Tuesday, July 29, 2008

My opinion of DVDNow and other comments




O.K., I thought I would post this to my website because everyone of you that calls me or e-mails me asks the same thing. "What is your opinion of DVDNow?"... Here's my opinion of the company.

First of all, I'd like to let you know that I started quite awhile ago. I started when DVDNow was in the stages of around 100 Kiosks. My builds were in the mid 100's so Michelle and I (my wife), were very hesitant about spending money with a company in it's infant stages. We talked with Bob Gallner, at that time one of DVDNow's salesman. Bob was a great guy and to large degree answered some of our questions. We of course, were still hesitant about buying the kiosks. When a company just starts up and has a little over 100 kiosks out, it leaves the question in your mind, "Is this the right thing to do"... I am a sales manager at a local Ford dealership and my background would have really told me that it wasn't a good risk to take.
After talking to my wife for several weeks, we just had this gut feeling that it was going to work. We knew that it was going to take alot on our end to make it work, just like it's going to take some time for you. But, you can do it!
We talked to the President of the company "Scott McInnis", hope I spelled that right and were impressed with his vision on where his company was going. I could tell that he wasn't interested in only selling these machines. I could tell that he was in it for the long haul and was concerned about who had machines from his company. During the interview, he answered many questions that came up as well.
I took the risk and here's what happened. I want to be honest with you here and want you to know that DVDNow does not pay me for my comments and respects the fact that I tell everyone of you the truth about the company. I ordered 5 machines right off the bat. I had one machine that didn't work right away. I plugged it in and the carriage didn't work correctly. I called the company up and they put me in touch with a Rebecca back East. She was awesome! She had a new carriage in the mail right away and it was at my doorstep the very next day. She asked me if I needed someone to help me put it in. I told her no... I could do it myself. The machines are built so that most people that can turn a screwdriver can fix them. There's nothing complicated about them. DVDNow just replaces the part. There's no soldering or any other crazy amount of work that needs to be done. I replaced the carriage and broke another part on my own while doing it... So there I was again, waiting for a guide to show up in the mail. Again, it was there the in the next couple of days. I finally had it going and it worked great.
As time went on, I experienced a couple more mishaps with the machines. Again, DVDNow was there to take care of me. This was one of my worst fears. I was concerned about the service end of the machine. These guys have taken care of me from the get go. In a nutshell, they have proven to me that they are in it for the long haul. By the way, my fifth machine was build 224... I have had absolutely no problems with this machine at all. There was a quality control issue with some of the earlier machine (in my opinion).... However, they all work great now and some of the software that has come out for them is absolutely awesome. I can control where my movies are in the machines and I have two machines that are 250 miles from my house. I don't do much with these machines and the revenue comes in. That's what I like.
By the way, Mark Rudolph who has been in touch with me from the get go has been an unbelievable amount of support and help.

Another Question that I get:
Why did you get into this business?
My answer to that is simple! I wanted a business that I could depreciate out so we actually get an opportunity to write expenses off on our taxes. I also wanted something that didn't consume all of my time. My oldest boy races motorcycles and I ride alot too. I didn't want something that was another job from my main job. This business seemed to fit all of the criteria I had for what I was looking for.
Here is what this business has done for me.... I've been able to actually get money back this year in the form of a tax refund... For the first time ever, I actually had a check back from Uncle Sam. I make money off of my rentals and the sales of previewed movies. Plus, it's started up an advertising business too. I bought some video equipment and I videotape people's activities such as weddings, parties and anything else that folks want to keep for memories. I have a super expensive camera Canon XL2 that I have rigged with wireless microphones that allow my videos T.V. studio quality. I do it for less than half of what any T.V. crew would charge. I also undercut everyone else in town that has their own video business. My regular job allows that. Basically, I have an awful lot of fun with this business. DVDNow set the stages, and I ran with it. They aren't responsible for making it fun and profitable, I am responsible for that. You will have to do the same. You can't depend on them to make this business work for you. You will need to do that yourself. The great part of all this is that the potential is unlimited. You earn what you make of it.

