What is all the hoopla surrounding this dvd rental machine craze? As a business owner have you ever wondered why should you even ponder having one of these strange machines in your store. How much money will the dvd kiosk generate for me? How much time will I have to devote taking care of the dvd rental kiosk? Will kiosk rental generate additional foot traffic? If you own a convenience store, grocery store, drug store, fast food restaurant or any other type business in which you have more than average foot traffic and have ever wondered about offering a dvd rental service this article is for you.

First we need to answer the most pressing question.

1. Will a dvd rental kiosk make me money? It really depends. I know that sounds like a sugar coated answer – but it really does depend on many factors. In most instances it will make you some money. How much depends on how well the dvd rental service is managed and how well both of you market it.
2. Will my employees be working with or on the dvd vending machine all the time? If the machine that is put in your store is a good quality dvd kiosk, then the answer is no. At first your employees will have to answer customers questions about the kiosks such as how it works and how much it costs to rent a movie.
3. Does the dvd rental kiosks use a lot of electricity? No. I have never run across any store owner that even noticed an increase in their electric bill.
4. What percentage should I charge for floor space? That depends entirely up to you and what your market allows. I had a store owner ask me for 25% one time. Needless to say I was not able to put my dvd kiosk in his business and make a profit. Somewhere around 7% – %15 is the norm.
5. Should I allow the dvd kiosk machine to use my Internet connection? If the kiosk is set up outside your internal network then you should have nothing to worry about.
6. What happens if the dvd rental machine injures one of my customers? You should require proof of liability insurance before you allow the kiosk on-site.
7. Will a dvd vending machine drive more foot traffic? In the case of my machines it certainly did. If the dvd kiosks are promoted in the local community you should notice more traffic.
8. OK, I want one. How long does it take to get one? 1 week to 10 weeks depending on current inventories.
9. Should I have a written contract with the dvd rental kiosk owner? Yes
10. Where can I get one? Do a Google for DVD Rental Kiosks and you will find many vendors. If you do not want to purchase one yourself, call up the vendor and ask for a local distributor. Someone will be happy to help you.

I am asked often about the store owners experience with the dvd rental kiosk. From what I could tell, if the store owner is comfortable with the dvd vending machine owner then things will probably work out well for the both of you.

Can you get rich operating a DVD Kiosk? My answer to that question would be both yes and no. Yes, if you own multiple machines and have them in great locations. No, if you only have a few machines and they rent low volume. While I personally did not make it to the big time operating my kiosk business I did talk with several people that were quite successful.

The first week that I announced to the world that my kiosks were for sale there was an onslaught interest. I was simply amazed this many people would  show interest in my dvd kiosks. Most all of the serious conversations were from people already in the business looking to expand. I kept thinking to myself, “I had these machines for 14 months and had only reached 30 to 40 percent of my projected profit.” Why were all these experienced kiosk owners interested?

While talking with the seasoned business people I realized that my daily rental volume was not universal. Some people with small kiosks were actually averaging between 20 and 30 rentals a day. These numbers may not excite a redbox investor but when you have a kiosk that holds 112 movies and you are renting a third of your inventory daily … you should start jumping for joy.

Let’s play with those numbers … but first let me throw out my disclaimer. The following numbers are not real, I made these numbers up and they do not represent any potential profit or loss you might incur.

INCOME
Daily Rental Fee: $ 1.99
Daily Rental Volume: 25
Average Nights Rented: 1.5
Total Annual Income: $ 27,238

EXPENSE
Inventory: $ 6,800
Space Lease: $ 4,085
Other Expenses: $ 2,500
Total Annual Expense: $ 13,385

Total Potential Profit: $ 13,853

Let’s assume you have 10 kiosks:
Total Projected Annual Profit: $ 130,853.

These numbers are all fictitious and I came nowhere close to making that kind of profit. The people I enjoyed conversations with over the past few months, if they were truthful, are putting up those numbers. Had I been making profits of that nature it would have been very hard for me to let go of the kiosks. An ROI of less than a year and a half will catch many eyes.

Just to be fair … here is a sample of what my numbers might have looked like. If you want the real numbers for my dvd  kiosk business, please search through the blog archives as there is a post on that.

INCOME
Daily Rental Fee: $ 1.99
Daily Rental Volume: 10
Average Nights Rented: 1.6
Total Annual Income: $ 11,621

EXPENSE
Inventory: $ 5,500
Space Lease: $ 1,162
Other Expenses: $ 1,000
Total Annual Expense: $ 7,662

Total Potential Profit: $ 3,959

Let’s assume you have 2 kiosks:
Total Projected Annual Profit: $ 7,918.

