|  |  |  |  | | Now Showing Video | | Get your movies from humans! |
|
|  |  | | |  | | | | | Blog |  |
|
|
Chapter 2 "Contemplating Expansion" 2006
Status: We are settling in at the store. Spiffing up here and there, learning the computer system, getting better at picking movies for rental.
The Enemy: Customer attrition due to Redbox, Netflix, Pay per View, Downloads, Piracy, and not everybody likes the new owners.
Our strategy: Videos will be bringing in less and less income, so we start thinking of ways to replace them as our main source of income. We plan to expand the video accessories section to general electronics and gaming accessories, while still making videos and games available to the community.
Aftermath: Radio Shack opens two doors down. There goes that idea.
Summary: We're learning how difficult it is to nail down an operating budget. There are a lot of aspects to budgeting a business that is affected by anything from movie critics to weather. Weekly, monthly, quarterly, and annual bills vary because of movie release dates, interest rates, training and tax expenses related to replacing clerks, and various necessary items needing repair or replacement.
On the other hand, rising gas prices improve business because people start dining locally and bringing movies home instead of driving to Key West or Marathon.
Several customers are coming back from Netflix because (A) we check our discs coming and going, so it's a rare occurrence when a scratched disc leaves the store, (B) browsing if fun, (C) the staff is mildly entertaining, as well as being able to make helpful suggestions, and (C) instant gratification RULES.
|
|
| Put your questions and/or comments in the replies here. Thanks!
|
|
Our little shop. The last video rental shop in the Florida Keys. Mom and Pop owners. Two rambunctious (in their own ways) clerks. Lots and lots of videos. Games, even. Plenty of parking!
vs.
Redbox, Netflix, Pay per View, Downloads, Piracy, Recession, gas prices, even the oil spill in the northern Gulf.
An Introduction to the Owners
Bill, a South Dade native, had been a charter fishing and dive boat captain for nine years. Karin, a transplant from Queens, had been a piano tuner / technician serving Key West to Key Largo since her BPK arrival in 1988. They take care of Grandad, now 92, in his house on Big Pine Key. Grandad (Bill's Dad), had gotten to where he needed them to be closer to home than Looe Key Reef or Key Largo. So they made a daring career change.
Chapter 1 "Infatuation" May 2005
Status: "We love movies! We bought a store! We won't take nearly as much money out of it as the previous owners did, so we should be fine."
The Enemy: The housing bubble. Neighborhoods empty out. Lots of people buy houses they won't be living in. The customer base has moved away! Uh-oh!
Our strategy:
* Continue to charge less than Blockbuster.
* Continue our effort to rent out only discs that work; without scratches or fingerprints.
* Be more fun than the previous owners, maybe.
* Establish mutual respect among owners and clerks alike (we were so naive).
* Continue to carry plenty of copies of popular new release titles for the folks who just want to be entertained.
* Get a few more sophisticated films in. They won't rent as much, but some intellectual people will come in and keep us company, and there will be a place to rent Indies and Foreign films on Big Pine Key. (Plus, Karin gets to watch indies and foreign films for free.)
Aftermath: The Indies and Foreigns bring in some new customers. Making more of an effort to entertain customers helps, too.
Learning the ropes (ordering too much stock, increasing staff to three, being generally clueless) pisses away a lot of money and pisses off some old customers.
Summary: We are happy to be close to home and doing less physically strenuous jobs. Karin discovers that working with others is not as scary as she expected.
|
 |
|
|
| |  |  | | | | | | Web Design copyright 2010 by Now Showing Video and InMotion Web Hosting. |
| |
| |
|
|