Another Question:
Did you use a locator?
No way! I am a salesman at heart, I don't need someone doing my job for me. I think that if you have a decent amount of people skills, I'd do it yourself.
Here are some things that I looked for (because location is the key to success)
1. Does the place have lots of foot traffic? Do people have to drive or can they walk to the business? Make sure that they can walk there. With the price of gas, you need that. If they have to drive, it makes it harder.
2. Does the store owner or host, like the machine or are they just going to treat it like the bubble gum machine that's in the corner. The best cheerleader for your business is the crew that works around it. People that can explain how the machine works will make your business successful. Also, the customers should be able to depend on them.
3. Does that location offer several different varieties. By that I mean, can they do a lot of things there. Can they buy Pizza, Beer, Pop, snacks? Can they get everything in one place? That's key. If it's just a gas station, it's probably not going to work.

Hope that helps you guys out that call me or e-mail me. If you have any questions beyond that, just e-mail me. My time is very important to me and I don't mind answering questions, but I also value the time with my family. Plus, I need some time to ride motorcycles with my son. Before long, the little bugger won't want to ride with me anymore... I'll be to slow and old for him.. Ha Ha

Take Care and the Best of Luck to ya,

Sincerely,
Mike Weiland
http://readydvd.com

50 comments:

Mike at ReadyDVD said...

Hello my name is xxxxxxxxxx I am in Oklahoma and considering the purchase of a kiosk. I am working with Doug Bryson and he gave me your info. Do you consider these things a good investment??? I cant get any response from anyone on a yearly revenue. Everyone says that it depends on the person and location etc. I have a great full time job ,,and some good hobbies . I really dont want to buy a 20,000 additional hobby. DO THESE THINGS MAKE MONEY???????? Any input in this situation would be greatly appriciated. I do work hard for my money and I just would like to know what to expect before I purchase one Thank you very much Warren

Mike at ReadyDVD said...

Hi Warren,

I forwarded your email to my husband, Mike. I don’t have much time right now, but I can confirm that location is everything. We learned a lot about what types of locations work. Briefly, here are a few things that can make/break a location:



1) The support/ no support of the location owner or manager

2) The location’s business hours (a place that closes at 7:00 pm won’t work – the later the better)

3) Can people easily access the location? Can people walk to it, or is it on a daily commuter route?

4) Other business under the same roof as your host location? We have a kiosk in a new convenience store whose building also houses a Laundromat and a pizza place. There is a lot of cross-traffic. It is one of our best locations.

5) The proximity of other DVD rental sites to your kiosk location. If your location is a block from a RedBox, Blockbuster, etc.. you might have problems.



One more tip: You can’t compete with Redbox, so don’t even try. You have to find your niche, i.e. go where no Redbox has gone before or offer something Redbox cannot. Personal customer service is one thing Redbox cannot offer. They are very corporate.



They can make money. However it is up to you and your ambition and commitment to make it happen. If you treat it like a gumball machine, that is the return you will get out of it.



I will let Mike tell you more. I am a CPA and handle the movie purchases and numbers side of our business. Mike is the mover and the groover of the family!



Michelle

Mike at ReadyDVD said...

Dear xxxxx,
I do consider these machines to be great investments. Remember, they can be used for several different purposes. 1. We use them as a Tax write off! We actually got money back from Uncle Sam this year. As far as revenue, yeah, you can make good money on them. When you place them in the right location, you'll do fine. Just popping them in a location that is bad won't earn you any revenue. Another source of revenue on my end is selling the pre-owned movies. If you look at this business in 4 parts and you have each part dialed in, you'll do great.

1. Tax Deduction
2. Revenue From Videos
3. Revenue From Pre-owned movies
4. Advertising opportunities on the Kiosk


As far as everyone telling you that it depends on the person and the location, "They are right".. If you are willing to take a few minutes extra and make sure you have a great location, you will do really well. The best cheerleaders in this business are the people that are in the store where your machine is located. I look at the machines as a profitable hobby. I have several hobbies myself and none of them make me money. "This one does".. There are several tools available via DVDNow and even my blog that you can used to make your business easier and profitable. I'd be glad to point out a few to you if you want.

If you are halfway excited about starting your own business in the movie industry, you'll do fine.

Unknown said...

