTO magazine page: 32
January 2006
www.rtoonline.com
n
ibutor
r comparison chart
cha
R tt O
O’Rourke Sales Company
SED International
Yamaha Corporation
1408 Vinylex Drive, Carrollton, TX 75006
4916 N. Royal Atlanta Dr., Tucker, Georgia
30084-3031
6600 Orangethorpe Ave Buena Park, CA 90620
Bill French
Mike Bertolani
Thomas F. Murphy
800-800-8500 / 972-245-0006
800-444-8962
800.386.8774
972-245-0660
770-493-5682
775-703-5418
www.orourkesales.com
www.sedonline.com
www.yamaha.com
bfrench@orourkesales.com
mbertolani@sedintl.com
tmurphy@motivatedmktg.com
15 Years
1 Year
2 Years
Consumer Electronics including, but not limited
to, Projection TV’s, Color TV’s, LCD, Home
Theater, Bookshelf Audio, and TV Stands, Major
Appliances and Vacuums
Consumer Electronics, Computers, GPS, Cellular
Acoustic Guitars, Electronic Keyboards, Electric
Guitars, Electric Bass Guitars, Digital Drums.
Philips, Magnavox, JVC, Yamaha, Zenith, RCA,
Corporate Images, Planet3, Audiovox, LG Appliances, Speed Queen, Hoover
YAMAHA
Acer America, American Plasma, Apex, Audiovox, Cingular Prepaid, Dell, eMachine, Hewlett
Packard, Hitachi, IBM, Lexmark, LG, LG Electronics, Microsoft, Minolta, Motorola, NEC Displays,
Nokia, Okidata Printers, Olevia, Panasonic,
Philips, Pioneer Electronics, Ricoh, Samsung,
Sony, TEAC, Toshiba, Twinhead, ViewSonic,
Xerox, many more
New and Refurbished Units
New
9
4 plus direct ship from manufacturers
New
$100
No Minimum
One unit
3 Projection TV’s
3 computers or $2,500.00 or Consumer Electronics good with eMachines
One Unit
Yes
Yes
Yes
Same Day on Orders Received by 2PM
1 day
48 Hours
Same Day on Most Orders Received by 2PM
Varies
48 Hours
Closest OSC Warehouse:
Closest of 4 Warehouses
All goods are shipped prepaid freight
Immediate Replacement/Credit upon Refusal of
Damaged Freight or 10 Day Concealed Damage
Claim
Freight claims must be made within 7 days
Call for RA & replacement ships in 48 hours
Yes
Yes, 7 Staff Members
No
Varies on product
One year over-the-counter exchange
Carrollton, Texas - San Antonio, Texas - Atlanta,
GA - Orlando, FL - Santa Fe Springs, CA - Davenport, IA - Omaha, NE - Morrisville, NC - San
Juan, PR
Rent to Own
Manufacturers Warranty
www.rtoonline.com
January 2006
RTO magazine page: 33
Hottest Rental Products For 2006
From
Model#: Compaq SR1720NX
Desktop Computer w/17” LCD
Recommended Rental Rate
$N/A
Description: AMD Sempron 3500+
Processor, 512 MB Memory, 160
GB Hard drive, Double Layer 16X
DVD+R/RW Drive, 9-in-1 Memory
Card Reader.
BDI Laguna
www.bdilaguna.com/rto
Model#: Samsung SC-D353
Mini-DV Camcorder
Recommended Rental Rate
$N/A
Hot
Description: 20X Optical/900X
Digital Zoom, Memory Stick Slot,
2.5” TFT LCD, Built-in Digital Still
Camera.
Model#: Compaq M2301NR
Compaq Notebook Computer
Recommended Rental Rate
$N/A
Description: Mobile AMD Sempron
2800+ Processor, 256 MB Memory,
40 GB Hard drive, 24X DVD/CD-RW
Drive, 15” XGA TFT Display, Carrying case.
For more information on these rental products contact:
BDI Laguna
Model#: HP A1101N
Jay Nardone
Desktop Computer w 17” Monitor
Email: jnardone@esend.com
Recommended Rental Rate
$N/A
Fax: 678-255-4580
Description: Refurbished Unit,
Intel Celeron D Processor 340, 512
MB Memory, 100 GB Hard drive,
CD-RW/DVD Combo Drive, 9-in-1
Memory Card Reader.
Phone: 800-241-5641
Address: 3960 Royal Drive
Kennesaw, Georgia 30144
Model#: Sylvania 6842PEM
42” ED Plasma Monitor
Recommended Rental Rate
$N/A
Description: 1000:1 Contrast, VGA
(852x480), High Brightness: 1000
cd/m2.
Model#: Akai PT5250A
52” HD Rear Projection TV
Recommended Rental Rate
$N/A
Description: 1080i HDTV Monitor,
ATSC Built-in Tuner, 30-Watt Stereo
Audio, Dual HDTV Component
Video.
Hottest Rental Products For 2006
t
Hottest Rental Products For 2006
Model#: Microsoft XBOX360PLAT
From
Xbox 360 Gaming System
Recommended Rental Rate
$13.50 per week; 104 weeks
Description: Powered by three,
D&H Distributing
3.2GHz processors, a 500MHz ATI
graphics processor, 512MB, 20GB
HDD, wireless integration and Xbox
Live online power, this console
puts gamers at the center of the
most power games.
www.dandh.com
Model#: RCA DRC8060N
DVD Recorder
Hot
Recommended Rental Rate
$7.00 per week; 104 weeks
Description: Users can record from
their TV, camcorder or other video
device using DVD+R/+RW discs.
Features HDMI(tm) with HD Upconversion, Commercial Advance and
front USB input.
Model#: Astar PD3010
Portable DVD Player
Recommended Rental Rate
$3.00 per week; 104 weeks
Description: With a widescreen
LCD, it’s the perfect travel
companion for personal entertainment. Includes full remote
control and A/V cables allow for
TV connectivity.
