How to Manage the DVD Kiosk Cost While Staying on Budget Home

 

Just how much does a DVD kiosk cost? Why buy a Kiosk? That is usually the first question people have when considering an investment in this type of DVD rental business. The prices of the machine can range anywhere from $10,000 to over $30,000. Why is there such a wide range in price? The cost of the kiosk machine has many factors involved in it. Is the equipment new or used? What is the size of the kiosk? How many DVD videos will fit in the Kiosk? Is the machine controlled by a franchise agreement? Many factors such as these will influence the price of a DVD Kiosk Machine..

How you choose to finance your Kiosk equipment will also affect the true cost of the machine. If you are planning to use a lump sum to buy the kiosk, you will not incur any interest in the purchase. Some people decide to take out a business loan for the sale, which will add interest and associated loan fees to the true cost of the kiosk. Another option is to have some sort of rental agreement with the seller. Rental agreements often include other terms that might add to your final cost.

When you purchase a DVD Vending Kiosk, you may want to know how soon you can expect to recoup the DVD kiosk cost? Again, there is much variability in this calculation, but most Kiosk owners would agree that the price is typically recovered in about two or three years. Some of the factors that affect how and when you would see a return on your investment include the number of movie rentals that are made on an average week and the amount of money charged per rental. Also, the agreement you make with the property owner has to be considered in the equation. Most of the time you will be paying 10% - 20% of the rental monies you collect to the business owner. Some suggest that it is a benefit to the business owner just having the machine itself because it creates more foot traffic to the business. This in itself will not convince the owner to let you put the machine there for free. Retail space equals money in any store and comes at a premium.

Like most other large purchases, you should be able to negotiate the final DVD kiosk cost and sometimes you can get free shipping which may be up to $500 per machine. Get prices from several kiosk manufacturers before making a final decision. If you will be buying into a kiosk franchise, ask to speak with other owners to help you get an idea of what constitutes a good deal with that particular company. If they give you a list of names and all you get when you call are personal answering machines set up by the franchiser don't walk away, Run. Also if they give you a list of 2 people to talk to about their success in the business, Run. Most franchises will encourage communication among franchise owners because it will help potential owners feel confident that they are making the right decision. Whatever the price of your DVD kiosk, be sure you don’t take on a risk level that is well over your head.