Hi Mike, my name is Mark Anthony from Stockton, CA. but you can call me Mark. Let me first say that I am really impressed on how you and your wife has taken this business to where it is right now, a big congratulations to both of you.
I started the business with 2 DVDNow kiosks in the beginning of this year and are now placed in 2 hotel suites in Fairfield CA which is an hour drive from my place. I am really glad that you started this blog for kiosks owners, this would really help people like me who is new in the business realm. I hope you don't mind if you'll be receiving a lot of questions from me. I saw the potential of this business, which is why like you, I took the risk and ran with it, but unlike you, I'm not as experienced on how you made this work for you. I guess what I'm trying to say is that I'm in need of help in a lot of areas on making this business profitable. Don't get me wrong, I love this business, but there times that I run out of ideas and left wondering what else can I do. I do respect your time as I read your blog, and seems like your a really great guy. So let me know where can I email you with my questions and concerns of the business coz I'm not sure if its ok to post everything here. I'm really looking forward for your response and hope to learn a lot from you as I like to learn. Thank you very much.

Mark

Anonymous said...

Can anyone share if they have made a profit from these machines. I am not looking for a hobby. My hobbies are tennis, basketball and reading. I am looking at entering this business for residual income of 20-30,000 per year. The company nor anyone affiliated with the company have yet been able to indicate an average annual return on your investment. I know that it depends on the location. But you should still be able to provide good and bad scenarios.

Mike at ReadyDVD said...

I wouldn't be doing it if it was just for fun. Read my blog on the three ways to make money on these machines. The answer to your questions is "yes". I am making money on my 5 machines. I do advertising with them too. If you want to make 30K on one machine, I'd have to say, it's highly unlikely. If you have more than one, then "yes". I might make money differently than others on this blog, but we all do certain things the same. Ex. Rentals, Pre-owned Sales, and hopefully advertising. I don't think anyone should have to tell you how much they make though. That's personal. The biggest bit of advise to you and anyone else getting into this business is to seek locations where there is limited competition. One of my machines is in a small town of 1500 and it's awesome. The folks love it and use it all the time. There's lots to discuss here on your question, but you need to be motivated to make the money. The money just doesn't materialize. Being smart and doing things intelligently has a huge role in how much you make. I am going to make a video soon on some of my tips. I've had way to many people calling and e-mailing me trying to be "Redbox" or "TNR"..Not going to happen.
These machines are awesome though and you can make great money on them. You just have to be smart about it.

Sincerely,
Mike
http://readydvd.com

Anonymous said...

You are correct that people should not disclose their profit made. However, the Company should keep these numbers and be able to provide prospective clients with these numbers. McDonald's Corp is able to tell you average sales based on previous sales numbers and unit demographics when you are looking at opening a McDonald's, I think DVDNow should be able to do the same. But I have digested that you indicate that the numbers I have calculated seem unreal, which tells me that your profit was less than that. Can anyone share if they have found a credit card processing company with reasonable merchant fees or what percentage of their movie rental fees goes to merchant processing fees. Meaning if you charge $1.00 rental fee, does the merchant processing company charge 20% of the price processed. If that makes sense.

Mike at ReadyDVD said...

The problem is that DVDNow doesn't own the machines after you buy them. They can't just pop in and take information from everyone's machines. If they owned them all, that would be different.
You need to get in touch with Roy Neese at FirstDATA in Billings, MT. He's got the best prices on Merchant accounts so far. I've been looking. He's also very dependable with questions etc... I've posted several things about him in our Blog discussion.

Mike Weiland
http://readydvd.com

Mike at ReadyDVD said...

Mark,
I can't get in touch with you? You don't have your profile updated with an e-mail address. Have you read some of the blogs on locations?

Pop your information into your profile on the top left side of this blog under "followers"

Mike Weiland
http://readydvd.com

mike said...

Hi, I am wondering what specifically do you write off on your tax return and what type of business do you have(llc, corp, etc)?

Mike at ReadyDVD said...

We have an S corporation and we write off the business loss, section 179 deduction in year one, mileage,

The S corp profit or loss flows through personal income tax.

This year we will deduct straight depreciation on the machines.

