Local stores have unused product value

Local retail stores often have a large amount of inventory on display that is not generating income between sales. For example, a bicycle shop might have between 60,000 and 150,000 euros worth of goods on its shelves, but this inventory only earns money when a customer buys it.

Rental can be more profitable than sale

Renting products can be more profitable for certain items. For example, an electric bicycle priced at 2,400 euros could be rented for 25 euros per day, earning 1,500 euros over 60 days. After that, it could be sold as a used demonstration model. Similar calculations apply to other high-cost items like cameras or pressure cleaners.

Rental processes face operational challenges

Implementing rental services is complicated by outdated methods. Retailers often use notebooks, cash deposits, and photocopied identity cards, which make the process slow and error-prone. If an item is returned damaged, the manager must handle the issue from memory, and if it is not returned, the merchant faces a financial loss and possible legal issues.

Modern solutions can streamline rental processes

New technology can simplify the rental process. A customer could enter a store, scan a code, and use their phone to identify themselves and pay with a card. The deposit is blocked on their card and released automatically when the item is returned. Damage and theft coverage is included, and the entire process takes about two minutes, with no need for cash or paper copies.

Key considerations for successful rentals

Merchants must be careful to avoid common mistakes, such as trying to rent too many items or setting prices too low. Photographing the item at the start is essential for proving its condition upon return. Keeping deposits in cash can create tax issues and inconvenience for both customers and merchants.

Local stores can gain from rental models

Local stores have a unique advantage over large online retailers: they are physically close to customers and can offer immediate access to products. Renting can turn this advantage into a recurring revenue stream and help build customer relationships. With the right tools, local stores can transform their shelves into a source of ongoing income rather than just a display of products.