Saturday, October 11, 2008
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- Mike at ReadyDVD
- I grew up in a small town of Chester, Montana. On thing that growning up in a small town has done for me is being able to do things for myself. The ability to just go down to the store and get anything you want just didn't exist. I wanted to start a company that gets back to the root of our country. Major companies such as Red Box and TNR "The New Release" don't even think twice about bringing their products to smaller communities. My plan is to bring "new releases" to you guys too. I have always wanted to start a small company that has unlimited potential to build itself into a large company that will be run like a small company. I want to take care of the people that view our movies. I want to be there for them if they need some help marketing their business too. We have developed a commerial end to our business that enhances your search engine results Plus, we'll even upload commercials in High Quality to YouTube and build you your own channel that you can use on your site.
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37 comments:
Mike and Kristi Smith said...
What to expect?
I'm not sure I'm posting this in the correct spot so if not sorry!
I know that all locations are different but, I was wondering what the rest of you did you first week in rentals? The reason I ask is that my husband and I placed out first Kiosk in a hight traffic grocery store last Wednesday and we have only had 32 rental in the first week? Is this good? I figured out the cost of the running the Kiosk monthly and I figure 16 rentals a day have to go out just to pay for the day to day operations and this does not include my Kiosk payment to the bank or any kind of profit?
Please let me know what your Kiosks did in the first week and mabey some suggestions on what I can to do increase my rentals.
Thank you,
Mike and Kristi Smith
Salt Lake City,
Utah
Couple of questions...
What are you charging on your rentals? Is your store owner willing to buy the movies back from you and sell them? Since this is y our first week, I wouldn't get too worried. I have talked to folks that get far less than that the first week. It takes a little time to get used to these machines. Are the store personnel trained how to use it? Are you promoting it? I talked to a guy the other day and he said he was giving a way free movies for a week to get people to try it. There are several things you can do to get it going. Just hang in there. There are days where I only get 3 rentals on machines and the next day get 15-20. Remember, ther extra days are also big in revenue. We do about 30% of or revenue on the extra days people keep the movies.
Mike Weiland
http://readydvd.com
Mike and Kristi
I just started my first kiosk in a high traffic grocery store last Thurs Oct 2. From that Thurs at 7:30pm (they close at 9:00) till Wed that just past I had 38 rentals.
I charge 1.00 per day and is in line with the many Redboxes in the area. The number I like looking at is the number of movies out, especially after closing. You know they're staying out. The last few days showed 12 to 15 movies out and right now I have 18 out.
Joe
It's going to be tough making a go of it for $1.00. Merchant account charges and a host of other charges that you may have might interfere with your profit margins. In my opinion, it's going to be tough for you to compete against Redbox. Remember, your machine has several more features than Redbox does. Your machine actually lets your customer look over the disc without actually being committed to the rental. As long as it's back in the machine within 10 minutes, the customer doesn't get charged. Sell your service! I don't have a problem with Redbox in one of my stores. People pay for convenience. So what if your charge a little more? Gas is expensive and the convenience factor will help you out. Most people don't have a problem with a few more pennies to help you out. Go to Blockbuster and see how much they cost.
In my opinion, charge more, it won't be that big of deal. You deserve to make a little bit of profit. You'll never win the competition against Redbox. How many mom and pop stores tried to take on Walmart? How many of them are still around? The ones that are, are selling their service. Service is what it's all about.
Maybe you'll just want to run the $1.00 for an introductory period.
Just my two thoughts.
Mike Weiland
http://readydvd.com
Mike
Your're right abot the 1.00 being inexpensive but around here the norm is 1.00 in all grocery stores. Around here all the major grocery stores have either Redbox of DVDexpress for 1.00 a night. I can see after a while, maybe 6 month or a year going up to 1.49 or even 2.00. I think the main moneymaker is the advertising. I have yet to sell any and working on a sales brochure for it.
You mentioned in another post that the limit is 100mb for uploading ads. Is this 100mb per file or 100mb total space.