Mike Weiland
http://readydvd.com

Anonymous said...

Hey Mike, I am thinking of purchasing 2 machines, but the cost of the machines and the start up cost seem to out weigh the gains. I would have to rent out at least 200 to 250 rentals a week to cover the monthly cost. Is this a resonable amount of rentals to forsee. What is a weekly average?

Mike at ReadyDVD said...

What I would tell you first of all, is call DVDNow on the numbers again. Go through it with them. There are too many variable to give you a straight answer. Some key questions are: How much are you charging for your rentals? Have you figured in the income you'd make from movies that aren't returned right away? How much will you make by selling DVD's?, Your question is to wide open to answer. Also, there are way too many people asking me how many DVD's I rent on a given month etc.. For me to give you that information involves way too many variables. I won't put those numbers into the blog. First of all, it's really nobody's business as to how much money my kiosks make and my business includes advertising, selling DVD's and a few other things. Again, I stress, that you need to be working with the DVDNow folks a little closer. The numbers you gave me by the way, aren't out of line. It all depends on your location.. Location is the key to this business.
I hope I don't sound too rude, but really, I am just here to help folks get a good start with some key information and pointers. The business is what you make of it "anonymous"... You'll be just fine if you have the right location.

Sincerely,
Mike Weiland
http://readydvd.com

Mikel said...

Hello Mike my name is also Mike and I want to start off by saying thanks for having a great site up with so much useful information about this dvd kiosk business opportunity. My main concern is that I have spoken with a few sales rep about investing into these dvd kiosk however this particular person in California claims he can give me a great deal with all the same benefits DVDNow has to offer at a very low price and I'm talking about $4k cheaper per machines to start off. I am very skeptical as to how this person can actually do that and I done my deligence in researching this person that I found on dvdrentalkiosk.net website. Please help me understand if this is the right move to go with this person who is claiming he is an distrubutor that is contracted with Moviemate which also affilated with DVDNow? My question to you is that what do I need to do to really find out if this guy is legit or should I stick to my gut feelings and go directly with DVDNow? Please email back as soon as you can thank you so much and I'm sure you are probably super busy.

Mike at ReadyDVD said...

I would not buy from anyone else. Who are you thinking will take care of you? Think about it? Buying is the easy part, right? Who's going to take care of you after the purchase? I've already gone that route and DVDNow has taken care of me every time. I can't say enough about their service. You can write off the machines on your taxes anyway. Go with your gut and just do business with a company that's got over 900 machines out right now. Mikel, thy do take care of you and in this business that's very important. If you are down for any amount of time I can attest that DVDNow will be there. I've been with these guys for 2 years now and they've been taking care of me each time I call. Mark Rudolph, Mike Risdon and Brent Johnson work hard to keep all of us running.

Sincerely,
Mike Weiland
http://readydvd.com

Mike at ReadyDVD said...

VENDORS WISHING TO POST TO THIS BLOG. PLEASE READ!

Subject: STATE ATTORNEY GENERAL / FEDERAL TRADE COMMISSION (FTC) ALERT FOR PURCHASERS OF FRANCHISES AND BUSINESS OPPORTUNITIES
Importance: High

