Eletronic fractional ownership

[Southern_Lenders]

The concept: If you ever herd of fractional ownership for exotic cars, well this is the same concept, but for high price eletronic devices. Customers that want to use these devices may be affraid of wasting their money on something they may not like, or they dont want to enter into complicated contracts with phone carriers, at least until they find the right phone. Customers get their phone, laptop, or camera in the mail and they can return it, and try out something different. It works like this:

1. User pays for a one time membership fee of 1,500.00, plus a usage fee of 5% of the retail price per day. Users will get discounts for holding times of 1 week or more.

2. Users can select from laptops, Digital SLR Cameras, and the latest cell phones/ smart phones. Each device will have a different rate according to its price, and the length of time the person wants it.

an example of how it works with the HTC pro 2

* HTC touch Pro 2 --> retail about 699 on Amazon
our 24hr fee --> 34.95
our weekly fee (7 days) --> 244.65 ( with discount, save 10% --> 220.18)
our bi weekly fee ( 14 days) --> 489.30 ( with discount save 20% --> 391.44)
our monthly fee --> 1,048.50 (with discount save, 50%--> 524.25)

* All phones would come with unlimited minutes and txt so customers can get the full experience and value of our service.

* downloading additional media is a seperate charge to customers who dl ring tones, games, and other apps.

* A seperate insurance fee is paid for each device of 7.00

* Customer can buy the device if they like it.

[paul2145r]

Anyone that is going to have $1500 to drop as a deposit isn't going to want to use a 'borrowed' phone. Personally, when I'm done with any phone or otherwise security-crucial device, I either lock it in my safe or destroy it. Why would you want to 'play' with a phone or computer for close to the purchase price, and then simply give it back to once again start paying for something else.

It's an interesting concept, but the only reason that it works with cars is that the people borrowing the cars have the money and credit to pay for it if something happens. Insurance has to approve them, and so on and so forth. In this case, you'll have to do your own verification.. and those people that can pass the credit check would typically just go and finance what they are wanting to buy.

Think it over a bit more, and you might have something there.

[Southern_Lenders]

Your missing the idea I think. The 1,500 is a ONE time fee...its not annual. And how do you know that someone that has 1500 isnt going to put that down, other than your own personal opinion?

" Why would you want to 'play' with a phone or computer for close to the purchase price, and then simply give it back to once again start paying for something else"

Because, it allows people to test drive a product before buying it, and they dont have to return it and get something else, thats optional. It which saves them money, and headaches in the long run. If they like the phone or whatever it is they are using, they can buy it from us at a discount. Its a win/win really. IN FACT if you have unlimited talk and txt with verizon, you'll pay 139.99 a month at least!..thats 1,679....so with us, you SAVE 179.88 a year.

Technology is the fastest moving sector in the world, especailly in the phone market. If you were looking for a new phone, and you had to pick between three: A blackberry storm 2, and HTC touch pro, or an i phoe 3g You're telling me that you wouldnt spend 53.89 ( cost for a 24 hr period total for all three phones) to use all these phones BEFORE you made a purchase to see which one you liked the most?..you would rather just blindly buy something and hope it meets your expectations?....

[StealYourDreams]

Sorry, but I dont see this working. Five percent per day? Unlikely. Fractional ownership works with high end items like jets, homes, luxury cars not low end consumer electronics. Anyone with the capacity to spend $1500 for a one time membership fee wouldnt "rent."

Far too many flaws to work.

[rookietrader]

i agree with steal your dreams...if anyone has $1500 i just cant see them renting cell phones and laptops. personally if you want to try out a cell phone you have 14 days to return for free or sometimes a $20 restocking fee. i know i'm with verizon and i just got a new phone. its 30 days to return. i've returned 3 verizon phones one month. no charge and i was trying out the phones....the same with buying a laptop. i just purchased a laptop a few months ago. i had 30 days to return the laptop. so you can pretty much try those for free. why would they pay you? maybe do a rent to own type cell phone or laptop company and people can return. the $1500 one time fee is expensive. i would possible rent a new cell phone. i like getting new phones every year sometimes earlier if i have the cash.

[Southern_Lenders]

i agree with steal your dreams...if anyone has $1500 i just cant see them renting cell phones and laptops.

