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RENTAL COMPANIES - FRIEND OR FOE? LET'S BUY A CAKE WITH NO FROSTING!

I know there have been other posts on this topic, but recently I have had to do battle with some rental companies in my region and elsewhere to help dispel the myth that renting furniture is "Staging." I have had "discussions" with large national companies on behalf of Stagers, sticking my neck out to straighten out what I feel is a blatant misperception being fed to the public. The misperception is that "rental companies can Stage a house." Is furniture the only thing needed in a vacant house? Some sellers believe that is true - and this damages what we do as Stagers.

Anyone else out there also fighting this battle? What I have done is set the record straight with the District Managers and VPs that will listen. The showroom reps of rental companies have a goal of renting furniture. They could care less about a house selling - and I shared this with the people I spoke with. They agreed. The DM's and VP's have quotas to meet - they want to rent furniture. Some stores even have some light decor they carry - but it's still not enough. They are not hiding the fact that ultimately their goal is to rent furniture - and they will do it for the longest contract duration they can pass on to the client.

As a Stager, my goal is to SELL the house - just like the Realtor's. My part in introducing any rental at all is so that it will help the house to sell - not have a long term rental contract. When waged labor is used to place furniture in a house, it undercuts a Stager's time - that we bill for - and in essence undercuts our ability to compete for a job. It became personal to me - taking money from my business and from my family- and I was not a happy Stager. I thought to myself, if these rental companies do not get on board with partnering with Stagers, then we would consider them competition and direct our business elsewhere. Do not let rental companies hold you hostage with higher than necessary fees and terms that do not fit the market you are in - WE are their customers and we bring multiple client to them. The loyalty needs to go both ways.

What I found in one situation was the rental company was charging Stagers DOUBLE the delivery fees of the man off the street because they said us stagers kept their delivery guys out longer than the regular seller. That was not true - and was shocking for me to find out. They were also giving the same pricing as I get to the consumer instead of giving me a discount that acts as an incentive for the consumer to connect directly with me. I had two proposals come to a screeching halt when the customer connected with the rental company who took the business direct, undercut my pricing, and installed what I thought was an awful combination of pieces that did not look right. Not only that, they had the nerve to tell the seller they were helping to "stage" the house.

Ever seen a cake with no frosting? That is what I told the rental companies they were offering to sellers who come direct to them - thinking that just furniture is enough. "Here buy this cake with no frosting - it's just as nice as the one down the street that has all the frosting and finishing touches." Furniture is important in a vacant house, but the job is still not complete - and would be like having a cake with no frosting. We are the icing on the cake - the look that pulls it all together and has that "WOW" appeal. A house with just furniture is stark and unappealing. A Staged house needs the final touches - to pull it together - and create enough buyer appeal to bring an offer.

So, I went to the DM and asked for better pricing, asked for lower delivery fees, asked for discounts that we get that the man off the street does NOT get, and asked for referral fees. So far - so good as far as positive response - but I have yet to see anything actually in writing. The rental companies say they do not want to be Stagers but their reps will call themselves that - and even try to take business from professional Stagers. I always say to the DM's and VP's - "Unless I am missing something and your reps are actually being given some sort of incentive to take Staging jobs, there should never be a conflict or confusion. Jobs should be referred to Stagers that work with the rental company as a reward for bringing them business." The rental company still gets the business, and they are honoring their relationships with Stagers by helping share opportunities.

They want our help in educating them and their reps so that when a person comes in and says, "I don't want a Stager, can't you just help me?" they can tell them the pros of working with a trained professional, and one that can offer them MORE than if they just go direct. That is the goal anyway.

So I wonder, what is your experience in your region? I have a finger on the pulse of the Western region - but am interested to know what you have found on your end? What I know is that one bad reivew on this site and via email to colleagues nationwide could greatly impact the success of particular companies that serve our regions - and I am not interested in supporting companies that are intent on competing with me and taking business and income. Take a stand in your areas if this is happening to you as well - I imagine that it must be and the good news is there IS something you and we can do about it.

-Jennie

Posted by Jennie Norris, ASPM, IAHSP on 11/12/2007 11:45 PM

Comments (27)

home stager, sacramento home stager, advice, roseville home stager, home staging, granite bay home stager, business tips, partnering

Post is included in group: Stage It Forward...

