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The use of Internet technology in the rental marketplace offers several advantages over traditional customer and vendor interface methods, including increased efficiency, productivity and competitiveness. Although the Internet has proven benefits, navigating through the maze of Web-based information has led to confusion and frustration among rental operators. To fully appreciate the Internet’s advantages to the rental business, an explanation of basic terms and concepts is necessary.
Internet technology and computerization provides opportunities for rental operators in the following ways:
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Computerized point-of-sale inventory systems. Most rental operators understand the business advantages of using computerized point-of-sale inventory systems. These systems allow rental operators to manage their business more efficiently by tracking inventory, generating sales reports and providing other pertinent information.
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Web sites. Internet Web sites allow rental operators to provide in-depth information about their products and services to potential customers. Generally these Web sites provide store locations, types of equipment available, hours of operation and information that distinguishes a particular rental store from its competition. Progressive rental stores include their entire inventory of equipment, and often provide additional information such as product specifications and safety data.
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E-commerce. The increasing popularity of the Internet among consumers (both personal and commercial) has lead to a proliferation of software systems that allow rental operators to incorporate online ordering into their Web sites through e-mail.
Although online ordering through a rental store’s Web site sounds like a great concept, there are some drawbacks. Unless potential customers have immediate access to a rental store’s Web site address, or are looking for a specific store, they have no way of knowing how to access the store’s Web site. To remedy this, rental stores are forced to use traditional advertising to direct potential customers to their site.
Another downside is that most Web-site orders are submitted by e-mail. Although customers can easily submit their request to the rental store, they do not know if the items they want to rent are in inventory and available when they need them without following up with a telephone call.
• Rental Dotcoms. Rental dotcoms recognized that store Web sites were ineffective and that a more efficient system was required for operators to handle business transactions. To develop and implement this system, a number of Internet companies were formed to provide national platforms for rental store owners.
The Internet companies built Web sites that were open to all rental stores and advertised nationally and regionally to help generate traffic. Their rationale was that rental store owners would partner with a national dotcom company that could provide leads generated from national advertising to key markets such as contractors, builders and general consumers.
The dotcoms then provide leads, contacts, or e-mail based orders to rental stores from prospective customers. Unless they sell new or used equipment, most rental dotcoms generate revenues from a lead-referral charge or a subscription-based structure.
Although rental dotcoms are a good idea, they also have some drawbacks.
Rental stores are required to pay for exposure and leads with no guarantee of a rental transaction or new business.
Dotcom companies providing e-mail-based orders also can’t guarantee that an item a customer orders is in stock. Rental operators are
required to maintain traditional marketing overhead while adding
an additional expense for Internet exposure.
The most significant disadvantage of rental dotcoms, however, is that none of these Internet/software components generate traffic from new customers who don’t have access to the Internet.
The ideal operating situation would be for rental store operators to have a national sales platform that would direct new customers to their Web site. This sales platform would also allow rental operators to have the same real-time rental inventory system on their Web site that is used in their store operations. In effect, the rental company’s inventory would be on the Web in real-time, enabling customers to order 24 hours a day, seven days a week through a “virtual” salesperson.
This sales platform should be affordable, with no up-front fees, and would charge rental operators only for actual sales generated. And, ideally, the sales platform would allow customers who aren’t on the Internet to access the system.
RentOnTheDot.com in Atlanta recently introduced a national real-time rental reservation system to do just that — along with a call center for customers who don’t have Web access. Customers can shop using the Internet in real time, either by phone or modem.
RentOnTheDot.com has set up exclusive partnership relationships with several rental software companies. These alliances have enabled RentOnTheDot.com to create a national reservation system. Additional system partnerships and system integration are expected in the near future.
Jack Jordan can be reached at (678) 775-RENT or <RentOnTheDot.com>.
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