For more information on these rental products contact:
D&H Distributing
John Alifano
Model#: JVC GZMG50
Email: RTO@dandh.com
Everio G Series 30GB Camcorder
Phone: 800-340-1007
Recommended Rental Rate
$24.50 per week; 104 weeks
Address: 2525 North Seventh
Street, Harrisburg, Pa 17110
Description: The world’s first
hard drive camcorder eliminates the need for tapes or
discs and offers over 10.5 hours
of DVD quality recording, direct
access and simple editing
capabilities.
Model#: Panasonic BBHCM371A
Model#: Philips 50PF9630A
50” Plasma Flat HDTV with Pixel
Plus 2 HD and Ambilight
Recommended Rental Rate
$103.00 per week; 104 weeks
Description: This high definition plasma display features
1366x768p resolution plus builtin USB and memory card reader
for instant music and photos
sharing.
Outdoor Wireless 2-Way Audio
Network Camera
Recommended Rental Rate
$24.00 per week; 104 weeks
Description: Viewed and
controlled from a standard Web
browser, video display, compatible cell phone or handheld, users can survey things at home,
in the office or elsewhere,
without a PC on location.
Hottest Rental Products For 2006
t
Hottest Rental Products For 2006
Model#: Toshiba 57HC85
57” Diaganal Custom Series™ Projection monitor
Recommended Rental Rate
$36.99 per week; 104 weeks
Description: HD Projection Monitor with HDMI,
POWERFOCUS™ HD CRTs
& POWERFOCUS™ HC Lens
System, TheaterFine™
HD Screen, Built-in
High Contrast
TheaterShield™.
From
DSI Systems
www.dsisystemsinc.com
Model#: RCA HD44LPW165
44” 16x9 DLP HDTV
Recommended Rental Rate
$52.99 per week; 104 weeks
Hot
Description: HD3s w/DLP™
Light Engine, Digital Hi-Pix™
Picture Systems w/ TruScan
Digital Reality™ Processing, CinemaScreen™ Floating
Picture Screen, NetConnect™
- Ethernet w/ Microsoft Operating System & Internet Explorer
Web Browser.
Model#: RCA DRC8300N
Mobile DVD Recorder/VCR
Combo
Recommended Rental Rate
$7.99 per week; 104 weeks
Description: One-Touch Copy
VHS to Disc, Up to 8 hours
recording per 4.7 GB disc w/ 6
recording modes, Progressive
Scan, Time Base Corrector w/
Digital Noise Reduction.
Model#: RCA HD56W66
56” 16x9 HDTV
Recommended Rental Rate
$44.99 per week; 104
weeks
Description: Integrated
ATSC Tuner, Digital Hi-Pix™
Picture Systems w/ TruScan
Digital Reality™ Processing, HD Connectivity with
DVI-HDTV, Advanced Audio
Capabilities Including 5Band GraphicEqualizer.
For more information on these rental products contact:
DSI Systems, Inc.
Tim Moore
Email:
tim.moore@dsisystemsinc.com
Phone: 614-871-1456
Address: 9882 E 121st Street
Fishers, IN 46038
Model#: RCA L32W11
Model#: Toshiba MW27F51
32” LCD Widescreen HDTV Monitor
27” TRI-PLAY COMBO TV
Recommended Rental Rate
$39.99 per week; 104 weeks
Recommended Rental Rate
$15.99 per week; 104 weeks
Description: Widescreen High Definition TV Monitor, Comprehensive
Connectivity Package, Exceptional
Contrast and Brightness Performance, Standard Definition NTSC
Integrated Tuner.
Description: FST PURE® Flat
Tube Design, Full-Featured DVD
Player and built-in VCR, Stereo
TV with Double Baffle Speaker
System, DVD-R/CD-R/CD-RW
compatible.
Hottest Rental Products For 2006
DS
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DSI_RTO-ad.indd 1
12/14/05 11:00:08 AM
Hottest Rental Products For 2006
Model#: Zenith R57W47C
57” HD PJTV, 16:9
Recommended Rental Rate
$N/A
From
O’Rourke Sales
Description: NTSC/ATSC/QAM
(Clear) Tuner, 3D Y/C Digital
Comb Filter, 3:2 Pull Down
Correction, DVI/HDCP, Auto
Convergence.
www.orourkesales.com
Model#: JVC HXC6
500W 5 Tray CD Changer
Recommended Rental Rate
$N/A
Description: 500W Total System
Power, Twin Giga-Tube, Bi-Amp
Config, USB Input For Easy PC
Connection, Front Aux Input,
Mp3 Text Display, Rhythmax,
4-Way Bass Reflex.
Hot
Model#: JVC HD52G886
52” Silver HD-ILA TV
Recommended Rental Rate
$N/A
Description: ATSC/CableCard HDTV, 4th Generation
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+ PC Input.
For more information on these rental products contact:
O’Rourke Sales
Model#: Magnavox
ST327000P/37
Bill French
32” LCD Package
Email:
bfrench@orourkesales.com
Recommended Rental Rate
$N/A
Description: Magnavox
32MF605W - 32” LCD,
1366x768p Resolution,
16:9, USB 1.1, DVI, SVideo VGA In, 3D Motion
Adaptive DeInterlacing;
700W HTIB w/DVD Player.
Phone: 800-800-8500
Fax: 972-245-0660
Address: 1408 Vinylex Drive
Carrollton, TX 75006
Model#: Philips 60PP9100D
Model#: Yamaha DV-XC300
60” PJTV
900W Home Theater
Recommended Rental Rate
$N/A
Recommended Rental Rate
$N/A
Description: ATSC Tuner,
Active Control, APAC, Protective Shield, Virtual Dolby¶
Surround, DVI, 57”x59”x27”
(WxHxD).
Description: 5 Disc DVD/CD
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Movie).