Well Since there are 5 Redboxes in every 5 mile radies in Utah I went with $1.29 each night and I'm hoping convenience plays a factor here. The store is in a Spanish speaking community so I have my Kiosk set to Spanish settings. I tried going to the location today and passing out $1.00 of first day cupons and people avoided me like the plaque. The employees were the hardest people to talk to. The owner of the store likes us but, does not see the Kiosk as a benifit to her. Mabey that is why I am so stressed about it.
This location charges people $1200.00 a month to rent out booths. No we did not agree to $1200.00 a month but, I'm afraid when the first month passes and there is NO profit she will not be understanding and we will be having to move it to a new location.
I have found a few other business owners that sound like they are willing to buy the movies when they come out of the Kiosk in a few months or so.
Out of the 32 movies rented last week only 2 people kept them for more then 1 day.
Has anyone tried printing flyers and putting them on the doors of the houses in the surrounding neighboorhoods?
Mike and Kristi
I have 1 movie out since the 4th, 1 the 5th, 1 the 8th, and 3 since the 9th. Over time I they will start keeping them longer.
Are you in a store that is in a shopping center. Mine is and has pizza, chinese, cleaners, Duncan Donuts and others. I went to them all and handed them business size cards i made up with a small picture of the movie art, where the machine is located, my website and a coupon code.
I will also do a postcard mailing in the area to reach the houses. I got address from directmail.com.
I did the flyers on the door with a free movie and didn't have much luck. The best cheerleaders are the people in the store promoting the machines. Coupons are O.K., but most people lose them or set them somewhere and forget where they put them. When someone is standing in front of the machine that's the most crucial time to explain the machine. That's where my best stores really do their job.
Mike Weiland
http://readydvd.com
I would not panic if I was you! We have had a kiosk in a small convenience store for 16 months now and we started with less rentals than you are talking about but now our revenues from rentals and sales is up over %400! Give your kiosks time, promote them and they will start producing it just takes time to build a customer base. Remember your best rental months are just now starting. Snowed here this weekend and we rented 90 movies from that one kiosk, that translates into more than $250 in revenue! Stay patient!
Hope this helps
Rich
Video Express Services
We still have not got our kiosk placed. What do you say when a location says they don't have enough space? That is an answer we are getting more often than not. I just haven't thought of a good response. Any advice would be helpful! Thanks in advance.
Brandi Wright
Emporia, KS
Hi everyone, do you arrange your dvds alphabetically with the new releases at the top?
Mike - I was evaluating putting the kiosks in smaller communities that do not have RedBoxes (and no McDonalds, Wal-Marts, national grocery chains, etc.) and noticed two of your machines are in communities with less than 2,000 people. In your experience, is there enough volume in such small communities?
Absolutely, these are some of my best locations. The host managers are always very appreciative for your business too. I really like my small communities. I wouldn't have them there if they didn't work out.
Sincerely,
Mike Weiland
http://readydvd.com
Scott McInnes has posted some great information on the right side of the Blog. Look under "Can I compete with Redbox?"
Sincerely,
Mike Weiland
http://readydvd.com
We need help! I am posting again because we are still having this problem. What is a great response when a location says they don't have the room for a kiosk? We are getting this answer more often than not. I just don't know what to say back to them. Please we are in desperate need of placing our kiosk. We have worked with the locators and they haven't been much help at this point. So we are going at it ourselves. If anyone can give us some pointers or advice it would be much appreciated! Thanks to all!
I am in the process of working on a video that you and everyone else can use to get your locations to view. It will have all the positive reasons to have a machine in their stores. I think sometimes these folks think that there is a huge time involvement with having the machine in their stores. If someone knows how much traffic these machines can bring into their stores, they will definitely look into having it in their stores. If there's little or no work involved, I can't see anyone not wanting one. I think ig you get the "no" up front, then move on. Make sure you leave them one of the DVDNow Packets so they can see how nice the machines look too. Follow up in a few days. Just ask them to take a look at it and move on. Not everyone is willing to look at them. Those that don't see opportunity knocking might not be there to get the ball rolling anyway. I still think that most of the locations and their employees can make or break this business. Getting someone that's enthusiastic is going to be better in the long run. Getting the right location and the host to buy into the program will help both parties.