27 Comments on RENTAL COMPANIES - FRIEND OR FOE? LET'S BUY A CAKE WITH NO FROSTING!

NOV

2007

Great info here Thanks for the post keep up the good work

I'm a technocrat, but I've walked through enough open houses to understand that staging is a very specialized field that is key to emphasizing the positives and downplaying the negatives of a home.

All dining room tables are not created equal.

Best of luck convincing the rental companies. Have you thought of partnering as an inside consultant, i.e. working from their location like the sales rep while still being independent and having your own business? Is that a possibility? If there were five furniture rental companies in town, I wouldn't want to send my walk ins to a staging consultant who would promptly take their business to my competitor. I'd want a real partner whose services were part of my competitive advantage.

Jennie - I am one happy woman to see this post! In the last day I learned I had lost a staging job to a major furniture rental company located in Boston, MA. What is particularly surprising to me about this one is I was worried about even doing business with another company, but it was the LARGER of the companies that went behind my back and the home owners and directly to the real estate agent. It wasn't even a big staging job, that's what get's me the most! For me, it was because it was from an A+ referral, otherwise I might not have even considered the job - but now it's the principal.

I'm quite looking forward to not being so angry and going in to let them know, when I am busy enough (and I will be, I have no doubts) watch out, not only have they lost my business, I fully intend on recruiting some of their delivery staff :)

Jackie

Thanks for the post Jennie and good for you Jackie. This just makes me more determined to build my own inventory. If they keep this up, other stager will cut them out of the equation too. What goes round comes around.

I enjoy your feedback . . . and I do agree with all you've shared. I do have my own inventory as well, but made a business decision not to acquire the larger pieces that I could not personally move with another colleague. So have limited my inventory to loveseats, accent chairs, etc. We do have 2 sofa sets and a dining room table, but the storage on all the pieces adds up - and so we do rent. We have enough "Stuff" to stage 35 houses at once, but the issue is not having stuff.

Even if we buy our own things, the issue of these larger companies positioning themselves as "Stagers" and competing with professionals that DO know what they are doing, and aren't in it just for rental is key.

Even if you or I buy all our own stuff and cut them off - they can still solicit the business - and with more advertisting dollars to put towards this venture than most Stagers want to spend, this becomes a losing battle. To me it's really important to push back and confirm what we know - they are not Staging they are renting - and the public needs to know this. In our region, our IAHSP Chapters can do joint marketing so I have toyed around with the idea of posting an ad or something that shares with the public that Staging a house is NOT just renting furniture and working with a professional that can not only get the house Staged, but help with Marketing (website exposure, exposure to a sea of Realtors that we network with, etc.) is more valueable than a discounted fee they might get by going direct.

ASK for discounts, for incentives, referral fees, and ways to partner together - and this will keep them from taking what belongs to Stagers. At least that is my hope.

- Jennie

Jennie, I agree that collectively we will have much more power than going at this problem solo. Rather than limiting the joint marketing to IAHSP chapters, why not take it another step and gather the support of more stagers with the Roundtable that will be held in the Sacramento area?

Jennie ~ I'm glad to see this post. I'm aware of a national company here in our area who tells home sellers their staff can "stage" the property for them. They even told me they do staging for builders! Of course, I'm not doing any business with them. We have other companies who are much more customer-service oriented and do what they can to help us in our staging businesses by offering good rental rates and excellent customer service. However, we need more options as there are many more stagers in our area now!

Jennie - My concern with one of the big national rental companies here in Atlanta began when they, the reps, were offered ASP training and accreditation. It was my belief at the time that this would place them in direct competition with stagers. I didn't stay around long enough to understand whether this was a) true and b) whether or not the reps were ever trained. I left this big national company because of their pricing.

To support your concerns/fears, I had received a call from another stager in the area, just last week, and asked whether or not I was aware that they (this big national rental company) were now in direct competition with other stagers. My response - I wasn't surprised.

If you review the web site of one of the largest, you'll find the following:

__________ Furniture Rental can help you stage your home. Staging can range from simply removing clutter and rearranging furniture to totally redecorating and re-furnishing all the rooms in a home - generally through the use of rented furnishings and accessories. Let ______ furniture design professionals help you stage your home by selecting the furniture that will create a strong first impression.

Explore _____ Furniture Rental on-line catalogue and choose from our wide selection of name-brand furnishings to stage your home. After you submit your furniture request, the ____ Concierge will call you to provide a quote and finalize your furniture rental order.

