American History 1988
Chapter 92 - 86 Big Business

Chapter 92: Chapter 86 Big Business

"Jerry, meeting you in Columbus feels truly heartwarming."

"Look, our business has grown from Cleveland all the way to Columbus, just like our enduring friendship."

"Absolutely!" Dean laughed heartily and embraced Jerry warmly.

"This is John Donovan, Chief Operating Officer of Price’s List. This is Susie Jones, CEO of Rent-More. Matthew Wedner, my personal attorney."

After greeting Jerry, Dean also introduced the people accompanying him one by one. When it was Simon’s turn, he had already finished embracing Jerry.

"Well, Simon, you know each other." Dean shrugged.

"Come on, Dean. My bosses are already waiting upstairs. Let’s head up together." Jerry had specifically come to the entrance of the Rent-Cheap headquarters to welcome Dean and his group today, as both parties had agreed on this meeting two days earlier.

Price’s List needed Rent-Cheap to open up the market here in Columbus, and Rent-Cheap also wanted to discuss advertising opportunities with Price’s List. Both parties were interested in each other’s cooperation, so the meeting was a natural next step.

Under Jerry’s lead, Dean and his entourage entered the headquarters building of Rent-Cheap. The spacious and bright reception area was far more luxurious compared to the rental units in Cleveland.

In particular, the flower racks on both sides of the lobby, filled with various roses, added a touch of artistic ambiance with carefully tended floral arrangements.

"Wow~ Honestly Jerry, this place is nothing like the Rent-Cheap headquarters I imagined." After experiencing the modesty of Cleveland, Dean had thought Columbus would be much the same.

"You know, since it’s the state capital, all the companies in Arlington have to maintain a certain level of dignity." Jerry’s voice had a slightly sour tone. Although he had been promoted to head of Rent-Cheap’s Cleveland district, the headquarters didn’t provide him with any additional budget as a result.

Seeing Susie and the others attracted to the colorful flowers in the lobby, Jerry considerately explained, "These are from the Rose Festival organizers – they sent them because we’re sponsoring their citywide parade next week."

Following Jerry’s gaze, Dean and the others saw the Rent-Cheap sign made up of roses arranged on the flower racks.

"Fantastic!" Dean and John exchanged glances and then followed Jerry into the elevator.

Rent-Cheap’s headquarters building had more than a dozen floors, and on one of the top floors, Dean and his group met the Marketing Director they had a scheduled appointment with.

"Dean Price"

"David Nathan"

After getting acquainted in the meeting room, they got straight to the point.

"Price’s List has contributed remarkably to our market sales for Rent-Cheap in Cleveland, and we have always recognized your company as an important partner.

Moreover, Mr. David Morgentaler himself called me yesterday to extend his greetings. He highly regards Price’s List, and we too are very much looking forward to this meeting.

So friends, will you be bringing us good news on your expansion into Columbus?"

"Of course. After receiving Jerry’s call, we immediately started drawing up an emergency plan. In fact, we had been contemplating such a move for quite some time.

Mr. David Morgentaler personally reviewed the plan and he is confident in the future of Price’s List." Dean took the business plan from John’s hands and then placed it in front of David across the table.

"Price’s List will replicate its success in Cleveland. Our first step is to start with the college circuits, then spread to the entire Columbus city center.

During this process, we will launch a series of campaigns to promote Price’s List. As a representation of a multicultural city, I believe Price’s List will achieve even greater success than in Cleveland."

Having the experience from one campaign, Dean and his team were well-versed in how to promote Price’s List. The business plan was full of boundary-pushing promotional activities, which were eye-opening for David. Beyond these, the plan also included a comprehensive business strategy.

Although Rent-Cheap is Ohio’s largest rental company, David and his team didn’t feel that the edgy promotions would impact Rent-Cheap’s image, considering they deal with a myriad of tenants.

Prostitutes, addicts, single-parent families, the elderly, and the disabled – having seen every kind of tenant and their troubled lives, Rent-Cheap was already accustomed to the world’s filth; in fact, it was part of their business.

David, who had worked his way up from the bottom, knew that these sensational tactics were what attracted customers. And with customers, the advertisements posted on Price’s List would be viewed.

The group of young people hadn’t bothered with so-called "noble ideals", which made their business plan very much to David’s liking.

"So these plans, when can I see them implemented?" David asked, interlocking his fingers and looking across the table after putting down the material in his hands.

Dean and John exchanged glances, and then John, who was responsible for drafting the plan, answered, "We’re already gathering localized information for Columbus, and the website should go live in a preliminary form in a week. It won’t take more than two months at most, I guarantee that Price’s List will become another symbol of Columbus’s diversity."

"Good, I look forward to Price’s List replicating the success of Cleveland." After hearing Dean and his team’s plans, David also handed over his materials.

"In Columbus, there are more affordable rental properties and a more diverse tenant pool. What kind of discount can you offer if we advertise our rental properties on Price’s List?"

