November 16, 2009
Mr Rental franchisees experience growing demand and growing returns
The crowd gathered round the televisions to watch the election coverage after the New Zealand Franchise Awards couldn’t help noticing that one advert screening was particularly appropriate. They had just watched Mr Rental take both the Franchise System of the Year and Franchisee of the Year titles in the hard-fought Retail category, and now the company was demonstrating the sort of savvy marketing that won them the awards. It’s an approach that has seen the home appliance rental franchise triple market awareness among its target market in the past year.
‘We’ve seen a surge in customer volume that has required us to release new territories all across the country,’ says Andrew Roberts, the company’s business development manager. ‘We already have 18 franchisees in New Zealand and now there are some great new opportunities for people looking to operate a successful small business.’ Mr Rental came to New Zealand from Australia in 2001. Franchisees can supply most appliances that any household could require, including brownware, whiteware, gym equipment and more. ‘We have a very broad range which continues to evolve,’ Andrew explains. ‘Technology is constantly changing and people increasingly appreciate the many benefits of renting as opposed to buying. We will undertake delivery within 24 hours and our leases are flexible and can be changed as necessary. For example, we will upgrade if a customer needs a bigger freezer and, if it breaks, we will replace it instantly. This represents a very good package for anyone in need of almost any appliance.’
As a franchise, Mr Rental is simple to run and offers excellent cash flow. ‘The great advantage of this business is the recurring income from the contracts,’ says Andrew. ‘For the appliances themselves, we have great supply deals in place with most major manufacturers, excellent relationships with the banks and an internal funding arm to cover any sudden surge in your sales.’
More Certainty, More Profits
Nina Stacey, who, with sister Holly, has won the Retail Franchisee of the Year award two years running, loves the business. The former Air New Zealand marketing manager for Los Angeles says, ‘The three things I value most about the franchise are the recurring revenue business model, the very reasonable hours of 8-5.30 Monday to Friday and the ability to run the business with a very small team. There’s certainty in our forward business planning thanks to the way we rent on contract and this, together with the fact that we are able to run a tight ship compared to other businesses with similar turnovers. Means there are more profits for franchisees. ‘The other aspects I really appreciate are the support and friendships we’ve developed throughout the Mr Rental network – not just from the fantastic head office but from other franchisees too.’
Mr Rental is currently seeking further franchisees for a number of exclusive
areas, with multiple ownership being an option for the right people. The initial investment is around $110,000, which includes a 50,000 franchise fee, training costs, start-up and fitout expenses. Franchisees will also require $100-150,000 for working capital. ‘We’ve spent considerable time reviewing demographic mapping, customer profiling and market research figures to present a strong
business opportunity to prospective franchisees in all areas,’ Andrew says.
‘There are no barriers to anyone growing a Mr Rental business if they have the right energy and focus – the franchise really is incredibly simple to operate. All franchisees receive an initial 10-day intensive training programme, full software and manuals and ongoing support from business coaches who interact with franchisees on a weekly basis. In addition to our success in the New Zealand Franchise Awards, we also won the Emerging Franchise System of the Year title in Australia this year. With a strong brand backed by such a great business model, Mr Rental is one of the best opportunities around.’
For further information, contact:Mr Rental NZ
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