Sincerely,
Mike Weiland
http://readydvd.com
eagandustin said...
What do you think about putting a machine in a hospital where both employees and clients can rent from?
October 28, 2008 3:59 PM
I think it's an awesome place if all the rooms have DVD Players in them..
Sounds like a great place... Plus, if the Hospital is big, I think you'll get a lot of the nurses etc. using it.
If you end up doing this, please let us know how it's going. I am very curious on this one. Anyone else placing in Hospitals????
Sincerely,
Mike Weiland
http://readydvd.com
Has anyone placed their kiosk in a large apartment complex? I placed mine in a complex of 435 units which is about 600 credit card holding customers and strugle a bit. So far it has been 2 weeks and I've gotten about 110transactions. I'm wondering how long it took any of you in an apartment complex to become profitable, if at all. Looks a little scary right now, I'm all ready starting to look at other places. Sucks though, because the interaction between the tenants is great and fun. Looks like high traffic is king....
In my opinion, 2 weeks is premature to determine anything. Have you done any kind of marketing to the tennants? Maybe hand a coupon on the doors? I usually know after about 2 months what it looks like. High traffic is good, but it isn't always the answer. I have two small stores that do better than one huge IGA Store. Location is Key, not traffic. Although high traffic in the right location doesn't hurt. I like stores that don't have much competition and where people can walk to and from. Having to drive to the location isn't favorable in my opinion. Plus, make sure there's lots of conveniences available there such as Pizza, Beer, Soda, etc.etc.etc.
Just my two cents,
Mike Weiland
http://readydvd.com
Mike, did you get my responce to this, I never saw it published?
I must have missed it! Sorry about that. Can you repost?
Mike
Hi All, I am considering moving one of my kiosks to an apt community that has 240 units comprised of families, prof singles and a small number of college students. The kiosk would be in the leasing office area and only available until 7pm weekdays and from 12-5pm on weekends. What is your experience with apt complexes, where do you have your kiosks there? thanks, diane
Hi still hoping to hear from owners who have kiosks at apt complexes as far as rentals, number of units in complex and where the kiosk is located with the hours the kiosk is accessible to residents. May move kiosk and want to make good decision. thanks diane
Diane,
There are only a few folks that are doing the high rise at this time. Ken Rohrer is doing it and just started from what I remember. I have absolutely no experience with the Apartments and High rises.
Sincerely,
Mike Weiland
http://readydvd.com
I'm looking at a couple of options for moving one of my kiosks and was hoping for some feedback.
A small crossroads a few miles out of the city. There's a bunch of newer developments in the surrounding area. Closest competition is about 5 miles down the road in one direction, the other directions are basically country. Anyways, right at the intersection are two c-stores, one a pretty big local name, the other has about 4 or 5 shops in a little bigger building (bank, pizza, diner). But about a quarter mile from the intersection is a pretty decent IGA grocery store, it just doesn't quite see the traffic the other 2 do. So: c-store at big intersection or grocery store a little off to the side?
Here are a few things that I have learned. If there is little competition, your price can be raised so you can actually make some money. I've also learned that you need to have a place where people can walk to and from your machine. If they have to drive, you won't have the repeat traffic because they always have to drive to the location to bring back the movies. The location has also got to be excited about your machine. If they are not and treat it like a bubblegum machine in the corner, it won't do well. Hours are also crucial. The longer it stays open the better. Also 7 days a week is helpful. I had someone pull a day out of the week after it was installed and it ticked me off. We managed to come up with an agreement that seems to be working. If I had to choose, I'd take a grocery store over a convenience store unless it's like my Ricci's store in Laurel Montana. No competition and it's in the heart of town within walking distance. Plus, it's also a Pizza store and laundromat.
Hope that Helps..
Mike Weiland
http://readydvd.com
Do you mean they should be able to walk to it from home? Even if it's rural and they have to drive somewhere to do anything?
