Busier than usual

[kingtutvideo]

Our store has been very busy. It's like the good old days...when vhs was around and no one else could get them! I believe 2010 will be better for all of us. redbox hasn't hurt us at all through the holidays. I have heard a lot of complaints about redbox and netflix this past 2 weeks. "It's too cold to stand out there!", "They didn't have the movie I wanted!" "I had to wait too long for netflix!"

I loved hearing these complaints! It just made my day!

I think all of us need to stand together and fight for our rights! We were here first and we employee a lot of people!

[Hamlin]

This is the inspiration that I like to see...Thank You
                               Mike

[direct007]

I wouldn't get too excited yet.  Traditionally, the week between Christmas and New Years, there is an uptick in business since school is out for most students and the weather is optimal for staying home.  January through Mid March are usually the strongest months of the year.  The true test will be comparing the first couple of months of 2010 to 2009 and 2008.  I feel the general state of our economy is still in the dumper and we have a couple of more years before we see any significant increase in consumer spending.  When rental demand is highest, the redbox machines will have an availability problem and traditional video rental stores should reap the benefits, however when demand is low during mid week and the nice weather months, I think we will have a challenge.  In the big picture, I think Redbox will have to increase their rates as even without the high rent and employees, they still are working on razor thin margins. 

[CHICAGOTOM]

On New Years Eve our revenue was down 34% from 2008   on New Years Day we were only down 17%
 
It is Frickin' Cold here in Chicago...the only goods news that that on New Years Day we signed up 9 new customers (2 in 2008) and several of them mentioned Redbox saying things such as "the machine is empty" or "the line was so long I came here"
 
Now that is real inspiring  
 
Last night at 7 PM I drove by the Jewel near my house...that store has 2 Redbox machines...there was a crowd huddled around the Redbox machines   I'd guess about 15 people.
 
Redbox rings in New Year with 2 million rentals


Easily tops previous one-day record

By Marcy Magiera -- Video Business, 1/2/2010
JAN. 2 | Redbox said it set a new one-day rental transaction record, renting more than two million DVDs on New Year's Eve.
 
That bested the company's previous one-day record by 170,000 turns, Redbox said.

Among the top New Year's Eve rentals were District 9, G-Force, Paranormal Activity and Julie & Julia.

"With many Americans celebrating New Year's Eve at home and many more resolving to save money in 2010, Redbox proved a great way to do both," said senior VP of marketing and customer experience Gary Cohen.

The company said that it surpassed 350 million rentals for the full year in 2009. It has automated kiosks in more than 19,000 locations nationwide, including McDonald's, supermarkets and convenience stores

[kingtutvideo]

I'd say it is harder for video businesses in larger cities. I am in a small city and everyone knows us. I have been advertising everywhere I can think of when one of the titles is Not in the redbox. I advertise "Rent it here 1st". The 2 week period was what I was referring to from the past 2 years only. This one was awesome compared to the past 2 weeks of the past 2 years. The summer months we are usually slow. The titles that the studios put out is what kills us in the summer. If you don't have great titles every month it can shut you down. When there are at least 2 big movies releasing in one week it helps alot. It keeps the customers in the store. If you have a full month of crap releasing, customers tend to forget about you. It's always that way. I think the studios is what is wrong here. There are more of us (small businesses) than redbox and the studios have let this happen letting redbox have new releases the same day that we get them. We have been forgotten! We employee many, many people and it's time EVERYONE knows it!

[direct007]

2 million+ rentals sounds like a lot, but when you divide that by 19,000 + machines, it's only around 100 + rentals per redbox.  So on the busiest night of the year, an average redbox takes in around $100. 

[CHICAGOTOM]

The average rental stays out about 2 days so Redbox made about $200 

[kingtutvideo]

I like the break down you did. That means they are not hurting me any at all. Because I know that the only ones renting at this redbox are the theives that are no longer allowed in my store. It's the same with netflix. The only thing that slowed our business was the economy and it is picking up. The major thing that hurt everyone was disc's. They are cheap and everyone can afford them. My blu rays really took off these past 2 weeks. Hopefully something will change for the good for all of us.
I did stick with the rent 2 get 1 free all year long and that helped a lot.

[mcmarc]

I thought that three weeks ago with the 12 inch snow it would be my biggest week ever.  It's actually this week.  A cold snap in the South has made the customers pour in.

I reorganized the front part of my store highlighting all of my used product, plus the expanded blu-ray and video game sections.  All of this has paid off with more people buying PS3s this year than I've seen yet.

[twinvid]

I would tend to agree that redbox is going to hurt stores in larger cities. I am in a smaller town about 6,000 with 1 redbox and 1 other independent. My business has steadily grown for the 3 1/2 yrs that I have owned it (my store has been around for 18 yrs). We finished 2009 up 19% and New Year's Eve was up 32% from last year with store traffic up 34% from last New Year's Eve.

 I have tried to use a combination of competitive pricing during the week and specials Thurs - Sun. The good thing about using the specials on full price days is that it still gives the perception of being very competitvely priced.

Walmart has built an empire on the the perception that they are always the lowest priced which in many cases they are not.

Sometimes perception is everything.

Bob

[tiptoen]

twinvid,
Would you mind sharing your prices and specials ?

[twinvid]

Mon Tues & Wed  - All movies $1.50
Thurs & Sun Rent 2 get 1 free
 Fri - Rent 1 get a catalog title free
Sat - Rent 3 get free  litre pop and bag of microwave popcorn free
Children/ Family catalog $1 everyday

Children/ Family catalog titles free everyday with each paid rental

My customers are mostly NR so I use the ones that they aren't coming in for as the value added.

ie Saturday they can walk out with 3 paid rentals 3 free kids movies pop & popcorn for $9.50.

Friday they can walk out with a paid rental, free catalog and free kids movie 3 total for $3. I'm getting them in to pay for the one I want them to and their perception is they can't beat the price.

Granted these specials wouldn't work well for a store such as genx mike's which is heavy catalog but you can do something else to give the value perception.


We also play up the fact that we check and repair every disc before it goes out so the customer doesn't have a problem like they do at redbox or my indie competitor down the street.

[CHICAGOTOM]

Bob...what is your weekend rate and are you on Rentrak?

[twinvid]

Tom

Movies are $3 + tax and they are either 1 ,2, 5 nights depending upon Brand new. New release or catalog.

No not on rentrak I looked at it many times but it would just not work for me. We also do a rewards card that earns a free rental after 15 rentals so I could not see paying rentrak for a free rental.

Bob

[wildandwoolly]

We've been busy too. It's been really cold for a while.

We also stayed open on New Year's Day for the first time in our almost 13 years. I hated not having a day off (especially after how busy we were New Year's Eve) but I definitely regret not being open every other New Year's Day.

Todd/W and W