Redbox Increasing Their Rental Prices by 20%

John KennertyGeneral Marketing, General Marketing

Scary News? On Halloween (Oct. 31), Redbox will be increasing their rental prices by 20%, from $1 rentals to $1.20.

The reason? According to the Redbox website, they are increasing rental fees because of higher operating costs and increases in debit card fees.

Mashable.com does a great recap on the Redbox fee increase. The Mashable report also notes that Redbox is nearing its first national brand advertising campaign.

It’s interesting to see that the consumer is the one absorbing costs. Many national banks are also passing along increased rates as the Federal Government is capping fees that banks can collect on merchant debits. In the end, banks and businesses pass along their increased fees (or revenue losses) to the end consumer.

Will a $0.20 increase on Redbox rentals make you unhappy? Probably not. Redbox probably understands that two extra dimes won’t break the bank for their customer, but an extra $0.20 will probably help their bottom line tremendously.

What if a $20,000 Ford vehicle increased 20%? That’s a $4,000 increase. Wow. Or your favorite magazine subscription increasing from $19.99 to $23.99? Deal breaker?

It will be interesting to see how Redbox fares…they’ll probably be fine…