When I first got into the DVD Kiosk business I thought that the buy back program VPD offered was the best thing since sliced bread. I was new to the trade and was concerned about having a glutton of inventory after just a few months of stocking the kiosk full of DVDs. After all, if your kiosk has a maximum capacity of 112 DVDs you will have too much inventory on hand in a relatively short period of time.

I had checked on Ebay in order to determine the value of slightly dated DVDs and was very discouraged. Big name DVDs that were a few months old were selling for pennies on the dollar. I inquired with a few local vendors who specialize in selling older DVDs. They were not even remotely interested in buying my used stock.

At this point I became concerned about how I could off-load so many movies. VPD did offer a guaranteed buy back at $ 5.50 per DVD that was less than 90 days from the street date but my business plan said I needed more. I began to ponder the idea of selling the DVDs though my kiosk. Could I actually entice people to purchase DVDs that were slightly used and not the newest kid on the block anymore?

At first I was not managing the aging DVDs properly and was ending up with excess inventory that I was sending back to VPD for literally nothing. I was waiting until the fairly popular DVDs began to drop in rentals before I marked the initial price down. While a select few of the marked down titles left my kiosk the vast majority hung around.

I shifted my tactics and began marking every DVD down 25 % after 30 days from the street date. Normally this would put the DVD around $ 14.99. I would not see too many takers at this price. After the next 30 days the price would drop another 33 % to a price point of $ 9.99. This is the mark where I started to see a significant move in inventory. From there I would mark the movies down to $ 7.99 and most everything that was going to sell left the shelves. Of course, I did have a few stragglers and after marking them down to 5.99, 3.99, and the 1.99 they would be bought as well.

Once implementing this plan I saw a dramatic decrease in the number of returns going back to VPD and saw an increase in my profits as well. You should keep this example in mind when selecting the DVD Kiosk for your business. Some kiosk force you to use thin DVD jewel cases instead of the original DVD jewel case with the box art on it. I talked to a few owners of DVD Kiosk that had trouble selling inventory from their machines because customers wanted the original box art to accompany their DVD purchase. The DVD Kiosk (DVDNow 150) that I owned was one that would allow for the sell through in the original DVD case.

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