dssd22d Posted March 25, 2008 Share Posted March 25, 2008 I currently am offering a customized snack machine for DVD's & CD vending, not rentals, but for sales. Recently I have been receiving many inquiries regarding these machines and some of them have been producing sales. I have an opprotunity to invest in some research and development into creating a machine strictly for DVD & CD vending that would include vend sensors, a card software kit, the whole nine yards. Since DVD & CD sales in the vending industry is roughly new, I would like as much insight from anyone regarding this opprotunity I have been offered. Is there a niche in the industry for this type of vendor? Would a normal operator be interested in this type of service for the right price? Again, any answers or thoughts would be greatly appreciated in helping me offer a high quality machine that would better operators and small businesses nationwide. Thank You Scott Davidson Arrow Vending Link to comment Share on other sites More sharing options...
The Master Key Posted March 26, 2008 Share Posted March 26, 2008 Personally, I don't like the idea. I'm not really sure where they could be located. But, with enough creativity I guess you could find a place. Also, sales in the music business are hurting due to the internet and in my opinion a lack of new good music. But, this is just my opinion. Brian Link to comment Share on other sites More sharing options...
Supercoolers Posted March 27, 2008 Share Posted March 27, 2008 I am just getting intio DVD renatal units and the cost of the DVD at wholesale dosen't give any profit to sell them from a machine and make any money., You pay about $25 as a small operator and big stores sell for $25 to $30. Your only income is in the renting of the DVD fior 3 or 4 months and then dumping the used one for $10. The only time we sell one is when someone dosen't bring back the unit after a week and then we charge them $35 and they keep it. Link to comment Share on other sites More sharing options...
The Master Key Posted March 27, 2008 Share Posted March 27, 2008 I am just getting intio DVD renatal units and the cost of the DVD at wholesale dosen't give any profit to sell them from a machine and make any money., You pay about $25 as a small operator and big stores sell for $25 to $30. Your only income is in the renting of the DVD fior 3 or 4 months and then dumping the used one for $10. The only time we sell one is when someone dosen't bring back the unit after a week and then we charge them $35 and they keep it. Interesting. I've seen the DVD rentals at some supermarkets. Where do you have yours placed? Is it something you are looking to expand in or just wanted to try it out? Brian Link to comment Share on other sites More sharing options...
Supercoolers Posted March 27, 2008 Share Posted March 27, 2008 Just getting into it. One unit in grocery store and another in supermarket. Rents for $2.99 per day and all automatic. Check out units at www.dvdnowkiosks.com. Need to do 10 per day to break even after costs and commission. Want to do 30 or more per day. If volume gets up there will add more units. Link to comment Share on other sites More sharing options...
The Master Key Posted March 27, 2008 Share Posted March 27, 2008 The FAQs page answered most of the questions I had except the cost per machine. I would think that supermarkets are a good location. I know one of my friends rents from a DVD kiosk all the time. Brian Link to comment Share on other sites More sharing options...
caserri Posted March 27, 2008 Share Posted March 27, 2008 Just getting into it. One unit in grocery store and another in supermarket. Rents for $2.99 per day and all automatic. Check out units at http://www.dvdnowkiosks.com. Need to do 10 per day to break even after costs and commission. Want to do 30 or more per day. If volume gets up there will add more units. Granted, I'm a bit ignorant when it comes to DVD rentals as I have never rented one myself but is 10 per day obtainable? That seems a bit high to me. But like I said, I'm not a good indicator. The last time I rented a movie, DVD's weren't even invented yet. :shock: In fact, I don't think I've rented 10 movies combined in my entire life. Steve Link to comment Share on other sites More sharing options...
Supercoolers Posted March 27, 2008 Share Posted March 27, 2008 10 per day is the minimum. You have an investment of about $25,000 riding on the unit and each DVD costs around $25. I see some units doing 50 per day in 7-11 stores in other cities, the best part is it's all automatic and only accepts credit cards - no cash - no worries. Link to comment Share on other sites More sharing options...
The Master Key Posted March 27, 2008 Share Posted March 27, 2008 The income goes directly into your bank account? That is nice if so. How often does the money get deposited into your account daily, weekly, monthly? Brian Link to comment Share on other sites More sharing options...
kcinnick Posted March 27, 2008 Share Posted March 27, 2008 I have a feeling DVD rentals are going to be hurt just as bad as the music industry has been hurt by online downloading - using legal and Illegal methods. Link to comment Share on other sites More sharing options...
Supercoolers Posted March 27, 2008 Share Posted March 27, 2008 When someone rents a DVD, their card is pre approved for $35. When they return the DVD within 24 hours, only $2.99 plus taxes is taken and the rest returned electronically. We get a settlement from the credit card provider every day directly into our bank account. All we have to do is work with the location to promote the rentals via free movies, trailers on a big screen on top of the unit or handouts with their groceries. Link to comment Share on other sites More sharing options...
G-man422 Posted March 27, 2008 Share Posted March 27, 2008 Is vandalism a problem for you? I would think that people would get angry if they were charged $35 for a DVD (even if it's their fault for being late). Link to comment Share on other sites More sharing options...
kcinnick Posted March 27, 2008 Share Posted March 27, 2008 I like the way redbox does it, they charge $1 a day, and if you keep the movie 25 days, they consider it sold for $25. Link to comment Share on other sites More sharing options...