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Model#: LT32HV
Name: 32” LCD
Recommended Rental Rate
$37.00 per week; 104 weeks
SED International
Description: HDTV-ready, SuperIPS (Super-In-Plane-Switching,
1600:1 Contrast Ratio , DVI Input
, Picture-In-Picture, Charcoal
gray and black finish
www.sedonline.com
Model#: Mitsubishi 55517
55” Digital Ready HDTV
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Description: Plush™ imaging,
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Model#: Astar LTV2701
27” LCD
Recommended Rental Rate
$30.99 per week; 104 weeks
Description: Widescreen
with 1280X720 Resolution,
HDTV Input Compatible (480i,
480p,720p,1080i), 600:1
Contrast Ratio, DVI Input,
Picture-In-Picture, Matte silver
Aluminum finish.
Model#: Envision A42W64AT4
For more information on these rental products contact:
SED International
42” Plasma
Recommended Rental Rate
$69.99 per week; 104 weeks
Description: Widescreen with 852
x 480 Resolution, HDTV Input
Compatible (720p/1080i), 3000:1
Contrast Ratio, DVI with HDCP Input
, Picture-In-Picture, Picture-overPicture, Piano black finish.
Mike Bertolani
Email:
mbertolani@sedintl.com
Phone: 800-444-8962
Address: 4916 N. Royal
Atlanta Drive, Tucker, GA
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Model#: Mitsubishi 52327
52” DLP MicroDisplay
Recommended Rental Rate
$89.99 per week; 104 weeks
Description: Mitsubishi 1280x720p
Proprietary DLP™ Light Engine,
Dark Detailer™, AMVP™, PerfectColor™
DefinEdge™, 480-Line MotionAdaptive 3D Y/C Comb Filter, Auto
Film Mode.
Model#: E20E221
Name: 20” 4:3 LCD
Recommended Rental Rate
$N/A
Description: Widescreen,
800X600 Resolution, EDTV
Input Compatible (480p),
500:1 Contrast Ratio,
Picture-In-Picture, Matte
silver finish
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t
Hottest Rental Products For 2006
From
Model#: Yamaha DD55C
Digital Drum Kit
Recommended Rental Rate
$7.81 per week; 104 weeks
Description: 7 Touch
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Sensitive Drum Pads, 50
Programmed Drum Kits,
Hand Percussion Mode,
Stereo Speakers with Bass
Ports, 192 Stereo Percussion Voices Assignable to
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Stand, Drum Throne, AC
Adapter, Headphones, and
Drum Sticks.
www.yamaha.com
Hot
Model#: Yamah DGX505
Digital Piano
Model#:Yamaha YPT-300
Recommended Rental Rate
$19.99 per week; 104 weeks
Portable Keyboard
Recommended Rental Rate
$5.32 per week; 104 weeks
Description: 88 lightly weighted piano style touch
sensitive keys, 494 realistic instrument voices give
you a wide pallet of creative options, Large back-lit
LCD which displays musical staff and chords,
Pitch Bend wheel for raising and lowering the pitch
during performance, Yamaha Education Suite 4
(Y.E.S.4) featuring lessons, grading, and 100 songs
to learn, Headphone and sustain pedal jacks.
Description: 61 Full-Size
touch sensitive keys for
expressive playing, 482
instrument voices and 106
accompaniment styles to play
any type of music, 5 song memory
that allows you to record your practice.
For more information on these rental products contact:
Model#: Yamaha F310
Yamaha
Acoustic Guitar
Tom Murphy
Recommended Rental Rate
$5.29 per week; 104 weeks
Email:
tmurphy@motivatedmktg.com
Description: Full Size Folk Guitar,
Spruce Top, Mahogany Back and
Sides, Rosewood Fingerboard and
Bridge, Open Chrome Tuners,
Gloss Finish.
Phone: 800-386-8774
Fax: 775-703-5418
Address: 6600 Orangethorpe
Ave, Buena Park, CA 90620
Model#: Yamaha EG112
Model#: Yamaha ERB070
Electric Guitar
Electric Bass Guitar
Recommended Rental Rate
$8.03 per week; 104 weeks
Recommended Rental Rate
$7.61 per week; 104 weeks
Description: Basswood
Body, Package Includes:
Guitar Amplifier, Gig Bag,
Electronic Tuner, Strap,
Picks, Guitar Strings, String
Winder, Yamaha Guitar
QuickStart DVD
Description: Basswood Body, Maple
Neck with a Rosewood Fingerboard,
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Bass Amplifier, Gig Bag, Electronic
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Picks, and Song Book.
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t
Yamaha is the world’s largest musical instrument
company and we want to jam with you. We’ve got gear
that’s tailor-made for RTO customers...
■ Electric guitar packages featuring a solid-body
Yamaha six-string, an amplifier and accessories
■ Portable keyboards with stereo grand piano sound
and hundreds of instrument voices
■ Digital drums for new and professional drummers
looking to wail all night long
When you work with Yamaha, you’ll buy direct. And
our roadies can ship one unit anywhere in the U.S. via
prepaid freight. You’re also eligible for customized
merchandise programs and P.O.P. materials. To get this
gig started, call Tom Murphy of Motivated Marketing
at (800) 386-8774 or (813) 220-1115. Or e-mail him
now at tmurphy@motivatedmktg.com. It’ll get your
customers jazzed and
your store rockin’!
■ Acoustic guitar collections that include a Yamaha
folk guitar, tuner, strings and more
©2006 Yamaha Corporation of America, www.yamaha.com
Weekly
-vsMonthly
Does Pay Frequency Matter?
Editorial By Dan Companion
raditional payment schedules and how consumers choose
to make payments on rental agreements is being severely
tested in the market place and some may wonder why?
Aaron Rents spends considerable time, effort and money to draw
sharp contrasts between rent-to-own and sales and lease ownership. But what really makes Aaron’s different is their pricing/payment methodology. Aaron’s success stems from knowledge of
what the consumer knows and understands; financial point of
entry, and easier renewal terms
T
Paying weekly for any bill is extremely challenging and
leaves no room for error. Any financial disruption to the consumer, no matter how small, can become a major financial crisis.
