Ahhh...the power of the RedBox. What a killer concept, right? Oh, if only I'd though of it first! When I was in Japan a couple years ago everything was available through a vending machine. Looks like we're catching up with our overseas friends. Great stuff right? Well...what if you're the local video store...you know, the old fashioned "brick and mortar" kind? Aren't you going to be a little upset that you're losing to a $1 rental outfit that doesn't have a fraction of the overhead you do...and doesn't have high school kids with attitudes running the place!
I was at the RedBox just today and was having many of these thoughts (for the umpteenth time). Then I realized the RedBox is just a sign-from-on-high that we need to be more AWARE of what we're doing, how we're doing it and who we're doing it to! Yes, the RedBox is a killer idea, but it will only drive video stores out of business IF those stores are not smart enough to look around and see what they do (or can do) exceptionally well that the RedBox can't or won't do well or at all.
Ideas that I would share with my local video store:
- The RedBox can't "add another cashier" if the lines get too long. Today, for example, I waited over 12 minutes for my RedBox video rental because the vending machine can only serve ONE customer at a time...and if the people are slow or just browsing, then it takes a long time to get through the line (beyond the average 3 minutes for a "regular" transaction).
- The RedBox, in many areas, is exposed to the elements, which means if it's raining, snowing, sun-shining or whatever, the customers (heaven forbid they're in a long line) are also exposed to the elements. If the average transaction takes about 3 minutes and their are 3 people in front of you, that's nearly 15 minutes in whatever crummy weather you're standing in.
- The RedBox has a limited inventory. Brand new releases (as opposed to "new releases" that are already months old) are frequently sold out. Do you think RedBox could offer a "guaranteed-in-stock" promotion? Heck no!
- What happens when you take your RedBox DVD home and it skips...or doesn't play properly? Who ya gonna call?
- What abourt upgrades, exceptional customer service, amenities, etc. The RedBox (for the time being) isn't dispensing popcorn or other snacks. The RedBox can't give you a smile and thank you for doing business...or even walk down the aisle with you to find that one particular movie you really wanted to see. The RedBox doesn't have catalog titles, may never carry "artistic" films (versus movies), won't stock older flicks and won't be able to innovate with other products like video console rentals, in store demos, etc.
I could go on...but I'm sure you can see how this applies to your business. If you're a "victim" of a competitor with a cutting edge idea or new process, are you really milking that victim mentality, or are you sitting down (preferably with your business coach) and looking at ways you can exploit and profit from your competition's limitations and weaknesses. There are lots of things the corner video store could do to make the RedBox look like the WalMart of high-end department stores...but you have to be able to step back and see what's happening...then find effective ways to push those challenges in your favor.
So if you're a realtor up against a "rebates" agent...or a full service no compromise 6% commission earning agent going up against a flat fee agent...consider what you can (and should) do to set yourself apart, add greater value, provide services that can't come with the low-end providers, etc. Let your incredibly powerful mind do some work! Use the RedBox as a source of inspiration...it's a great idea but it's also a wonderful catalyst for the local video store to do some incredible things!
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