Home – New Forums Starting your journey renting out products! – how to do it effectively?

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  • #979255
    dangaff
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    • Total posts: 244
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    Hi all,

    This is bit of a question I wouldn’t expect to get a clear answer.
    I aren’t starting a business but within my online store, I know there are a few products that most people can’t or don’t buy because you usually only use them
    every now and then.
    One cost about $150 new and the other in excess of $200.

    What I was thinking was introducing a rental program on my store.
    What legalities would be involved?
    Should I choose a debt collecting agency for outstanding debts/stolen
    goods?
    I would get each buyer to sign a contract outlining the rules regarding borrowing ie – broken property, lost, late return delivery, etc.

    Anyone ever done something similar?
    Anyway I can make this work effectively?

    I have a decent outline in my head, it is 1am
    I guess but I’ll need to get it on paper tomorrow.

    The shooting/hunting scene is pretty trust worthy amongst most so I wouldnt expect many to steal.

    Any advice and info is appreciated
    Thanks,
    Daniel

    #1113078
    JacquiPryor
    Member
    • Total posts: 2,344
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    Hi Daniel,

    The right insurance in place should cover stolen or ruined goods.
    If you are looking to run this through your online store, then it could be set up that people pay at the time they book in to rent the product – so, you wouldn’t have to worry about chasing payments etc.

    I’m aware of similar ideas within the ‘fashion’ space – i.e. renting designer dresses that people would not necessarily be able to afford to purchase out right. Just a couple of examples of these and how they work:

    http://www.caniborrowthat.com.au/how-it-works.html
    http://www.dressedup.com.au/how-it-works/

    You wouldn’t necessarily have to have each customer sign a contract. If you have the right terms at your website, it could all work within your online store. If someone rented a product through a shopping cart you could have them tick a box to agree to your terms, which would cover what you needed to in terms of lost property or stolen property etc etc.

    Hope the above helps.

    #1113079
    John C.
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    • Total posts: 439
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    If you’re only looking to rent out the odd thing now and again, maybe look into using an established service such as http://www.rentoid.com/ and putting a link to your items on your website?

    Good luck.

    Cheers,
    John

    #1113080
    chixfashionz
    Member
    • Total posts: 27
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    dangaff, post: 126317 wrote:
    Hi all,

    This is bit of a question I wouldn’t expect to get a clear answer.
    I aren’t starting a business but within my online store, I know there are a few products that most people can’t or don’t buy because you usually only use them
    every now and then.
    One cost about $150 new and the other in excess of $200.

    What I was thinking was introducing a rental program on my store.
    What legalities would be involved?
    Should I choose a debt collecting agency for outstanding debts/stolen
    goods?
    I would get each buyer to sign a contract outlining the rules regarding borrowing ie – broken property, lost, late return delivery, etc.

    Anyone ever done something similar?
    Anyway I can make this work effectively?

    I have a decent outline in my head, it is 1am
    I guess but I’ll need to get it on paper tomorrow.

    The shooting/hunting scene is pretty trust worthy amongst most so I wouldnt expect many to steal.

    Any advice and info is appreciated
    Thanks,
    Daniel

    I have had a small equipment rental business previously. It is on the backburner with the economy and risk being what it is presently, but I will return to it later!

    You will still want a contract of some sort, be it through your website or a physical contract that is posted out for the customer to complete, sign and return to you.

    There are companies that can handle the contract terms, collection of the weekly/monthly rental payments and even persue unpaid amounts.

    There is always a level of risk involved, so have an account with a credit agency and do the credit checks yourself (and keep them on file). Small amount of cost per customer = greater transparency regarding risk to you!!!

    Best of luck.

    #1113081
    dangaff
    Member
    • Total posts: 244
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    chixfashionz, post: 126391 wrote:
    I have had a small equipment rental business previously. It is on the backburner with the economy and risk being what it is presently, but I will return to it later!

    You will still want a contract of some sort, be it through your website or a physical contract that is posted out for the customer to complete, sign and return to you.

    There are companies that can handle the contract terms, collection of the weekly/monthly rental payments and even persue unpaid amounts.

    There is always a level of risk involved, so have an account with a credit agency and do the credit checks yourself (and keep them on file). Small amount of cost per customer = greater transparency regarding risk to you!!!

    Best of luck.

    Hi there,

    Can you please let me know some of those companies that can do the collections and collections of unpaid amounts? – If you wish, you can PM them.

    This hasn’t (that I know of) been done to a decent scale or at all in the industry but I believe it should help, whilst also drawing customers to the store in order to purchase goods.

    I’d either include it in my terms/conditions, but most likely email a contract to them with everything that it needs in it and then get them to scan or post it back.

    Thanks alot,
    Daniel

    #1113082
    Divert To Mobile
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    • Total posts: 2,751
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    Hi Daniel,

    You could also do a pre auth on their credit card, like a holding deposit. So if they dont return the item they get charged the full amount for it.

    Steve

    #1113083
    dangaff
    Member
    • Total posts: 244
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    Divert To Mobile, post: 126644 wrote:
    Hi Daniel,

    You could also do a pre auth on their credit card, like a holding deposit. So if they dont return the item they get charged the full amount for it.

    Steve

    I don’t have credit card facilities though, any other way of pre authorizing?
    Also, I’ve been meaning to call you with those CC details, I haven’t forgot but your email didn’t work when I tried doing it that way

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