We at DVDNow Kiosks, Inc., appreciate your interest in our DVD rental terminal program. It has come to our attention that there are a handful of other companies on the internet that do offer to sell a DVD rental kiosk of various kinds to any investor looking to go into the business of owning and operating DVD rental kiosks, and we feel it is our responsibility to inform our prospective distributors that any company that offers to sell vending equipment (DVD rental machine) to the investor public, and offers to provide initial training, and ongoing marketing assistance to help the investor run and expand the business, must be filed with your state as a UFOC Franchise, or, as a Seller Assisted Registered Business Opportunity, under the FTC Franchise and Business Opportunity Rule (16 CFR part 436) and must provide you with the Federal Trade Commission 20-point Legal Disclosure Document 10 business days before the signing of any contract or purchase agreement with you. This document does two very important things: #1: It proves the company you are speaking with has legally registered and filed the proper documents with your own State's State Attorney General, and Secretary of State's office, per the Federal Trade Commission, to do business legally in your State. #2: It provides you with the legal history of the company: The financial statement on the company; Bankruptcy history; past litigation; operating experience of the company; officers of the company, and their operating experience; pending lawsuits, any outstanding C & D (Cease & Desist) orders attached to the company ,etc.. DVDNow Kiosks, Inc. is in full compliance with FTC Rule 16 CFR part 436.(See Attachments), and our FTC Legal Disclosure document is included in our Corporate overview and business package. No other companies selling DVD rental kiosks on the internet have gone through the very costly, and time consuming process to properly file, register, and be able to provide you with the FTC Legal Disclosure document, which means they are classified as "Out of compliance, and 'non-registered companies' (This is independently verifiable by you, with one phone call). The 'test', according to the FTC is whether or not the company offers to provide ongoing marketing (called 'Seller Assisted') assistance and guidance to help you to run and grow the business, after you have purchased the equipment. We bring this to light, as we have over 8 years of experience providing a Business Opportunity, and have helped place hundreds of individuals enter into the public access internet terminal business, as equipment owner operators, and this is not a "gray area". It is black-letter law, enacted October, 1979, carrying civil and criminal penalties for non-compliance to the company, and complete loss of investment made by the distributor, if the company is put in receivership for non-compliance, and may be verified by contacting the Attorney General's Office of your own state (See attached list below).

Our 20-point FTC legal Disclosure document for DVDNow Kiosks, Inc. is included for your review in our Corporate overview & Business package, and is available upon request at the appropriate time, and we recommend that you secure the same FTC Legal Disclosure Document from any company that you are considering, that is offering to put you in the business of owning and operating your own DVD rental kiosks. Ask them for it. It is Federal Law that they must have it, and it has been in place since October 21st, 1979 (See Attachment) for the protection of the consumer.

Please take the time to make sure that any company you are considering as a partner, is not operating in a manner, knowingly or unknowingly, that would subject them to possible enforcement / closure action by the Federal Trade Commission, or by your own State Attorney General's Office. It is your investment -- Protect it.





(Below is listed the Compliance Law Firm for DVDNow Kiosks, Inc., Wagner, Johnston & Rosenthal, P.C. They are one of the top 5 Compliance law firms in the nation, and I encourage you ,and / or your legal counsel to contact them. Ask for Mr. Michael Rosenthal. I have also included the contact information for every State Attorney General’s Office in the United States.)


Mr. Michael S. Rosenthal

Wagner, Johnston & Rosenthal, P.C.

5855 Sandy Springs Circle, Suite 300

Atlanta, Georgia 30328-4834

(404) 365-0005, phone

(404) 261-6779 fax

msr@wjrlaw.com, email

Anonymous said...

Hi Mike, My name is Melissa. I think your blog is great and has a lot of helpful information. I am considering purchasing one to two kiosks. I am nervous about it as I would have to finance most of the cost. My gut tells me this is a great business to be in and I have been looking for years for something I felt I could do. My hesitation is whether or not these machines can self-sustain as far as making the monthly payment on financing them. I would be hapy to break even in the beginning. Any thoughts on my hesitation or on financing in order to get my foot in the door? Thanks!

Mike at ReadyDVD said...

Why don't you call me sometime in the evening and I'll talk to you about what we did. You can find my number at http;//readydvd.com

I really don't want to post it here.

Mike

Unknown said...

The whole idea is attractive. No one was able to offer me a range of cash flow for this business. I am looking to buy a business and every single other franchise or privately owned business can offer me historical cash flow to help me evaluate if its worth it. Of course, your cash flow will depend on how you manage it, but how can anyone pay 20,000-60,000 to start off and not have the FAINTEST idea of how much he can make. I have no idea how many DvDs rent out a week, how am I supposed to make an accurate forecast or estimate for myself? No one is sharing earnings information or at least a RANGE of earnings for their kiosk. The earnings factor for this business is very shady and hidden. For this unknown certainty, I will go and buy a franchise/business that can provide me cash flow historical data or estimates based on THEIR proven model and operation...then I can evaluate and choose to buy it or not.

Mike at ReadyDVD said...