"First, I need to remind you that we are talking about a bulk order, not the small-scale operations in Cleveland. So, I’d like you to consider carefully before you answer and to propose a sincere offer."

David initially had Jerry reach out to Price’s List because, of course, he hoped to achieve a notable increase in performance in Columbus. But as a giant in the rental market, the business David was discussing was not about a $4 per listing ad.

What he referred to was a rental market that catered to millions of guests every year, and without a doubt, this business was not just big—it was huge, especially when facilitated by an intermediary.

Dean and John understood what the business mentioned by the other party represented. If they could secure this order, it would be a milestone progression for Price’s List.

However, the more critical it was, the more cautious Dean was. He didn’t rush to quote a price but first sought to understand the operating situation of Cheap Rent in Ohio.

"Mr. Nathan, if I may ask, how many properties does Cheap Rent lease out each year in Columbus, and approximately how many guests do you accommodate?"

"The Columbus metropolitan area has a population of nearly 1.6 million, and Cheap Rent manages up to 300,000 properties. As for the guests, I think there should be around 500,000 visits per year." This wasn’t any trade secret; after confirming with the people around him, David provided a rough estimate.

Properties numbering over 300,000 and over 500,000 guest accommodations. The state capital was, without doubt, far ahead of Cleveland.

Having obtained the data he wanted, Dean began to probe for a commercial quote after discussing it with John and others for a moment.

"Mr. Nathan, before quoting a specific price, would you be willing to hear about another business deal?"

"Another business deal?" Not only David but even Jerry, who was familiar with him, had no idea what Dean had in store.

"It is also related to the housing market, and I believe it will be of interest to you," Dean said, turning to take a document from Susie and handing it over, "MorRent Credit Check Service. With this, not a single tenant will escape your scrutiny."

David had never heard of a tenant credit check service, and Cheap Rent had not previously used such a service. However, after reading the information at hand, he suddenly looked up in surprise and reassessed Dean.

What did he see? A rental applicant’s criminal records, banking credit information, and even notes on some of the assets known to the applicant.

The MorRent credit report sample attached to the document displayed everything clearly before David’s eyes.

"Mr. Nathan, I’m sure you understand how much this could save Cheap Rent from losses. Renting is like lending; a customer’s credit directly affects the subsequent returns.

If you come across someone with a prior record who tries to hide their past, nine times out of ten, you end up with overdue payments or even bad debt. Similarly, if a property managed by Cheap Rent is used but the rent is not recovered in the end.

A few particularly despicable individuals might even deliberately destroy the facilities in the house before sneaking away. I’m sure Cheap Rent has encountered such clients before, as there are always bad apples everywhere."

Dean was right, Cheap Rent dealt with so many people every year, they’ve seen all sorts of characters. The losses from unpaid rents and malicious damages amounted to tens of millions of US dollars annually. After all, as the dominant force in Ohio’s rental market, the combined number of clients Cheap Rent accommodated across the state reached into the millions each year.

So, what Dean said hit a nerve with David; these unnecessary losses should be avoided!

"Can you provide such services," David pointed to the credit report on the table, "throughout the entire state of Ohio?"

"Youngstown was our pilot city, Columbus is the first official operational site, followed by Cleveland, Cincinnati... After a year, MorRent’s services will cover the whole of Ohio," Dean explained without detailing what DCAP was, as he only needed to present an assured front to dispel David’s concerns at this point.

"So the ads on Price’s List and MorRent’s credit check service are the business deals you have brought to us today?" At this moment, David fully understood Dean’s intentions; it was indeed a sound business venture.

Each aspect targeted Cheap Rent’s sore spots—they needed the advertising because it pertained to David’s performance. And the tenant credit check service, while a new offering, was even more tempting than the advertising.

Such background investigations could be considered exceedingly thorough. With them, David could be almost certain that Cheap Rent’s losses the following year would decrease significantly.

"Mr. Nathan, to demonstrate our sincerity, we have combined both deals into a single bundle and devised a package price," Dean finally presented the joint proposal from Price’s List and MorRent.

"If Cheap Rents posts over 100,000 ads and credit checks on Price’s List annually, we are willing to offer a 10% discount on ad fees and reduce MorRent’s per-check fee to 17 US dollars.

When the number reaches 200,000, the former will be discounted by 20%, and the latter’s cost will drop to 14 US dollars.

And finally, if both orders exceed 300,000, Cheap Rent will enjoy a 30% discount on ad fees in any part of Ohio. As for the credit check service, each will only cost 9 US dollars!"

The ad fees had a limited discount due to their already low pricing—after all, ads in Cleveland were 4 US dollars apiece, and 7 US dollars in Columbus. Giving too steep a discount would mean little revenue growth for Price’s List.

The most tempting part of Dean’s offer was the latter; the service, originally priced at 19 US dollars, had the price slashed as soon as the numbers hit a certain threshold!

Especially the last tier of the volume-based pricing—it was what truly captured David’s interest.

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