How does rent-to-own work?

A Guide for Cell Phone Store and Repair Shop Owners

In the highly competitive mobile retail industry, keeping your customers engaged and closing sales often comes down to flexibility—in pricing and payment options. But what if there was a way to offer your customers an accessible path to ownership while keeping your sales numbers robust? This is where in-house rent-to-own payment plans and the cutting-edge RTO Mobile software platform come in. In this guide, we'll break down what “rent-to-own” is, how it can be a significant sales driver for your business, and how the RTO Mobile software platform makes implementing in-house payment plans a breeze.

What is Rent-to-Own?

The rent-to-own model of pricing is a leasing arrangement that gives your customers the option to rent a product with the flexibility to purchase it later. But, all of the rental payments count towards the purchase. It's a win-win: customers get immediate access to the products they want, and you secure a committed revenue stream. It has been successful in other product lines such as appliances, tires, and TVs. RTO Mobile, the software company, has been the first to bring rent-to-own capabilities to cell phone stores and repair shops.  

The Mechanics of Rent-to-Own

Here's a simple breakdown of how a typical RTO agreement works:

• Initial Payment: The customer pays an initial amount to take the product home.
• Duration or Lease Term: The customer agrees to a lease term, anywhere from 1 month to 12 months, during which they'll make regular payments.
• Payment Frequency:  The customer agrees to pay in one of these intervals:  weekly, bi-weekly, or monthly
• Buyout Option: At any point, the customer can opt to buy the product, typically at a reduced cost. All of the rental payments already made are credited and count towards the purchase.
• Zero-Interest: Of course, there is a premium paid by the customer for the convenience and other benefits of rental, but it is not interest. Just like if you rented or leased a car, you wouldn’t pay interest renting it. And, if there was a buyout provision in the lease, all of the payments you made up to the time of the buyout could be applied.  

How Rent-to-Own Drives Sales

• Customer Flexibility: Rent-to-own allows customers to access products that may have been out of reach due to financial constraints, widening your customer base.
• Revenue Stream: Instead of a one-time sale, Rent-to-own creates a continuous revenue stream, stabilizing your income.  Think about the rental income that owners of apartment rental companies enjoy. 
• Increased Loyalty: Offering a rent-to-own payment plan option can differentiate you from competitors, fostering brand loyalty and repeat business.

The RTO Mobile Software Platform Advantage

The RTo Mobile software platform is designed to simplify and optimize the RTO process for mobile retailers, and allow substantial more profit to be made:

• In-House Payment Plans: Create and manage payment plans directly, skipping the complications, delays, and customer declines that happen with 3rd-party financing companies.
• Automated Billing: The RTO Mobile software platform handles all billing cycles, payment reminders, and default protocols, freeing you to focus on what matters most—your customers and products.
• Seamless Implementation: Whether you're a one-store operation or a growing chain, the RTO Mobile software scales with you, making it a sustainable choice for any cell phone store or repair shop retailer.

Conclusion

Rent-to-own is not just an alternative payment method—it's a powerful sales strategy that offers both retailers and customers unmatched flexibility. With the RTO Mobile software platform, managing in-house payment plans is straightforward, efficient, and profitable. Isn't it time you gave your customers the flexibility they deserve, and your bottom line a lift that you deserve?

If this guide has piqued your interest, the next logical step is seeing the RTO Mobile software platform in action. Take control of your sales strategy and offer your customers the payment flexibility they crave. Book a demo with RTO Mobile today and revolutionize the way you do business.