Weekly payments are exponentially more difficult, for consumers to manage. The concept of micromanaging the consumer’s
finances so as to be first in line to get paid is old school and, in
my opinion, is not good business practice.
In addition to consumer finance issues, weekly payments
place an inordinate amount of our focus on collections; which is
not where any profitable rental company wants its sole focus to
be.
I simply ask, would you like to hear from the cable company
every Saturday asking if you’re going to continue doing business
with them?; Would you do business with that company?
Monthly and Semi-Monthly payment frequency has become
a common sense approach to the RTO business. It is less problematic for the consumer and more focused on sales and service
rather than collections.
Many RTO philosophers continue to hang on to the belief
that a weekly payment better meets the needs of consumers
because of it’s affordability, flexibility, and collectability. However,
the evidence shows that revenue growth seems to be going to the
companies focusing on monthly and semi-monthly due dates.
Weekly payments have been etched into North American
RTO lore for decades. Perhaps it’s time we evolved.
___
Leadership IQ
Continued From Page 18
Answers to Leadership IQ test
1) False. The ability to lead or direct others is not an inherited trait.
2) False. Once you take over in the role of the leader you can expect others
to have mixed feelings towards you.
3) False. The best leaders make their presence felt. High visibility is reassuring to the group members and creates high morale within the Organization.
4) True. Managing on the job at least is a two way street. To get ahead
employees must know how to manage their bosses.
5) False. When you make it to the top of your Organization, don’t expect
to always have all the answers. Even the best leaders have moments on
indecision.
6) False. In determining leadership ability, a forceful personality is less
significant factor the intelligence and persuasiveness of the leader. The true
essence of leadership is interpersonal influence through effective communication.
7) False. Some of the worlds most influential leaders were plain looking. It
is true that initially you will gain more attention if you are attractive, tall and
well groomed but thereafter it is your manner, charisma and creditability
that ultimately gains you a role in leadership with others.
8) False. Leaders that are effective in directing the actions of others are
normally the factual type. They prefer material based on reality rather than
imagination.
9) False. Being rigid will not gain you followers. A good leader is a harmonizer and uses a democratic process to find out why the other people in the
group disagree with him. Thereafter makes a decision that is a compromise
between his views and the views of his followers.
10) False. A quick mind is far less important in the decisions made than
good judgment and the ability to carefully weigh all the facts before making
a decision and before action is taken,
___
Contact events@rtoonline.com to arrange coverage for your company or organization event.
www.rtoonline.com
January 2006
RTO magazine page: 47
Finding money i
By Joe Lapekas
TruckSkin
n today’s tight budget times we are all looking for ways to increase
our bottom line or at the least to offset our operating expenses. One
of the easiest methods is to use the hidden value in the billboards
that your coaches provide. Studies show that 91 percent of consumers notice words and pictures on moving vehicles. The typical
metro coach is viewed by 14 million pairs of eyes annually. Can you
imagine the cost of a Television ad that has viewership with those numbers. Let’s see, at an average cost of $20.54 per thousand viewers, that is
$287,560.00 in ad value per coach. Ok don’t get to excited here, typically
you can sell the sides of your local coaches for $1000,00 to $1500,00 per
month plus production costs, and realistically the cost of a coach side is
in the neighborhood of $6000.00 per coach for full wraps, not counting
design cost if necessary.
I
RTO magazine page: 48
There are a couple of methods of producing and installing graphics
on Coaches, the most visible and talked about are the full vehicle wraps,
these stick out from the crowd, and of course are the premium route for
your customers to take. Moving down the scale are partial wraps, say
going from the passenger entry door area back toward the rear of the bus,
encompassing the windows with view thru material. Next is the wrap of the
area below the windows from the door area back. A very cost effective way
to do this area and also visually appealing is to use a mix of both digitally
printed material and the time tested cut vinyl approach, this can offer your
customer an inexpensive way to broadcast there message in your community. An often overlooked area is just to cover the rear of the coach, while
not as effective for grabbing the large crowd attention as a full wrap, it does
effectively send your message out to the drivers in your community, who at
January 2006
www.rtoonline.com
y in all the right places.
some time during there day is not following a bus? This we find also is the
place to put a message that requires actually reading something. The sides
are great for a big bold message, that can be related in a couple of words,
but the “back of the bus” is the place to tell a story if need be. Keep that in
mind if you have a message that needs explaining to your local community.
The easily changed jumbo and super jumbo graphics are a very appealing alternative to the metro coach operator, while not as flashy as the
wrap style graphic they are an economically effective method of having an
easily changed advertising venue. These consist of an easily installed anodized aluminum frame that is attached to the side or rear of the coach, that
allows a printed graphic, (either screen, or digitally printed then laminated
onto a hardface) to be slid or clipped into the frame, typically in under 5
minutes per coach. While they do not generate the dollar revenue of a wrap,
they certainly can help offset the operating costs of your fleet.
While I have been discussing the methods of applying and attaching the graphics above, we can not forget, what is probably as, or more
important than the actual method or material, of the graphics. Is the selling
of the space, this is accomplished in a variety of ways. One being that you
sell the rights to your space to 3rd party advertising agency, they in turn
take care of the whole package and just “send you the check”. They sell the
www.rtoonline.com
ad space, arrange for the production of the graphics, then arrange for there
installation. Next is the fleet that can afford to have there own ad space
sales person or team. They will call on the advertisers, have a company
or companies that bid and provide the graphic materials, then have there
own installers or the fleets installers provide the installations. While this is
more complex it does provide more of the revenue to the coach operator
in the long run. But it does require a hands on person to be involved in the
project. Then for the smaller sized fleet coach operator, they can advertise
on there own coaches the availability of the ad space, put it up for bid on
any number of online ad sales agencies, even ebay. Arrange the production
and installation of the graphics and reap the benefits. This method is profitable but also requires the most hands on time involvement. It is important
to work with a proven graphics supplier that can provide all of the elements
of the project if possible. The design elements, production of the graphics
themselves and finally installation and removal. Trying to arrange these can
be a daunting task for the fleet operator so be careful in your choosing of
your graphics provider, ask for references.
