Forums: Discussions for entrepreneurs and small business.

Hello everyone.  I`m hoping I`m posting this in the correct forum, if not, my apologies in advance.  A friend and I have been wanting to start our own business for a while now, and we`ve both been taking a hard look at DVDNow.  This is a DVD vending machine business, very similar to REDBOX, which has been blowing up in my local area.  So far REDBOX`s are popping up like gophers everywhere I look at all the major retailers (they require a minimum of servicing 15000 customers per week to place a machine at a retailer`s store), but there is still tons of room for competition.  Brick and mortar video stores are going the way of the dinosaur and online video rentals are still a very small percentage of the overall video rental market.  Basic start up expenses for equipment, initial inventory and fees for support services (machine delivery and setup, site locating and contract negotiation, retailer site fees, etc) I estimate to be about $30,000.  My city of Greensboro, NC, is a area of about 240,000 people. 

I feel there is real opportunity here for an entrepeneur.  Ideas/comments anyone?

I think I misread the original post and now I feel silly.

:)

Your basic model is vending machines. I think if you do some research not on DVD rentals, but on the overall concept of starting a vending machine business you`ll get tons of information.

The point is that although DVD machines are new, the underlying concept of vending is old, tried and true. There`s a massive knowledgebase out there, and you can work with that.

If you can afford the initial buy-in costs, then the only other thing would be whatever rules come from the company. Other than that, it sure seems to me that the concept is a great idea. We see people on the way out of Wal-Mart using these machines every time we go there.

Hi All -

No offense OnlineNews, but you`re trying to "hi-jack" my thread.  If you want to get feedback on your idea, please start a new thread of your own.  Thanks.

DVD vending machines are popular with people like students. I remember using them (albeit VHS) when I was at uni. The machines were in a convenient location, they were easy to use and there was no hassle.


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Just an ordinary boy living in Phuket. Come see me in Phuket, I`ll get bagels.

@Mdona:  Thanks for the link to the article!  It was insightful and helpful!

Has anyone had any experience with DVD Now, either in the pitch stage or as a franchisee?  It sounds like a solid investment, but I`m new to the game.

The only way you will find out is if you go ahead and do it. However, $30k in start-up costs makes it quite risky. I am not an expert in vending machines. However, I would observe how each REDBOX machine performs. Then I would locate my vending machines in similar areas to the more successful REDBOX machines. Goodluck.