In summary - they are pushing their company/reps as "furniture design professionals" who help stage the sellers home. And yes, there's an on-line catalogue dedicated to staging which encourages the user to make selections. They do offer a "directory" of professional stagers. However, by the time you get to this site and to their directory, it's likely that you've found the process easier by simply calling one of their reps.

I too choose to do business with companies that support me and are not in direct competition. I had given them tons of business. It was a fatal error on their part to move in this direction.

Jennie.

This is a great post and you ask wonderful questions. I asked many of the same in my post about training the other day. Since you bring up concerns about furniture rental companies offering staging services I am wondering why it is ok for these rental companies to send their representatives to your classes?

I personally know 7 representatives from 3 different rental companies across the country that have taken the ASP class and are now offering staging services- one of them is personal friends with Barb. I know Staged Homes is aware of this because these same ASPs sponsor the lunches at your classes. Some have even sat in and audited your classes and then did not earn the designation but since they were in the class learned all the lingo and are now offering staging both at the local level and on their websites. This is an issue that I have been blogging about for over a year now so I an glad that you brought it up today.

How can we as stagers protect our business from Realtors that are now staging and Rental Companies? I think the answer to that question is working at the industry wide level with groups like Stage it Forward to create a voice for the industry that will educate consumers on the different levels of services stagers and rental companies provide. KH

Very timely post and well stated Jennie.

I've always understood the rental companies to be somewhat our competition. They're big dogs in the rental furniture business and I need them for my business, I do not carry, nor do I plan to carry large furniture pieces. Like you, if myself and an assistant can't manage it, I don't have it.

One company we were using early on has now to me, become more of a competitor than a "partner" because they've actually teamed up with a home accessory company and are combining their services along with "staging" and have been promoting it this way. I believe their quotes have also gone up for me personally. On the other hand, the other National Co. has rallied with us and has truly been working with local stagers and has become a trusted partner for us. So they can go either way but we are like a mini -sales force for them and what we do saves them TIME and money. And staging is not just furniture as you've stated!

It's a big staging pond and there's room for lots of fish. However, when sharks move into a pond we know the end result for the guppies and smaller guys...

Jennie...

You ask the a very good question and make some very good points.

Piggy backing on to what Karen wrote I have to say I too know this to be an issue. I also know that Brook Furniture Rental is working (here in Chicago) to establish a Stager's Advisory Board. They want to find ways to work for and with home stagers.

THAT being said... the issue of competing with rental companies is a reality. THIS is one of the concerns we are talking about at the Round Table discussions.

I am sure stagedhomes.com has an opinion regarding their stagers competing with rental company "stagers". SHC has a voice that could and hopefully will be used to express concerns.

THIS TYPE OF ISSUE is what the SIF Round Tables are all about. UNITED we create a LARGER voice where all, who have seriously have embraced home staging, win... SHC trained stagers included.

Good post. I'll sure be checking the website of the company I use more closely. In general though, our local representatives have been great to work with and very accomodating.

Kim Dillon, Creative Eye Home Staging

Sure anyone can plop down a sofa and a coffee table and consider the property staged, but its not. It is simply "Furnished". the two are hugely different!

Heather

Hi All and Good Morning - it is 7:45AM on the west coast so you'll have to let me catch up to some of you that have been up for longer than I have! I also have a class to teach in 30 minutes and have to get dressed and get into the game - and turn this part of my mind off until tonight.

First, courses I teach are not "my" courses, and secondly, any rep that has sat through a class did not earn a designation and were explicitly told they were not learning to "be stagers." They got information, and IF they were intent on Staging, they were doing this long before any sort of partnership. I know this is true because I ask people questions. That said, we are not here to "train" reps to be our competition - and IF they dishonor those people they are supposed to partner with, it's an easy fix. I just went to our regional VP who is very PRO ASPs - and very pro support and partnering with Stagers. There is a company mandate that they rent furniture and are not to be "staging." She is on board - and wants to retain a partnership and realizes that if things do not change, we DO have options. So do you.

My point of the blog is not to duke it out with those that are experiencing things in their markets that they are not happy about and want to point fingers. I think that the KEY point of the blog is that I went directly to these companies and told them what I wanted - not just for me - but for ALL Stagers. And, I did not limit it to just ASPs - I went to bat for ALL Stagers.

So, my advice to those of you that are in agreement that there is a total grey area with rental companies, do something about it - and use the collective force to get what you want. If the company does not comply, they lose our business.

