Well you have to look at this simply as money spent on advertising since you didn’t mention that there was anysort of reciprocal agreement with them (like bring in a recipt for 3 rentals recieve a free dessert) and just regard it like you would spending $100 for an ad in the paper.
I’m stunned at the overwhelming negative response calling the customer by name is getting – what are you people renting. I’ll stand firm though on my opinion. You (the clerk) are looking at a screen that displays their name every time you do a transaction for them, so it is easly to learn. And you’ll constantly be looking people up in the system by their name since only about 3% of them will ever bring the membership card you made for them back in. It is only natural that you’ll learn their names. What’s the alternative, learning their customer number? Seems very impersonal to me, especially since your gravy customers will be in 3-4 times a week. Of course I’m in the south so there may be some regional ‘friendliness’ factors that influence this. We still like being called honey by waitresses and being waved at in traffic with more than one finger.
Definitely track your inventory. Everybody hates late fees, but video stores are such a slim profit margin business anyway, you have to use them. Nobody knows (or cares) that new release tapes cost you $50-70 a copy, and only have legs for about a month. You’ve got to have those things turn in order to break even, which is really all you can expect from your new release section anyway. Your catalog titles are your gravy, and you can be a lot more lax with those. What worked well for me was when I went to a long rental period for catalog titles - 5 days. This encouraged the real movie buffs who wanted to watch every movie of a series to be able to do so with running afoul of late fees. Also reduced late fees for those catalog titles is a good idea, since they don’t have to turn in such a short time. This works and doesn’t cost anything. Gamers also enjoy having long rentals on video games.
I wouldn’t advertise the adult section (outside the store, or in print). My experience was that the people who want it will ask. A subtle (very subtle) way to make it obvious to people who are in the store should be enough. X titles are good money because you can charge premium for them, but kids titles are good money too, they share some of the same rental characteristics; they are cheap to buy up front, and will rent and re-rent for a very long time, and they always sell quickly as used copies. So you don’t want to slit your throat on one for the other. People renting adult titles aren’t going to be offended that you also carry Disney, but the converse may not be true.
Another thing you can do is play mind games with your customers to get things to rent. A drop box is a great idea and a great convience which also helps people avoid late fees, but a drive thru pick-up window eliminates any impulse buys. Put the new releases at the back of the store where customers have to walk through the catalog titles to get to them. If they see a favorite oldie on the shelf, they may pick it up to rent. Shelf poistion makes a huge difference. The top shelf items (literally those sitting on the top/eye level shelf) rent 3 or 4 times as much as ones displayed lower down. Unless your system locks things into a location, rotate catalog titles that have been living on the lower shelves up to the top shelf and watch them rent. People also like to rent what other people have rented. Have staff return items to the shelf while there are customers in the store, they’ll boomerang back to the register.
Lastly, get some subscriptions to the trade magazines where there are ideas like this in every issue. Lots of them are free, and contain a wealth of info.
-rainy