If you cannot sell it – Rent it

You may feel that you are in the selling business, but if your product will not sell is it the type of product that you could rent? The rental movement in the retail sector really took off in the hardware sector where the rental business is now big business for some retailers. Why get into Rental? When the consumer is becoming more price aware and wanting to spend less, especially on big ticket items, then it is time to brainstorm, how as a retailer you can create value out of the product. It may also be a way of daring to be different and creating a niche for you that your competitor has not considered. Lisa Girard on the Home Channel Improvements web page explains that a retailer in Tennessee, Orgill started a rental business in their hardware store in 2005 and it is now 10% of their turnover with 6000 customers renting equipment each year. Ace hardware has the Ace Rental Place program which was started way back in 1993 and 525 stores are now in the scheme. According to Do It Best, it takes an investment of around $50,000 to set up a rental business in the hardware sector of a business and then expect a turnover of a least $50,000 a year as return on the investment. Most hardware retailers who are in the rental business look on it as a profitable category. Perhaps more retailers need to brainstorm the rental business. I have come across the concept in florists, garden centres and other business sectors. Would it work for you?