To wrap it up, I hope that I have illustrated the “Hidden value” that is
right out in the open for the taking on your coaches. And opened up the
spigot to easy dollars for you to start earning with your existing billboards.
January 2006
RTO magazine page: 49
RTO Excellence; Gloria
Homeier-Schwien
Continued From Page 16
Customers come in for a loan and end up looking
at the merchandise on the floor.”
Interestingly enough, the one thing Beloit
customers won’t see on the sales floor are male
employees. Gloria’s entire staff, from delivery
driver to service tech to store manager, are all
women. When asked if this was intentional,
Gloria has a practical explanation.
“I would like to think that I hire the best
qualified candidate for every position. It just
so happens that they were all female. I have
the same expectations for every employee. If I
expect a guy to lift it, I expect a woman to lift it.
I also expect them to be able to take a washer
apart and repair it and to perform routine maintenance on our vehicles. The entire Beloit staff
is female, but we have two other stores now and
there are a few male employees, as well.”
In fact, out of Gloria’s 13 employees, three
are male and the rest are women. And out of her
three store managers (other A Full House stores
are located in McPherson, KS - opened February
2003; and Pratt, KS - opened October 2004) not
one of them is a guy.
“Like I said, my expectations are the same
for every employee and they come through every
time. I have three great store managers and I
hope I get to keep them forever!”
RTO magazine page: 50
January 2006
www.rtoonline.com
“Normally,
Beloit is about
30% retail purchases and Pratt
and McPherson
are about 15-20%
retail. But February is our highest
sales month overall, hands down.
You really see the
impact of those
refunds both on
the RTO and the
retail side.”
Gloria has created a warm, friendly atmosphere in her company where she just might get
to keep her employees that long. After experiencing high turnover among delivery drivers
early on, she upped the pay scale and added
benefits such as health, dental and life insurance, making it more of a management track.
It worked, since every one of her three current
managers started as a delivery driver.
“I’m in every store at least once a week, and
sometimes twice. I believe in working right beside the store staff. In fact, the hard (collection)
cases come right to me. When the store owner
knocks on the customer’s door the reaction you
get is a little different!”
That reaction must usually be good, since
Gloria’s company went from day one until this
past September without experiencing a single
customer skip - that’s nearly a four-year stretch
without losing any merchandise.
“The benefit of operating in a rural environment is that my managers have lived in the area
and know our customers and know their families.
Collections are not really an issue, although we
all know sometimes things happen and accounts
will become delinquent.”
One practice Gloria has instituted to help
curb delinquencies is a merit-based pay system
that factors delinquency percentages into managers’ compensation.
“The formula that is working for us is a certain percent of total revenue, less the percent of
delinquencies. It might sound overly simple, but
since we started this, I have seen tremendous
changes. Overall revenue is up 15%. Delinquencies have been reduced by 30%. The best part of
all, though, is that my managers’ pay is up 20%.
And we all couldn’t be happier!”
That’s good, since Gloria’s stores are preparing for the upcoming rush, when income tax
refunds have a strong impact on their stores.
RTO magazine page: 51
Gloria’s
stores aren’t
huge (they all
average about 400
BOR per store and 4,000 square feet of display
space), but they are successful because she
keeps her overhead low and her growth in check.
“If you grow too fast, it can take lots of cash
to buy the merchandise you need. Our third
store (Pratt, KS) grew so fast we sold out the
entire store faster than I thought possible. It’s
hard to know how to make sure you have enough
merchandise. What was interesting is that the
first day in Pratt we had NO business. Nothing.
Whereas in the previous two stores, we were
renting merchandise on day one. But by the
fourth week in Pratt, we had gone through our
entire warehouse. Now the Pratt store is consistently giving McPherson a run for its money for
the highest company BOR.”
It also helps the profitability of her stores
that a large number of rental agreements progress to ownership.
“In Beloit, nearly 85% of the rental
agreements pay out in full. In McPherson, the
number’s between 45% and 50%. In Pratt, it’s
still too soon to tell, but the number should be at
least close to 50%.”
Gloria’s company, G-5 Retail, Inc. owns the
real estate occupied by all three stores, soon to
be four. She also takes great pains to finalize
her advertising in advance, to ensure a plan is in
place and costs are kept in check.
“In December, we have our plan completed
for the entire next year. I’ll never spend 10% of
my revenue on marketing, but I might spend 5%.
You know you’ll never beat word of mouth, so I
try to capitalize on that by controlling employee
turnover. I want our customers to see familiar
faces in the stores. Beyond that, cable TV has
been good to us. I mainly have folks say they
saw our commercial on American Choppers or
during wrestling. And the pricing is pretty advantageous, especially when the cable company
will create the ad for you. I also like running ads
in those free shopper publications.”
January 2006
According to Gloria, that plan typically
includes cable ads every week, a shopper ad
every other month, and an on-going direct mail
program.
“When we first enter a market, I hire someone from an area community college to enter
every address in the area into a database. Then,
we can reach just about every person out there.”
Gloria also credits Ideal Software’s marketing function for allowing her to run direct mail
offers to her customers.
“One of the best offers I use is $5 the first
week rents anything in the store. It always
brings customers in. The key, though, is making sure you’re staying within the customers’
budgets.”
Another key, says Gloria, is offering the
right mix of merchandise and being able to
service what you rent. While A Full House stores
rent Ashley furniture, and Pioneer, JVC and Sony
electronics, they only offer one brand of appliances.
“We strictly rent Whirlpool appliances. Our
techs know their merchandise, and they all have
attended Whirlpool training at Whirlpool’s facility
in Tulsa, Oklahoma. As a result, we service
everything we rent or sell in our own stores.
Refrigerators, stoves, washers and dryers, we
know how to do it all.”
