R. Charles Loudermilk
Chairman and Chief Executive Officer
Aaron Rents, Inc.
The success of R. Charles Loudermilk, founder, chairman and C.E.O. of Aaron Rent, is the classic lemonade-stand story, having grown a company from $30 a day when it was founded in 1955 to close to $1 billion dollars in sales last year. Intrigued by a rental business he saw as a recent college graduate, Charles Loudermilk purchased 300 used; folding chairs and began renting them for 10 cents per chair, per day, primarily for parties and auctions held under big tents.
The biggest challenge was turning his dime-a-day dream into real capital. "I had no idea the cash required to get started," he says. "This is a capital-intensive business, and banks didn't like the idea of used equipment serving as collateral against a loan."
Loudermilk turned to an old friend, Rankin Smith, who was president of the Life Insurance Co. of Georgia. The insurance company funded a $1 million loan and Aaron Rents, a name chosen to ensure first place positioning in the yellow pages, was born.
The company expanded into rentals for the health-care industry, but Loudermilk says he sold the party and "sick-room" rental sides of the business once he discovered the demand for office rentals.
Loudermilk's focus for his company is unwavering. "We're not a traditional rent-to-own store," he declares. "Our stores are three times larger than competitors, our customers pay monthly not weekly, and our merchandise is top-of-the-line."
Loudermilk, who served as the chairman for Atlanta's mass transit system, MARTA, says his most rewarding civic experience was serving as campaign chairman for Andrew Young, Atlanta's mayor for two terms and the individual Loudermilk credits with putting the city on the world stage.
To support local communities, Aaron Rents gives any store that meets its monthly projection in volume and profit $500 to donate to a local charitable organization. "Every employee in the store gets to vote on which charity receives the money," says Loudermilk.
More on R. Charles Loudermilk
He currently serves on the Board of Visitors for the University of North Carolina School of Business, Past Chairman of the Atlanta Action Forum and a member of the Downtown Atlanta Rotary Club for 45 years. He served as president of the National Rental Service Association and was recognized by his peers as Man of the Year in the furniture rental industry.
Charles Loudermilk is a native of Atlanta, Georgia, where he currently resides with his family. He has three children, five grandchildren and two stepchildren. He attended North Fulton High School and Georgia Tech, took time out for the Navy then graduated in 1950 from the University of North Carolina with a Bachelor of Science Degree in Commerce.
Originally published in Chain Store Age Magazine
