Survey for Photographers

[RMThompson]

From a consumer point of view, you are absolutely right in saying that would be an appealing state of affairs. From a business point of view though.... I think there's a reason no company does anything like that. It think it would be difficult to predict sales, and if the "buy it now" price falls below the wholesale price paid for the lens, then the company isn't making any money on the rental (unless the rental prices are sky high, which could lead to other issues down the road).
There is probably a way to make it work, but my brain is too slow to figure it out right now.


I suppose the psychological benefit of carrying no balance on credit cards could be a motivating factor. I'm too pragmatic for that, I guess.
In the end, I would still owe the money to someone, whether that's a credit card company or some other company. The end result is still debt! However, I'm old enough to realize that the way I look at things is not always (in fact, rarely ever) the same way as others do. Thus, the survey!

Thanks for the good discussion, I really enjoy hearing your ideas and thoughts.

Here is how I would do it... just bear with my ramblings.

You open a rental shop online, and one of the items is a 50mm 1.4 lens for Nikon.

The MSRP is say 399.00 ( i dont think this is accurate. )

Let's say you set the rental price at $25.00 per week. (again this assumption for the sake of argument)

I rent this lens, because I've never owned one, and I have an upcoming shoot that I could really use it for. The shoot ends up going a few days long, and you charge me for a second week... I really like the lens, and while keeping open communication with you, I decide to keep it a third week... and a fourth.

Now I've owned the lens for a MONTH, and paid you $100.00. It would be nice to be able to KEEP the lens, since I've fallen in love with it, and either:

a. Pay the difference between the rental cost (minus a small fee) as long as I pay it off with 90 days of the rental agreement. (90 days same as cash).

b. Keep paying the 25 dollars a week, and eventually own it once I pay the MSRP + a set percentage. I can turn it back in anytime and understand I am not refunded any of the rental fee! I understand your argument about the credit card, but some people have prepaid credit cards they use, some people dont want balance, and some people like the idea of paying off their equipment with a set amount per month without worrying about interests or it screwing with their credit!

I don't think it's a special thing to offer, just the ability to rent something, and when you keep it long enough, you OWN it... rather than eventually paying over the MSRP and still owing it back.

I can see how it would effect your stock, but I can also see it leading to more sales.

Or maybe it's just me!

 

[Iron Flatline]

That means the Company is now in the Credit business, with very different margins (low), different regulations (high) and a different competitive landscape.

I wouldn't want to be in that business. But it's a question of analysis.

 

[RMThompson]

yeah, forget my ramblings. Wishful thinking I suppose!

 

[mrcoons]

Done.

 

[RentalInfo]

RMT-
I don't think you're rambling at all. I rather appreciate the time you've spent laying out your ideas. I'm glad that we can have a discussion about it. Too many times, these "discussions" turn into arguments, and I'm very happy to see that isn't the case here.
One of the biggest questions that we still don't have an answer to is how much profit could be made on the item. In your example, there would be a huge difference if my cost for the lens was $375 compared to say..... $275.
My other question (and about this I truly have no idea) is how often the scenario you portrayed would play out. If it's a common circumstance, then clearly there is money to be made. On the other hand, it could become more of a hassle than a money maker if it only happens a couple times each year.
Too bad I didn't think of it early enough to ask that in the survey, huh?

Iron-
Thanks so much for your thoughts. I think you're right about the strong competitive push, which makes me wonder.....Why aren't the big stores doing this now? Calumet, Adorama, B&H.....they all have walk-up rental departments, so why not go that next step and take it online? I hope it's just that they want to stick to their brick-and-mortar foundations. With their buying power and HUGE reputations, I have a feeling I'd be sunk for sure if they did go online. I guess we'll see, huh?
The 4 other companies who are currently doing this seem to be sticking around. I've been tracking them for over a year now, and a couple of them are actually adding new items and seem to be growing. I think there's room for another, especially at the high end. Again, we'll have to see.

Thanks again for all of your replies and survey responses. I'm going to enjoy the holiday weekend, then I'll be analyzing the results. Stay tuned!

BTW, the final tally when I closed the survey was 291 responses!! There was a HUGE push at the end when I announced I was closing it. THANK YOU!

Best regards,
Jared