Holy Moly Batman!
Blockbuster dropping late fees as of Jan. 1
I worked at BB Video for several years and "extended rental fees" were a HUGE part of the business. It's hard to imagine they did this instead of dropping prices...considering how easily rental copies pay for themselves!
A $20.00 DVD, which BBV probably gets for $15; if it rents 5x at $4.00 or so, everything after that is profit. Add late fees and you are getting an additional $2 per copy. If they drop the price it will take more rentals but the potential for charging late fees remains whereas without late fees they potential for loss due to copies not on the shelf and stolen merch increases.
Seems like a really odd choice.
I worked at BB Video for several years and "extended rental fees" were a HUGE part of the business. It's hard to imagine they did this instead of dropping prices...considering how easily rental copies pay for themselves!
A $20.00 DVD, which BBV probably gets for $15; if it rents 5x at $4.00 or so, everything after that is profit. Add late fees and you are getting an additional $2 per copy. If they drop the price it will take more rentals but the potential for charging late fees remains whereas without late fees they potential for loss due to copies not on the shelf and stolen merch increases.
Seems like a really odd choice.
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