After 15 years in RTO (10 working for her
father and 5 on her own), Gloria has seen some
changes in the business.
“Customers now are much more educated.
They shop around. They have choices. There is
definitely more shopping and browsing than ever
before. Of course, the merchandise has changed
drastically since 1990. We love those plasma
TV’s and LCD TV’s, and not just because they
weigh so much less!”
Gloria plans to soon open her fourth store
in five years, and eventually build A Full House
into a force to be reckoned with.
“My goal is to be the biggest privatelyowned RTO company started by a woman.”
So while it might seem like a long way from
climbing grain bins in rural Kansas to climbing
toward RTO excellence, for Gloria HomeierSchwien, it’s just another job well done.
www.rtoonline.com
As Easy As It Gets With Premier: From Trooper Earle
e’ve heard over and over how Premier has made it possible
for dealers to start and run their own business. But what we’re
hearing more these days is how easy it is to attain that dream for
them. That’s music to our ears because we put a great deal of effort into
making what could be a rather arduous exercise as straightforward and
logical as it possibly can be. We’ve worked hard to establish processes and
procedures, put the support systems in place, and we are committed to
walking new dealers through them step-by-step. We want to save new dealers time, money and most of all the aggravation and be available as they
need us, as they grow.
W
An increasing number of new dealers are finding it takes less time
than they think to start a store with Premier. They are finding great support
to negotiating real estate leases and working with vendors, and they enjoy
the flexibility to call the shots knowing that we have the resources to help
them be successful. We are offering what no other franchise organization
is because we listen to our dealers want as independent store owners. They
want the freedom to be the best they can be.
Really what we are doing is empowering talented and seasoned RTO
professionals to have what they deserve - a business of their own to run as
only they can. We help them accomplish their individual goals - and they
are all different. Therefore we cannot
be a cookie cutter operation. Premier is
about fostering and harnessing talent
and energy as an association of truly
great entrepreneurs that functions under
the common name of Premier. It is a
privilege to be part of this growing family, and we want to see that things run
smoothly for everyone in it. We do our
best to make it easy for you.
Just eight months after opening his
first Premier store in Mishawaka, Ind.,
Mike Lewis was back talking to the bank
about another loan.
Mike Lewis has been named
“We had such success with the first Premier’s VP Operations.
store, I was able to go back to the bank
and ask if we could get funding to open up a second store in Ft. Wayne,”
says Mike. “The bank recognized not just our success but the credibility of
Premier in their decision to give a quick ‘okay.’ We used a template from
our first start up with a support system in place were ready to roll.”
According to Mike opening the second store was significantly easier
than the first, and even that initial experience was not as difficult as it might
have been because of Premier’s help with the business plan and start-up
package. With three stores now, Mike values Premier’s support in managing multiple operations.
Mike didn’t stop in Ft. Wayne. His third store opened just four weeks
later in Goshen, Indiana. Systems were already in place for him, and Mike
credits Premier for enabling him to manage three stores.
RTO magazine page: 52
“Having human resources, an accountant and payroll services means
I don’t have to worry about things like quarterly taxes, payroll or insurance.
My stores can run on their own because of the Premier services. It leaves
me free from administration duties so I can support my managers and keep
growing.”
What makes Mike’s stores stand out among the competition is the
primary reason he loves RTO - making a difference in the lives of his
customers. “It isn’t about a sofa or TV,” says Mike. “It’s helping customers
achieve some sort of satisfaction through owning merchandise that enrich
their lives. It’s about making them happy when they come in to make a
payment. It’s about having them linger just a bit longer when they come in
because they expect to visit a bit with you. And it’s about making my team
of employees feel just as satisfied as my customers so they pass along that
feeling of satisfaction.”
And he feel strongly that his success will continue as long as he
can treat that first customer in his first store the way he did when he first
opened - like part of the family.
Mike’s ability to successfully run a multi-store operation was proven
over his 12-year career with Rent-A-Center. During his last nine years there
he managed from eight to fifty stores, gaining the experience he would later
put into play in his own business. He’s known for customer care, employee
care and for using more than dollars to measure success. He’s also in a
key position as recently-named vice president of operations to help other
Premier dealers set up multi-store businesses.
“It is one thing to be successful working for an RTO company and
doing things in their system, but another to create your own,” says Mike.
“As an independent dealer, it’s your business. I know from my own experience what it was like to open a store and develop systems that got all my
employees working effectively together. As VP of operations for Premier I
will help new dealers get through that challenge and not lose the day-to-day
focus on the numbers.”
“Mike has the unique understanding of what it takes to run a successful store as well as what is necessary to build and run an effective multistore company,” says Trooper Earle. “Premier is very excited to have him
helping our new dealers develop their operational systems so they can get
ready for multi-store expansion when excess cash flow from their first store
comes.”
Christopher Darden
literally grew up in the
RTO industry. Now he
has opened his own
Premier rental store,
partnering with the man
who gave him his start
- his dad - John - along
with his former supervisor, Mike Hubbard.
“I got into RTO
when I was eight years
old,” says Christopher
January 2006
Christopher Darden, John Darden, Mike Hubbard
www.rtoonline.com
who spent time after school in
his parents’ rent-to-own store. “I
learned proper care and upkeep of
product as well as how to interact
with the diverse customer base.
By the time I was 16, I was out on
the truck learning to professionally deliver and service product as
well as how to effectively manage
customers’ accounts.”
With the opening of their
new Premier store, the Dardens
and Mike Hubbard combine well
over 50 years of RTO experience
and bring an interesting history with Trooper Earle full circle.
That history began in 1983 when, with three RTO stores in the family,
the Dardens found it necessary to hire quality manager trainees. One turned
out to be Trooper who came on board as their first manager trainee, beginning a relationship that continues today.
After a successful run at owning and managing franchises, John and
Christopher took a break from the industry. John returned after five years
to work for a medium-sized regional RTO company. There he took under
performing stores and quickly turned them into profitable locations. He
also met his close personal friend who is now his business partner, Mike
Hubbard.
