Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next
Author: realistTheorist One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 647  
Subject: BBY tries to sell in-store plans Date: 5/7/2008 9:46 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 2
A while ago, BBI raised the price of its online plans. From being $1 over NFLX, they became $3 over NFLX. I still stay with them, because I find value in the plan. Firstly, in-store exchanges gives me a degree of flexibility in timing that is a big value (to my kid). Second, the ability to use the monthly coupon on a game, is worth a buck or two. I would probably stay even if they raised it by another $2 or so, as long as it still has those two advantages.

However, I recently noticed that turn-around times have slowed considerably. It appears that they have added some type of waiting period when one returns a video to a store: probably trying to emulate the delay that would come from mailing it in. This dilutes the value proposition a bit. I suppose that they're still losing money, and cannot figure out how not to, without reducing the value they provide.

Last time I visited the store, they tried to sell me a monthly store-only plan that was more expensive than my online plan. This makes no sense. Maybe it would make sense to some other type of customer.

Another thing I notice about my usage of BBI is this: as time goes by, and I see most of the things in the store, and most of the older movies that I've wanted to see, BBI 's additional value offered (over NFLX) reduces. For my wife and me, it is now near zero. For our kid, it remains, but is reduced.

For a customer like me, the older plan that did not allow in-store exchanges, but came with 2 fortnightly or 4 weekly in-store coupons makes more sense. It would offer the same value, while reducing the "moral hazard" effects of the current plan.
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next

Announcements

Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Looking at Currency Ratios
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement