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The idea is still in the planning phase and meeting with score counselors but I would like to hear some thoughts. The idea is to start a rent-to-own business from home online renting out the latest electronic consumer gear. I have a more narrow niche but would rather not say at the moment.
Meeting with a SCORE counselor is a great place to start! They'll be able to help you iron out the details and determine if it's a viable business model.
Without more details, it's difficult to say much about the idea. A rental business is a pretty proven business model, though. There are several business rental sites and even a few that allow people to rent things from other people such as neighbors.
Your main challenge is determining how much to charge for rent and shipping. It will need to be enough to more than recoup your cost to purchase the electronic device, but not so much that your target market would rather buy it than rent it. You'll also need to insure the products against damage or loss, which would need to be calculated into the rental fee.
Most of this hinges on what you're planning to rent. If it's a high priced item to purchase, you may be able to rent it for enough to cover the purchase, shipping and insurance, especially if you can buy it wholesale by purchasing a large number. On the other hand, if the item doesn't cost much, your potential renter may decide he'd rather spend $50 to own it instead of $10 or $15 per month to rent it.
Good luck and keep us posted!
Idea is important for any thing you want to do also counseling could avoid some mistakes. but any idea need to do it then will know is it work .
JP, I don't think I'll be able to (or should) offer rental insurance as it will be costly and Aarons doesn't charge insurance on their rentals either.
I wont be able to buy in wholesale lots but I will be buying factory refurbished which is really almost the same as new items but marked down.
Rental rates will be 146% annual and most if not all my rentals will be sub 1000.00.
The only real problem I'm having is trying to figure out IF my customers will pay my price before I go out and buy inventory.
How do I get this information besides standing on a street corner?
thanks.
Idea is important for any thing you want to do also counseling could avoid some mistakes. but any idea need to do it then will know is it work .you can have a loss in business if you start it without any idea.
Every type of business will have it's own unique twists and challenges. Talking to a counselor is definitely a good way to figure out some of the issues and determine the best approach to achieve your objectives. Since you can't mention the details, it's hard to provide specific advice, but I would say doing extensive research is the key -- and a counselor is a good start ;)
Yes, rent to own is a creative solution to those people who crave to have their own home but because they don't have the funds for down payment they prefer to opt with this kind of procedure. As rent to own is an alternative method of owning a house with the intention of buying it later. - Self Esteem Tips
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