As for a company that offers a 30-day rental we have a fabulous one called Welcome Home Furniture Rental (they are in the Bay Area and Sacramento) - no minimum orders, 30-day rental with 2-week proration after. And guess what? They were started by ASP Stagers who want to serve our industry. Sounds to me like there is a whole market segment savvy Stagers could capitalize on if they see the need. Find a need and fill it. Outside of that - there is Aaron's Rents (we do not have them in our market, but they want to be used by Stagers) and Amercian Furniture (east coast). I cannot speak to the quality or service level of those other companies.

I also advise new Stagers to hook up with senior Stagers - as a resoource. My inventory is not so precious that I would not rent it to other Stagers in need - money is money, and I would rather have my stuff earning me income than sitting in my warehouse. I may be "unique" in that - but I think we can be a resource for each other in that regard but it has to go both ways.

- Jennie

Such a timely discussion....TODAY, I just happened to notice that someone from our local rental store (the ONLY one here--Aaron's) has JUST registered with AR as a 'stager'. It caught me off guard somewhat and I was not sure what to make of it all. I think I was the one who mentioned AR to them in the first place!! AArrgh....LOL.

Everyone's comments are right on target with my thoughts and while I do not mind competition, I do not appreciate it from the main rental company in this area. I would prefer that the referrals came from them to me (in exchange for my business to them) however, I see that this is not the case.

After happening upon this new AR member, I see that it is now apparent some of these supposed 'stagers' from our rental companies are indeed present and watching/reading these boards. They have stayed 'mum' and hopefully will voice their thoughts so that there can be a better understanding of support in this business, not conflict.

Regards-Kathleen G

We have fought this battle time and again in Michigan. They want to see the furniture placed and hope for long term contracts so even though we have had this discussion numerous times with the local rental company it still happens and we lose opportunities.

I love the icing on the cake analogy, but in our region I think it is also important to point out the different goals between staging and furniture rental companies. We were told that we were moved to a 3 month rental contract from a two month rental contract because the economics weren't working for the rental company and that they get a return on long term contracts. With that in mind the rental company doesn't care about icing on the cake. I don't believe in being negative about competition but I now feel that when a Realtor, investor, or builder calls it is important for me to point out the difference when they say the rental company will stage. I will have to come up with a nice way of saying the rental company will place furniture for the long term. We arrange the furniture and stage the house for the short term so it doesn't get too comfortable in its surroundings.

Regards, Deborah Chene

Good points all - and what you have latched on to which is so important is the over GOAL of what we do versus a rental company. We stage for SALE, they rent - and they want the longest term contract possible. You are right that when we can share that with conviction to our clients, they will hopefully realize that working with a Stager keeps the focus on what both the Seller and Realtor hope to achieve - a SALE. I know money talks - and they may think they save money by going direct, but when they are talked into a lengthy and unnecessary contract, they actually end up spending more than if they had properly staged it from the start!

- Jennie

NOV

2007

Hi Jenny......... we ran into this just yesterday. We usually use our own inventory, but we were preparing a bid on a three million dollar house and didn't know if we wanted to invest in the "Olde World" overstuffed furniture they wanted, so we took a trip to a rental place here in town that has better furniture than the usual rental places. The guy that runs the place was telling us that they used to work with Stagers when they first started business just over a year ago, but get this: Now they deal mostly with realtors that want to do their own Staging. (and I don't know if they still do.........but this place used to offer 1 day "Stage it Yourself" classes - obviously to get their own stuff "out there") I also know that we did a proposal several months ago and there was one other "Stager" that did a proposal as well...........and it was the same gentleman. (glad to say he didn't get the job either.......... the house remains unstaged two months later)

On the upside.........he DID say that they used to have a 2 month minimum and now even that is negotiable. However..............after looking at their "upscale" furniture.... we decided we could purchase what we need after all.

Craig - I was talking about you this morning to my rental furniture division, Newport Beach, giving them insight on what's going on in the staging world and everyone wanting to be stagers. I knew you would be communicating with them! That's great about the Staging Advisory Board being set up to support stagers and the industry!

I did mention in another post that my rental furniture location thought all stagers were ASP trained and knew of no other. I explained to them that I am not an ASP home stager and this is just an acronym for one of the many home staging training classes.

Diane Concialdi - DC Redesign

Rental companies with advisory board are great - and I hope others follow suit. Designations are not meaningless acronyms - except to those that do not have them. Thanks for once again pointing out to me how far we are from really coming together as "one" in this staging world. When we can respect designations and training, whether we have it or not, that is when I will believe it can happen.

