tag:blogger.com,1999:blog-3095582364735823140.post1073255964747672364..comments2020-01-28T00:44:17.459-08:00Comments on DVD Kiosk Discussion and Tools: Mike, I am having trouble finding Kiosk InsuranceMike at ReadyDVDhttp://www.blogger.com/profile/16069246632950933635noreply@blogger.comBlogger13125tag:blogger.com,1999:blog-3095582364735823140.post-35907808745151706102010-02-24T13:54:40.566-08:002010-02-24T13:54:40.566-08:00Great conversation folks. I am still unsure what t...Great conversation folks. I am still unsure what the best setup for insurance is though. I am a brand new operator and want to cover all of my bases. I understand the need for Liability coverage. Not sure 1M is totally necessary unless a location requests that much. But, I would like to cover the investment that I have made in my 5 250s. On 3/4/10 we will be placing our first machine. And, would very much like to have it covered appropriately. I am thinking something like 250K liability and 30K property. Anything else I might need?<br /><br />Jeff Vojtko<br />DVD in a Box, LLC<br />www.dvdinabox.com<br />440-951-7172biscuits and gravy recipehttps://www.blogger.com/profile/09328930394683027447noreply@blogger.comtag:blogger.com,1999:blog-3095582364735823140.post-58092631868912849762008-12-02T17:50:00.000-08:002008-12-02T17:50:00.000-08:00I don't know the name of the insurance company but...I don't know the name of the insurance company but we get it through our broker Morgan Insurance Group 419 S Division St<BR/>Moses Lake, WA 98837<BR/>(509) 766-1877<BR/><BR/>We have liability only on three kiosks (does not cover transportation if moved)at $350 per year.<BR/><BR/>We only use one RFID tag in a two disc set and leave the second DVD in the case ... amazingly both DVDs are always returned; not one missing in over a year. And 3-D glasses are ussually returned (but not always).Richhttps://www.blogger.com/profile/14457063973453838426noreply@blogger.comtag:blogger.com,1999:blog-3095582364735823140.post-41213151908776286922008-10-03T12:41:00.000-07:002008-10-03T12:41:00.000-07:00TAX AND BUSINESS QUESTIONS FROM Chris Wilson/Answe...TAX AND BUSINESS QUESTIONS FROM <BR/>Chris Wilson/Answered by Michelle Weiland/http://readydvd.com<BR/><BR/>I have a couple of quick questions for you when you have the time...<BR/><BR/>1) Do you use business property insurance? If so, who is your provider and how much to they charge per kiosk? <BR/>My father owns an insurance agency. Our insurance premium is right around $1000 a year for 5 kiosks. This is for both commercial liability and property coverage of the kiosks/movies.<BR/><BR/>2) When dealing with your host locations, how do you figure the % you pay them? I think you mentioned you pay them a percentage of net income, but are most owners OK with this if it takes a little while to turn a profit? <BR/><BR/>We do pay them 10% of net. Our checks to them aren’t big, but it’s the happy customers that come to the store to rent/return movies that is the “profit” motive to the stores.<BR/><BR/>3) Are you structured as an LLC or a Corporation? <BR/> We are an S Corporation.<BR/><BR/>4) Do you claim expenses on your persona tax return for home office use or do you charge your company a fee? <BR/> No, we don’t meet the criteria for home office as we don’t have a truly designated area/see customers/etc... The company will have to pay us a salary this year. We will do that in the last quarter. We did have a nice section 179 deduction last year, though. We got a nice chunk back on our taxes.<BR/><BR/>5) For tax purposes (maybe your wife an answer these)<BR/><BR/>How do you structure your taxes? Are you taxed as a partnership or a corporation, etc?? <BR/>Since we are an S Corp, the company profit/loss flows to our personal income return. Last year the large startup costs, operating loss, and Section 179 deduction created a nice business loss that reduced our personal income. So we got a large amount of tax $$ back that we had paid in via our normal jobs. <BR/><BR/>If you and your wife are part of the 2 member LLC, do you have to pay unemployment taxes or do you not have to pay because the both of you are not considered to be employees of the company? <BR/>We will have to pay ourselves a salary this year and the resulting taxes. If we don’t, we are a high audit risk. The IRS looks carefully at S Corps and LLC’s that don’t pay salaries to the principals and therefore get out of paying the FICA, etc… <BR/><BR/>Do you hire the store managers as "contractors" for helping with the DVD's so you don't have to treat them as an employee for tax purposes. <BR/>We have one manager that we pay on a per machine basis. We are treating him as a contractor. That is for two machines. The other three are taken care of by the store managers/owners as part of having the kiosk in their stores. Since our kiosks are all away from where we live, we can only manage one of them (that is 15 miles away). The others are 45 – 200 miles away. <BR/><BR/>I'm just trying to get my head around the tax portion of this type of businss and every little bit helps!