Aarons 2010 Annual Report Download - page 11

the length of the agreement and the
monthly payment. We want our customers
to own their product, and over 45% of
our agreements go to term. We don’t do a
credit check on our customers — we just
need to know that they have income and
can meet their monthly obligations. Many
of our customers have credit cards, but
leasing through Aaron’s leaves that credit
availability untouched. It is increasingly
important to our customer to know that if
their fi nancial circumstances change, they
can terminate a lease with no lingering
fi nancial obligation. That fl exibility is very
important in today’s economy.
We have adapted over time as the
consumer’s needs have changed, but
fairness is always our guiding principle.
Our product line has expanded to
meet customer desires; you only have
to look at our line-up of electronics
to see that. We offer a broad range of
televisions — plasma, DLP, LCD and
LED. We offer computers and gaming
systems as well. We have also adapted
our payment terms to meet changing
consumer needs. We have lease terms of
12, 18 and 24 months, which makes it
possible for our customers to select terms
which best fi t monthly budgets.
We take pride in our stores. We operate
9,000-square-foot stores with attractive
signage and product displays. Think about
walking into a supermarket and seeing
gaps on shelves. The fi rst thing you will
think is “I have missed the good stuff”
and only the second-rate products are left.
So, we pay a great deal of attention to our
stores; our sales fl oors must look attractive
with “no holes on the fl oor.” We operate
stores in a variety of locations: urban,
suburban and rural. Years ago, our stores
drew from roughly a 10-mile radius but we
now fi nd many of our suburban and rural
stores draw from a much larger market.
Our stores have become destinations. Most
of the product line is standard, but our
managers can tailor their sales fl oors to the
local market. When a customer comes into
One of our marketing
themes — “Aaron’s Drives Dreams
Home”— says it all. We are in the
business of furnishing homes.
— William K. Butler, Jr.,
Chief Operating Officer
our store, they will fi nd fi rst-rate name-
brand merchandise and friendly associates.
We are really a specialty retailer — with
a large base of loyal customers. Seventy
percent of our customers are repeat
customers, testimony to our belief that a
vibrant, respectful, day-to-day connection
between a service business and the
consumer is the basis for success.
Over the years, Aaron’s has become a
national brand, which we consider a
competitive advantage. Our NASCAR
affi liation has become a critical part of
our marketing. Our well-known “Lucky
Dog” mascot is featured in our advertising
and participates in store openings and
special events. We have an Aaron’s car and
even sponsor the Aaron’s 499 and 312
races during Aaron’s Dream Weekend at
Talladega. With sponsorships of sports
teams such as the University of Alabama,
University of Texas and Georgia Tech
athletic programs, the Atlanta Thrashers
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