Changes to Zip.Ca membership plans

Below is a quote from Rick Anderson, President of Zip.ca. These changes will negatively affect heavy users of the program. If you are not already a member, you may want to immediately consider signing up for the buy 3 month, get 4th month free promotion. These changes will not affect you until the next billing cycle, so you can postpone the impact for 4 months.
These changes have not yet currently been implemented at Zip.ca, but could take affect any time, now that the announcement has been made.

It certainly appears there is strong support for the kind of shipping and
service enhancements we have been making, and awareness of the comparatively
high volumes and high value thereby enabled. And, the consensus appears to be in
favour of continuing to find ever more ways to improve service and selection.
So, we will continue our research and development and our daily efforts to
provide the most efficient fulfillment, the best inventory the fastest
turnaround and the best service and value in the business. Based on your input,
we will also continue to develop and offer a widening selection of membership
plans tailored to the demands of different members.
A majority of the feedback we have received from you over the last couple
of weeks suggests a preference for maintaining our current prices, especially on
our most popular 4-DVD plan (used by over 70% of our members), and where
justified apply a reasonable shipping+handling surcharge on the heaviest users
rather than charging everyone for the relatively high use of a small portion of
the membership. So that is the approach we will be adopting. The membership fee
for our most popular plan, the 4-DVD plan at $24.95/month, will remain
unchanged. Further, this plan will continue to offer unlimited rentals, and will
henceforth also provide free two-way shipping on up to 14 shipments per month.
For members on this plan who approve shipments of 15 or more rentals per month,
a modest shipping+handling charge of $2.19 per two-way shipment will be levied.
Based on current activity, 85% of members will be unaffected by this
free-shipping threshold and will therefore be subject to no additional charge
whatsoever. The average member on our standard 4-DVD plan will continue to enjoy
DVD rentals at under $3 each – with an unbeatable selection, the convenience of
home selection and delivery, and no deadlines or late fees. In addition, the
very popular ZipRefill feature – allowing virtual same-day returns – will be
extended for the first time to members on our 1-DVD and 2-DVD plans. At the same
time, several members, especially our heaviest-volume members, suggested other
approaches, such as raising the basic membership fee, continuing to offer the
option of unlimited free shipping, and that we also consider creating additional
and larger "jumbo" rental plans. So, that too we will do.
Our 6-DVD plan will offer unlimited rentals, with a free-shipping threshold
of 19 per month. The monthly membership fee will increase slightly (by $2.00),
to $36.95. We are introducing three new membership options - on a trial basis,
and will continue with those that prove to be the most popular and effective: -
a new option for 4-DVD plan members – which like the basic 4-DVD plan will allow
4 DVDs out at any time (5 with ZipRefill), 2 ASAPs at any time and unlimited
rentals - but will also provide unlimited free two-way shipping for an
additional $14.99/month (total $39.94/month). This plan is specifically designed
for a member renting 21 or more DVDs per month, a tiny portion of our members
but one we wish to serve properly. The cost per DVD rental for such high-volume
members using this plan will be under $1.90 apiece, a pretty remarkable bargain.
- a new option for 6-DVD members – which like the original 6-DVD plan will allow
6 DVDs out at any time (7 with ZipRefill), 3 ASAPs at any time and unlimited
rentals - but will also provide unlimited free shipping for an additional
$15.99/month (total 52.94/month). This plan is specifically designed for a
member renting 26 or more DVDs per month. The cost per DVD rental for such
high-volume members using this plan will be under $2 apiece. - a new 8-DVD plan,
allowing 8 DVDs out at any time (9 with ZipRefill), 3 ASAPs at any time,
unlimited rentals, and with free shipping up to 24 rentals per month, for
$49.95/month We hope this increased variety and flexibility will respond to the
many different kinds of member we serve, and we look forward to your ongoing
feedback on this topic, and on any other ways you think we can improve our
service to you. After all this goes into effect, members will be free to alter
their membership plans at any time, by going to Account Info and selecting
Change Membership Plans.
Upgraded memberships go into effect immediately, with additional DVDs
usually shipped out within one business day, and a pro-rated billing adjustment
for the balance of the month. Downgraded membership plans go into effect at the
next billing date, provided the extra DVDs have been returned by then. Members
currently on 4-DVD and 6-DVD plans will be continued at their current fee level,
with the extra shipping preference set to "ask first", unless and until you
choose a different plan or set your preference to "always ship additional".
Members with prepaid memberships will of course be honoured. Once again, thank
you for all the interest, and for your support. We look forward to your
continuing input.

Summary of New Membership Plan Features

Plan // Monthly Fee // Max out (incl ZipRefill) // ASAPs // Unlimited
Rentals // Free Shipping 1-DVD //
$10.95 // 1 (2) // 0 // Yes // 2
2-DVD // $18.95 // 2 (3) // 1 // Yes // 4
4-DVD // $24.95 // 4 (5) // 2 // Yes // 14
4-DVD ++ // $39.94 // 4 (5) // 2 // Yes // Unlimited
6-DVD // $36.95 // 6 (7) // 3 // Yes // 19
6-DVD ++ // $52.94 // 6 (7) // 3 // Yes // Unlimited
8-DVD // $49.95 // 8 (9) // 3 // Yes // 24
++ means with unlimited free shipping option

_________________Rick Anderson President, Zip.ca

More information on these changes here.
You can read about the ZipRewards loyalty program here.

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