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How To Compete with Red Box

Red Box has about 600 movies.

Can you imagine a regular video store with only 600 movies and about 60 titles. And, you have to stand in line for ever to return your movies at Red Box. A regular video store wouldn't last a month with this business model.


So why do people rent at Red Box?

It's convenient, $1, and they don't have to become a member.


To compete with Red Box you have to make your store:

  • Easy to Rent At - No Membership if desired.
  • Larger inventory (including games)
  • Reasonable Price.
  • Fast Return.

Easy to Rent At

Most customers dread the need to "sign up" and give proof of address and other documentation to prove their credentials just to have the privilege of renting movies and games at your store. They will avoid it and go to Red Box where they select their movie, swipe their credit card for $1 and be on their way - fast and easy.


Larger Inventory

With only abut 600 movies to rent and about 60 titles or so, Red Box isn't going to satisfy the demand for movies on a Friday or Saturday. With even just a couple thousand movies and a good selection of games you can be a more desirable destination than Red Box.


Reasonable Price

The $1 rental price for a Red Box movie is hard to beat. But think about it: Its for a single night. Your store probably rents for $2 or $3 for up to 5 days. So, if you have a larger selection and a rental price of even $1.50 per night you might still come out ahead of your standard pricing. Also, customers will be getting those new releases back to you faster which helps you feed demand.


Fast Return

Why people stand in line to RETURN movies is beyond belief. After years of getting used to just putting rentals in a return box they now have to stand in line to return. They don't have to do that at your store.


How To Do It

Convenience: If customers know you have the inventory, the price is reasonable, you have fast returns and they don't have to sign up for a membership, your store will be where they are at come Friday, Saturday. Advertising: Get the word out that your store doesn't need a membership signup, your have a large inventory, and no return lines and customers will beat down your door. Even the best stores advertise to get the word out. Your Computer Program: Of course, your computer program will have to be able to handle the nightly processing of rental fees so that customers don't have to sign up any more. RentSmart has the EZ-Rents program that does just that.


The RentSmart program handles automatic nightly credit card processing so you don't have to have memberships if you don't want to. Click Here to see how.

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