"We're not in retail. We're in rental." That's the objection Kevin Lentz of Kragie/Newell - A.R.A.'s national advertising agency - hears every time he tells rental centers to use a "retail" approach to grow their businesses. "Thinking retail" means meeting the expectations of many customers, Lentz observes. He bases his point on 20 years of experience training independent business owners in retailing skills - and on the success stories that follow.

"If you take cash, check or credit cards in exchange for goods or services, you are, by definition, a retailer," says Lentz. "And as a business that consumers think of as a retailer, you can benefit from common practices other retailers have been using for years."

The first step, he says, is to know your customers. Your retail customers - mostly homeowners - have needs that are different from those of your professional customers, such as contractors and caterers. If you're renting to both, you have to serve both.

Compared to your professional customers, retail customers have limited knowledge about your products and services. They ask more questions and often call to ask about prices. They usually have smaller tickets compared to professional customers, but they can be more impulsive. Studies show that 60 percent of purchase decisions are made when the customer is in the store.

In addition, today's retail customers expect convenience, service, selection and a clean, well-kept store. They are often in a hurry.

These aren't just characteristics - they're opportunities for you to increase your revenue. So use what you know about your retail customers to start serving them better. Here are Lentz's recommendations:

The rental store

"Think about the way you start your day," Lentz says. "You come through the back door, start up the coffee pot and get behind the counter. You're not seeing your store from your customer's perspective."

Take a fresh look at your store, he says. Inside and out, your store will speak to your customers before you do - what statement are you making? Consider these factors:

• Surrounding community. Customers are usually drawn from no more than a five-mile radius. How can you attract this customer base?
• Visibility. Customers should easily spot your store and its signage from the street. An illuminated "open" sign also is helpful.
• Traffic flow. Are you on a well-traveled road? Are you on the "evening" side (the side of the road favoring the after-work traffic)?
• Accessibility/parking. Customers should be able to turn into your lot from either direction and the entrance and exit should be clearly marked. Your parking lot is the first thing customers will see; make sure it is clean and well-lit and has adequate space.
• Lighting. Use very bright lighting for a more customer-friendly showroom.
• Ceilings, walls and floors. Ceilings should be 10 to 12 feet high and display fixtures should be 7 feet tall. Walls should be painted a neutral color and kept clean, along with the floor.
• Product location. Group related products together systematically. Arrange displays in 4- to 8-foot sections that are easily taken in at a glance. Place your best-renting items at eye level.
• Signage. This includes price-item signs, point-of-rental pieces, window signs and directory signs (to make product categories easier to find). Signs work as your silent salespeople, providing immediate answers about a product's features, benefits and pricing information. Use as much signage as possible without obstructing the view of products or cluttering the sales area.

Hours

Eighty percent of all the business transactions that take place in this country occur after 5 p.m. and on weekends.

Counterpersons

Customers want service and satisfaction. Your main delivery system is your salespeople. Make sure they're trained in these three basic skills: meeting customers' needs, explaining products and services and convincing customers that your products and services meet their needs.

Personal and telephone selling skills are essential, too. When a retail customer calls, don't just answer the question; be friendly, helpful and assertive, asking if you can go ahead and reserve the item. "It's important to make suggestions to your customers, just like a waiter offers you dessert at the end of a meal," says Lentz. "Whether it's a damage waiver or sandpaper to go along with a sander, your retail customers will likely spend more when you go for that related sale."

Promotion

What about new customers?

Promotion gives customers a reason to visit your rental center - information and education - and also calls them to act. One of the best ways to bring in customers is to run a discount-driven promotion.

"Many rental centers hold firmly to the policy, 'We don't discount,' but considering that studies show that six out of 10 consumers have never rented, there is a real need to motivate consumers with enticing offers," Lentz says.

But he cautions against advertising a percentage-off discount in place of a dollar-off one. "It just doesn't work for an industry in which prices aren't common knowledge."

Think of a discount as an investment in building a relationship with a customer, he says. "If an average customer comes in once a year and his average contract is $40, isn't it worth a $10 discount to get him back into your store for a second visit - and $70 in earnings?"

Whether you choose a discount-driven or image-building promotion, plan it, Lentz says. Ask yourself what you want to accomplish, how you want to do it and how much time and money you have to spend. Use these five steps to develop your promotion: conduct research, set objectives, make a schedule, merchandise your store and coordinate your staff.

Many retailers have grown their businesses using these principles. They know the secret to retailing is to stop, look and listen as a customer, not as a business owner. Turn your observations into a plan that serves what your customers want and need.

Acknowledge that you have two very different kinds of customers (retail and professional) - and begin to treat them differently, too. As you incorporate retail practices into the way you do business, you'll be building your competitive edge.

Retailing tools designed especially for rental centers are available to A.R.A. members through the A.R.A. advertising programs.

For more information about these programs - or about using retailing techniques to grow your business - contact Lentz at Kragie/Newell in Des Moines, Iowa, at (888) TRY-RENT (879-7368).