DVD renting and selling is a multi-million dollar industry. About 90% of this business is attributed to the sale of newly released movies. However, DVD vending machines have completely revolutionized the industry. It has made this business even more profitable for DVD sellers.
The idea of a DVD vending machine first originated in Japan, and was popularized in Europe. Even in the US, it is not doing too bad. This is a lucrative business opportunity for people who wish to run a business on their own terms and conditions.
Understanding the Machine
DVD vending machine have DVDs stacked in piles behind a Plexiglas or clear glass, so that customers are able to see them. They also come with a browsing facility, so that customers can check what all is available for sale. The stack of DVDs is placed on a rotating platform, so that customers can sift through the available stock.
When they press a button, the platform begins to rotate. The customers then select the DVDs and make payment. These vending machine can accept coins, USD 1 bills, USD 5 bills, USD 10, bills, and USD 20 bills. However, they do not accept USD 50 bills. The change is then dispensed as dollar coins or in lower denomination.
This business has great prospects for those seeking innovation. The biggest advantage is that you do not have to employ staff for the upkeep of the store. Everything is automated, right from stocking the DVD movies to performing the transactions.
Besides, you also do not have to invest in property, as the machine only takes up about 5 sq ft of area. They are ideal at local supermarkets, convenience stores, petrol pumps, etc.
Market research is a fundamental step in starting any business. Conduct some research regarding the demand for DVDs in your locality. Also, check what kind of movies the people in your locality prefer. Analyze your finances and assign a budget for location rent, buying or hiring of vending machines, buying DVDs, and other expenses that might arise.
Hunt for a Location
As mentioned, local supermarkets, gas stations, and convenience stores all make for ideal locations for these machines. These days, people prefer to cut down their stops while running errands, meaning, they like to shop at one stop only. This is the reason why we see groceries at gas stations or bill payment facilities at supermarkets
In any case, check where people in your selected locality love to shop, and station your vending machine at that place. You can also inquire about franchises if you want a ready-made business plan.
Buy/Hire a Vending Machine
Buying a vending machine is the biggest investment. You also have an option of hiring one if you do not want to take a big leap. In fact, one of the best business strategy is to hire a vending machine, until your business takes off. You should conduct a thorough research before you dive into it, as, just like any other business, this one also carries risks.