pricing and number of days

[moviecritic202]

Hamlin is correct.  No one is telling you that you can't do it but with what we have read it seems that you are going about it in an impossible way.  The first question is are your customers going to understand why they can get Watchmen for 1 day but not Coraline even though they came out the same day.

Second, do you want to be a specialty store or compete with BB, RB, NF and the like.  It is possible to do both but you may want to first establish yourself as one type or another.

Also, for subscription plans to work you should have quite a few copies of the titles included.

Rentrak does not have an output program for Summit but they do for Sony and Warner.  If you want to get anything from any of the studios that have rev shares with Rentrak, you must sign up for the output program's.  You can't get small stuff like Rec. (sony) through Rentrak but not Mall Cop (sony).

Nick

[mcmarc]

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

Do you own a store Hamlin???

Jerry, the major issue with your plan is that there are too many issues.  After five years of package deals, early returns, half-priced late fees, etc I streamlined my rates.  I can say that it is a success and I should have done it years ago.

The beauty of Redbox is that people know it's a dollar a day.  The beauty of Netflix is that people pay on their credit card and swap their movies out.  What is helping to sink Blockbuster is their constant shifting of rates and policies, causing confusion amongst their customers.  You're current plan will cause much confusion.  Once you start exempting titles I think it is a mistake.

I don't have such a grim view of this industry as others here do, BUT you must take in as much knowledge as you possibly can knowing that we are what many perceive to be a dying business model.

[ThomPotter]

Once you start exempting titles I think it is a mistake.

Agreed.

[moviesgamesetc]

I couldn't agree with you more.
BTW, (you may have stated this elsewhere) what are your rates?

[jerry24]

Thank you all for the comments, if you are referring to me, no I have'nt started a business yet although I see a lot of really great locations that one can think is only available now due to recession. I got a lease proposal for a space inside a University Town Center (next to bookstore) rent free for 1 year  just because the board thinks DVD is a necessity for Students that live in the Campus, even offered me a space for a Kiosk inside the soon to be completed University Student Union Center included in the rent. Normally you have to go to bidding process to get into the University. The only drawback is the place is brand new, so it does not have walls and ceilings yet ... and the rent is only a tad over a dollar a sqft. And yes the library offers free rentals but few New Releases. I really think the place is easy to advertise because it can be in the University website, all students have University e-mails. Also Facebook can be a good way to get exposure just by joining the Student Organizations.

[Hamlin]

Do you own a store Hamlin???

Yes I have owned 4 total. Sold off 2 , now currently running the other 2 and looking to start up to 8-10 more once I find the right locations...and the right people, hopefully by the end of 2010.  I don't have the doom and gloom outlooks that most seem to have.  I love this industry and I have had good success in it.  However I have only been in the industry for about 6 years...there are others with a lot more experience....

[PappyDan]

for Jerry24

so you want to revenue share, you think you can pick and chouse what to share on.
sorry jerry, when you sign up to a studios contract it is on all that the studio puts out
not just what shows in theators.
rentraks goal is to flood your new release area with their titles. a 6 month contract is paid on for a years time period, if you thinking huh, what, i'll will explane, the movie must stay on your shelf for 6 months, so the last title you recive at the end of contract has a life of 6 months on your rental shelf, now you can end your contract when they are up at 6 months but your still gonig to pay them for a full year.
now lets get down to the cost of revenue share,
software, not cheap, only a few types will work with rentrak software.
make sure you have the right one or it is a waste of money.
up front cost. some titles require money up front, does not matter if they rent or not.
if you signed that studios contract your stuck with paying it.
buy out option, if your loaded with a movie that sucks, good luck on selling it.
oh a good point, do not go out and buy extra copies of a movie they low balled you on that is rentting fantastic, even though you paid for them rentrack will take their share.
always get on the phone if a title does not show up, when the guy or gal shows up from rentrak to audit your store, any missing titles will cost you the retail price plus an estamated loss of revenue for not rentting.
want to send stuff back because you do not wish to buy it out, you have a small window, mailed in to soon, get hit with penality charge, mail them too late get bill for a whole box of movies, even if it is one late.
now the really good stuff, lets say you want to quit rentraks service.
remove it from the computer or just to turn it off.
rentrak will refer you to the makers of your pos software.
if i did not have customer support with my software my cost would have been $1000.00 per store, to be told how to bring up a hidden field with an off option.
with support it cost me 250.00 per store.

but i want to tell you about the very best part, your location near a college, is a fine location to be at.
but your going to be dealing in a customer base that is in debt, pressed for time, jobless and where any video survay will tell you that deals in free downloading and file sharing 97% of the time.
one may come in and rent but i will bet you almost 1000 will have seen it after your renter loads up on the college main frame.

sorry if i seam harsh, but you really need to know what your dealing with and the area you want to be in.

[palovita]

LOL
I like PappyDan he does sugar coat shit tells u how things are before we get in to shit
wish I would of talked to him or read his post b4 I got in to it
also I been talking to rep form rent trak will ask ray or don if theres a charge to remove or turn on there renttrak crap (i bet there is they charge even if u shit the wrong way)
 

 

[IVR]

If that's the kind of info you're looking for you may as well just close up now.

[Hamlin]

I am about to sign with rentrak and I need honest input...pros and cons...can anyone offer this?
              thanks

[moviecritic202]

I have been on Rentrak for the 2 years that I have had my store and have many times credited them for me still being here as has my predecessor.  My best suggestion is to just type Rentrak in the search engine at the top of the page.  You will probably find everything that you need to know through those various posts.

The purpose of Rentrak is to allow you to get more copy depth and breadth while only paying $10-12 per copy.  How many copies you can get is based on your revenue and the box office of the title.  If you are in an area were indie titles that were only limited release are your best rentals and big box office titles just sit on your shelves, Rentrak may not be the right choice.

[CHICAGOTOM]

If your store is in an area that has heavy PRICE competition i.e. lots of kiosks or if Blockbuster is at the $1.99 price point Rentrak terms will make it very difficult for you to be competitive. 

IMO the market has shifted yet Rentrak terms have not adjusted to these new realities 

[mcmarc]

It did not work for me, but if you're store is more of a new release variety it wouldn't hurt to try it.  My suggestion is to sign on for a studio or two without committing 100%. 

I have subscription plans and now more per day pricing, so it was not cost effective.

[jerry24]

Thanks for your input @pappydan. I already decided not to take the University Glen Town Center at Cal State Channel Islands, CA Location. Although they offer exclusivity contract, there is just not enough population, there are only 1000 new dwellings with around 4000 population, 900 students live in the Student Housing, and there are only 4000 enrolled students. However, University studies shows that students want a Video Store in the campus. But you are right they are the most advanced customers, one can probably buy a digital version load it to a media hub and give all students access to the website for free movies.

[moviecritic202]

I've been trying to find a way to compete with the redbox and BB but so far the only thing I've been able to do is "beat" them with a catalog selection.

I had a man come in the store today, who must have been a customer of "Powerhouse Video" before they went out 2 months ago.  He asked me my prices and flipped out when I told him.

cust: "What, you think because the other place uptown went out you can just raise your prices?"

Me:  "Sir, I haven't raised my prices since I bought this store 2 years ago."

He left without getting any thing.  I admit that my prices may be a little higher than I want them but being on Rentrak I haven't been able to figure out a lower price that would work for me.  But, I've always felt that I have a little more to offer than the other places.  You will get the best customer service at my store and the most knowledgeable staff.

Also, the place that went out uptown was trying all New Releases and Games at $1.69 a day.  They were owned by the richest man in town and lasted 2 months after starting that pricing and I picked up a ton of movies and shelving.