Home Staging Blog by Jennie Norris

Many of you had great things to share on the blog post entitled "Rental Companies - Friend or Foe?"

http://activerain.com/blogsview/271591/RENTAL-COMPANIES-FRIEND-OR

and I wanted to share what has happened since then with calls, emails and meetings with the rental companies I do business with - to help you also get an idea of what you can ask for when you might meet with companies in your area.  The three companies I worked with are Brook, Cort, and Welcome Home.

My goals were to make it advantageous for a person off the street to work with a Stager versus having them work directly with the Rental Company.  I went in as a representative of the network of Stagers I know and teach - and so it was not just "about me" - it was about making things fair for all Stagers.  I encourage any of you  that want to do this to set up a meeting with your rental companies - and do it for Staging in general - not just for what you can personally derive as a benefit for your own company.

I asked for discounts for Stagers:

Brook Furniture has been doing this with a 15-20% discount or a $200 referral fee paid to Stagers when they have a contract.  This may offer in different regions.

Cort was unwilling to give a discount straight across the board, but in the Phoenix market the DM agreed to give a 20% promotional discount for first-time users, and would evaluate the usage and determine what other discounts he was willing to give.

Cort in Sacramento was not willing to give a discount.

Welcome Home has promotional programs that are done by the quarter based on business and volume.

I asked for Delivery Fees to be lowered:

Cort complied in both Phoenix and Sacramento - lowering our delivery rate to the same rate they were already charging to the public.   Welcome Home Furniture in Roseville did not lower their delivery fees but were not charging the public higher fees than what we were paying.

NOTE:  I would like to see all companies operate with the same delivery fees - with a range of $150.00-$175.00 for delivery.  As a Stager, I do not feel I should have to pay for the waged labor to get pieces to a house - it is a loss leader that is offset by the volume of furniture rented.

TIP:  You need to ASK specifically what your rental company charges the public and what they charge YOU as the Stager.  Some companies jack the rate up on Stagers thinking that we take more time for the delivery.  Whether or not that is true, it is not fair to raise the rate on us who are potentially giving multiple jobs to the company versus the one time seller/public.  IF a Stager needs more time, they can ask for it and pay extra (like Brook does).

I asked for Referral Fees or Thank You's:  Show me the money - please make it CASH

Brook already has this in place with a $200.00 referral fee (or 15-20% discount) - but you can't get both discounts AND referral fees from them.

Cort in Sacramento has come up with a $75.00 thank you for Stagers at the end of the contract term.

Welcome Home gives coupons or specific dollar amounts towards future rentals.  I would prefer cash - not a coupon but this is better than nothing.

I asked for rates to be lowered if the contract term is extended:

Cort in Sacramento agreed to lower the rate of rental if a house does not sell within the specified rental period - they will look at scaling it back as a way to help the client.  Brook and Welcome Home were not presented with this request but I will follow up.

I asked that referrals be given to area Stagers:

All the companies share that they want to rent furniture and not "Stage" the houses.  I know this is lip service in some ways, because taking jobs direct continues to happen.

Referrals should be given to those that are working to rent and use their furniture. 

I cautioned the companies in giving ALL referrals to just one company - there are many worthy Stagers that deserve a little gift from the rental company.  There are many that are working to win a bid with the rental company prices - so they are trying to partner even if they may not win.  No one Stager deserves all the leads - they should be shared.  That is my opinion anyway.

I asked for them not to compete with Stagers:

All of them said they do not want to compete with Stagers and their goal is to rent furniture. I have had to show marketing pieces and promotional ads to the DM or Regional VP or Owner to illustrate how the messages they have put out there are confusing and do cross the line of a partnership.  If you have things in your area you can point to - share them with the DM or VP.  If they are true to their word, they will work with us/you/me and implement programs that enhance the partnership.

What can we do to be PROACTIVE with our Rental Companies?

1. Call them when I have a job where I am using their pricing to bid out the furniture. This helps so that IF the end-user client does walk into the showroom, they will not undercut me - and will share that they are in progress with me as the Stager.  You can do the same.

2. Help them to share what Staging really is to the public that comes in.  Show them examples of what a house looks like - with "no frosting" (as I shared in the original blog post) - and one that has all the accessories and finishing touches (the "frosting").  We can easily take photos of a vacant house, with furniture only, and with all the Staging items that truly make it "Staged."  Have these in the showroom.  Craig and I talked about this - and I had already been on that same path with HOW we can visually share what we do and the value behind Staging (versus just plopping rental furniture in a house). 

I challenge you to ask your local showrooms to do this - and share what they say.  I cannot imagine they would be unwilling to do this unless they have a hidden agenda.

3. Help them understand the value of Staging - I shared statistics and support for complete Staging with these reps.  They would rather not take their time to sit for 90 minutes with a seller helping pick out furniture- so we save them time when we do that for them. 

4. Help them know our "lingo" - the terms we use.  They need to know the definition of Staging - it's not decorating a house, it's not just putting in furniture - at it's core - it is a marketing tool that will help that seller get the best price in the shortest time, and is necessary to get a buyer to make an offer.  It is an investment in selling a house - and when compared with paying months of mortgage on an empty house, it is a great deal.

5. Help them overcome the objections they hear when a person does come in directly to the showroom.  Most of the time it revolves around PRICE - and yet we all know Furniture is not enough, and these companies make money on their rental, not when a house sells.  CORT made a list of questions that I sat and went through with the reps in my local showroom.  My hope is that some of it will stick - and they will refer jobs to Stagers.

After you have met with your reps - share what you have found here - so we can all benefit

Lastly, if you have a company that thumbs their nose at making a partnership mutually beneficial, say "Sayonara" to them - and find another resource - and then publicize the fact that this resource is not really a partner. . . as a Stager I would appreciate knowing who I should stay away from.  We have a collective Power in Numbers - and we need to use it to give or not give our business to a company.  There is no reason for any of us to be held captive to higher than fair rates and terms when we do have options.

- Jennie