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coldie
August 14th, 2006, 08:18 AM
(Note, I accidentally posted this in the IHB forum, but it's been edited out)

In our district, we've long been hailed for being the cheapest store with a $3.69 rental price tag. That's about to go to hell, though. To help exploit the usefulness of Rewards and the 3 for $9.99 if it's still around (but rewards more than anything) the SM relayed that he wants to bring up the price to $4.49-ish when (if) this online push ends.

What does this spell for our town full of cheap jackasses? A credit nightmare. Our games are already maxed at $7.99, people bitch about that enough as it is. I don't want to imagine what kind of yelling we'll have against a new price tag. People think $3.95 (w/tax) is too expensive as it is, believe it or not. Apparently this bunch never shopped at a bigger city's store before.

And they also don't understand the cost of this EOLF bullshit either. They talk about how that policy is a lifesaver, then turn around and say "but why are the movies and games so expensive?"

THEY'RE HARDLY EXPENSIVE! It's barely 18% of the item's retail cost!

HardcoreKeith
August 14th, 2006, 08:22 AM
How is it a credit nightmare? Do you think people are gonna leave because of an 80 cent increase, forcing voids? I've not found that to be the case, in fact, I TRY to get bad customers to leave and never come back and I can't even do it. :rolleyes:

zooworker
August 14th, 2006, 08:23 AM
(Note, I accidentally posted this in the IHB forum, but it's been edited out)

In our district, we've long been hailed for being the cheapest store with a $3.69 rental price tag. That's about to go to hell, though. To help exploit the usefulness of Rewards and the 3 for $9.99 if it's still around (but rewards more than anything) the SM relayed that he wants to bring up the price to $4.49-ish when (if) this online push ends.

What does this spell for our town full of cheap jackasses? A credit nightmare. Our games are already maxed at $7.99, people bitch about that enough as it is. I don't want to imagine what kind of yelling we'll have against a new price tag. People think $3.95 (w/tax) is too expensive as it is, believe it or not. Apparently this bunch never shopped at a bigger city's store before.

And they also don't understand the cost of this EOLF bullshit either. They talk about how that policy is a lifesaver, then turn around and say "but why are the movies and games so expensive?"

THEY'RE HARDLY EXPENSIVE! It's barely 18% of the item's retail cost!
We have been at $4.49 for awhile, most people didn't even notice the increas. Of course it wasn't a jump from $3.69, it went up in steps over 2 years. Once in awhile we do get people bitch at us about game prices, but they don't understand that they cost more and I get an avarage of 12 games a week damaged during the summer. And don't expect the online push to end, it's here to stay. GO ahead and raise the price, at least it will increase your online push.

coldie
August 14th, 2006, 08:48 AM
How is it a credit nightmare? Do you think people are gonna leave because of an 80 cent increase, forcing voids? I've not found that to be the case, in fact, I TRY to get bad customers to leave and never come back and I can't even do it. :rolleyes:

I don't think they'll leave. I KNOW they'll leave. They won't pay attention to all the ahead notices and the big shining dry-erase board we'll put up for it that says "MOVIES ARE NOW $4.49" and they'll still bitch. Movie Gallery runs roughly $3.80. A small local chain runs $4 even and only carries fullscreen (a plus for most of the morons in my town).

People already bitch about our movie prices, they bitch about $3.95! They'll only do worse over $4.49!

Idiotsaroundme
August 14th, 2006, 09:03 AM
maybe your store will make some extra cash!

coldie
August 14th, 2006, 10:48 AM
All customer bitching aside though, I really wouldn't mind the price going up. More revenue. Easier Reward sells. The only real loss would probably be the customers I never liked dealing with anyway.

zooworker
August 14th, 2006, 10:57 AM
I don't think they'll leave. I KNOW they'll leave. They won't pay attention to all the ahead notices and the big shining dry-erase board we'll put up for it that says "MOVIES ARE NOW $4.49" and they'll still bitch. Movie Gallery runs roughly $3.80. A small local chain runs $4 even and only carries fullscreen (a plus for most of the morons in my town).

