Monday, August 22, 2005 8:49:04 AM
(EDIT)I absolutely agree. They are doing an excellent job. And you have also with your promotion. But the present subscription cost is too low to sustain any growth which Carl Icahn and BB have already seen. NetFlix may soon follow their lead. As you are an investor you are hopefully ordering much more quickly than a "normal" subscriber to evaluate the performance of the company. I am. While paying $15.36 per month, military I assume on an annual, you mailing costs have averaged $20.91 a month, if we'd add a $4 per account for breakage, new inventory, salaries, DC expenses, we're up to $20.91. Without implying anything wrong on your part, you have cost the company nearly $10 a month or $70 so far this year. Yes, their service is excellent, but it will only be increased membership and reduced mailing costs that we, or any other on-line service, can sustain growth. Although I have never heard officially, NetFlix is supposedly getting by on only 37c each way USPS cost. That alone would save GZFX $8.36 a month (the 48c more round trip we pay X 17)for accounts such as yours and we might actually be able to eventually break even on those accounts.
(EDIT) IMHO the annual membership makes no sense. Even if you lowered to 12 dvds that a "normal" member gets monthly, the present mailing costs would be $14.40 plus $4 in my example above, and we still lose over $3 for each account. Grandfather those in that we have, original plank holders getting a break, and end the program.
(EDIT) IMHO the annual membership makes no sense. Even if you lowered to 12 dvds that a "normal" member gets monthly, the present mailing costs would be $14.40 plus $4 in my example above, and we still lose over $3 for each account. Grandfather those in that we have, original plank holders getting a break, and end the program.
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