But yet you see this very same person paying 8,400 a week to drive a lamborghini, and that doesn't strike you as a bit crazy?..I could make the same arguement with these high end cars..."well blah blah blah, anyone that spends 8,400 a week to drive a car might as well buy it "

they pay 8,400 a week or whatever amount of time, because anyone who HAS the money and WANTS to buy a 400,000 car is NOT going to lay down that kind of cash without driving it for a while and seeing if they really want one.

It doesn't matter if its a 400k car or a 600.00 phone, its the same concept, forget the $ amount because its irrelevant. Just because people have money, doesn't mean they rush into making a purchase.

If you work and verizon and know the return policy, then you forgot to mention that :

1. You must have your receipt with you when you return or exchange your phone. OK now who keeps their receipt for 30 days without losing it or throwing it away?...I almost NEVER keep these things, and don't know very many people that do.

2. At verizon's own discretion, they can refuse to give you an exchange.... you think they're going to allow most people to return and exchange there phone 3 seperate times?...I think not.

3. Why go through the hassle to begin with? Just rent the damn thing for a while and see if you like it, if not, dont buy it.

[Southern_Lenders]

Here is a perfect example

rentmeahandbag.com . Here you can rent a 3,400 handbag for 311 a week..and much more. Tell these people that their concept is flawed, I'd like to hear the response.

[StealYourDreams]

Here is a perfect example

rentmeahandbag.com . Here you can rent a 3,400 handbag for 311 a week..and much more. Tell these people that their concept is flawed, I'd like to hear the response.

Any 16yr old in their parents basement can make a website. It doesn't mean they'll make money.

You're going to need to learn take constructive criticism. People are trying to tell you, in a nice way, that your idea won't work. You want to defend yourself to the death. The truth is: it's not a very good idea and your example of paying $8400 a week for a lambo is twisted justification.

I have a feeling you're going to do what you're going to do. Come back and talk to us when you fail.

[Southern_Lenders]

It's nothing more than an idea. A dead idea, but thanks for all replies.

[billtrasolini]

I do beleive you are onto something. Just listen to all of the valuable feedback you are receiving from your friends and these great people on this forum and refine your idea and keep up the creative thinking and you will succeed.

Go for it!

[DerekS]

The difference between exotic cars/Coach bags and electronics is this:

Exotic Cars/Coach Bags = Expensive Luxury items that are useless. Yeah, driving a Murcielago is awesome, but it's expensive and unnecessary. It's alot easier to justify spending some dough to flaunt one for a weekend than it is to justify spending major coin purchasing something like that- whether you've got the funds or not.

Electronics = Constantly evolving- getting smaller, cheaper, better. People don't want to pay a membership fee and then 5% of a retail price, per day, for a product that is probably depreciating faster than you can pay the usage fees. People usually need these items regularly, as well. Who rents a cell phone for a weekend? You sign a contract, get the phone, and use it throughout the duration of the contract.

Shoot, for $1500 I could get a nice Blackberry or iPhone, AND a decent laptop and still have cash left over.

I like your concept, you just need to think of a product that is more in line with an "exotic" mindset. The Digital SLR rental is cool for people who are going on a vacation and figure that they'll only use it then- but I'd be concerned about wear and tear on an item being shouldered by tourists all day.

[Southern_Lenders]

Derks, thanks for the reply. I found a few of these Companies online that do something similar with eletronic rentals

Rentex.com
ICCrents.com
computerrentals.com

One thing I found though is that there is no membership fee, and rentex told me they only deal with business owners who have been around for 2 yrs and pay with a business credit card. He said theft in the personal rental market was around 45%.

Rentex chrages 110.00 a month for an HP smartbuy 6730 laptop

computerrentals.com charges 110 a week for a comparable HP

ICCrents.com charges 195 a month for a hp NC6400

but come to think of it, givin the cost of buying all this inventory, shipping costs, theft, broken/ lost equipment.... I wonder what their profit margins are like?

[Aletheides]

You could probably do something like borrow bag or steal but they don't have anything like a 1500 one-time-fee. You'd have a hard time getting anyone to pay that.

You could probably look at their concept and model it.