People already bitch about our movie prices, they bitch about $3.95! They'll only do worse over $4.49!
I don't think you will lose very many. Our customer base has increased.
And don't be surprised to see Movie Gallery go up, their stock has taken a beaten this past week because of loses in the last quater.
And most small chains don't have the inventory you do.

coldie
August 14th, 2006, 11:09 AM
True that. The local joint has nothing on us... except...

They have tanning beds. How fucking stupid is that? It's supposed to be a movie/game rental store last I checked, that's why it's called "Moviemax."

They are small time though. 20 copies to our 100 of Inside Man. 5 copies of Health Inspector to our 32. Likely 15 rated fullscreen Scary Move 4 to our 100 copies of the unrated widescreen version. We squash those guys with no trouble.

A friend on the inside loop of the local Movie Gallery let some revenue numbers slip to us. We also own, making three times the revenue they do, having actives in the thousands and not the hundreds, etc.

I guess, with all things considered, the price change probably won't be so bad. As long as they want to keep bringing shit back late, they'll pay that extra money or wait for lousy PPV coverage, which can take 3 months.

igniteice
August 14th, 2006, 04:14 PM
How is it a credit nightmare? Do you think people are gonna leave because of an 80 cent increase, forcing voids? I've not found that to be the case, in fact, I TRY to get bad customers to leave and never come back and I can't even do it. :rolleyes:

Come work for me - you won't get paid nearly as much, but I show bad customers the door DAILY.

Meltdown
August 14th, 2006, 04:33 PM
Depends on the customer base around the store.

We raised prices from $3.99 to $4.49. The only complaints I had were from the illiterate, trailer-park dwelling trash that makes up a very small percentage of the business.

I kept careful track of the active members before and after the switch. Before we were running about 4700 actives. Two months later we were still around 4700 actives. No difference.

Morbid Angel
August 14th, 2006, 05:08 PM
(Note, I accidentally posted this in the IHB forum, but it's been edited out)

In our district, we've long been hailed for being the cheapest store with a $3.69 rental price tag. That's about to go to hell, though. To help exploit the usefulness of Rewards and the 3 for $9.99 if it's still around (but rewards more than anything) the SM relayed that he wants to bring up the price to $4.49-ish when (if) this online push ends.

What does this spell for our town full of cheap jackasses? A credit nightmare. Our games are already maxed at $7.99, people bitch about that enough as it is. I don't want to imagine what kind of yelling we'll have against a new price tag. People think $3.95 (w/tax) is too expensive as it is, believe it or not. Apparently this bunch never shopped at a bigger city's store before.

And they also don't understand the cost of this EOLF bullshit either. They talk about how that policy is a lifesaver, then turn around and say "but why are the movies and games so expensive?"

THEY'RE HARDLY EXPENSIVE! It's barely 18% of the item's retail cost!

It's not as bad as you may think. My store is located in the most low-income area of town. Hell, the Super-Walmart is right down the street from my store. Need I say more? Currently our prices are $4.29 for week long rentals and $4.58 for 2-day rentals(before tax!). Initially the cheap-asses will throw a fit and ask when the rental prices went up. I simply tell them "Uhh, when we stopped charging late fees. Would you rather pay an extra $1.10 upfront or pay $8 in late fees a month from now?" That usually shuts them up. In time they simply adjust to the price and stop bitching. For the few that continue to complain, I bait them in with Online. "Well, you know you can rent movies through Blockbuster Online for just $10 a month. And here's a coupon for a free 1 month trial." Believe me, if they're that desperate to save a few dollars, they'll at least try out BB Online.

But as you know, customers will complain just to complain. We could rent out DVDs for 50 cents and no late fees, and they'd still find something to complain about.

sar94pga
August 14th, 2006, 05:36 PM
It's not as bad as you may think. My store is located in the most low-income area of town. Hell, the Super-Walmart is right down the street from my store. Need I say more?

Okay, I"ll bite. Please explain to me how having a super walmart down the street from your store makes it low income? i am confused. My store is IN the super walmart plaza, in one of the nicest areas of town.

now, if you said you had a salvo in your plaza, then i might agree with you. But a walmart? there are walmarts in almost every town in america. and if not one in every town, one at least every 25-50 miles.

