Written by Shawn on February 23, 2009 – 6:30 am
Are you or someone you know in the market for a cheaper more slightly used version of a DVD Kiosk? If so, you are not alone. With the recent slow down in most markets the used kiosk business is thriving. There are several reasons for this but the obvious ones are more people are needing to sell their machines and more people are needing to spend less when purchasing one.
I am often asked if one can get a good deal when purchasing a second hand dvd kiosks? The answer is overwhelmingly yes so long as you follow a set of simple guidelines. Keep in mind as you read the guidelines below that this list is not exhaustive as each situation is different. This list should be used to jump start your brainstorming and aid in your research prior to making a purchase that you may regret down the road.
- Ensure you will have back-end software access: I was surprised to hear that at least one dvd kiosk company is considering NOT supporting kiosks where the original owner no longer owns the kiosk. The purchaser of the used kiosk is responsible to contact the kiosk vendor and verify whether or not they indeed will have access to the software needed to remotely control the machine. It could very well be that they sub contract the back-end software access to a 3rd party.
- Ensure you have technical support: You may be surprised to read this but the used kiosk that you are considering buying may not come with any technical support. You should contact the kiosk vendor and verify that you are at the very least able to purchase blocks of technical support.
- Know your transfer figures: How much is it going to cost you to transfer this kiosk into your name. Don’t think that you will be able to just pay the owner what he/she wants and you will automatically up and running. There will be a setup/transfer fee that you will be assessed to configure your machine.
- What is your warranty: The major player (DVDNow) does not offer a warranty to the second or third owner of their kiosks. Check with your vendor about this as breakdowns costs can eat up your profit.
- Machines maintenance record: Ask the owner if his/her machine was down a lot for maintenance. If so, ask the owner to specify the problem and if it is resolved. Ask to see a maintenance record. If none was kept, ask for permission to call or write the kiosks vendor technical support for a maintenance record. If the owner refuses to work with you on this then move on to another kiosk owner who will be forthcoming.
- Double check the facts: Do not worry about how this one may sound. This is business and you are about to sink a sizable chunk of money into a used piece of equipment. Be prudent and double check the information you have been given. Obtain permission from the kiosk owner to call the business owner where the prospected kiosks are located. Call the store owner and ensure the kiosk is in tip top shape. Ask him/her about any potential problems they may have noticed with the kiosk. If you are unable to obtain permission from the kiosk owner or the store owner alerts you to problems it may be time to move on.
- Obtain an inventory list: Movies or inventory will be your largest investment over time. Make sure that the initial inventory comes with the kiosks. Secondly you should be sure how many and of what titles you are obtaining. Expect to pay more for a load of new release big hit movies.
- How to move the kiosk: Talk to the kiosk vendor and find out how to move the kiosk. What internal parts such as the robotic arms or transfer trays can be locked down prior to moving. Questions such as whether to move the kiosk in a horizontal or vertical position should be answered as well. What is the weight of the kiosks and will the owner be present to assist you?
- Verify on-site: Make sure you and the owner are in agreement that you are not committed to a purchase until you have physically seen the kiosks and are assured of its functionality. It is up to you whether you want to send earnest money to hold the machine but it just makes good business sense not to commit until you are satisfied the kiosk is what you expected.
- The gut knows best: I could not figure out how to title this thought so I left my original thought here. What I mean by “The gut knows best” is follow your instinct or your gut feeling. If you think the deal is too good to be true or if you feel that something is not quite right you should probably listen to yourself. I find that often my instinct or ‘gut feeling’ about a situation is correct. All I am saying is don’t ignore yourself if you feel something is not right.
You can find excellent deals on second hand dvd kiosks if you do your homework. There is a lot of junk in the market as well so be thorough in your research. Knowing the market dynamics can help you too. Be aware that it is not in the DVD Kiosk vendors best interest for you to purchase a second hand dvd machine. Use this knowledge to your advantage while asking the vendor questions. They would love to sell you a new machine and may tell you more than the kiosk owner wants you to know. This is a double-edged sword for the vendor however. If they alert you to too many issues with the kiosk then you may want to ask if these issues are common with their products.
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