IN A COMPUTER QUANDARY? RENT-TO-OWN STORE SELLS RELIEF

Although microcomputers are the fastest-growing consumer appliance in the computer industry, the last thing Dallas needed was another computer retail store. But even with more than 80 stores in operation in the Dallas/Fort Worth area, First National Computer Corp. (FNCC), the first rent-to-own computer company, decided to open here last December. Their “no softer sell of software” approach appears to be working. The rent-to-own concept, which has supplied thousands of consumers with televisions, stereos and appliances, is now being applied to the retail computer industry.

Michael Sheriff, president of the company and one of its founders, says that he and his partners went to computer manufacturers with a new approach. “We explained that we were not trying to cut the pie of computer retail into smaller pieces. Our approach would expand the pie. We would be getting the customer that retailers presently aren’t appealing to-the guy on the sidelines who doesn’t want to spend the money, lacks the knowledge, needs the experience or is just intimidated by the industry.”

The company’s concept is based on this “anxiety reduction” factor. Customers often don’t know if they can use or understand a computer, how to pick the right one and where to go for support. But FNCC turned those negatives into positives. Using the rent-to-own concept, the customer rents a system that he can modify according to his needs. When the customer finds a system he wants, will sell it at a discount.

The basic principles of the rent-to-own concept are especially appealing in the computer industry, since a customer can have the most current technology available. If something new suddenly comes out on the market, he can trade in his old system for new equipment.

Sheriff says that FNCC will deliver a training diskette and four hours of classroom instruction with each rented system, and every software package that FNCC rents includes up to eight hours of instruction.

The customer has four options under the rent-to-own agreement: One, he can renew his rental agreement at the end of every month. Two, if he keeps the system for 18 months, he receives the title to it. Three, he can purchase the system at a discount at any time during the 18-month period (with each month of rental, the price declines). Four, he may return the system at any time with no obligation to buy.