Years ago many traditional sport retail businesses realised that it is no longer enough to offer products for purchase at a physical store and created an online shop. With the changing market and demand for quality hire gear it is now just as essential for retailers to diversify their offering by introducing hire gear. Millennials are fuelling the experience and rental economy with 3 out of 4 saying they would choose to spend money on renting rather than buying. Many athletes also prefer to try gear such as road bikes before making the investment of purchasing. Therefore, a 'try before you buy' concept works well.
Hiring is a great way to make use of your out of season stock. Rather than selling the stock at big discounts why not hire it to new or existing customers many times over. This will give you good margins on your gear whilst also enabling you to improve and expand your offering to your customers.
Creating a rental business enables you to tap into customers that previously may have not been part of your demographic. Customers, who for many reasons such as cost, space to store or how many times they may use the equipment, may not have been interested or able to buy but now may be part of your target market. It is a great opportunity to get customers in at the beginning and nurture them through the customer lifecycle. Maybe they just want to try a triathlon however they don't want to invest in that expensive bike for their first one, hiring will enable you to build a relationship with this customer and if they enjoy the experience we all know where they will come to buy.
Creating a rental business will expand the customer base, product offering and if done right the sports retailers reputation. This is all great for growing the companies brand, it's another opportunity to get great testimonials from satisfied customers.
There is a big movement towards sharing in todays world. Today's generation are not so fixated with owning gear, they are more interested in memorable experiences. We all know how the sharing economy has taken off and that is a trend we are seeing across multiple industries. Creating a sports rental business will enable you to become more relevant in this market and lets be honest what better way to have a great experience than with some great sports gear.
Endurance events are growing exponentially, new triathlon races, ultramarathons and expeditions to name but a few are popping up everywhere. However, a barrier for a lot of people entering is the accessibility of quality gear especially when they are reluctant to invest thousands of dollars or travelling a long way for their event. A rental business creates a great opportunity to partner with these event/travel organisers such as Triathlon org and Live Adventure to supply gear for the competitors and adventurers. Yet another opportunity to grow your sports retail business and brand.
Retailers, stay ahead of the game by introducing hire to your business where feasible. The benefits are huge and you will stay ahead of the market trend and able to face the price competition by online only retailers by adding extra value to your store offering. Don't forget that you can include add ons with your hiring option such as bike fittings and accessories.