Mike, a 21-year RTO veteran, had spent his entire tenure with one
company becoming a very successful regional manager and sales trainer.
Meanwhile Christopher decided to leave a career in restaurant management
to return to his home - RTO - and begin working for Mike. Christopher,
John and Mike decided to become a team and start a new business, poised
to make a difference in the industry.
The biggest issue in getting started was finding available options for
financing of a store. After reading of the great success Trooper was having
with dealers starting their own Premier stores, Christopher decided to give
him a call. Impressed with the program, as well as with Trooper’s easy, fair,
no-pressure style, the three partners felt that joining the Premier family
would support their goal of setting up a successful operation.
“Trooper and Dan Whitsell, Premier’s CPA, walked us through the
process of obtaining SBA financing,” said Mike. “There is a certain art to
dealing with banks in particular.”
“Trooper and Dan did a great job of educating us on how the Small
Business Administration’s system works,” added Christopher. “Dan Whitsell
is a solid professional whose knowledge of the finances in the rental industry is critical in preparing and implementing your financial forecast. He has
been with us every step of the way.”
For John, his new partnership is a “dream come true. I had hoped
that one day I would have a business with my son. The fact that we can
begin this venture with someone as talented and as gifted as Mike Hubbard
makes this experience that much more surreal. I have been very blessed.”
“I’ve been in the business for 12 years,” says Ted Krygoske. “And one
thing I’ve found is that I have the most fun when I’m opening up a store.”
He describes that experience as the exciting part of what he did for a major
RTO company until recently. “Everything is fresh - yours. If you put a nick
on the wall, it’s your nick. I like the ownership piece of it.”
But after all those years the feeling of being an entrepreneur began to
get squelched for Ted, and that is how his partner Paul Bottomley describes
what happened in his RTO world too, after 17 years. “I felt I was going
down the road of micro management,” says Paul. “I felt that corporate
America was taking away the entrepreneurial spirit and that’s not what
either of us is about.”
Ted and Paul both were
regional managers for the
same company in Indiana and
realized they had similar goals.
They had talked for years
about one day opening their
own business. According to
Paul, “one thing led to another
and we ended up partners in
Ted Krygoske, Paul Bottomley
owning a Premier store in Knox,
Indiana.” It’s a start for them, one they hope will lead to multiple stores
owned individually. That IS what they are about.
They carefully charted their next steps after deciding to launch their
business. Ted admits they looked into their options, including buying a
franchise of one of the large RTO companies. They also knew about Premier through two other regional managers who had gone out on their own
with them.
“We had looked into opening up a store two times,” says Ted. “Two
times we tried, but both fell through because of different issues, such as
non-competes in the area. One day we remembered what someone had told
us about Premier. We found the website through Yahoo, called Trooper and
compared Premier to joining with a larger firm or going solo. There was
no comparison, though. We knew we should absolutely go with Premier
instead of any other option. Fees were too high to make joining a large
company appealing. And while some people out there may think about doing it by themselves, I think that’s a huge mistake. If we had tried to do it by
ourselves, it would have taken us years to get done what we’ve been able to
get done in months with Premier’s help. They have it all laid out, from the
business plan to the new store opening guide. The support we got has been
incredible.”
Paul adds, “The guidance they have provided has been tremendous.
We looked at everything. We did a lot of research before deciding on Premier. Not only did we find it so expensive elsewhere, we wanted the ability
to make our own decisions and not be driven by franchise agreements. We
could have ended up in an extremely corporate environment had we gone a
different route, but with Premier we’re working for ourselves.”
Premier Rental Purchase Inc. | 1-800-2PREMIER | www.premierrents.net
RTO magazine page: 53
“Ownership and support assistance
for the seasoned RTO Pro.”
January 2006
www.rtoonline.com
R e n t t o O w nR
RTOtradeshow.com
CLASSIFIEDS
Bryce Co.
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Turnkey RTO Jewelry Programs
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PROGRAM
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Associated TITLE , Inc.
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Turn your non-paying customers into CASH with car title
loans, and earn 25% interest / mo.( laws vary)
*turn Key Operation *Training, and forms
*Allowed in 20 States including: GA, SC, AL, DE, CO, NV,
MS, TN, UT, and more
Associated Title , Inc
www.fasttitlepawn.com
call now; 404/252-8117
Call 702-889-9555
Rent
ent to Own
Ow
Need a Web Site?
RTO Online specializes in Rent
to Own Company Websites.
Dealers - Vendors - Associations
Contact: sales@RTOonline.com or Call 407-433-2153
To advertise in RTO Magazine, the most widely circulated RTO industry print publication, or to advertise
on RTOonline.com, the RTO industry’s most popular trade website, contact RTO Online Inc.
866-786-7547 - sales@rtoonline.com
RTO magazine page: 54
January 2006
www.rtoonline.com
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RTOtradeshow.com
RTOtradesh
a service of rto online - www.rtoonline.com
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Vendor Address Book
Jewelry
Bryce Co.
www.brycejewelry.com
11844 Bandera Rd #114
Helotes, TX 78023
800-880-9434
Bryan Collins
FAX: 210-695-1092
bryan@brycejewelry.com
M&B Jewelry / Previously BOGO
www.mandbjewelry.com
6040 Century Oaks Dr.
Chattanooga, TN. 37422
800-251-7640 EXT. 227
Robby Tyson
FAX: 423-894-5122
rtyson@mbjlry.com
Software
High Touch, Inc.
www.hightouchinc.com
2020 N. Amidon
Wichita, KS 67203
800-326-6059
John Rogers
FAX: 316-831-5555
johnr@hightouchinc.com
Ideal Software Systems/TIRM
www.idealss.com
4909 Great River Dr
Meridian, MS 39303
800-964-3325 ext 153
Stephen Lenhart
slenhart@idealss.com
Risk Management
Teletrack, Inc.