Woodstock
August 14th, 2006, 05:43 PM
My store had a rental increase go into effect the same week that our local Mom and Pop video store closed up. Only had a couple of people point that out, but for the most part they didn't notice. The ones that did insisted that when we opened rentals were 2.00 (they were, for the first month!) and that we hadn't raised them since. I told him that we had a Grand Opening special, and that the prices hadn't be increased in almost three years. He continued to argue with me, and I just let it drop, since it wasn't worth it.

Morbid Angel
August 14th, 2006, 08:51 PM
Okay, I"ll bite. Please explain to me how having a super walmart down the street from your store makes it low income? i am confused. My store is IN the super walmart plaza, in one of the nicest areas of town.

now, if you said you had a salvo in your plaza, then i might agree with you. But a walmart? there are walmarts in almost every town in america. and if not one in every town, one at least every 25-50 miles.

You're kidding right? Wal-Mart is the number one destination for low-income white trash. Does this mean there aren't any Wal-Marts in nice areas? Of course not. But in my town, the Northern part of town is low-income, the Southern part is high-income. Coincidence that the Wal-Mart was built in the Northern part? I highly doubt it..

zooworker
August 14th, 2006, 08:55 PM
You're kidding right? Wal-Mart is the number one destination for low-income white trash. Does this mean there aren't any Wal-Marts in nice areas? Of course not. But in my town, the Northern part of town is low-income, the Southern part is high-income. Coincidence that the Wal-Mart was built in the Northern part? I highly doubt it..
You have a good point there, ever notice where the Target stores are located. Higher income area.

brantheman
August 14th, 2006, 08:59 PM
We're 4.29 per movie (4.64 w/tax). When a customer complains about it being "too expensive", I remind them that you have an addition 7 days if needed without any kind of extended viewing fee, and up to an extra 30 days if needed (why you'd need that i'll never know) and it's only another 1.25. Then they shut up.

Oh, and my store is in a plaza with a wally world, too. Actually boosts our business ever since it went up.

Eros
August 14th, 2006, 09:09 PM
Wow, I had no idea how cheap our rentals were in comparison. Ours are 3.99 for both week-long and 2 day rentals. In our reduced tax area, this comes out to 4.13. Up until last month it was 4.11, when the entire state's sales tax went up. A number of customers complained that we "secretly" raised the prices on them overnight and that's when I would have to point to the large 3.99 sign and explain how the magical thing called "sales tax" works.

Our game rentals are at 7.99 as well, though we don't rent out as many as we used to since we began requiring a card on file to rent even one game. We also have to preauth the card every time anyone rents any game. For awhile we had to preauth for game pass customers as well, which to me made no sense. Eventually our manager let up on that. It's been several months since our store iplemented this policy and it's still a struggle to get the idea across to people. I dread the argument that I know is coming when I pull up the account of someone trying to rent a game and it's VG.

HardcoreKeith
August 14th, 2006, 09:15 PM
requiring a card on file to rent even one game

Oh god yes. Good call. If it was up to me, no credit card == no rent, and I mean movies too.

zooworker
August 14th, 2006, 09:18 PM
Wow, I had no idea how cheap our rentals were in comparison. Ours are 3.99 for both week-long and 2 day rentals. In our reduced tax area, this comes out to 4.13. Up until last month it was 4.11, when the entire state's sales tax went up. A number of customers complained that we "secretly" raised the prices on them overnight and that's when I would have to point to the large 3.99 sign and explain how the magical thing called "sales tax" works.

.
Man, were do you live with such cheap sales tax. Ours is 9.5%

igniteice
August 14th, 2006, 09:21 PM
We also have to preauth the card every time anyone rents any game. For awhile we had to preauth for game pass customers as well, which to me made no sense. Eventually our manager let up on that. It's been several months since our store iplemented this policy and it's still a struggle to get the idea across to people. I dread the argument that I know is coming when I pull up the account of someone trying to rent a game and it's VG.

Are you fucking kidding me? If you worked at my store and you complained about pre-authing and didn't follow directions, you'd be out of a job buddy.

