Blockbuster’s Popat

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Popat is Bambaiya slang for goof-up or pie-in-your-face. I couldn’t find a better word for Blockbuster’s attempted deception regarding its latest No-Late-Fees campaign.

Few months back, January 1st, 2004 to be precise, Blockbuster launched its No Late Fees program to deal with intense competition from online rental stores and discount retailers like NetFlix and Walmart. No more fretting over tapes to be returned before 12 noon the night after you were sloshed while watching the crappy DVD. I have had the bad experience of a Blockbuster clerk telling me that the rented DVD was a “week rental” when in fact; it was a 2-day rental. I was hit by thrice the rental fees.

Now, Blockbuster was saying if you want to keep the DVD a little longer, go right ahead. You might almost think that your days of rushing to the store to catch the 12 noon deadline are over; but sadly most didn’t read the fine print (literally). After 8 days, Blockbuster would assume you have bought the DVD and charge your credit card for the price of a new DVD. After you notice that strange charge on your card, you rush back to the store (within 30 days; “finer” print) and haggle over the dubious charge. The Blockbuster clerk would then calmly point at the fine print and then pretend to alleviate your pain by “waiving” your penalty but at the same time, charging $1.25 “restocking fee”. Blockbuster managed to run this scam until few (47 in all!) states sued them.

They had to take a step back and pay $630,000 in fines for deceptive advertising with a promise that they would drastically alter their advertising “No Late Fees” policy. But “No Late Fees except for $1.25 Restocking Fees” doesn’t have the same zing, does it?

PS. What I can’t understand is that, why should you not impose late fees, when libraries have been doing it for years? Guess, being in the market-driven economy makes you do crazy things to lure your customer.

“Blockbuster’s Popat” [Short URL: http://www.ipatrix.com/?p=626] was published Wednesday, April 13th, 2005 at 2:00 pm by Patrix, filed under Business, and tagged as blockbuster, Business, late fees, Movies. Both comments and linkbacks are closed.

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star
Re: your PS comment.
Its not the principle of the fine – which is acceptable and widely used. It is the amount that is levied as a fine. In most cases, as you yourself have observed, the fine is three to four times the original rental price- which is not only unacceptable but totally ridiculous as well.
An anecdote: I’ve frequently been offered “Discount Packages” which is a sheet of coupons including one which is “cancel late fee” … this “discount package” is most often cheaper than just paying the fine and results in my having quite a few coupons for “rent one, get one free” deals.
Alternatively, an ideal solution to this dilemma would be to just return the da%n movie on time :)
m
why- one word- NETFLIX. Blockbuster is fighting a losing battle- and sometimes you do stupid stuff when you’ve already fallen in the race. their head honchos need some young fast thinkers to fight this challenge.
Bryan
Patrix, the fine print did say that it was applicable at participating stores only. The store where I rent from does not. I rent from both Blockbuster.com and Netflix. The turnaround times for both are similar. But I like Blockbuster better becoz of their two free coupons per month using which one can rent from their stores. On an average I rent 10 movies online + two free in store movies per month using blockbuster. At 14.99 per month, I think it’s a steal! On the other hand, Netflix has an amazing collection. It’s a toss up!
http://twilightfairy.rediffblogs.com Twilight Fairy
gak! popat!!.. AFAIK it’s slang for ‘pecker’ :p :D
http://ipatrix.com Patrix
Star – Two to three times the rental fee?? Where do you rent your DVDs from? Obviously, if you return it on time, it doesn’t matter but we are after all only humans, right?
M – Netflix and Blockbuster Online is indeed value for money but only if you watch more than 3 movies a month, which I think is totally do-able.
Bryan – You are certainly one heck of a movie freak, if you can keep up with ten movies a month. Blockbuster Online is a dream for freaks like you :)
Twilight – Errrr…I must admit, it does mean that too but lately the slang has shifted meaning…ppl also call it kela ho gaya, but now it suffers from the same problem.
Queer
My friend was telling me that if it were some sort of business model, they it could be patented. dunno abt it/
Did you know – the phrase “you are fired” by trump and “What happens in vegas, stays in vegas” are patented too? Apparently the phrases cannot be used for commercial purposes.
I can think of a lot of phrases I want to patent starting with WTF! (pardon me for the use of err..parlimentary phrase):)

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Blockbuster’s Popat

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