www.teletrack.com
Suite 800, 155 Technology Parkway
Norcross, GA 30092
770-449-8809 x1709
Scribner Dailey
FAX: 678-229-1054
sdailey@teletrack.com
Marketing
RTO Online, Inc
www.rtoonline.com
4862 Newberry
Jackson, MO 63755
662-415-4523
Marketing Dept
FAX: 440-325-8803
sales@rtoonline.com
RTO Internet
www.rtointernet.com
4862 Newberry
Jackson, MO 63755
866-786-7547
Roy Griffaw
rtointernet@rtoonline.com
TruckSkin, LLC
www.truckskin.com
2322 Cass Road
Traverse City, MI 49684
231-995-8601
Joe Lapekas
FAX: 231-933-0663
truckadsjoe@hotmail.com
DSI Systems, Inc.
www.dsisystemsinc.com
9882 E 121st Street
Fishers, IN 46038
Tim Moore
614 871-1456
FAX: 614 871-4643
tim.moore@dsisystemsinc.com
O’Rourke Sales Company
www.orourkesales.com
1408 Vinylex Dr
Carrollton, TX 35006
Bill French
800 800-8500
FAX: 972 245-0660
bfrench@orourkesales.com
BDI Laguna
www.bdilaguna.com/rto
3960 Royal Drive
Kennesaw, GA 30144
800-241-5641
Jay Nardone
FAX: 678-255-4580
jnardone@esend.com
Twinhead Corporation USA
www.usa.twinhead.com
48303 Fremont Boulevard
Fremont, CA 94538
510-824-6788
Ray Oribello
FAX: 510-492-0820
ray_oribello@twinhead.com
BGC Telecom LLC
www.bgctelecom.com
2001 East Malone
Sikeston, MO 63801
1-888-698-1725 ext 703
Anthony Jarrett
FAX: 573-471-5386
BGCTelecom@BGCTelecom.com
Business Opportunities
ColorTyme Rent-To-Own
www.colortyme.com
5700 Tennyson Pkwy #180
Plano, TX 75024
972-403-4905
Pat Sumner
FAX: 972-403-4923
Premier Rental Purchase
www.premierrents.net
PO Box 244
Lightfoot, VA 23090
800-2-Premier
Trooper Earle
troop@premierrents.com
Associated Title Loans
www.getcommissionsfast.com
6000 Lake Forrest Dr Suite 315
Atlanta, GA 31315
404-252-8117
Bill Robbins
brobbins@getcommissionsfast.com
n Rent to Ow
wn
RSSS, L.P.
www.rsss.com
711 N. Carancahua, Ste. 1500
Corpus Christi, TX 78475
361-993-1790
Doug Funk
FAX: 361-993-1731
sales@rsss.com
RTO Pro Software
www.rtopro.com
2503 Gables DR
Eustis, FL 32726
800-351-6299
Ron Ganus
FAX: 352-385-0287
sales@rtopro.com
Furniture
Sandberg Furniture
www.sandbergfurniture.com
590 E. Summerlin Street
Bartow, FL 33830
863-534-8915
Wayne Harris
FAX: 863-534-3009
Electronics
SED International
www.sedonline.com
4916 N. Royal Atlanta Dr.
Tucker, GA 30084-3031
1-800-444-8962 ext. 1184
Michael Bertolani
FAX: 770-493-5682
mbertolani@sedintl.com
YAMAHA Music
www.yamaha.com
6600 Orangethorpe Avenue
Buena Park, CA 90620
800-386-8774
Thomas Murphy
FAX: 775-703-5418
tmurphy@motivatedmktg.com
D and H Distributing Company
www.dandh.com
2525 N. 7th Street
Harrisburg, PA 17110
717 255-6793
John Alifano
FAX: 717 255-7812
jalifano@dandh.com
Financing
Lynnray Financial Corporation
www.lynnrayfinancial.com
5696 Peachtree Pkwy Suite J
Norcross, GA 30092
800-535-4138
Bill Lassiter
blassiter@lynnrayfinancial.com
Pre-Paid Services
Budget Phone
www.budgetphone.com
PO Box 19360
Shreveport, LA 71149
888-866-3663
Danny Hyde
dhyde@budgetphone.com
dPi Teleconnect
www.dpiteleconnect.com/rto
2997 LBJ Freeway
Dallas, TX 75234
972-488-5500 x4001
David Dorwart
FAX: 972-488-8636
ddorwart@dpiteleconnect.com
Trihouse Enterprises Payday Loans
www.Payday-Loan-Industry.com
1516 E. Tropicana, Suite 150
Las Vegas, NV 89119
702-889-9555
Jer Ayles
Jer@Payday-Loan-Industry.com
Premier Rimz - Wheel and Tire
www.premierrimz.com
Branson West, Missouri
866-875-4062
866-280-1875
CheriLyn Korth
Email: info@premierrimz.com
Buying Groups
RentDirect Nationwide
www.gorentdirect.com
110 Oakwood Dr. Suite 200
Winston-Salem, NC 27103
336-722-4681
James MacAlpine
FAX: 336-714-9760
jamesm@nationwidegroup.org
Associations
Coalition for Fair Rental Regulations
Ron Waters
rlwaters@sbcglobal.net
It’s Coming!
February 26 - March 1
The Venetian, Las Vegas
Our PrimeTime! member conference and
vendor exhibition has become one of the
industry’s premier events. Twice a year
thousands of members and vendors meet to
share information, gain inspiration, and take
advantage of outstanding show specials. It’s
a RentDirect Nationwide exclusive that truly
rocks the industry.
• Over 160,000 square feet of show exhibits.
• Leading manufacturers and reps will be present.
• See all the latest products, place orders on-site.
• Famous "Cash Back Now" instant show rebates.
• Learn about industry trends from the experts.
• Free educational classes at PrimeTime! University.
• Learn more about RentDirect member services.
• and much, much more!
Call 1-336-714-8802
Or Visit www.gorentdirect.com