The only fucking people who rent without a credit card at my store are customers who have well established over the year that they can maintain an account without a credit card. These people have had their accounts for upwards of 2-15 years and range from 50 to 1000+ rentals. The ones with 50 rentals have good history that you can see in the last 3 months that movies have come back on time - they rent usually just one movie at a time (hence the low rent count but old anniversary date.)

I turn down maybe 1 out of 30 people who try to rent because they don't have a credit card or their credit card is declined. The fuck would you accept a DECLINED credit card? What, so you CAN'T fucking charge it when they don't return your crap? Where the fuck is your head man? Tell me you aren't a manager.

For awhile we had to preauth for game pass customers as well, which to me made no sense.

That's just about the stupidest fucking thing I've ever seen anyone say on this forum yet. What doesn't make sense about making sure the credit card you're taking hasn't been cancelled, isn't maxed out, or actually has money in it? Do you even fucking know the point of having a credit card on file? Trust me, it's not so you can try to get your money back later and find out it's declined. The fuck would you want to wait to have it decline when you can just pre-auth it for a dollar before all that?

Eros
August 14th, 2006, 09:23 PM
Oh god yes. Good call. If it was up to me, no credit card == no rent, and I mean movies too.

This transition period is rough, but I think it's going to be a great thing for our store in the long run. We also preauth for more than 4 movies out at a time. Our manager is on a mission to reduce bad debt. We preauth everything including credit cards for membership applications. And we dont do VG memberships anymore. You have to have a credit or check card to rent. And it has to be valid.

If an older account that was approved as VG before my manager came to the store stops returnign things on time and movies sell to thier account, the manager puts a warning that they must present a valid credit card before renting... no exceptions.

HardcoreKeith
August 14th, 2006, 09:25 PM
TAnd we dont do VG memberships anymore. You have to have a credit or check card to rent. And it has to be valid.

Mmmmmmmm! Sounds awesome.

Eros
August 14th, 2006, 09:40 PM
Are you fucking kidding me? If you worked at my store and you complained about pre-authing and didn't follow directions, you'd be out of a job buddy.

I do follow the directions given to me at all times. I do not complain about preauthing. I LIKE the idea of preauthing. It's not the policy that irritates me, its the feedback from ther customers that I get about it. Which I know very well is part of my job and I do deal with as best I can. I do every aspect of my job to the best of my abilities. I would never claim to be the number one seller at anything, but I sell my fair share. I signed up for the online trial in order to bring the envelopes in to demonstrate to the cutomers how it works, since no customers in my store could comprehend it. Once I showed them the actual movie that came in the mail, those things went flying out the door.

I turn down maybe 1 out of 30 people who try to rent because they don't have a credit card or their credit card is declined. The fuck would you accept a DECLINED credit card? What, so you CAN'T fucking charge it when they don't return your crap? Where the fuck is your head man? Tell me you aren't a manager.

That's just about the stupidest fucking thing I've ever seen anyone say on this forum yet. What doesn't make sense about making sure the credit card you're taking hasn't been cancelled, isn't maxed out, or actually has money in it? Do you even fucking know the point of having a credit card on file? Trust me, it's not so you can try to get your money back later and find out it's declined. The fuck would you want to wait to have it decline when you can just pre-auth it for a dollar before all that?


I fully understand the point of preauthing everytime pople sign up for the game pass or need to renew the game pass. What I didn't understand at the time was why we had to do it everytime said game pass user change a game, which is what we were doing. We were having problmes with the preauth when the pass is paid in full, the primary card holder is nowhere around and this 14 year old kid just wants to switch his game. We already took the card, preauthed it, charged it and set it up for autopay. We already did that. I'm talking about some time in the middle of the month, when the kid is just switching moives in and out. I didnt understand why we had to preauth every switch of a game. We had a conversation about it and we decided that it probably wasnt necessary to preauth for a game switch is the game pass is fully paid up.

igniteice
August 14th, 2006, 09:41 PM
This transition period is rough, but I think it's going to be a great thing for our store in the long run. We also preauth for more than 4 movies out at a time. Our manager is on a mission to reduce bad debt. We preauth everything including credit cards for membership applications. And we dont do VG memberships anymore. You have to have a credit or check card to rent. And it has to be valid.