<BR/><BR/>Thanks,<BR/><BR/>Chrisfordguyhttps://www.blogger.com/profile/04832504779279147908noreply@blogger.comtag:blogger.com,1999:blog-3095582364735823140.post-45039506316222657162008-09-30T21:05:00.000-07:002008-09-30T21:05:00.000-07:00I don't insure the movies. I think that it would ...I don't insure the movies. I think that it would be more money than it's worth. I don't get too many folks that try to steal them anyway. As far as movies in the machine, I only put movies in with 1 RFID tag. I am not sure if you can put two tags in a two movie box. That would be a question for DVDNow. I think it's a waste of an RFID tag (in my opinion). We insure the machines and liability on them. Just set your preauth high enough so you can recapture enough to sell the DVD. I don't have much problems with people taking videos. The ones that do, I take the preauth and ban them from all of my machines in "your pay". The RFID tags will break if someone tries to take them off. The tags that I get from Atlas don't want to come off anyway. Trying to get them off is almost impossible and not worth it to the customers. I've only had a few kids try it and I just charged them $28 for destroying my DVD. They were then banned from ever using the machines again. Kind of stupid on their part. <BR/><BR/>Sincerely,<BR/>Mike Weiland<BR/>http://readydvd.comMike at ReadyDVDhttps://www.blogger.com/profile/16069246632950933635noreply@blogger.comtag:blogger.com,1999:blog-3095582364735823140.post-6249048244303567432008-09-30T16:16:00.000-07:002008-09-30T16:16:00.000-07:00DianeI was only required by the store to get liabi...Diane<BR/>I was only required by the store to get liability. I'm just starting out and funds are tight so I will insure the machine eventually. My kiosk goes in this Thursday.<BR/>As for the rfid tags, I think if more than one is in the case they cancel each other out. I heard you can scratch the chip off one tag and put it on the second disk so they think it's real. I don't think redbox ever has 2 disks in any of thier movies. I have the Hanna Montana movie that came with a 2d and a 3d disk and 3d glasses. As Mike suggested, only put the 2d version in.Joe Fuscohttps://www.blogger.com/profile/09606039635323509285noreply@blogger.comtag:blogger.com,1999:blog-3095582364735823140.post-4533774633508702912008-09-28T12:59:00.000-07:002008-09-28T12:59:00.000-07:00Hi mike and hoe, its diane. So neither of you had ...Hi mike and hoe, its diane. So neither of you had insurance on the machines themselves and the dvds in them?<BR/><BR/>Another question: if you have a dvd that has 2 discs how do you use the RFID tags on both so that the customer knows he needs to put them both back rather than thinking he can keep one of the two and no one would be the wiser? I didn't think you could use more than one RFID tag per box but hopefully there is a way to make the customer think both DVDs are tagged. thanks so much.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3095582364735823140.post-128426154695217642008-09-27T21:33:00.000-07:002008-09-27T21:33:00.000-07:00Hi DianeI use Allied Insurance for my 2 kiosks, li...Hi Diane<BR/><BR/>I use Allied Insurance for my 2 kiosks, liability and coverage for kiosks and movies for under 4 hundred dollars per year.<BR/>I use Central Insurance Agency (Mark Roemer) agent: (406)388-4227<BR/> PO Box 1170<BR/> Belgrade, MT 59714Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3095582364735823140.post-20848782131563451922008-09-25T20:30:00.000-07:002008-09-25T20:30:00.000-07:00Thanks, I forgot to mention that my premium is for...Thanks, I forgot to mention that my premium is for 5 machines. I appreciate you letting others know and posting your URL...<BR/><BR/>MikeMike at ReadyDVDhttps://www.blogger.com/profile/16069246632950933635noreply@blogger.comtag:blogger.com,1999:blog-3095582364735823140.post-19178367227395301042008-09-25T20:14:00.000-07:002008-09-25T20:14:00.000-07:00For the year it's $279.00 for $1,000,000.00 liabil...For the year it's $279.00 for $1,000,000.00 liability. I didn't price anything for the kiosk itself yet. The grocery store is requiring liability insurance.Joe Fuscohttps://www.blogger.com/profile/09606039635323509285noreply@blogger.comtag:blogger.com,1999:blog-3095582364735823140.post-45357150370782406842008-09-25T19:47:00.000-07:002008-09-25T19:47:00.000-07:00Hi Joe,Maybe you want to tell Diane how much your ...Hi Joe,<BR/>Maybe you want to tell Diane how much your are paying and what your policy has on it?Mike at ReadyDVDhttps://www.blogger.com/profile/16069246632950933635noreply@blogger.comtag:blogger.com,1999:blog-3095582364735823140.post-64670311314176066962008-09-25T19:01:00.000-07:002008-09-25T19:01:00.000-07:00Diane,We pay roughly $1,034 for General Liability....Diane,<BR/>We pay roughly $1,034 for General Liability. It's broken down by General Liability at $353 a year and commercial Inland Marine of $681.00 a year.<BR/><BR/>MikeMike at ReadyDVDhttps://www.blogger.com/profile/16069246632950933635noreply@blogger.comtag:blogger.com,1999:blog-3095582364735823140.post-2357680914592767402008-09-25T18:26:00.000-07:002008-09-25T18:26:00.000-07:00I just signed up with Arizona centralhttp://www.ca...I just signed up with Arizona central<BR/>http://www.cartkiosk.com/ins/english/main.php<BR/><BR/>JoeAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-3095582364735823140.post-47923232081482238412008-09-25T17:49:00.000-07:002008-09-25T17:49:00.000-07:00Hi Mike, its Diane, thanks. Do you have both liabi...Hi Mike, its Diane, thanks. Do you have both liability and insurance on your kiosk and dvds? What do you pay her kiosk? thanks again, you are so nice to help!<BR/><BR/>dianeAnonymousnoreply@blogger.com