I don't have a problem telling you what I've made in the past. Generally though, on my end it's really none of your business. For DVDNow to tell you what I am making would be illegal. They have access to my numbers in sales and rentals. If they gave you our information to sell Kiosks, I'd either want to be paid by them or they would be looking at a lawsuit. If you want an idea how much I make per machine, I prefer you call me direct.

sincerely,
Mike Weiland
http://readydvd.com

Anonymous said...

Hi Mike, my name is Jim and I would first like to mention that this site is extremely informative in helping me to make a decision about this business. I believe I fall into a similar situation as Melissa discusses in her May 6 post. I feel certain that there is great potential in this business based on the industry trends I see happening now but do not have the kind of liquid capital required to start the business. I'd like to start with 2 machines initially. I am looking at different financing options but I'm curious about how other folks may have overcome this initial obstacle. Any feedback you could provide would be greatly appreciated and thanks for your time!

Mike at ReadyDVD said...

You are right. Now that Blockbuster is going to shut down even more stores, the opportunity is increasing. I would say that you need to be quick about it though. The locations are taken up rather quickly. Michelle and I wrote our own business plan and gave it to the bank. The bank accepted it and loaned us the money almost three years ago now.

Mike

Anonymous said...

Mike, when discussing sales numbers you state "The problem is that DVDNow doesn't own the machines after you buy them. They can't just pop in and take information from everyone's machines. If they owned them all, that would be different." A few posts later you say "They have access to my numbers in sales and rentals"

Which is it? Do they have your sales figures or not?

You also say something to the effect of 'I am not being paid for these comments' however you spend A LOT of time on your "blog" and request people to call you on your personal number. I understand wanting to help others but this seems "above and beyond"

Mike at ReadyDVD said...

You didn't understand what I wrote. They do not own the machine. However, they service the software that we use with the machines. Of course they have access to our numbers and slots. It would be illegal for them to share my numbers with anyone. You probably have a bank account don't you? Can the bank share your information with everyone? No, I think not. It's the same thing. DVDNow simply services the software and can see how much money we all make. They have to see everything or they can't fix problems that may come about with the software.
If you'd like to call DVDNow and ask them how much they are paying me, go ahead. And yes, I do spend alot of time on this blog. If you read all of the comments that I make, you'll see what I get. Keep reading. BECAUSE I'M ALL FOR TAKING ADVANTAGE OF EVERYONE ON MY BLOG. GET A LIFE "ANONYMOUS"... And Quit wasting my time.

Unknown said...

Mike,
great blog and your info is very helpful. I bought 2 machines a year ago and I will agree that LOCATIon is key #1 and then getting the business to promote the machine. The advertising seems like that with a little effort could be a great thing to help cover monthly costs ...loan,monthly internet website costs. My business partner and i use it for a tax write-off also. We are going to sell our 2 machines since I have moved and to focus on our primary business. We charge $1.49 to 1.99 a night and do just fine. We tried the $1 like Redbox and it did not work. Even with a redbox within 5 miles raising the price did not turn away customers. People pay for convenience and that is the key.

Mike at ReadyDVD said...

Hi Clark,
I'm not sure if you have entered the PRIVATE BLOG yet. If you want to keep up with what's been going on with the Kiosk Group, we've all entered the Private Blog to communicate.

Thanks for your input.

Mike Weiland
http://readydvd.com

Mike at ReadyDVD said...

Hi Clark,
I'm not sure if you have entered the PRIVATE BLOG yet. If you want to keep up with what's been going on with the Kiosk Group, we've all entered the Private Blog to communicate.

Thanks for your input.

Mike Weiland
http://readydvd.com

Unknown said...

how do you get on the private blog?
Clark
770 712-3892

Mike at ReadyDVD said...

Just look at the top left hand side of this blog. It's called Google Groups...

Anonymous said...

Hi Mike, this is a helpful blog, I totally understand why you re private and guarded about disclosing the earnings on your machines. I am going to attend the next available web cast conducted by dvdnow. However, can you tell me what costs are incurred each time you update your movie inventory with new releases? The 20K is just the beginning, I assume??? What additional costs are incurred each time you update your inventory?

Mike at ReadyDVD said...

