New Blockbuster 99 Cent Late Fee Policy

My local Blockbuster took a month off from late fees in January, but brought them back on February 1st. I picked up a brochure explaining the new policy, and they are charging 99 cents per day if you're late. This is a maor improvement over the $4.99 (for another week) that they would automatically charge if you were late.

If your local Blockbuster is a franchise, how are they handling late fees?

Comments

$1.50

$.75 per day late regular. New releases are $2.00 per day late.

[Justin T Ringler]

Just a quick comment. How is 99 cents a day late fee beter? If youre a week late it costs you 7 dollars, compared to 4.95 the old way.

Blockbuster has no clue what direction they're going in. They seem to take stabs at different concepts to see if they work. No coherent direction what so ever. Who is the enemy that Blockbuster is positioned against with they're online concept. THEMSELVES. So they're spending tons of money to get customers to switch from they're stores to go online. Even if they are successful in getting people to try the online concept, customers might say wow, I really like this, then a month later when they've learned a little more about the industry, they find out about Netflix who offers a better service, and then they switch. End Result: Getting customers to switch away from the brick and mortar concept, which made Blockbuster into the large company that it is today, and converting them into Netflix customers.

It just doesn't make sense. If Blockbuster was going to do the online concept correctly, they should have been on board when Netflix went public. That should have been they're entry point. Can Blockbuster make the online service work? Yes, but at what cost to their core business that movie gallery and hollywood are currently stealing from them.

Blockbuster currently has a debt load of over 1 billion dollars. Why not sacrifice the online business, and concentrate on a larger segment of the market that you already own. Some might say that market is fading, well yes it is when you advertise to get people to switch away from driving to the store. And if the brick and mortar concept is fading why has movie gallery prospered lately? They opened 2 stores in my small town this year alone. Brick and Mortar video rentals fading? I don't think so. Maybe for Blockbuster though.

Why convince current customers to go online, and then compete against a superior competitor?

Bad marketing, Blockbusters Ceo does not know what end is up, and should be FIRED.

Remember...

corporate BB has done away with the late fees, its the independant francisees that are keeping them.

[REN]

I haven't been a member of BB in ages, but I believe that they charge you a week's fee even if you are only a day late. The majority of responsible people probably just miss the deadline by a day or two and don't want to pay for another weeks rental.

We have about 15 blockbusters in our metro area they are all national and have NO late fees. I understand franchises are 6% of the total stores so this is a marginal issue. For all intents and purposes and for 94% of their customers blockbuster now has no late fees.

netflix has insituted a reverse late fee penalty. If you don't hold onto your movie for a few days after you watch it they downgrade your service while charging you the same full fee. now that is a penalty.

[REN]

http://www.bradenton.com/mld/bradenton/news/news_to_use/10471683.htm

"Blockbuster has 1,100 franchise stores and 4,500 company stores across the U.S."