Your ROI at this rate is a tad over 5 years and not nearly as attractive as the first one.

Please do not use figures from this website as an influential factor in your kiosk business decision process. I am only attempting to entertaining you with stories about my personal experiences.

Are you or someone you know in the market for a cheaper more slightly used version of a DVD Kiosk? If so, you are not alone. With the recent slow down in most markets the used kiosk business is thriving. There are several reasons for this but the obvious ones are more people are needing to sell their machines and more people are needing to spend less when purchasing one.

I am often asked if one can get a good deal when purchasing a second hand dvd kiosks? The answer is overwhelmingly yes so long as you follow a set of simple guidelines. Keep in mind as you read the guidelines below that this list is not exhaustive as each situation is different. This list should be used to jump start your brainstorming and aid in your research prior to making a purchase that you may regret down the road.

1. Ensure you will have back-end software access: I was surprised to hear that at least one dvd kiosk company is considering NOT supporting kiosks where the original owner no longer owns the kiosk. The purchaser of the used kiosk is responsible to contact the kiosk vendor and verify whether or not they indeed will have access to the software needed to remotely control the machine. It could very well be that they sub contract the back-end software access to a 3rd party.
2. Ensure you have technical support: You may be surprised to read this but the used kiosk that you are considering buying may not come with any technical support. You should contact the kiosk vendor and verify that you are at the very least able to purchase blocks of technical support.
3. Know your transfer figures: How much is it going to cost you to transfer this kiosk into your name. Don’t think that you will be able to just pay the owner what he/she wants and you will automatically up and running. There will be a setup/transfer fee that you will be assessed to configure your machine.
4. What is your warranty: The major player (DVDNow) does not offer a warranty to the second or third owner of their kiosks. Check with your vendor about this as breakdowns costs can eat up your profit.
5. Machines maintenance record: Ask the owner if his/her machine was down a lot for maintenance. If so, ask the owner to specify the problem and if it is resolved. Ask to see a maintenance record. If none was kept, ask for permission to call or write the kiosks vendor technical support for a maintenance record. If the owner refuses to work with you on this then move on to another kiosk owner who will be forthcoming.
6. Double check the facts: Do not worry about how this one may sound. This is business and you are about to sink a sizable chunk of money into a used piece of equipment. Be prudent and double check the information you have been given. Obtain permission from the kiosk owner to call the business owner where the prospected kiosks are located. Call the store owner and ensure the kiosk is in tip top shape. Ask him/her about any potential problems they may have noticed with the kiosk. If you are unable to obtain permission from the kiosk owner or the store owner alerts you to problems it may be time to move on.
7. Obtain an inventory list: Movies or inventory will be your largest investment over time. Make sure that the initial inventory comes with the kiosks. Secondly you should be sure how many and of what titles you are obtaining. Expect to pay more for a load of new release big hit movies.
8. How to move the kiosk: Talk to the kiosk vendor and find out how to move the kiosk. What internal parts such as the robotic arms or transfer trays can be locked down prior to moving. Questions such as whether to move the kiosk in a horizontal or vertical position should be answered as well. What is the weight of the kiosks and will the owner be present to assist you?
9. Verify on-site: Make sure you and the owner are in agreement that you are not committed to a purchase until you have physically seen the kiosks and are assured of its functionality. It is up to you whether you want to send earnest money to hold the machine but it just makes good business sense not to commit until you are satisfied the kiosk is what you expected.
10. The gut knows best: I could not figure out how to title this thought so I left my original thought here. What I mean by “The gut knows best” is follow your instinct or your gut feeling. If you think the deal is too good to be true or if you feel that something is not quite right you should probably listen to yourself. I find that often my instinct or ‘gut feeling’ about a situation is correct. All I am saying is don’t ignore yourself if you feel something is not right.

You can find excellent deals on second hand dvd kiosks if you do your homework. There is a lot of junk in the market as well so be thorough in your research. Knowing the market dynamics can help you too. Be aware that it is not in the DVD Kiosk vendors best interest for you to purchase a second hand dvd machine. Use this knowledge to your advantage while asking the vendor questions. They would love to sell you a new machine and may tell you more than the kiosk owner wants you to know. This is a double-edged sword for the vendor however. If they alert you to too many issues with the kiosk then you may want to ask if these issues are common with their products.