Redbox raises prices - High-Def Digest Forums
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Old 10-27-2011, 05:40 PM
cheez avenger's Avatar
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Default Redbox raises prices

Just got a frosty little email:


Redbox is making an announcement about its prices today, and we want to make sure that you hear it from us first.

Starting on Monday, October 31, the daily rental charge for DVDs will change to $1.20 a day.* The price change is due to rising operating expenses, including new increases in debit card fees. Daily rental charges for Blu-ray™ Discs and video games won't change.** Additional-day charges for DVDs rented before 10/31 won't be affected, either.

In order to make the transition easier, Redbox will discount the first day of all online DVD rentals to $1.00 from 10/31 through 11/30. Additional rental days will be $1.20.***

If you have any questions, please visit redbox.com/pricechange. There, we've provided additional information.

This marks our first price change in more than eight years as we work hard to keep prices low for our customers.

Thank you,

Redbox
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Old 10-27-2011, 05:43 PM
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ahhh shit, $0.20

but i don't rent dvds
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Old 10-27-2011, 05:50 PM
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They should make it $1.50, so there's no incentive to rent the DVD instead of blu-ray except for availability.
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Old 10-27-2011, 06:19 PM
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Quote:
Originally Posted by coldfoot View Post
They should make it $1.50, so there's no incentive to rent the DVD instead of blu-ray except for availability.
Not all RB kiosks have $1 a day DVDs. Mine here in ABQ, NM are $1.50 a day and have been for quite some time.
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Old 10-27-2011, 06:26 PM
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Old 10-27-2011, 06:29 PM
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$1.20 a 20 cent increase seems to be digestible by consumers and yet would be a huge 20% increase in revenues to Redbox.

Nice manner to discount first day rentals for a while.

Seems much better and incrementally done that Netflix's price raises including mentioning that they have not raised prices in a while.
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Old 10-27-2011, 07:57 PM
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Refreshing to see an announcement from a retailer that is lucid, straightforward and to the point.

Quote:
• Why did you raise prices?
The price change is based on an increase in operating costs, including higher debit card fees that went into effect October 1. This is the first time in eight years Redbox has raised our daily DVD rental price.

• Why did you pick $0.20?
The amount was selected to best offset expenses, while keeping our value commitment to customers. We conducted several months of testing and with careful consideration, decided the 20 cent adjustment would work best to keep prices as low as possible.

• Is the new price just for the initial night or all nights?
The new price is the daily rental charge.

• Are you raising prices on Blu-ray™ Discs and Video Games, too?
No, Blu-ray™ Discs and Video Games will stay at their current daily rates ($1.50 a day for Blu-ray Discs and $2 a day for games).**

• I rented a disc before the price increase and returned it after. Will I be charged the new price for the additional nights?
You'll be charged the original daily rate that was listed at the kiosk when you first rented your DVD.

• Will you ever go back down to $1 a day?
Redbox has no current plans to change prices again. But if you're interested in renting DVDs for a discounted price of $1 for the first day at Redbox, you still can when you reserve your rentals online! From 10/31 to 11/30, go to Redbox.com to reserve any DVD (even new releases) for $1 for the first day. Additional rental days will be $1.20.*

• Are you providing additional services to accompany the increase?
We are always looking for opportunities to enhance our services for you with things like smart phone apps, games product, and more of the top new releases.

• Is there a promotion that I can reserve a DVD online for $1?
Yes. From 10/31 to 11/30, reserve any DVD (even new releases) for $1 for the first day. Additional rental days will be $1.20.*

• How do I reserve a DVD online?
For more information about reserving online, click here.
http://www.redbox.com/pricechange

Looks like the Coinstar/Redbox folks learned a thing or two from the Qwikster debacle.
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Old 10-27-2011, 09:23 PM
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If 20 cent increase is too much for your pocketbook may I recommend checking your local library. Mine has thousands of DVDs & BDs and many of them are new releases. They don't charge for a membership and you can order them online and pick them up at the library drive thru window if you dont want to get out of the car on those frigid days.
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Old 10-27-2011, 10:24 PM
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20% increase! Oh gees, that's huge. Probably going to lose lots of customers because of the 20% increase in price.
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Old 10-27-2011, 10:31 PM
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Quote:
Originally Posted by GizmoDVD View Post
20% increase! Oh gees, that's huge. Probably going to lose lots of customers because of the 20% increase in price.

Once again you miss probable consumer perceptions.

20 cents is the likely consumer perception which is trivial. Most consumers will not focus on the percentages as the increment is a less than a quarter.

Netflix not only was noticeable as being dollars instead of cents but it was almost a $10 bill which is at least noticeable and by splitting into two bills it highlighted that it was almost a 50% increase.

Big difference.

Plus in this case the difference is closed between DVD and Blu-ray rental pricing which stays the same at $1.50 to ease consumers migrating to Blu-ray which will be a viable format for longer period of time for Redbox to work with than DVD will. Game prices also did not increase.
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