Group 1 – Ken McAleer – Video Headquarters, New Hampshire - Presenter

Assumptions: Single store, 4,000 square feet, town of 10,000, adult, computerized, 8 years old, $12K in rentals, one other product (pizza or tanning). Goal = increase traffic.

Offer amnesty for late fees. Zap late fees. Radio trivia contest and we supply prizes. Go after vending machines – number of titles in machine, days outstanding, etc. This weekend and next weekend – rent 2, get 2 free, rent 3, get 3 free, etc. and zap your late fees. Extra revenue = ad budget. 

 

Group 2 – Jim Orr – Movies America, Iowa - Presenter

Assumptions – 20,000 people, 1 college, 1 chain competitor. Need a short term strategy and long term strategy. Send out a Million dollar personal letter and survey. Heart to heart survey on how we can serve our customers better. Bring the letter back and get your late fees excused. If you have no late fees, bring the letter back for free rentals. Bundle rentals to increase average dollars per transaction. Long term strategy is to steal other stores’ customers. Are you 1 (Hertz) or 2 (Avis) or nowhere (guerilla or milk-the-cow) in the marketplace.    

 

Group 3 – Christopher Simpson - Video Store Group, Canada - Presenter

Assumptions - middle class town, 25,000 people, stale store. Suggestions - 2 for 1 Tuesdays includes ice cream, amnesty program, bundling rentals to increase dollars per transaction, pre-paid rentals with a price deal, web marketing via weekly e-mails, web marketing via a web site, promote web address everywhere.   

 

Group 4 – Ronald Davison - Video Store Group, Canada – Presenter

Assumptions - 2,500 square feet, old store. Goal – brand new deal for the community, give the WOW factor, Hick Flicks, one-stop-fun-shop, sell fun passes. Use Rentrak for product depth and breadth, give out amnesty, we missed you to customers, what you can get for $1, what you can get for $2, need a gamer to run games, pizza cross marketing agreement, radio jingle created, free rentals at day care center, myspace use, facebook use, movie and game blog.      

 

Group 5 – Sue Symons – Video Plus, Missouri - Presenter

Assumptions – Schlockbuster Video, rural environment, target online competition, target families. Goal – improve family image, improve value image.   Radio vehicle – trade in your subscription for a book of free rentals, family movie nights make great memories. Weekly e-mail blasts, flyers for schools, little league, boys & girls clubs. Budget – 2% of sales. Conduct a 60-day campaign. Goal – increase dollars per transaction, increase number of customers.

 

 

Speed Dating Sponsor Participants:

 

Siriani & Associates

Triina Turula

800-554-0005

Negotiates discounts with FedEx, Roadway, New Penn on behalf of video dealers.

 

Alliance Entertainment

Jerry Kannas

954-255-4482

Set up free sell-thru personalized web sites for dealers – 8% commission on sales.

 

Allibris

Steve Cianfichi

510-594-4592

Sells your used product on the web.

 

VPD

Diane Munoz

916-605-1590

Full service distributor for all your video and game product.

 

Rentrak

Terry Murphy

503-310-5993

Patrick Evers

503-490-5225

Provides depth-of-copy programs for most video product.

 

 

Issue – Darcie Williams – Video Library, Nevada – How do you motivate and reward   managers without offering a large pay package? Suggestions – generous vacation time, autonomy, share in incremental profits over a base line profit on a quarterly basis, award for the manager who increases dollars per transaction the most on a quarterly basis.

 

Issue – Craig Belisle – Belbed, Inc., Minnesota – How do you order adult? How do you order children’s product?  Suggestions - find a knowledgeable staff member or customer to give you advice, take notes when customers ask for specific product and you don’t have it, give the adult budget to the adult distributor.

 

Issue – Carolyn Phelps – Video Plaza, Missouri - Should I get into adult because I am active in church? Suggestions – make adult invisible, try soft 'adut" first.

 

Laws Regulating Video Retailing – Sean Bersell of EMA

KNOW YOUR FEDERAL and STATE and COUNTY and MUNICIPAL LAWS.

E-mail Sean Bersell if you have questions or if you are unsure.

Ratings Display – FL, GA, IL, MD, NY – for DVDs, rating must be displayed on the sleeve.

Ratings Display – CA, GA, PR, WA, Nassau County NY – for games, customers in general must be told there is a rating system and you must explain the rating system.

Privacy – Federal law and 12 state laws – can’t give out rental history of individuals. Dealers must destroy records one year after you no longer use the info.

Rental Theft – many states have laws trying to assist retailers in different and sundry ways. In other states, you are covered with general theft laws.

Secondhand Goods – state laws, county laws, municipal ordinances – recordkeeping requirements, minor restrictions, hours restrictions, etc.

Adult Product – Federal Law – adult packaging must show where the records of the performers are by producers.

Adult Product – various states have unusual laws.

Segregation – many state laws – adults only sections and signage.

Miscellaneous – many unusual state and local laws.

