Rental businesses CAN be Fastlane.
M.J. acknowledges as much in TMF .
So let's think this through ... what are the possible arguments against ...?
Well ... let's start with the target market: Women.
Rich and well-off women would never consider such a thing. If they want a pair of shoes ... they buy them. Lots of them. Carry their bags out of the store. Throw them in the back of their Mercedes. The "cost savings" aspect means nothing to them. They have more shoes than they know what to do with and keep buying more. They are not your customer.
So who is ...? Well ... presumptively ... poor people. People who might want to impress ... but can't afford to buy. A crowd with not a whole lot of disposable income. Not exactly what I would call the best demographic to market your wares to. But okay ... is what it is. Let's move on.
You would need inventory ... a lot of it. All different sizes. Models. And sufficient quantity to meet demand. This will set you back ... well ... a shitload of cash. People are not going to "rent" kicks from TJ Maxx. You'll be buying Minolos and the like. Whip out your wallet.
Next ... you would need to store them (rental expense) ... track them ... ship them ... inspect them ... restock them ... etc. Which means you will be doing this all yourself (not good) or paying someone to do it for you ... which means you will need to make a consistent bank to meet payroll. Then add in expenses for payroll processing, workers comp, accounting and taxes.
And let's not forget marketing. Huge money. After all ... your business is no good if no one knows about it. Add that to the budget too.
Premuptively this would be a mail order business because a store front is not scaleable or practical. No one will come to you. They will want them delivered.
I suppose you will also need to factor in employee theft (which is possible ... 50% of theft is internal ... and you've got some goods) ... and a high chargeback rates. Even if the clients damage the shoe ... odds are ... they will do a chargeback if you try to charge them for the full price. Which means you either eat the loss ... or risk losing your charging privileges with the bank.
Next ... you need to consider possible competition. If Zappos ever got into the business ... you are finished. Done. Game over.
So okay ... logistics issues aside ... how about the commandment of need ...?
Well ... as mentioned before ... well to do women would never give the idea a second look. Unthinkable. But what about the poor women ...? Would they ...? Assuming they could ...?
Probably not. People tend not to rent things they already own. Think about the things you rent. Or most people rent. A car in a far away city. A tuxedo for a wedding. A carpet cleaner. A big screen TV. Sofa. Think rent a center. People are renting things they don't have. Not something they own and want more of.
Most poor women will probably make do with the shoes they got ... or buy some replicated knock offs.
Think about all the fake Coach bags sold for $10 or whatever in NYC. That is what they will likely do instead. I don't see them dropping cash on this sort of thing. And if they ever did ... it would be rare ... like for a wedding or something. Maybe.
Then factor in the "yuck" factor (mentioned above).
So ... as I see it ... you are staring down a huge up front cost ... with a shitload of hurdles.
I could be wrong ... but I don't see this idea going anywhere.
M.J. acknowledges as much in TMF .
So let's think this through ... what are the possible arguments against ...?
Well ... let's start with the target market: Women.
Rich and well-off women would never consider such a thing. If they want a pair of shoes ... they buy them. Lots of them. Carry their bags out of the store. Throw them in the back of their Mercedes. The "cost savings" aspect means nothing to them. They have more shoes than they know what to do with and keep buying more. They are not your customer.
So who is ...? Well ... presumptively ... poor people. People who might want to impress ... but can't afford to buy. A crowd with not a whole lot of disposable income. Not exactly what I would call the best demographic to market your wares to. But okay ... is what it is. Let's move on.
You would need inventory ... a lot of it. All different sizes. Models. And sufficient quantity to meet demand. This will set you back ... well ... a shitload of cash. People are not going to "rent" kicks from TJ Maxx. You'll be buying Minolos and the like. Whip out your wallet.
Next ... you would need to store them (rental expense) ... track them ... ship them ... inspect them ... restock them ... etc. Which means you will be doing this all yourself (not good) or paying someone to do it for you ... which means you will need to make a consistent bank to meet payroll. Then add in expenses for payroll processing, workers comp, accounting and taxes.
And let's not forget marketing. Huge money. After all ... your business is no good if no one knows about it. Add that to the budget too.
Premuptively this would be a mail order business because a store front is not scaleable or practical. No one will come to you. They will want them delivered.
I suppose you will also need to factor in employee theft (which is possible ... 50% of theft is internal ... and you've got some goods) ... and a high chargeback rates. Even if the clients damage the shoe ... odds are ... they will do a chargeback if you try to charge them for the full price. Which means you either eat the loss ... or risk losing your charging privileges with the bank.
Next ... you need to consider possible competition. If Zappos ever got into the business ... you are finished. Done. Game over.
So okay ... logistics issues aside ... how about the commandment of need ...?
Well ... as mentioned before ... well to do women would never give the idea a second look. Unthinkable. But what about the poor women ...? Would they ...? Assuming they could ...?
Probably not. People tend not to rent things they already own. Think about the things you rent. Or most people rent. A car in a far away city. A tuxedo for a wedding. A carpet cleaner. A big screen TV. Sofa. Think rent a center. People are renting things they don't have. Not something they own and want more of.
Most poor women will probably make do with the shoes they got ... or buy some replicated knock offs.
Think about all the fake Coach bags sold for $10 or whatever in NYC. That is what they will likely do instead. I don't see them dropping cash on this sort of thing. And if they ever did ... it would be rare ... like for a wedding or something. Maybe.
Then factor in the "yuck" factor (mentioned above).
So ... as I see it ... you are staring down a huge up front cost ... with a shitload of hurdles.
I could be wrong ... but I don't see this idea going anywhere.