After a brief stint into the world of gamers and running an internet business involving video game rentals, my partner and I quickly understood it was not an attractivebusiness opportunity after all!

Initially, we thought we could take some market share from the 800 lb gorilla, Gamefly , and have a lucrativemembership business to run. This all turned quickly went south when we burned through a copious amounts of money and could not get our heads above water and stay afloat! The main concerns with this business model that make it difficult to survive are as follows:

video game rentals

1) Dramatic Video Game Depreciationaspect of this business, but other factors like game popularity and new updates increase the depreciation factor. Most games decrease in value 25% out of the gate and are worth 30 to 50 cents on the dollar within one year!

2) Stealing – The demographics of this market attracts a lot of “punks” and petty thieves who get games from multiple services and claim the games get misplaced in the mail or use fraudulent credit cards, etc. The shrinkagefrom theft approaches write-offs ad up rapidly.

3) Missing Games & Damage – The post office’s automated sorting machines have the nasty effect of bending mail at 90 degrees in the sorting process. While the video games are pretty, many of them end up snapping en route to or from the client. In Also, it is almost impossible to real loss within the postal service and employee theft. The discs are packed in obvious reinforced envelopes with business names printed overtly, so any criminally minded would know what the item is and likely its value. Lost and damaged goods accounted for another 2-3% cost.

online video game rental

4) Cost Of Mailing Increases Regularly – In the short time we operated the service over six we were confronted with a drastic change from the post office that would have cut 10%off earnings.

5) Speed Of Delivery – Dependence on the postal service to deliver games on time would ultimately lead to disappointed clients and terminations. Competing against other companies that had many distribution warehouses created a tough competitive edge.

6) Average Length Of Membership – typically six to twelve months – but we never sustained it that long because of the first 5 issues! Hardly long enough to recoup any meaningful profit from this derelict crowd.

7) Competitors – Gamers who use these services are very impatient by nature and desire to get new games as soon as possible. This insures that businesses that don’t have a geographic presence on both coasts and in other locations will have slower delivery times for their customers. This usually necessitates more capital and management to operate and compete with the larger funded services or just stay focused on the regional geographic market and serve a limited customer base.

rent video game online

So, if you are contemplating starting a new gamers service you should think about the scenerios of the business model. Unless you have a brilliant video game programmer that can specifically project new game demand, and an optimal distribution set up with many locations for speedy delivery, and a ton of cash, then this service is probably not the best option for your investment.

Ok, so you’ve realized that video games are certainly too expensive to stick your money where your fingers are and buy a game just because you hope that it is what you want. You have realized that you would like to give the game a spin before you buy it. You find online video game rental companies that can assist you with this chance for very little money. But, how do you know who to select?

Video Game Rentals

Well, there are certain considerations of a video game rental company that you should keep in mind when selecting who to go with. One of the first features is locality. Making sure that the company that you select has a outlet close to where you live so you don’t have to squander time waiting to play the games you have chosen and you can enjoy more time playing the games instead. I propose a turnaround time of no more than 6 business days. After all, most of the rentalcompanies out there are still using the United States Postal Service and do not have complete control over their service to your area.

The other concern is what happens if the game gets lost in the mail either to or from your location. Look for a online video gamecompany that has a policy of not holding you responsible for the lost game. After all, once you have taken the time to return the game properly, it is out of your control.

Rent Video Games Online

The next thing you want to considewr is the size of the company that you are going to be doing business with. Although you may get excellent customer service from a small to mid-sized company, you may pay for that by waiting to get the newly released games for your platform of choice for quite a while because they are limited to the number of copies they can stock on hand to supply the demand of their subscriber base. Choose a company that is ample enough to get you the game that you want to play when you expect it.

Game bundles and pricing are another aspect that you should investigate as well. Multi-game packages are very apealling so that you are maximizing the time that you are able to keep putting new games into the mix you are playing. A good plan is to go with a 3 game package, this way you are always able to have at least two games in your possession while a game is in transit back to your rental company and then a new selection is being sent back to you.

PS3 Video Game Rentals

Larger companies will offer reward programs that give you an encouragement to continue renting with them. The longer you are enrolled, the more rewards you rack up. Find a company that truly wants to keep you as their client by offering the bigger incentives. New games, platform accessories and new gaming systems are some of the most frequent rewards that are offered.

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