DVD KIOSK BUSINESS POTENTIAL EARNINGS - HOW MUCH CAN YOU MAKE?
Now let’s talk earnings. This is one of the most important questions that I receive. How much can I make? Well let me tell you what you will not make per machine. You will not make the $10,000 per machine! This is unrealistic unless you have a business that regularly gets 15,000 customers per week. It is just not going to happen. If you have a business with moderate customer traffic expect to make $500-$1000 monthly after expenses per machine, any more will just be icing on the cake. This is not too bad if you consider that you will visit the machine 1 time per week to stock it with new movies. A few rental facts about your customer are; most will keep the movie for 3 days on average while some will bring it back the next day before they are charged a second day rental. Most DVDs rented will be Action & Adventure followed by Drama and then Comedy, Horror flicks do not do as well although you will want to stock your machine with some of them and I wouldn’t suggest steering clear of them just be cautions of the ones you choose.
One of the problems of being profitable in the DVD Kiosk business is the expensive DVD’s that the machine is stocked with. The franchise pitches you on stocking the kiosk with “New Releases” as this is what they perceive to be the best practice. But if Redbox & Blockbuster are all renting “New Release” DVD’s how you can expect to compete with that? The answer is you can’t. So stock your machine with older titles and some new releases. One of the biggest complaints I hear about Rebbox is most people who rent there have already watched the new releases stocked in the machine. This is your chance to fill a weakness that they have exploited. They are forgetting about all the great movies that people still want to watch. So the upside is instead of spending $19.95 on a new release you can pick up older movies for $5 bucks.
Let me say one last thing about generating income with these machines. Some companies machines are capable of earning revenue from advertising on the sides of the Kiosk. This may be a good revenue generating concept but if you are purchasing a DVD kiosk based on this tactic only you are in for a serious disappointment. Nobody is going to just start advertising on a machine that was just placed in a business. I don’t care if you only charge $1 a month. It isn’t going to happen. You can consider advertising revenue into your monthly profits after about a year after having the machine in the same location. In fact advertising will eventually make you more money than your DVD rentals. But to consider this as a “good reason” to purchase a kiosk machine is a recipe for disaster. The machine has to be able to support its self without any advertising.
Yes DVD kiosks are profitable if you have realistic earning expectations, if you find good locations, pick good movie titles and have capital to grow your kiosk army from 1 or 2 to the 8-15 that you will need to make a good income. My last piece of advice is this (very valuable pay attention) make sure this is what you want to do and that you have taken all the information in this report very seriously because once you decide this is what you want to do and you purchase the machines you will never, I repeat never, get rid of them for what they are worth. They will lose about 50% of their value the second you crack the seal on the box. They are also worthless to be used in any other manner because they only work via the software of the franchise.
I hope this information has been interesting and insightful to you. I hope it has opened your eyes and helped you to decide on whether or not you want to commit to this kind of business. Like any other serious business it can be a success or fail miserably if you go into with your eyes half open. Just remember only you can take the next step. Before making any commitments STOP, THINK and LISTEN.