@Risky_bintag
The way I see it RNT has to gain market share. As the share grows the network effect kicks in, customer acquisition costs drop and it becomes easier to bundle and tie in new value adding features.
Having thought about it, although I have some concerns that collecting money is going to be difficult with the smart plan listings it is the only way to go. It makes it an easy sell to the agents- just add in RNT and only pay on fulfillment. Now once the agents start feeling the hit to their pockets as more and more plans are fulfilled via RNT they will probably back out of one of the other 2 listings sites and reduce overall spend. At that moment the market share battle is effectively won and it is just a matter of continued execution.
I think the gift cards must be about closing the loop. Presumably they have some sort of discount and the $100 gift card must incentivize the renter to close the loop. If they are making $125 per transaction it really cuts down the margins quite significantly and the taps will have to turn off once the process is smoothed out.
I have to say the strategy is reasonable and I am confident Greg will change tack if it doesn't work/isn't working in the manner intended.
I have only a small position (2% of stock portfolio) but am thinking of loading up into a high conviction style investment if there is continued progress at the next quarterly and the price is right... @Risky_bintag - can I ask you what your allocation is here?
RNT Price at posting:
7.3¢ Sentiment: Buy Disclosure: Held