Costs of movies
Cost of RFID tags
Video Cases if you need them
monthly charge for using DVDNow Software

That's some hard costs.. I'd suggest you get into the Private Blog if you want to learn more.


Mike Weiland
http://readydvd.com

Anonymous said...

Hi Mike,
Thanks for all you do to inform those of us considering this business. My question is simple: How do they determine "exclusive areas" to keep other DVDnow kiosks out of my "market"

Anonymous said...

Hello. I am a newbie considering this kiosk business for my only source of income.
Considering the extensive sales, marketing experience and prior business's such as gaming machines and a trade school my wife and I feel this is right up our alley.
I see a lot of questions of the same wanted to know information especially "How much can I make"
This type of business is simillar to the gaming machine business I had in the late 90's. Our machines were of the "Gray area" of amusement. This means they were not a video game or a gambling video game. Long story short is that we had to pick ideal locations to put these machines that had ideal foot traffic 24-7. The no brainer was convienence stores. We placed others in different establishments but didn't see the revenue there as great as the conv. stores. These machines awarded tickets for every 100 points you accumulated. These tickets were worth $5.00 apiece and redemable at that location or sister stores participating in the same games. This is different than the kiosks but what I'm getting at is the "Location" is the biggest major factor in the amount of money you can generate! The other factor was if the employees knew how to help out in playing it which was pretty simple. another factor was customer service from the owner or company that placed it there. Remember that the customer is how you make the profit but being fair and responsible to them goes a long way as long as they don't be a habitual problem and yes, they exsist.
Our plan is to attack all possible avenues of making money from what's available on the kiosk.
1. DVD rental / sales.
2. Late chg fee's.
3. Extra day chgs.
4. Blue-ray rental / sales.
5. Game rental / sales.
6. Static advertisement.
7. Video advertisement.
8. Retailer coupons / jewel inserts
9. Trade out advertisement for store owner versus a cut in revenue.

These are the main areas of focus to begin and will be enough to maintain. We feel that the advertisement sales can easily make up where the DVD and games lack.
FYI I did a revenue calculation based on a real low number of DVD, game rental and advertising.
This is just a "SWAG" calculation and is just for something to look at and not based on what you may see. This is an example only by what I hypethetically wanted to see.
This was for 1 month and a certain amount of movies and games rented each day and I will not provide the amount as these are all fictious cenarios.
DVD rentals income gross < > 4k
Game rental income gross < > 5k
Advetisement (both types) < > 9k
I did not include any late fee collections or dvd or game sales in this talley.
Remember, there are a lot of other expenses you'll have to figure in, to see what your "Net" will be.
The way we see it here is the advertisement area is the "big bucks" on these machines that our competition can't even touch! $$$$$.
Remember if,
You fail to plan, you plan to fail!

Kevin said...

Hi Mike,

I am a newbie to DVDNow, and I am trying to start up my business. I am having difficulty figuring out where to start. Does DVDNow have a standard business plan that you used, or did you can create one yoursel?. Also where did you start in incorporating/creating your business structure? I was thinking about incorporating in Nevada.

Any help or suggestions you could provide would be helpful. Thanks for your time.

Mike at ReadyDVD said...

We had our own business plan. We took it to the bank for funding. We financed a portion of our business. We are an S corp. It works better for us. There are a large portion of folks in here that are LLC's though.

Mike Weiland
http://readydvd.com

Kevin said...

Thanks a lot for your info Mike.

I'm trying to figure out where to start on making an formal business plan, since I've never done one before, and I am just realizing how important it is to have one. Do you have any suggestions on where I should go to get a foundation or is there somewhere you went when you made yours?

Thanks again.

Mike at ReadyDVD said...

I'd say, join the private chat room and post it. I believe there were a couple of people that were sharing their own. If not, I think one of them was selling one for $50.. I can't remember right off. There are over 4000 posts in there..

Just click in the top left section of "google groups"

Mike Weiland
http://readydvd.net

Kevin said...

Thanks for the great idea Mike.

I found my Welcome to DVDNow company binder that was sent to me after I purchased my machine. I am going to get a firm grasp of the steps laid out in the book, as well as looking for the chat room you mentioned.

Sujal Patel said...

