DVD Vending Machine Business Pros and Cons

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DVD vending machines have been part responsible for the fall of blockbuster, with this said these DVD kiosks are now a well established industry that pull in millions of dollars a year. Is estimated the average DVD machine makes anywhere from $35-$50k a year.

Would you like to be part of this growing vending machine business?

 

 

Pros of a DVD vending machine business:

 

Convenience: This business is convenient for BOTH you and your costumer. Your costumer will be able to pick a movie, inexpensively, and fast; without the need to drive to an actual DVD rental store and browse movies for hours.

At the same time this is good news for you; the machine does most of the work for your costumer and yourself.

It makes sense DVD kiosks became popular so quickly.

 

Low risk of machine theft/vandalism: DVD kiosks are usually placed inside stores; this stops any possible vandalism or machine theft.

 

Extra profit from late returns:  Late DVD returns occur often and bring big profits.

 

Established industry: New types of vending machines appear every year, some of them are a big success and worth investing in them from day 1, and others turn out to be massive failures. Why not invest in a vending business that has already proven to work?

 

Cons of a DVD Vending Business:

Franchise: Sadly at the moment, all DVD vending machines are sold as part of franchises or business opportunities. Franchises have their benefits, but they usually come with equal disadvantages (such as royalties).

 

Competition with Netflix: Netflix is a major player in the DVD, movie rental business. Watching movies online has become very convenient. In  a few years the efficiency of renting movies online could ruin DVD vending machine business.

Business Tips

Pick the right locations: Remember you want your machine to be noticeable as well as protected. The right locations should be super markets and retail stores.

 

Offer promotions: Drive sales with promotions. Most DVD vending machines have are promotion configurable.

 

Read Franchise Contracts: Franchises/Business opportunities come with contracts that usually have loop holes and restrictions buried under 5+ pages of legal talk. Read contracts and ask questions to be clear of what you are getting yourself into.

One Response to DVD Vending Machine Business Pros and Cons

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