Hardware Retailing The Industry's Source for Insights and Information
Like most every department in the store, rental should see a flurry of activity once the spring weather hits. Tillers and sprayers will likely be rented out every weekend as consumers start spending time in their lawns and gardens.
As one of the most profitable departments in the store, rental deserves your continued attention. It has plenty of opportunities for add-on sales and for building customer loyalty, so retailers that have finely tuned their rental departments can be assured the rush of activity won’t stop after spring ends. The summertime offers plenty of opportunities for a busy rental department, and Orgill’s rental program has what it takes to make the most of every opportunity.
“Statistics show that for every dollar in rental revenue generated, an additional 25 cents in hardware and lumber are sold,” says Kenneth Duck, Orgill rental manager.
Make sure you’re not missing out on rental opportunities this summer. Rental is all about helping the customer start and complete a project, so as customers talk about the projects they’re starting, pay careful attention to the more expensive tools it takes to complete that project. Never let lack of a tool stop a customer from starting a project. Even if it’s as simple as a wheelbarrow or a sledgehammer, don’t pass up the opportunity to rent if the customer doesn’t want to buy.
Especially if your rental department has only been open a short time, look at rental history reports to see what are your hot items. It may be time to add another garden tiller or floor sander. At the same time, if products spend most of their time sitting on the floor during the peak of rental season, it may be time to sell them off to make way for a more productive item. Summer is a good time to take a look at those numbers so you don’t miss potential profits.
Also consider adding a niche items. Every other rental place in town may rent jackhammers, but does everyone rent party tents? Inflatable jumps, tables, chairs and tents can be rented for special events such as birthday parties and weddings. It can even become an opportunity to sell add-ons like balloons, disposable tablecloths, streamers and party favors.
