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More Money Mondays: Short Term Lending

Most of us know about Netflix. Customers borrow DVD's, get them via the mail, keep them for however long they wish and then return them, all for one fee.

If this is a viable business for movies, then why can't it apply to other goods or services? Why indeed?

I heard on the radio that a group of Mom's have started a toy lending company. For a fee, you borrow a specific toy (all sanitized and checked for lead and other safety concerns), the child plays with it, and then when junior gets bored of the toy (as kids tend to do), you return it for a new toy. No need for time consuming yard sales. No need to fill the basement or garage. Off it goes.

What about applying this to sporting equipment? The very seasonal golfer (and with the States being so large, it is always golfing season somewhere)? Or how about formal dresses (the wear once variety)? Or décor items (to change up the house a bit)? The possibilities are endless (up to your research to figure out the market potential or profitability).

Really makes you think, doesn't it?

Posted by Kimber on February 25, 2008 6:00 AM |

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Comments (1)

I think one of the biggest reasons this is a viable business model for movies (specifically DVDs) is that they are small, lightweight, and relatively cheap to ship. The shipping costs on toys or golf equipment would be so much higher, maybe even prohibitively so - to the point that it might actually be cheaper to just go and buy it than to belong to a lending service.

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