|
Renting Rides
How to make your rental
program a no-brainer. By Mark North
Snowboard
equipment rental programs are time-consuming and labor-intensive--especially
when you're first setting up a program. However, most snowboard retailers
with rental programs agree that the payoffs more than justify the extra
effort.
"Rentals are pretty profitable, and not just as the entry ticket
to first-timer equipment sales," says Jud Lawrence, manager of The
Shred Shop in Skokie, Illinois. Other retailers agree, and note that rentals
generate substantial revenue, customer traffic, and store exposure.
Rental's biggest payoff, however, comes when powder-happy renters decide
it's finally time for a board of their own. "For us, rentals provide
a long-term benefit," says Jacques Manonian, owner of Whitefish,
Montana's Snowfrog. "The rental customer comes back to buy gear,
and keeps coming back."
Of course, you don't need to wait for customers who buy to reap the
rewards of renting.
Witness the growth of Max Snowboard Rentals, a Colorado-based rental-only
operation. Now entering its third season, Max Snowboard Rentals started
with a single store in Lakewood, Colorado, added five new locations for
its second season, and has added another five for '96/97.
"We see continued growth in snowboarding, and we plan to aggressively
expand every year," says Max Vice-President Tom Sapiro. "We're
already in Colorado, Utah, and California. We're also looking into British
Columbia and large metropolitan areas in the West, as well as other mountain
resorts." [See sidebar below for more on Max Snowboard Rentals.]
Choosing the right stuff.
Stocking
the right rental equipment is paramount to success. Remember, certain equipment
-- and certain manufacturers -- are better suited to handle rental programs
than others.
According to an informal survey conducted by SNOWboarding Business,
most retailers call Burton their main rental line, and note that customers
particularly favored Burton's bindings. Morrow, K2, and Nitro were other
popular rental board lines, with Burton, Airwalk, and Boon's prevalent
in the boot category. Clicker, Switch, and Device step-in boot-and-binding
systems were also reported to occupy substantial space in rental programs
this season, thanks to the ease of step-in bindings.
No matter which rental brands you carry, the equipment should be current.
"Customers don't want to rent three-year-old boards and three-year-old
boots -- especially the first-timers," says Sapiro. "With the
technology changing so quickly, it's really important to stay ahead of
the game, since every new innovation just makes riding that much more enjoyable."
According to Burton Marketing Coordinator Yana Farrally-Plourde: "If
you rent high-end new equipment, and advertise it, people will actively
seek out your shop. And when somebody sees top-of-the-line Burton rental
equipment on the lift, they'll ask where it came from."
Plus, from a sales standpoint, stocking state-of-the-art equipment turns
every rental into a demo. [See sidebar below on rentals versus demos.]
Employees make the difference.
"The rental and demo experience could be the most important experience
in a new boarder's career," says Farrally-Plourde. "From the
friendliness of the staff, to the flow of paperwork, and the efficiency
of sizing and setup, I don't think there's a more important day in our
industry than day one for a first-timer.
"It all comes down to a well-trained staff," she continues.
"You can have the best equipment in the world, but if it's not set
up right, you've just blown all of your investment."
It won't do to sneer and ask, "Do you know your angles?" of
a customer who might not even know the difference between goofy and regular
stance. Rental employees must possess detailed knowledge of the entire
rental line, technical expertise and dexterity with tools, and a friendly
demeanor that puts customers at ease. Patience is a virtue -- and a loyalty-builder
with the future buyers patronizing your rental program.
Take a hint from Henry Ford.
The rental area of your shop should run as efficiently as an assembly
line. Boards, boots, bindings, tools, and work flow must be tightly organized.
The right arrangement will minimize labor and speed equipment out the door
to make room on the bench for the next renters.Before you start renting
to the public, run through a few role-playing rental scenarios -- boot
fitting, board selection, stance recommendations, setup -- with employees
taking turns acting as customers. It'll work any bugs out of the system,
and give employees a chance to see things through a renter's eyes.
Sapiro recommends adjusting binding straps for different boot sizes
and then storing each size in a separate bucket. This way you can quickly
grab a pre-fitted binding without having to dig for a match or move any
straps. Power screwdrivers are also a must, he says. Other tricks of the
trade include easy-to-reach bins for extra hardware, binding straps, and
boot laces, and well-stocked tool racks with extras of everything.
The numbers game.
"Starting out, we had absolutely no idea how many boards to carry,"
admits Sapiro. "We were probably a little short the first year."
Each Max location now stocks 150 pairs of boots and from 120 to 170 boards.
"Make sure you have enough to cover the weekends," he advises.
Retailers determine how many rentals to stock mainly based on volume.
"It's a question of demand, and how many calls you get," says
Lawrence at The Shred Shop. In its sixth season of renting, Lawrence says
the shop currently carries 25 rental boards.
Location is also a factor. Pelican Ski Shop in Morris Plains, New Jersey
stocks 125 rental boards. Though it's closer to the slopes, the Snowfrog
in Whitefish, Montana has a much smaller population to draw from and stocks
40 boards.
Pelican favors season-long rentals with an option to buy. For 199 dollars,
the customer can pick up an entry-level board in October and bring it back
the following October. Pelican will deduct the rental cost from the retail
price at any time during the season.
At The Shred Shop, Lawrence says daily rentals are more profitable,
but due to customer requests he'll also offer season-long rentals this
year.
Whether renting daily or seasonally, you should balance your rental
fees against those charged by your competitors and the local resort, says
Farrally-Plourde. With daily rentals, she says retailers should be able
to pay for a board after ten or twelve rental days, and sell it off for
wholesale at the end of the season.
The fine print -- damage and liability waivers.
With any rental customer, whether a beginner or expert rider, the possibility
of broken bones and broken boards definitely exists. When it comes to broken
equipment, most retailers take a "you break it, you bought it,"
attitude and back it up with clear legal language on the rental agreement.
For liability concerns, Burton's Farrally-Plourde says: "We actively
encourage anyone to poach the Burton liability release form, which we use
for our on-snow demos. We can also help with the legal language on other
waivers. We encourage our dealers to fax, phone, or e-mail us, and we'll
check it out." Nitro is working on a standardized form for its rental
dealers, and can protect larger retailers under its insurance coverage.
K2 advises dealers to work with a local lawyer to draft their own wavier,
specifically tailored to each shop's program and locality.
No matter which option you choose, consult a lawyer and make sure your
waivers cover all the bases.
Back
to Business Main
|