Comments on: Are You Nickel-and-Diming Your Customers? http://www.peoplepersonpower.com/2009/02/09/are-you-nickel-and-diming-your-customers/ The Good, The Bad, and The Ugly of Communicating Person-to-Person Mon, 12 Jul 2010 18:23:47 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Tambra Forgione http://www.peoplepersonpower.com/2009/02/09/are-you-nickel-and-diming-your-customers/comment-page-1/#comment-118 Tambra Forgione Mon, 12 Apr 2010 17:33:16 +0000 http://www.peoplepersonpower.com/?p=120#comment-118 I love using redbox. But, I have found a kiosk that is locally owned and operated. I love using redbox. But, I have found a kiosk that is locally owned and operated.

]]> By: Toby http://www.peoplepersonpower.com/2009/02/09/are-you-nickel-and-diming-your-customers/comment-page-1/#comment-108 Toby Wed, 24 Jun 2009 13:36:24 +0000 http://www.peoplepersonpower.com/?p=120#comment-108 Hi, Elen! Thanks for the comment! Let me begin by saying that I agree with you about Blockbuster. Blockbuster sucks. I would say that they suck as much as RedBox, only for different reasons which I won't get into. Suffice it to say, Blockbuster's bricks-and-mortar business model is probably unsustainable in the long-run. Regarding RedBox, I totally understand why they want to nickel-and-dime us. I'm sure nickel-and-diming us makes them a lot of money. I would venture to guess that RedBox's business model depends on folks who rent a dvd and then forget to return it for a couple of days. But that is exactly the problem I have with the model - it preys on the bad habits of Americans. I lump it right in there with cigarettes, soda-pop, and video games. Also, when I do what I always do and return the RedBox DVD late, I am left with a bad taste in my mouth that leaves me wanting to restart my Netflix membership. And it really is Netflix and other online distributors of movies, not bricks-and-mortar Blockbuster stores, that are the long-term competitors of RedBox. Hi, Elen! Thanks for the comment!

Let me begin by saying that I agree with you about Blockbuster. Blockbuster sucks. I would say that they suck as much as RedBox, only for different reasons which I won’t get into. Suffice it to say, Blockbuster’s bricks-and-mortar business model is probably unsustainable in the long-run.

Regarding RedBox, I totally understand why they want to nickel-and-dime us. I’m sure nickel-and-diming us makes them a lot of money. I would venture to guess that RedBox’s business model depends on folks who rent a dvd and then forget to return it for a couple of days. But that is exactly the problem I have with the model – it preys on the bad habits of Americans. I lump it right in there with cigarettes, soda-pop, and video games.

Also, when I do what I always do and return the RedBox DVD late, I am left with a bad taste in my mouth that leaves me wanting to restart my Netflix membership. And it really is Netflix and other online distributors of movies, not bricks-and-mortar Blockbuster stores, that are the long-term competitors of RedBox.

]]> By: Elen http://www.peoplepersonpower.com/2009/02/09/are-you-nickel-and-diming-your-customers/comment-page-1/#comment-106 Elen Tue, 23 Jun 2009 21:21:36 +0000 http://www.peoplepersonpower.com/?p=120#comment-106 If you re-think RedBox DVD rentals, you will understand why they "nickel-and-dime" you. The whole structure of cheap dvd rental is to keep rotating merchandise as often as possible. Blockbuster will charge you $5 (yes, it is $5 in my neighborhood) because they have to pay their employees, rent and also pay for $200 copies of that movie you just rented. And that is also why they are going bankrupt. DVD rental machines operate on maximum profit of per-day rental. Which is actually a very smart business idea and I can watch 5 new releases for the price of 1. And I think you are absolutely right about discussing web-design pricing upfront with clients - saved me a lot of time. Plus, it also pushed me in the direction of designing sites that customers can tweak and update themselves. :) If you re-think RedBox DVD rentals, you will understand why they “nickel-and-dime” you. The whole structure of cheap dvd rental is to keep rotating merchandise as often as possible. Blockbuster will charge you $5 (yes, it is $5 in my neighborhood) because they have to pay their employees, rent and also pay for $200 copies of that movie you just rented. And that is also why they are going bankrupt. DVD rental machines operate on maximum profit of per-day rental. Which is actually a very smart business idea and I can watch 5 new releases for the price of 1.

And I think you are absolutely right about discussing web-design pricing upfront with clients – saved me a lot of time. Plus, it also pushed me in the direction of designing sites that customers can tweak and update themselves. :)

]]>