Hello Mike. My name is Patel and I saw the DVDNow concept a couple years back and blew it off and told myself it probably wouldn't work. Since then I have seen the closures of all the Hollywood Video Stores and Blockbuster Videos. I did not see the trend then but it has hit me smack in the face now showing me that everyone either rents from Netflix or Redbox. I rent from both. I was on a webinar with the company today and it looks very promising and exciting.

My family and I own a couple of independent motels out here in California which consumes most of time. I use to be a Quiznos franchisee which failed because of corporate and I was also a Tacone franchisee (another quick service restaurant) which also failed because of no corporate support. So I started looking for another business that I can get into such as Denny's or a Car Wash or something. But I just hate leases and all the money you have to dump into opening a brick and mortar business along with all the headaches and the hours that you have to put in. There is no balance in your home life. So I started looking into vending 2 years ago and looked even more serious at it over the last year. With vending you don't have all the headaches and it is part-time. You can be with your family on a cruise in the Caribbean and be making money as your drinking a Keystone Light beer with Keith Stone....ha ha ha. I like the passive and residual income. So I narrowed my decision down to 2 companies. One is DVDNow, and the other is about a year old company based out of San Diego, CA that is doing really well for themselves called Fresh Healthy Vending. This company basically is a vending machine that sells all healthy and nutritional snacks and drinks. And it is a "franchise". It costs about half the price of a DVDNow terminal. I just don't know which route to go with. I like both. I know we all need more healthier choices in our snacks and drinks and I also know that the movie business is never going to go away, even if there is another writers strike...ha ha ha. I guess I am also a bit worried since the last two franchises did not support me and I failed that I do not want to lose anymore money. What is your take/opinion between the two choices? With the other company there is a minimum 10 machine purchase required and all there machines come with setup and a location. Also I had no idea that banks finance vending machine businesses. When I looked into it a year ago I read that in order to get into the vending business you have to have all liquid cash. Also when you mentioned that you and your wife got a loan from the bank with a business plan, I am going to assume that it wasn't the business plan alone that you the loan, but it was also your credit score and history too....am I correct? Thanks for your help.

Mike at ReadyDVD said...

Your assumption is correct! We did assume a loan from the bank several years ago.

Mike

John and Gisel said...

Hey Mike!

I am wanting to start a Kiosk in downtown Chicago! Advice for approaching business owners to have the kiosk in their store? I would love to talk more about the product.

Mike at ReadyDVD said...

I would recommend that you get into our google groups. There is so much info. there that I believe you will have all the answers you need.

http://groups.google.com/group/dvd-kiosk-group-private?hl=en_US or
http://readydvdblog.com

Sincerely,
Mike Weiland

Mike at ReadyDVD said...

I would recommend that you get into our google groups. There is so much info. there that I believe you will have all the answers you need.

http://groups.google.com/group/dvd-kiosk-group-private?hl=en_US or
http://readydvdblog.com

Sincerely,
Mike Weiland

Anonymous said...

Mike,

I am looking to buy a couple of Kiosk's in the Northern Virginia Area. Am I allowed to put different types of movies in my kiosk? Such as Asian movies, Arabic movies?

Anonymous said...

Hi mike i am really looking into buying 2 dvdnow kiosks and what i would like to know is if i buy 2 of them would i break even in the firt year. what is your opinion?

Mike at ReadyDVD said...

That's a loaded question... With a good location, "yes". With a poor location "no"..

Mike

Anonymous said...

Ok thank you for your response. I understand to make it in this business location is everything. another question that i have is the company helpful? or do they just sell you the kiosks and thats it?

Mike at ReadyDVD said...

They are awesome... Just join the googlegroup to the top left of this blog and you can research for yourself.. This open blog is pretty old.. I would suggest you get into the googlegroups..

Mike

Mike at ReadyDVD said...

OK folks, I am still in the business. Some of you have e-mailed me and asked where I've gone.. I am still here! I just move into my google groups.. I also have the other site that most folks use now as their entry page. http://readydvdblog.com The business is still rockin and we are still using our 110 Kiosks. See us in the googlegroups at the left side.

sosan k said...

bought a dvd today



Custom Kiosk Software | Custom Kiosk Solution