pricing and number of days

[ssvideoman]

we have done this for 20 years always been 1 day rental with multi day specials.  we have avoided 5 day rentals as much as possible (except for games). looking for feedback on changing my pricing structure. most of my new release are paid for about 7-10 days depending on demand for the title. most customers who rent complain about having to rent from MG for 5 days and the high price.
also have few customers who can't get title at MG come to us to rent and complain cause we don't have 5 day rental. help

[direct007]

A few years back, we switched to two day rentals for $4 and found that when we switched back to overnight rentals while giving the customer the option of the 2day rental, most chose the overnight rental.

They rather spend less upfront and if they need to keep a rental longer, they just pay the additional day rental fees upon return.  The local Blockbuster charges close to $5/rental which is fine for the customer that is keeping movies out for a week, but in that same period of time, we could bring in $21 if the movie goes out everyday for a week while charging each customer less per rental. 

[palovita]

I'm on the same boat my friend
I changed my prices this month from 1.35 on new release to 2.00 per day and all others to 99cents

the last store owner told me today that that is still to little they used to charge 3.45 per day but I think that's to much I don't want to scare people away we just opened up and last month was the first time we made $800 I'm so close to at least making $1000 mark I don't want mess it up now

also yes I was trying to go as low as redbox. at first till every one here told me not to.
at this point I'm doing what ever the pros tell me!!
 lol so tell me and more then likely I will do it if I can

[Top5Video]

I have been charging $3.75 for two nights on new releases. But have talked to my mangers about making it just $2 a night. i think that puts us more in price line with competition such as redbox. there arent really any other stores around. because i think people are looking at that upfront cost of what do i pay now. one manager suggested have it be $2 a night or $3.75 and $4 for three. Just to hit those people that are "I am going to watch it tonight and return it tomorrow why are you charging me for two day?" which is somethign we get occassionally. but also be able to cover the people that are "one night is not enough"

[ThomPotter]

After tax I'm $3 for one night, $3.75 for two nights. Previous owner only did two nights. Since I added the option of a one night rental those have become the majority of rental types. This has lead to far fewer copies of new release movies having to be bought. Which of course has drastically reduce operating costs.

[jerry24]

Hi. I'm a newbie here. No experience, just lurking on this thread trying to learn a declining industry. I would like to start a New Release Video Store soon. Here are my planned pricing. It is relatively simple.

I am leaning to purchase / revenue share my rental inventory this way:

1. I will buy all titles with Box Office Gross of 50M or more except those in Rentrak Output program namely, Lionsgate, First Look, 20th Century Fox, and Summit Entertainment. I will also buy all Warner titles regardless of Box Office performance.

2. I will Revenue Share all titles with Box Office Gross below 50M from Sony, Universal, Paramount, Dreamworks, and other Independent Suppliers

3. I will go on Rentrak- Output Program for Lionsgate, First Look, 20th Century Fox, Summit Entertainment and all Blu Ray Plans.

4. I will also purchase all Blu-Ray titles not on Rentrak with box office over 50M (exception on some action flicks) and Foreign titles (my specialty, I'm expecting over 50% of total revenue - not available in cable and Redbox but surprisingly available in Netflix)

My Rental Rates will be:

$ 1.00 for one day rental due before 7:00 PM the next day, this will include all titles in number 1.

$ 1.99 for three days, this will include all titles in 1,2 and 3.

$ 2.99 for five days, this will include all titles in 1,2 and 3.

Late Charges of $1.00 per day up to 25 days


Foreign and Blu-Ray

$ 1.99 for 1 day

$ 2.99 for 3 days

$ 3.99 for 5 days

Late Charges of $ 1.99 per day

Subscription Plan

$ 10.00 for 1 DVD plan

$ 20.00 for 2 DVD plan

I will capped my subscription plan to 100 if I ever reach that point. I just want store traffic.

My concept store will be similar to Gamestop size. I'll try to carry no more than 6 months old title even if it meant giving it away to a blowout sale. Just lots of copies of big time blockbusters. Any input or comment is appreciated.

[CHICAGOTOM]

Your plan is so bad I don't know where to begin 

[moviecritic202]

No offense, but I think you just went out of business before opening the store.  First of all, if you are rev. sharing through Rentrak the $1 for 1 day will not work.  Actually you will be losing at least .35 for every rental as they charge you $1.35 min.

Unless you are in a big city I would not specialize in Foreign films.  You must have a big customer base for a specialty like that, of course there are a few exceptions but not many.

Also, the subscription plan will not work well with rentrak.  Say they buy the 1 out for $10, they rent 1 movie each day, all of them Rentrak titles.  That's 30 rentals at $1.35 going to Rentrak.  You just lost $30.

Just my Thoughts and honest opinion.

Nick

[jerry24]

How about my plan 2? Be 100% with Rentrak increase the price and have 7 day rentals and operate at least 5 kiosks.

Kiosk cost per title = $ 2.99 x 4 turns then buy it at $6.00 after 4 rents = $ 18.00

Your store profit per title = $ 1.80 x 4 + $ 2.50 = $ 9.70

Say your kiosks buy 200 titles per month = $ 9.70 x 200 x 30 days = $ 9,700 per month on kiosk alone. Each kiosk is paid in 2 months not counting the profit from kiosks.

[CHICAGOTOM]

Sorry Charlie...Rentrak will NOT supply kiosk locations  

[jerry24]

Hi Nick,

I think you misunderstood my post, Only those titles that I purchased (gross Office of 50M or more and all Warner) will be available for 1 day rental. Revenue sharing begins with 3 day rentals. I just dont want to missed out on these titles and increase those that I can sell on Sell Through dates. I would like my store reputation to be $1.00 a day.

Thank you.

[jerry24]

Hi Nick.

On subscription, I think it is worth a try, I am not Revenue Sharing all titles with Box Office Gross of 50M or more, I'm also not revenue sharing Foreign titles (again this is 50% of revenue). It will be a rarity for a member to rent all those that I revenue share for me to loose money. I might even include Blu-Ray --- it only sells around $ 25 bucks some with digital copy so can probably be sold PV with unused Digital for more.

Thanks again.

[twinvid]

Just let us know when you are having your store closing liquidation sale as some of us may be interested in picking through stuff as you apparently are not listening to what you are being told by people who know the business. You could have your grand opening and going out of business sale on the same weekend.

Bob

[jerry24]

I know, just look at the competition --- Blockbuster, Hollywood Video, Netflix, Kiosks, Apple TV and VOD (I tried Amazon). You guys are right, I need to fight my passion about this business. Its just that I cant seem to not think about this but I can overcome this. Too bad the tax writeoff would have been good and it is a fun business. I'll just focus on my boring repetitive work.

[Hamlin]

Never give UP...just re-vamp your ideas...don't let anyone tell you YOU CANT