Supercoolers Posted March 27, 2008 Share Posted March 27, 2008 Our units are in secure locations right by cash registers on the inside wall. The last thing they see when leaving the store. Knock on wood, no damages yet. We're not redbox and don't have millions of McDonalds money behind us to give something away to get more traffic into a hamburger store. Thus we charge $2.99 per day. It beats paying $5.50 to $6.50 at Blockbuster. Link to comment Share on other sites More sharing options...
dssd22d Posted March 27, 2008 Author Share Posted March 27, 2008 I just want to make sure I am getting the whole picture because this will all-in-all affect my decision in the developmental program. Note: The machine will cost $5,000. I have found the average costs of DVD new releases purchased from a wholesale company is $7-$10 dollars and sell for roughly $15-$30. Many older DVD's wholesale cost around $3-$5 and sell from anywhere from $10 - $15. Box set options are also available to customers for purchase. These machines also come with option of credit card and/or dollar bill acceptors. You guys know more about this type of route business than I do. Based on this information, would a DVD rental machine still be the type of product I should be focusing on offering to my customers? Thanks Again for all of your information! Scott Davidson Arrow Vending Link to comment Share on other sites More sharing options...
Supercoolers Posted March 27, 2008 Share Posted March 27, 2008 Please give me the name and address of the wholesale company that will sell DVD's for $7 - $10. We buy brand new releases as they are about 80% of all rentals and nothing can be bought wholesale for under $20. Link to comment Share on other sites More sharing options...
kcinnick Posted March 28, 2008 Share Posted March 28, 2008 I think I would invest $5000 in a DVD rental machine if I could customize it to rent video games and DVDs in the same machine. I would love to know where you can get DVDs for 7-10 dollars. I know redbox machines make money in many locations, but $1.00 might not fit all situtions. I think the ideal situation for my taste would to be able to custmize pricing for the first day, say 1.99, or 2.99 whatever you like, and then charge $1.00 for each additional day, and at say $25.00 consider the movie sold. New Release DVD's around here retail for $14-$15, so charging $35 would cause a riot. I really don't feel the Studios should be able to set prices regionally, but they do, and I don't think anyone is going to stop it. Link to comment Share on other sites More sharing options...
dssd22d Posted March 28, 2008 Author Share Posted March 28, 2008 http://www.wholesales4u.com/newdvds.html Here is where I based my pricing out of, but with a little searching, I found some titles cheaper than this. Scott Davidson Arrow Vending Link to comment Share on other sites More sharing options...
kcinnick Posted March 28, 2008 Share Posted March 28, 2008 I don't think I would order from the link you provided. I think he is looking for something more like Anderson, who sell books, magazines, CDs and DVDs straight from the publisher. I am still interested in a DVD rental machine at $5000, but not at $25000. I think a combo of a DVD rental machine, and a DVD sales machine would be great for Independant grocers. Link to comment Share on other sites More sharing options...
antoniocinisi Posted March 29, 2008 Share Posted March 29, 2008 I like the way redbox does it, they charge $1 a day, and if you keep the movie 25 days, they consider it sold for $25. I have contacted redbox 3 times by email to get more info on thier machine and not 1 reply back.1 dollar rentals is a good way to go imo,and after 25 days you bought it!! 5k isn`t to bad since I have seen them for 9 or more on ebay. around here it cost 3$ to rent a dvd so at 1$ surely family video would take a hit if I placed a machine in my pizza shop,now if I only could find a used one somewhere. A Link to comment Share on other sites More sharing options...
Supercoolers Posted March 29, 2008 Share Posted March 29, 2008 Redbox is partially owned by mcDonalds and as such is not for sale and will not entertain private operators of their equipment. Look for them to have over 20,000 units in the next year or so around the country. The $5.00 and $10.00 new DVD's are not the new releases that are 80% of the market. First run new releases cost $20 to $30 to buy and are worthless after only 4 to 6 weeks. Redbox dosn't look for huge revenues as they are usually ina McDonalds store that wants to increase evening traffic for their stores. you have to rent a $25.00 DVD a lot of times at $1. to make your money back and they start to look for some profit. Link to comment Share on other sites More sharing options...
kcinnick Posted March 29, 2008 Share Posted March 29, 2008 You would do better to go buy a New Release DVD from Wal-Mart at midnight than to go buy them for $20-$30 wholesale. Link to comment Share on other sites More sharing options...
caserri Posted March 29, 2008 Share Posted March 29, 2008 You would do better to go buy a New Release DVD from Wal-Mart at midnight than to go buy them for $20-$30 wholesale. That was my thought. Supercoolers, have you thought about buying inventory from WalMart retail? They sell new releases for less than $20. Steve Link to comment Share on other sites More sharing options...
Supercoolers Posted March 29, 2008 Share Posted March 29, 2008 When you buy DVD's from a wholesaler they also supply you with the trailers to play on your retail units and the posters that you use on the display boards of your machines. The costs are about the same at Walmarts as from the wholesalers but without the extras. Link to comment Share on other sites More sharing options...
kcinnick Posted March 30, 2008 Share Posted March 30, 2008 I am going to guess your costs are different in your area, Becuase I can go to Circuit city, Best buy, Wal-Mart, K-mart or Target and get any new release $15 or cheaper(they all price match each other). The wholesalers would have to have a price somewhere near that or lower for the smaller stores and independant rental places to make it. I am going to do some digging and try to find a source of DVD's for an independent video rental store using some of my retail connections, and I will report back sometime next week. I am really wondering if a business license and the intent to sell DVD's in a vending machine would be enough to get an account with anderson (the supplier to Walmart for DVD's, magazines, books, etc.) Nick Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.