If an older account that was approved as VG before my manager came to the store stops returnign things on time and movies sell to thier account, the manager puts a warning that they must present a valid credit card before renting... no exceptions.

My store is still more strict. First thing I do when I bring up an account (and first thing I tell new employees to do) is look for the pre-auth comment in the history! First thing that gets done when someone is added to system from another store is pre-auth.

Eros
August 14th, 2006, 09:44 PM
Man, were do you live with such cheap sales tax. Ours is 9.5%

We're at 3.5% right now, just up from 3% We're in an "urban enterprise zone." :rolleyes: The state as a whole just went up to 7%. Gotta keep those casinos running.

zooworker
August 14th, 2006, 09:46 PM
We're at 3.5% right now, just up from 3% We're in an "urban enterprise zone." :rolleyes: The state as a whole just went up to 7%. Gotta keep those casinos running.
Yeah, we got casinos coming out of our ass here. Great for lining someones pocket.:rolleyes:

Eros
August 14th, 2006, 09:50 PM
My store is still more strict. First thing I do when I bring up an account (and first thing I tell new employees to do) is look for the pre-auth comment in the history! First thing that gets done when someone is added to system from another store is pre-auth.


Your store does sound more strict. With the area we're in and the way the store was before my manager came on and hired a whole new staff, we have to take things slow. But the transformation is amazing. I love requiring credit cards for new members. What the hell is a bill going to do if someone rents and never returns? It's the customers who were here before and that were used to getting away with murder that are the problem. I wish I worked at a franchise store like you ice so that I could show a lot of these pople the door. The way they treat my manager is horrible. But she stands her ground and is always customer servicing them to the end... even as they tell her to go fuck herself.

EDIT: I'm going to remember the idea of preauthing accounts we bring in from other stores. Sometimes these "out of towners" take 6 to 8 movies at a time. That's a great idea ice.

sar94pga
August 14th, 2006, 09:52 PM
Yeah, we got casinos coming out of our ass here. Great for lining someones pocket.:rolleyes:


8.25% grrrrr. 2 day rentals are 4.49 and week rentals are 4.29. we went to 4.49 about 7 months ago and no one noticed. that would be because the fuckin idiots don't listen to us when we talk, or god for fucking bid keep their recipts........

OzMan
August 23rd, 2006, 03:15 PM
I don't think they'll leave. I KNOW they'll leave. They won't pay attention to all the ahead notices and the big shining dry-erase board we'll put up for it that says "MOVIES ARE NOW $4.49" and they'll still bitch. Movie Gallery runs roughly $3.80. A small local chain runs $4 even and only carries fullscreen (a plus for most of the morons in my town).

People already bitch about our movie prices, they bitch about $3.95! They'll only do worse over $4.49!

I was petrified to do my first price increase. Fretted about it for months. When I finally did it, I had the customers that I valued the most (and was most worried about leaving) tell me they were GLAD that I raised my prices, because they were worried that I wasn't making enough and would be forced to close. I never thought twice about raising prices after that. And I have NEVER seen revenue suffer; every single time, the increase in revenue offsets the (very small, if any) decrease in business.... which is much easier to rebuild, when you have more revenue to advertise with.

The reason the MG is only $3.80 is because your prices are so low. If you go up, then I am sure that MG will go up soon after.

The other guys in town?? Well, I see indy stores around here charging $2.50 and BBI charging $4.50, and I don't see either suffering for business. (I have always been somewhere in the middle). If you are too cheap, people won't value your product/service.

I would still not want to raise prices by 21% in a single move. I would much rather increase prices by 25 cents each quarter (or month, if you need to push it) until you get to where you need to be. But if you have to, you have to.

My questions for you are: A) WHY are your prices so low?? Shouldn't you (the company, not you, personally.... since I seem to recall you haven't been there that long, this falls onto those who came before you) have been raising them all along?? and B) you mean you get to set your prices?? I would have thought this came direct from corporate.

As for your comment/question in another post about tanning: I never understood that. It makes no logical sense. But, for some reason, tanning and videos seem to go together. From a business standpoint, it is nice, because they cycle differently, so you are busy with tanning when slow with videos, and vice versa. But no one has ever been able to adequetly explain WHY they go together and what made whoever decided to first combine the two to think it would work.

