The Rental Market at Work

I have to admit I find the idea of Blockbuster having no late fees a little surreal.

A customer will have a one-week grace period after a rental due date. If a movie or game is not returned during that week, it will be automatically sold to the customer. If the item is then returned within 30 days, the customer can get a credit to his or her account.

The rental chain said it tested "no late fees" in some markets and found increased rental transactions and retail sales offset the lower revenue resulting from eliminating late fees.

I've never used netflix or any of the online rental outlets that have popped up in the past few years. Though I did encounter a 24 hour atm-style kiosk that rented DVD's next to a book store once and considered trying it out, but I never got around to it. So as a regular blockbuster customer who manages to pay late fees several times a year I have something to say to all of you netflix users out there:

Thank You!!!

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It's almost as if there's

It's almost as if there's something to that whole invisible hand shtick.

Wow, this policy ammounts

Wow, this policy ammounts to... 4 dollar DVD purchases.

This could well put Suncoast out of business!!!

No More Late Fees One thing

No More Late Fees
One thing that makes capitalism so interesting is the changes that take place due to competition. Netflix and other (relatively)...

"Wow, this policy ammounts

"Wow, this policy ammounts to… 4 dollar DVD purchases."

If you don't return the DVD, the store charges your account the full retail price.

If you eventually return the DVD, you get the purchase price refunded but you're charged a $1.25 "restocking fee." So really it amounts to unlimited-time DVD rentals for $5.25 with about a $20 deposit.

I knew that sounded too good

I knew that sounded too good to be true. Oh well, at least now there won't be any scramble to get em back on time.