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ADVERTISE HERE! · 12-06-2007, 12:10 PM

That's the catch though. I'm not going to pay BOTH higher prices and monthly membership. You need to pick one or the other or you'll fail. The higher price IS the "convenience tax," if you will, or the monthly membership IS the "convenience tax." What does the use of BOTH higher prices and monthly membership amount to? Double taxation! I think you either need to rely on one or the other, but not both. I might pay higher prices for the convenience, or I might pay a monthly membership for the convenience, but there's NO way I'm paying both. Rethink it from the point of view of the consumer, because it's becoming more and more evident that you aren't doing that enough.

ltressel · 12-06-2007, 12:29 PM

Hi Ben,

I tried to read all the posts and I apologize in advance if I have skimmed some parts pertinent to my question. Did you conduct a survey from your current members now if this service is something really valuable for them?

Maybe a questionnaire that they had filled out so you can really gauge that there is a need for it and also made them really excited about it? Will this make them loyal to your company and increase word of mouth recommendation to their other families and friends?

A feasibility test would help you figure out what your customers would pay for convenience and or membership. Just a thought.

I do wish you good luck on this because it is a very ambitious project. I really can't tell whether this project would do well. I'm pretty sure that if you are in an area with a higher boomer demographic that you can survive the technology advancements. I hope that you also studied your demographics thoroughly.

Keep us posted on your progress. :-)

LT

2gould · 12-06-2007, 12:43 PM

Jonathan is correct. There is a point where convenience will not support the price. If you reach that point you are in trouble. Thinking from an outsiders perspective, I would not pay a premium to have a movie delivered in 1 hour. I can wait a day or if I REALLY needed that movie, I could walk to my local rental store. But maybe I am not your target market.

I would just be very careful with your pricing and future predictions with regard to competition. I have seen specials on the tube regarding this "market" and there are some very well funded companies looking to make every movie title available over the TV with a click of your remote. I believe Mark Cuban is involved with one of them (although I could be mistaken). Anyhow, the predictions are within 2-5 years so I am not sure you want to enter this market at the present time.

I guess my overall point is tread cautiously, but good luck no matter what you decide.

rogercbryan · 12-06-2007, 03:52 PM

Stop chatting... and do it... everyone on here has given their advice... you don't seem to agree.. prove us wrong.. go for it...

ADVERTISE HERE! · 12-06-2007, 06:13 PM

Keep us posted too. I assume if we never hear back from you again, it went as well as we all anticipate it going based on the current strategy.

bben70 · 12-10-2007, 11:31 AM

Thanks again for the feedback. Our monthly membership prices are about the same as Netflix and Blockbuster, which includes the delivery service. The difference is that we offer the delivery service as well as in store and mail service for the same price. None of our members will ever have to pay extra for our services, and all of our in store members love the idea and are excited to have the service available to them. We know that the cost of gas is going to be high, but if we have regular routes then drivers are only traveling in one direct circle, not back and forth. Idealy, a driver will leave the hub, and go on his/her daily route dropping off rented titles, while picking up the old titles directly from the member, then simply return to the hub. Naturally we will customize the route to eliminate back and forth travel, and members that live close to eachother will be on the same route. Monthly membership fees will definately cover any expenses we may have in the future because they are residual. Right now we have about 200 members on our un-limited plan in our local store, that's 200 people a month that pay us anywhere from 9.99 up to 29.99 a month, if you do the math there is profit, if there wasn't we wouldn't be investing in any new ideas. We know that there are going to be challenges, but that's business!
Our website is being re-designed as we speek, so if any part doesn't work it will be corrected in the next three weeks. Please remember convenience, we understand that some people don't mind waiting or driving places, but our thought is that there must be a reason that food delivery is so popular as well as on-line shopping, it's the convenience factor. Also if people don't mind driving to their local rental store, than why is Netflix and Blockbuster's mail service so popular, as well as the downloading service. There is a market for people that want to rent movies and be able to watch them the same day, while not having to waist time walking around a store. How many times have you seen people walking around a rental store trying to decide what to rent, it is time consuming. These are some of the reasons we are trying to develop this new service, because we believe that if people were offered this type of service they would eventually only rent this way. We also realize that it is only a matter of time before movies will be downloaded right to your TV in HD, but if you really look into the technology it will be seven to ten years before the majority of people have HD TV's with dowlnloading capabilities in their homes, trust us we have been researching it for the last six months and the technology is much farther away than people think because of the cost to consumers. Thank You

ltressel · 12-10-2007, 06:13 PM

Ben,

I happen to check out the supermarket DVD dispense machines. I read on their machine that after 30 some days if the rental isn't returned, they just charge you for the amount of the dvd as if you bought it at the store.

Perhaps that could be something you can implement? Just a thought.

LT

bben70 · 12-12-2007, 11:38 AM

Hello, thank you for the idea, that sounds like a good plan, especially if people are keeping their titles for too long. With our unlimited membership plans we do not have any late fees, but if people are holding onto their movies for too long then it would be a good way to motivate them to rent another title so that their previous rentals go back into rotation. This could be another way to have money coming in, or a good way to keep the movies in constant rotation.

Thank You Very Much For The Idea LT--We Appreciate It!!!

closedbook · 01-04-2008, 08:52 AM

Ben,

You mentioned that you would pair the movie rentals with pizza and what not. I think this is a good idea and you should focus more on that (you might have mentioned this but I skimmed through the discussion). I would love to have a movie and pizza package together when I have nothing to do or have some friends over.

The question is, why haven't pizza or rental companies done it yet? Seems like logical step for them: dinner and a movie. They pour millions of dollars into R&D, there has to be a reason why it wouldn't be profitable.

I always ask myself "why hasn't anyone thought of this yet" before diving head first into a venture, there has to be a reason.

rogercbryan · 01-04-2008, 09:36 AM

Enough posting.. launch and let us know how you do…

jjg21588 · 01-04-2008, 05:40 PM

Ben,

Although I feel that your venture doesn't appeal to me, because I have my computer, t.v., and everything else synced so that when I download anything on my computer I can watch it from anywhere; however, I do feel that incorporating the extra items like pizza into the movie deliveries will help you go along way. I could easily see spending time at a friends house and everyone up for pizza and a movie, leaving your business the only answer. Well at least the only answer in the sense of convinces. Also if people have a subscription to your business, then when it comes time to ordering pizza they will think of your business first. Because why order a pizza from company x when I have a subscription with this other company that I am already paying for and I get a movie delivered out of the deal too!

I wouldn't stop at pizza though if I were you. I would look to see if there are any other snacks like chips that you could incorporate. Most importantly do not overlook refreshments with your deliveries. Pizza, refreshments, and movies all seem to go hand to hand.

Anyway, good luck and let us know what happens!