Donna Hinshaw.

RTO: How far in advance do you plan upholstery buys?

DH: We buy U.S. and import products. Our domestic lines can ship in 2-4 weeks, but containers force us to project out 4-6 months.

RTO: Upholstery is a fashion product. With stores spread out from Indiana to Georgia, how do you match inventory with local tastes?

DH: During our annual convention, all of our suppliers bring in product. All 50 managers are surveyed on the entire lineup. We use the surveys to help determine both company-wide and regional changes. What’s popular in Tennessee isn’t necessarily popular in Indiana.

RTO: Do they make pretty good calls?

DH: For their own markets absolutely. I can visit stores regularly, but there is no way I can gain a feel for the local market like a store manager that works it every day.

RTO: Do managers request special non-standard items?

DH: We can’t special order everything, but we are a little more flexible than other RTO companies which I believe gives us a competitive advantage.

RTO: Most companies your size have gotten away from a central DC and gone to direct delivery to each location by the manufacturer. American still operates a central warehouse. What value do you see in DCs that others don’t?

DH: It is an expense we review frequently. Overall we feel it remains an asset, allowing us to get the right quantity of product to our stores and move that merchandise quickly and efficiently to other locations. Sometimes our vendors also give us breaks for delivering to a central location.

RTO: How often does your lineup change?

DH: Upholstery products in the spring and fall. Electronics and appliances are when the new models are unveiled - which is usually in the beginning of each year.

RTO: What’s more important, cost or quality and how do you balance the two?

DH: Both. Customers want the look, we search for products that deliver the look and feel without sacrificing long product life. Many great looking items aren’t made for a rental environment. We tend to buy more high-end merchandise than other companies in order to get the look without sacrificing quality.

RTO: Once an item is added to the program, how do you train store employees on features and benefits?

DH: We have a company-wide meeting every other month that includes all store Managers, select vendors and technical people from different companies. Those meetings give us the opportunity to discuss, train and sometimes debate product in an informal environment. Everyone leaves having learned something new. We also have 5 district managers constantly visiting stores and training.

RTO: What is the biggest change in buying that you have seen in the past seven years?

DH: Technology hands down. The first computer marketed for in-home use was $3,000. Seven years ago Plasma TV’s were $20,000. Now we can rent advanced technology at reasonable rate.

RTO: What other advantages do you see from the advancement of TV technology?

DH: Our furniture category has grow significantly because of the flat screen revolution. People renting a flat screen must also replace traditional entertainment centers. As people grow into new technology, all other categories benefit. Technology grows buds that bloom!

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