Retail Observer

RETAILOBSERVER.COM DECEMBER 2019 56 I t's just a fact of life: No one ever feels like they have enough time or enough money. In a multi-faceted business like rent-to -own, that truism somehow seems even truer. Your calendar is perpetually full, with unexpected urgencies sandwiched between scheduled events; and whenever profits rise or a windfall appears, there's always something waiting to eat up the newly earned treasure. So, when a business organization invites you to join - meaning expenditures of both time and money - it's easy to come up with reasons why it's not worth it, especially if you already belong to such a group. I'm already a member of a buying group, you think; why would I need to belong to a trade association, too? Or, conversely, I'm already involved in my industry's trade association, and getting pretty good deals on my own; is it really worth the extra expense to be part of a buying group? The RTO industry has both a national trade association (APRO), as well as two well -established buying groups (TRIB Group and Nationwide RentDirect). Let's do a deep dive into the purposes of these organizations, the benefits they offer, and the differences between them. It's important to begin with the understanding that while trade associations and buying groups might share the same potential membership base, they're not in competition for those members. By definition, they do completely different things and offer different, complementary benefits. "We're all seeking the same overarching goal, which is to help foster success of the rent-to-own industry," states APRO Executive Director Jill McClure. "We also provide opportunities and events in which we connect the RTO vendor and rental dealer community. But while buying groups work to accomplish that by getting individual owner-operators better deals, trade associations work to achieve it by advancing the industry as a whole." "[Buying groups] act as a conduit between rental dealers and vendors to offer members great discounts and improve their profitability," Rent-A-Center franchisee and APRO President Louis Garcia agrees. "APRO's concentration is broader — legislation, education, scholarships, disaster relief — it's more about who we are, how we do business, and how we relate with the 'outside' world." BUYING GROUPS TRIB AND RENTDIRECT NATIONWIDE The role buying groups play within the rent-to-own industry has evolved over time. Initially, these organizations' main offering was pooled buying power — the opportunity for smaller companies and independent dealers to combine their purchase volume with vendors in order to pay lower net prices for products. Then, suppliers began sweetening the deal with unique members-only products and volume rebate programs — quarterly, annual, or performance-based — as incentives for owner-operators to push their product lines. Today, both TRIB Group and Nationwide RentDirect provide their members with such financial advantages, as well as some bonus benefits that go beyond the bottom line. Both TRIB Group and Nationwide RentDirect offer their members these key fiscal benefits: • Better net pricing through a combination of lower invoice pricing and quarterly, annual, and performance-related rebates; • Unique product offerings available to members only; • Better payment terms, like higher prompt payment discounts or extended standard terms; • Centralized negotiating for major product categories can not only improve results, but also free up time for rental dealers to focus on growing their business; and TRIB Group, established in 1983, is the oldest and largest member owned and operated nonprofit buying cooperative especially for the rent-to-own industry. TRIB Group is a strategic alliance partner with Associated Volume Buyers (AVB)'s BrandSource division; AVB has been one of the biggest buying groups for North American businesses for almost 50 years. In addition to the financial benefits TRIB Group has always offered, the organization provides weekly and monthly member communications via email, and over the years, has developed more opportunities for members to meet and share information – including the group's annual Meeting of the Minds event, and the TRIB Trip retreat. Nationwide RentDirect, as a division of Nationwide Marketing Group, is among North America's largest buying and marketing organizations for rental dealers. And yes, you guessed it, marketing is how RentDirect differentiates itself. HEADS AND TAILS When it comes to investing in your industry and your business, trade associations and buying groups are two very different sides of the same valuable coin Kristen Card Rent-to-Own Trends

• Cover