last updated 29/03/2020
Recurring Income Guaranteed
last updated 29/03/2020
Rentronics franchisees tap into the convenience of the growing appliance rental market
Many people are discovering the advantages of renting household and personal goods. High up-front costs, interest rates and unexpected maintenance bills are a real problem for many people, especially if they’re on a fixed income. The rental option also appeals to new migrants, people moving home, those doing up houses for sale or short-term business needs.
That’s what makes the Rentronics business model is so attractive. ‘Our franchisees can supply big ticket items such as washing machines, furniture, computers and even fitness equipment for a fraction of the capital cost. It’s affordable for our clients, and provides an increasing level of on-going revenue to our franchisees,’ explains Rentronics franchise manager Alan Payne.
Alan and Rentronics owner Aman Jain have an impressive amount of business experience between them. Alan has had 30 years in franchising, including spending seven years growing an Australian rentals company. Aman had spent 15 years in the electronics rental business prior to founding Rentronics in 2016. ‘What distinguishes us is that we are wholly New Zealand owned and operated and we offer a wide range of equipment across a broad range of categories,’ says Alan.
Easy to start
The clear-cut, simple and easy business model Rentronics put together was what attracted former taxi driver Dilsher Singh. ‘I might have looked at another franchise but it was the practical business model which really drew me to Rentronics,’ he says. ‘I could immediately see it was a way into business that offered long term benefits. They have made starting your own business very easy with this model and offer a wide range of products.’
Another factor which made things easy for Dilsher is Rentronics’ Step Cost business model. This allows for a new franchisee to start off operating from home, then grow as the business expands. ‘Like any business you need to put time and effort into it, particularly when you are starting up, but that hard work paid off,’ he says. ‘After three months I was confident with the model and I found word of mouth alone was providing a lot of new customers. I started with just the one van – there was no need to have a showroom in the beginning because the system ensures you don’t need one until the revenues have built up.’ Now, after less than three years, I have the showroom, five staff, two vans and I’m working a sensible five-day week – I think you can say it is going well,’ he laughs.
Alan Payne explains that the Step Cost model is all about controlling costs. ‘The Rentronics system means franchisees don’t need to hold a lot of stock upfront: customers use the website or phone you to find what they want and get a quote. When a new client comes on board, there are security checks before you have to deliver the item which gives you plenty of time to order it from the supplier.
‘Up to about 200 units you can operate from a house, shed or garage, and build the business as Dilsher has done, with just a van and an installer before you need to take premises. You won’t need a prime high street location either – a cheaper destination-type location will be adequate and once you cover your costs in the first 200 units rented, after that an increasing percentage of profit goes straight to the bottom line.’
Rentronics franchisees don’t need a massive up-front investment, either. ‘If you can provide $75,000 capital to start up, then everything else is funded as you grow,’ says Alan. ‘We have funding arrangements in place with a couple of the banks, so it is quite straightforward.’
Dilsher couldn’t be more pleased with his decision to buy the franchise. ‘Rentronics provided me with the model and training, and I added the positive energy and enthusiasm. I’m very focused on customer service. The most common items we provide are TVs, couches and beds – all expensive items to buy, but much easier to budget for on a hire basis, especially as we include free delivery, free service and free installation. I had to buy the second van to handle the bigger items such as lounge suites!
‘I’ve had solid support all the way through from Alan and Aman, who have developed a comprehensive and easy-to-use operating system together with proprietary software to help keep me on top of things. It’s been a great journey, and a much easier business model than some I looked at. With recurring income growing all the time, it’s building nicely.’
Alan says that Dilsher’s experience and success has demonstrated that this is a great business for anyone with a bit of entrepreneurial flair and people skills. ‘If you would like to create something of your own with recurring income for a better lifestyle, this is a great opportunity.
‘You don’t need a sales background, just the ability to talk to people and explain the clear benefits of renting some of those essentials in life that would otherwise blow a huge hole in your budget. Call me – we have territories available nationwide ready and waiting now for the right people.’
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