The True Value of a Dollar
Humans are complex organisms, yet we can usually be described in one word when discussing the world of business: motivated.
There are many factors that drive a person’s motivation to stand out among the crowd. Wealth, recognition, knowledge, and honor are just a few of the words we could choose from when we think of why individuals are motivated to excel in business.
When a company has a combination that includes each of these factors, it is the making of a masterpiece. But should you remove even one of the factors, it causes the entire company to fall short.
Unfortunately, all of us in the shed rent-to-own industry are seeing the effects of this shortfall at an alarming rate. When we as RTO companies must look for creative ways to earn your business as a manufacturer, there may be something crucial missing in our formula for success.
This shortcoming will almost always come in the form of poor service for both the manufacturer we service and its customers. It is so important for us as RTO providers to understand the impact we have on the builders we represent.
As an association, the NBSRA has been approached about different methods of securing RTO contracts, such as paying a premium price per contract on top of the value of the unit. Another suggestion is collecting no down payment at time of transaction, or even delaying it additional months after the unit is delivered.
As business owners, we all need to stop and reflect if this is really the best practice for the industry. Where should the line be drawn? At what point do we say enough is enough? What image are we portraying as an industry that devalues our services to this extreme?
In the words of NBSRA Chairman Philip Rudolph, “The best thing that any RTO company can provide is superior support and services in a prompt fashion. If these are missing, a premium will not make up for the lack. Neither will delaying the payment until a month after the contract begins. The fundamentals of teamwork, of reporting, of feedback, and of easy communications are priceless. We do an injustice to our manufacturers and their customers when we devalue the broad experience RTO companies can provide. I fear that this self-devaluation is a part of a race to the bottom.”
Added value from your RTO provided to your business is never a bad thing. We encourage providers to always find ways that set themselves apart in an ever increasingly competitive market. True added value to your company won’t come in the form of a dollar. It comes from standing behind the promises we make to service the customer and manufacturer in a way that upholds integrity, ethics, and love for people.
Exceptional customer service to both the manufacturer and their end users is the most crucial factor in a formula for a successful RTO program. A larger check from an RTO provider will not bring more customers to your dealerships. Partnering with an RTO company that understands the importance of great customer service will. Word of mouth and referrals will always produce more sales and leads for your company than any paid advertising can.
It only makes sense to ask ourselves, why would we as an RTO company be willing to pay more than the value of a product to obtain your business? What shortcoming are we making up for when we resort to buying your loyalty?