Thanks,
Donnie
I tried a convenience store at the edge of town and it didn't do well because people couldn't walk to the store. I won't put another machine in a place like that again. I've learned that my best renters are the ones that live close to the store.
Mike Weiland
http://readydvd.com
Thankee Mike.
There's also a downtown district where they've renovated a lot of apartments and condos. I don't think there's any video rental options in the area. I'm having a little trouble finding a location to approach about hosting a machine tho.
Grrr! Talked to a grocery store (IGA) today and they said they signed up with somebody for a DVD machine a couple of weeks ago and will be getting their machine next week. So on one hand I'm too late, and on the other if it's not a redbox I may have somebody else in the market.
For what it's worth....
My rental box has been on the ground 16 days and quite a bit of front end marketing was done before the location was installed. Coupons for $1 off rental fee has been the coupon of choice, but not used much and there are some in the store for first time users - but the store personnel might have a language barrier. Localized direct marketing will continue to be done due to a 90 day agreement I have with the store owner - so I'm committed per say to the location. I was averaging 1 rental per day at $1.99 - so having only 15 transactions and bad weather this past weekend it could have been closer to 17 -LOL.
I realize everyone's local market is going to be different, but I'm curious to hear feedback on - at what rental per day number do I stay and what number do I search for a stonger location?
I purchased about 60 older, but goody titles and my ROI on those are great mixed with some new releases each week. Figuring out what my customers want will take some time.
In Texas, I can sell my movies at local outdoor flea markets, etc... bundle them up 2 for $15 kind of thing or choose any two for $15 which is higher than VPD's buy back deal, but to each is own.
I also purchased a "springer" sidewalk sign and put cut vinyl on it to advertise for anyone close to the front of the store. My dvdnow kiosk is in a convenient store - where they filmed some scenes from "Dazed & Confused" - so that seemed great, but we'll see.
Everything else is great, but I need to find some audio speakers for the top behind the light box - the ceiling is low and I won't be able to put up a video display, but I'm also thinking of other avenues.
All insight is appreciated and wish everyone success with their dvdnow kiosks.
Todd in Texas
How about mounting the screen for the video on the wall next to your machine? Will your location consider selling the videos for you if you float them instead of having them pay for them up front? I always sell my videos to the stores and don't charge them until the end of the month. It seems to work out fantastically.
Sincerely,
Mike Weiland
http://readydvd.com
Hi Mike (and everyone else), great site! I just found out about DVDNow a few days ago and am in the early stages of investigation. I'm kicking around possible ideas of locations and would appreciate some feedback.
I'm in a University town, school has 50K undergrads and city is approaching 1 million. Do you or does anyone else have any experience in placing kiosks in a dorm building? There is a dorm here that has almost 6,000 students living in it. There is tons of foot traffic. I think I could put it in the dorm lobby but I don't think I'd have any "store employees" or "managers" that would do anything for me on the machine. Any ideas on how this might work out?
Thanks in advance!
-Daniel
I live in a town of about 175,000 people and these is a major state university in town. They would like to have a kiosk in their student center which is a very busy place with places to eat, bowling alley, bookstore, etc. does anyone have an opinion or experience with putting a kiosk in big universities. there are about 25,000 students at this college. I have RedBoxes everywhere so I am striking out with convenience stores and grocery stores. I'm in an apartment complex now and that isn't working for me.
This topic has been a top discussion in the Private Blog. Sign up and you'll have a huge amount of info. on it.
Mike Weiland
http://readydvd.com
First comment and yes I'm new. Seems to me from what I have read that you can go high volume with grocery stores and convenience stores but need to keep price lower or go low volume with apt buildings but need to recognize that rentals may need to be 2 or 2.50. I'd pay that to not have to get in my car! What I'm thinking is that a pricing plan has to be related to the location. Thinking of going large govt office building cafeteria. $1.50 to $2 bucks Mon thru Thurs and Friday 2.50 but keep it for the w/e and return on Monday. Anyway, my point is I'd rather have a higher price and be more convenient to compete.
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