OzMan
August 23rd, 2006, 03:23 PM
That's just about the stupidest fucking thing I've ever seen anyone say on this forum yet. What doesn't make sense about making sure the credit card you're taking hasn't been cancelled, isn't maxed out, or actually has money in it? Do you even fucking know the point of having a credit card on file? Trust me, it's not so you can try to get your money back later and find out it's declined. The fuck would you want to wait to have it decline when you can just pre-auth it for a dollar before all that?



Well, I read it as, these people already have a card on file for game pass, and it is charged every month, so it was good at the beginning of the month.

Personally, I wouldn't preauth a card that I know is good if they either were on a recurring charge type thing or if they were using the card for purchase (say they hand you the credit card to pay with, and just tell you to use it to secure the account). I have seen plenty of cards that are good when the customer signs up, but cancelled or maxxed out when you go to charge them for unreturned videos 15 days later.

But I do see your point. I just think it's unnecessary work if you already know it's good. (Then again, I often tell employees to follow policy, not what I do.... if I fail to follow policy, I live with the consequences.... if they fail to follow policy, they better also be willing to deal with said consequences)

igniteice
August 23rd, 2006, 05:31 PM
Well, I read it as, these people already have a card on file for game pass, and it is charged every month, so it was good at the beginning of the month.

Personally, I wouldn't preauth a card that I know is good if they either were on a recurring charge type thing or if they were using the card for purchase (say they hand you the credit card to pay with, and just tell you to use it to secure the account). I have seen plenty of cards that are good when the customer signs up, but cancelled or maxxed out when you go to charge them for unreturned videos 15 days later.

But I do see your point. I just think it's unnecessary work if you already know it's good. (Then again, I often tell employees to follow policy, not what I do.... if I fail to follow policy, I live with the consequences.... if they fail to follow policy, they better also be willing to deal with said consequences)

Oh totally - I've done that several times. For instance, when a credit card on file has expired, and I change it, I tell employees to pre-auth it when they change the credit card, but often times I haven't because the customer is a long time customer and they are PAYING with the card I'm updating it with.

The thing is, there is something very odd about people who come in to set up an account and at that exact time they have no money in their checking account and all their credit cards are maxed out and they're "just paying with cash." Usually, as well, their "current" address is different from the address on the driver's license.

But here's the thing Oz - I tell employees to look for pre-auths in the rental history on accounts, because they show up as comments (which always stay.) Similarly, I look for pre-auths as well when I bring up accounts. It takes just a second to bring up the account and hit F7 for history, look through it for 2 more seconds and clear out and start going. In that time I can see if the card on file has been pre-authed, and how many movies they rent at a time, how many days they keep them, whether they've been returned late in the past... whether they've paid said late fees on next transaction or selected pay on next visit all the time, etc.

So basically, most of the pre-auths are done so OTHER employees know the card is good. Remember, you only have to pre-auth it once.

coldie
August 24th, 2006, 06:07 AM
It's not as bad as you may think. My store is located in the most low-income area of town. Hell, the Super-Walmart is right down the street from my store. Need I say more?

My store is in THE SAME LOT as Super-Walmart. Population 5500, avg income $21,000.

OzMan
August 24th, 2006, 11:34 AM
You guys do realise, don't you, that especially in a good economy, the "white trash" are amongst your best customers??

Same goes for Rentway and all those places.

Customers with money can afford to go to the theatre (at least $20 even for 2 people), and buying the movie is even cheaper ($15, for most big releases, at least for the first week)....... so the only people that HAVE to rent are those without a lot of disposable income.

Being in a lower socialeconomic part of town is probably a good thing. I mean, the million dollar stores are most probably NOT in Beverly Hills and the like.

Just some food for thought. The reason that so many of you are near WalMart is because your (our) core customer base is the same.

Now, there's poor (or at least "the unwealthy") and there's white trash and/or ghetto...... but you get the idea. And some of the most unwealthy customers are going to be your best customers, and "white trash" can still have quite a bit of disposable income.

Just some food for thought......