How to Start a DVD Kiosk Business
You want to compete with the big boys --- those big red kiosks adjacent to supermarket entrances. Fact is, you're not alone. Big-box stores are joining the DVD kiosk parade too, which means lots of folks are competing for movie fans. Join the fray as long as you can invest from $2,000 to $10,000 for a kiosk, says Patricia Norins, publisher of the trade magazine "Specialty Retail Report." That doesn't include expenses you'll incur partnering with DVD distributors, so have plenty of cash on hand when you get started.
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Instructions
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Come up with a unique selling proposition --- a marketing twist that you plan to implement that will set your DVD kiosk business apart from the crowd. Perhaps you'll dispense microwaveable popcorn bags in addition to disks, or you plan to give repeat customers a frequent-renter card that entitles them to a free DVD selection once they watch 20 films. A clever USP makes a strong argument for choosing your kiosk over other self-serve vending stations.
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Lease one or more kiosks. If you can find a company leasing pre-owned DVD dispensing units and it has the ability to refurbish them in the style you need to vend films, it makes sense to sidestep the idea of acquiring a brand-new kiosk, just in case your business idea doesn't pan out over time. Once you and the kiosk company agree on style and size, negotiate the shortest leasing agreement possible.
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Survey DVD rental distributorships. Choose the one that best meets as many criteria as possible: compare by price, connections to major film studios, variety of offerings and fast delivery of newly released films. You don't want a relationship with a distributor who gives multiple-kiosk owners priority on new releases while small clients like you are wait-listed for product. It's also important to check out the distributor with the state's attorney and/or Better Business Bureau in the city in which corporate headquarters are located so you don't find yourself doing business with DVD distributors that have no licensing rights.
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Contract with high-traffic businesses to attach your kiosk to their location, but don't stop at grocery stores when you seek unique partnerships. Consider cutting a deal with a university to install your kiosk at a campus hub that serves multiple, large dormitories, or negotiating with a huge apartment complex to put your DVD kiosk into the community's recreation building. Think about large concentrations of people who would like having a video rental station nearby.
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Expand your reach. If you've had success with an apartment complex, make this the focus of your DVD kiosk business and mine other local residential complexes for new locations. Once you've been operating one kiosk for a while, you'll know what it takes to make your business successful: great films, a captive audience and a USP that can't be matched. Give yourself a pat on the back. You're a business star.
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References
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