Skimp & Splurge Service

Frank Masterson, 28, an ambitious Chicagoan who entered his father's contracting firm few years ago, soon tired of that job, wanted a business of his own. In December a Marshall Field & Co. advertisement of traveling bags piqued his curiosity; he found that plenty of people came to look, few to buy. Luggage, he decided, was too expensive to sell readily. He wondered why no one had thought of renting it. Visiting railroad and airline offices, steamship and travel bureaus, he planted an idea: if vacationists could skimp on luggage, perhaps they would splurge on trips. In partnership with 37-year-old Austin Wyman, who put up the money, he opened, as a side line, the first U. S. luggage renting service, distributed folders headlined "Rent Your Luggage," urged Chicago vacationists to ask travel agencies about the service. To all agencies he offered a 25% commission.

Last week Frank Masterson looked over his books, then left his father's company to give all his time to his own business. In June, its first full month, Luggage Rental Service catered to 100 clients, broke even, doubled its business each week. Its luggage, bought wholesale, now includes 350 pieces of baggage in various grades and colors. Clients pay a $5 deposit and a two-week (minimum) rate, which ranges from $1.25 to $11 per bag. Sample charge: a women's three-piece set, which sells for $45.85, rents for two weeks for $6. In between trips all bags are sterilized and reconditioned so that Masterson expects them to last longer than the 150 days he allowed in figuring depreciation. Although he stresses renting, he has apparently discovered an ingenious method of retailing luggage: so far 10% of his clients have decided to apply rental charges and deposits towards purchase of his bags.

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