Do you have any retail business? Want to add rental products to your retail business? If yes, be patient and just go through this article. This article provides the easiest way to add rental products to your retail business.
Since the rental industry is growing in the U.S. market, you can integrate these kinds of strategies into your retail business. Most retailers are preferred to add rental products to their business because it will help to grow their business revenue.
According to the analysis of Allied Market Research,
“It is predicted that the global online clothing rental market will reach around $1,856 Million within 2023.”
Moreover, not only in the apparel industry but also in other retail industries, it is moving aggressively. Thus, there are huge opportunities to grow the revenue of your retail business to add rental products.
Let’s explore the crucial segment of this article to know the detail on how to add rental products to your retail business.
Choose the Most Suitable Rental Model for Your Retail Business
Consumer interest in having a rental or subscription option for products normally available only for purchase is reaching a fever pitch.
Examples of startup rental companies disrupting traditional retailers can be found not just in tech blogs, but increasingly in national press outlets and even in commercials during the biggest televised events.
The best rental option for your business depends upon the type of inventory you offer, along with what you hope to gain from adding rentals to your operation. The most common (but certainly not the only) options include:
- Transactional Rentals (Simple rent & return where rental duration will vary)
- Relationship Rentals (Subscriptions to product categories with tiers of access)
- Rent-to-own (Ongoing) Rentals
In a transactional rental model, you can stock your rental counter with unsold or returned items, providing a profitable alternative to deeply discounting or returning the items to the distributor for a refund.
Borrowing from the traditional rental playbook, you may offer hourly/daily/weekly intervals. Customers book and pay for the equipment for a predefined rental period and return the equipment at the conclusion of the term.
Users of this approach will generally enjoy a greater return on investment of rental inventory resulting from the number of transactions for a single product.
Relationship models seek to develop a loyal customer base and usually provide an offering of “staple” inventory on a subscription basis.
While profitable in the long run, this model requires a greater investment in duplicate inventory in order to satisfy subscribers who have greater expectations from the relationship. A retailer considering this model should budget for a higher cost to acquire subscribers.
Rent-to-Own (Ongoing) Rentals
Rent-to-own is the most complex variety, as there is a need for customer credit applications, financing, collections, and more. The primary consideration for this approach is that customers expect to receive new items that they can pay for over time.
Assuming you have relationships with manufacturers and finance companies (or you have software that brings the necessary components together seamlessly), this is the most natural extension of the traditional retailer.
Which Factors Should You Consider for Adding a Rental System to Your Retail Business?
Picking the right technology to handle the complexities of merchandising, pricing, and reflecting real-time availability is an important first step to adding a rental component to your business. The following functions are essential to running and managing your rental department.
Intuitive Inventory management
Regardless of how many products you plan to offer for rent, ensure your rental software supports a variety of ways to add products to your inventory. Adding thousands of products should be as simple as adding just one. Be sure you have options to add items individually or in bulk from your current inventory management system.
Online Merchandising & Booking
Making it easy for staff and customers to find, schedule and rent are critical to a successful rental option. You can save time and money by choosing a program that includes an integrated mobile-friendly web store, where customers can see the variety and availability of your rental inventory and easily find and book complementary products all in a single system.
Point-of-Sale (POS) Booking & Merchant Processing
The ideal inventory management system will not require your staff to learn an entirely new process. Pick a system that manages inventory similar to your current system (for example, one that can accept barcodes & serial numbers).
Dynamic Pricing Options
Renting, by definition, includes an element of time-based pricing. You have the opportunity to earn more from a rental the longer the time the item is with a customer.
The latest rental management systems permit products to be priced at an initial rental period (for example $10/day) and an additional tier for “extra” time (like $10 for the 1st day, and $6 for each additional day). The key to improving rental profitability is to generate marginal profit from each transaction.
Pickup, Delivery & Shipping
Getting your products to your customers is an essential element of managing and growing the rental component of your business.
Find a system that makes each fulfillment method simple for your customers and staff. Especially in the days of social distancing, the more ways to get your products, the more business (and loyalty) you can enjoy.
CRM & Communication Suite
Renting products entails a “closed loop” transaction; the item is picked up, used, and returned to the retailer. In this regard, you have to ensure that the system you choose includes a communication suite to keep both staff and customers.
This will notify you of the upcoming rental when it is returned and ensure that the item is returned on schedule. Features including email and SMS (text) alerts result in a better customer experience.
NOW’S YOUR CHANCE
Get an Optimum Solution to Add Rental Products to Your Retail Business
From the above discussion, you have definitely understood how you can add multiple products to your retail business. But the crucial factor is that you have to choose the finest rental software solution that will allow you to customize the entire system according to your business information.
Worried about choosing the best rental software? Well, you will get your desired solution that may assist to make a magical change in your retail business.
In this case, you can undoubtedly go for RentMy which will provide a complete SaaS-Based rental management solution to conduct the overall operation of your retail business.
This software offers various exclusive features which will be essential to managing the rental activities of your retail business. Though you have to deal with a lot of retail products, you may face a complicated order management process.
Also, you may not handle the entire pick-up and drop-off activities with adopting an automation. In this case, RentMy will ensure a smooth experience and effective operation for adding rental products to your retail business.
As renting & subscribing becomes more popular with customers, retailers can seize the opportunity to differentiate themselves from local competition while providing a great value to customers.
So, it is the best time to pick the right technology to manage the process will ensure a smooth addition of a potentially significant revenue source to retail businesses.