- Jennie

NOV

2007

Great information, most of this I wasnt aware of. Thanks for sharing

NOV

2007

Jennie, I *finally* read this blog. You said it sister!

As I was reading comments I was thinking about HSC and how they train sales reps here in Canada, at any rate, to be stagers. I have been p.o.ed about this for a while...and then reading one of your comments a light-bulb went on for me.

Why on earth would I be angry at HSC? They are in business to train. They are not a community college offering the course for $150. HSC and CSP for that matter, would and do offer to train whomever as is their right because they are a business.

My light-bulb moment thanks to your great post Jennie, has made it clear to me I need to redirect (in the proper manner as Jennie has) my displeasure. I will make a concerted effort to approach the GM's and VP's of the Rental Companies to express the need for them to be our partners not our competition. Otherwise, they may find themselves without stagers coming to them. There are stagers in the GTA who are making available their inventory to the staging community and although I haven't yet used them I do want to supporting them (after all they are doing what I would like to do but don't have the cash to do).

So thanks for the post and the great comments I am now focused and not scattered and angry! Thank you for taking some stress out of my life!

Hi Dane,

Good that you found this and are redirecting your focus! Yes - rental companies rent, Stagers Stage, and training companies train. I know that none of the training companies has the goal of undermining stagers, but if the person taking a class has ill-intent, then it happens. Good news is we don't have to take it lying down.

I am actually meeting with a rental company on Thursday to sit down with the reps and go over a list of commonly asked questions they get from the public. After my meeting with them - and reviewing what I felt were good responses, I can share what the outcome was because one of their concerns was that when the seller comes in to the showroom directly, how do they get them back to using a Stager? We will go over some common miconceptions and also ways they can help better partner with Stagers instead of taking the business direct.

The main thing I hope to overcome with these reps is that their job and mine are different - and that what they do is not enough - and it is a DIS-Service to the seller to lead them down a path of just rental - and letting the placement, colors, accessorizing - fall away or fall to someone who is not a professional.

I have met in person or via email with the district managers of two showrooms, as well as the VP of another company to discuss the concerns I shared in this blog. I have been battling this issue for well over a year - and have now crossed state lines and am moving into Arizona to do battle. All it took was me asking - as we do have options. Go get 'em!

NOV

2007

In fact, a furniture rental company benefits if the home does NOT sell! The longer the home is on the market, the more rental fees they earn. So what would be their incentive to get a listing sold...?

DEC

2007

Jennie, interesting post! I have to say we've never use a furniture rental company -and I mean since day ONE. I do know of a couple of local companies that have reps that market to us, but never for once though of them as competition because they don't bring that much needed staging expertise such as furniture placement, lighting, artwork, accessories. Sure they can send a sales rep to a course, but do they REALLY have what it needs to truly stage a home?

Can you come to MN to do the battle incase they start taking all of our local biz though :) Something tells me you are one tough cookie that won't crumble easily. :)

Hi Beth,

It is great that you were able to start Staging and not have to use an outside rental resource. For most Stagers they do not have the inventory needed to do vacant homes, or the revenue to invest right up front - at least that is my experience. So, the rental companies can really have Stagers over a barrel unless they stick together and ask for terms that work for them. And NO these companies do not really have what is needed to Stage a house. Some do - the smaller, individually owned rental companies have diversified into decorative accessories and could do a whole house, but they are better served to give the lead to a partner Stager so that they do not take business from us either.

As for coming to MN - you never know! The long reach of who I (and we) know and the ease of email communication makes doing battle easier than limiting it to just those that are physically in the region. Thanks for your comments!

-Jennie

Jennie,

I could not agree with you more! I just got back from a Realtor Convention where there were 3 rental companies represented. 2 of them had brochures and photos publicizing their staging services- both had their ASP staging designations in their portfolios and one of them even had an "in-house" stager there to answer questions that realtors may have. I spoke with them at length and told them that I was uncomfortable using their service since I felt it was in direct competition with my business. I know Barb is speaking at that event- I wish she could talk some sense into them. What do you suggest we do as home staging professionals to prevent more rental company stagers? One company told me that they have 10 properties to stage next week in Northern Jersey and when I asked them why they did not refer that work to a local stager they did not have a answer for me other than they wanted to do the work. KH

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