 

update from Sean Bersell, laws by state posted on the web site, setting up networking groups outside of physical meetings, indieWEST 1 day mini-Trade Show in VPD in Folsom in Northern California – 10 iDEA members and 110 other retailers, maybe February, 2009 2 day mini-Trade Show in Florida with Alliance, online town hall meetings (?), putting video of this meeting on youtube or another service and put the link on the iDEA site, vendors deal of the week.

       

Town Hall Meeting – Jim Loperfido and Nolan Anaya

 

iDEA members aren’t using the web site that much. Is there a problem with the site? Discussion board could be more prominent. Full year promotions by calendar month could be on the site. 

 

What’s up with Project Mercury? It’s moving is the standard answer. It’s in beta testing. Mark Vrieling of Rain City is the first store, but presently is only being offered to family and friends. Ken McAleer is the second store coming up in November, 2008. Project Mercury software built on top of the Tempest POS System. Need UPC codes in your computer. There can be different UPC codes for the same product. iDEA doesn’t own the software. iDEA is a licensee and has an exclusive. Netflix has to be cued up. Blockbuster has the in-store exchange and Netflix-type program. Project Mercury has live inventory in their central system – this is their uniqueness. 

 

Survey Monkey, an online survey company, is easy to use.            

Tempest POS software – is a powerful BEAST. It is very good, but has many options that are rarely used. Red flag report can spot stealing employees. Tempest is buried with the Mercury Project.    

Learn how to use excel. You can manipulate data to run your store better.

 

Frank Lucca finally admitted that Jennifer Lane carried him this week!

 

Judges announce the Marketing Challenge Winner ……………. DRUM ROLL …..

Protests have been submitted and rejected …….. this could be a SCANDAL …. Honorable mention to group 5 or kissing the sister award … WINNER Group 4 ….

The crowd believes there was a fix in … the crowd is unhappy … British accent was the thing that won for Group 4 … the room is getting violent … I have to end this …!!!! I’m ducking beer bottles!!! OUCH ……………….

 

David and Jeanne Chamberlain of Video Plus & Tanning Wisconsin videoplus@charterinternet.com 715-234-3432 were the guinea pigs. John Farr mrjohnfarr@aol.com 859-250-8475 was their Consultant and is the Moderator today. Eric Smith was also a Consultant, but is not present today.

 

First year for video, rentals were up 30%. This year video rentals are up 5-10%. Tanning is up 30% this year.

 

What they learned from the transformation process.

 

Marketing is done primarily via radio in small markets like Video Plus & Tanning in Rice Lake, WI. Ad rates are usually not negotiated. But, radio stations throw in freebies that brings the costs way down because videos/movies and tanning and pizza (partner brought in) are popular with their young listeners. News and ads can blend together in the radio media for video stores.

 

They have two disc repair machines at the counter. They also visually inspect every DVD before they are rented. Customers appreciate and respect their store’s DVD rental product quality.

 

 

 

 

Ken McAleer Video Headquarters (7,500 square foot store!) New Hampshire ken@videoheadquarters.com 603-357-5570 is the Moderator.

 

Guerilla marketing is free or inexpensive and clever marketing. 

Example – 2 kids’ rentals get a free t-shirt. Wear the t-shirt in the store and get a free kids’ rental. Kids are a walking billboard for you around town.

Example – give sports coaches an Award free rental coupon to their kids for being the best athlete or best effort in a week.

Example – give libraries an Award free rental coupon to their kids for reading literacy accomplishments.

Example – give free used movies to radio stations for giveaways with store mention.

Example – tent sales promoted with lawn signs placed on busy corners.

Example – local merchant block pajama party and sale.

Example – participate in floats for parades.

Example – give 2 for 1 rental coupons to kids along a parade site.

Example – billboard at the local sports arena.

Example – coupons given out to kids on Halloween night from homes.

Example – on a big or popular football/baseball night hide a $50 American Express certificate in cases for after-the-game rental promotion.

Example – blog for your store.

Example – myspace or facebook for your store.

Example – find young customers who owe you money or DVDs using myspace and facebook.

Example – e-mail customers once a week.

Example – put your web site address out on everything you ever publish and on every sign.

Example – iDEA www.idealink.org web site has lots of marketing materials and artwork available that you can customize and print out.

Example – people can be marketed to via the cell phone via e-mails and text messages.

 

Jim Loperfido of Emerald City Video Auburn, NY and Nolan Anaya of Captain Video Amherst, MA are Moderators.

 

Vending/kiosks Issue:

Virtually every store owner has competition from this channel. They have to hurt rentals at video stores. Machines have occasionally logistic problems – defectives, billings, etc.

One store eliminated late fees for their very best customers to compete. This may be a short term issue if they (kiosks) are losing money. Many stores compete because they have extensive catalog inventory and catalog is still promoted and is popular. Stores also compete via store employees recommending titles. 

 

Subscription Delivery Issue:

Netflix-type plans hurt every video store. Some stores are offering their own subscription plans. One plan - $24.95 a month with 2 DVDs out at any one time with no restrictions. This plan may be modified to charge less per month for a year’s subscription in order to deter cancellations or suspensions of service.                     

 

We will pick up our discussions on Thursday.