Can you get rich operating a DVD Kiosk? My answer to that question would be both yes and no. Yes, if you own multiple machines and have them in great locations. No, if you only have a few machines and they rent low volume. While I personally did not make it to the big time operating my kiosk business I did talk with several people that were quite successful.

The first week that I announced to the world that my kiosks were for sale there was an onslaught interest. I was simply amazed this many people would  show interest in my dvd kiosks. Most all of the serious conversations were from people already in the business looking to expand. I kept thinking to myself, “I had these machines for 14 months and had only reached 30 to 40 percent of my projected profit.” Why were all these experienced kiosk owners interested?

While talking with the seasoned business people I realized that my daily rental volume was not universal. Some people with small kiosks were actually averaging between 20 and 30 rentals a day. These numbers may not excite a redbox investor but when you have a kiosk that holds 112 movies and you are renting a third of your inventory daily … you should start jumping for joy.

Let’s play with those numbers … but first let me throw out my disclaimer. The following numbers are not real, I made these numbers up and they do not represent any potential profit or loss you might incur.

INCOME
Daily Rental Fee: $ 1.99
Daily Rental Volume: 25
Average Nights Rented: 1.5
Total Annual Income: $ 27,238

EXPENSE
Inventory: $ 6,800
Space Lease: $ 4,085
Other Expenses: $ 2,500
Total Annual Expense: $ 13,385

Total Potential Profit: $ 13,853

Let’s assume you have 10 kiosks:
Total Projected Annual Profit: $ 130,853.

These numbers are all fictitious and I came nowhere close to making that kind of profit. The people I enjoyed conversations with over the past few months, if they were truthful, are putting up those numbers. Had I been making profits of that nature it would have been very hard for me to let go of the kiosks. An ROI of less than a year and a half will catch many eyes.

Just to be fair … here is a sample of what my numbers might have looked like. If you want the real numbers for my dvd  kiosk business, please search through the blog archives as there is a post on that.

INCOME
Daily Rental Fee: $ 1.99
Daily Rental Volume: 10
Average Nights Rented: 1.6
Total Annual Income: $ 11,621

EXPENSE
Inventory: $ 5,500
Space Lease: $ 1,162
Other Expenses: $ 1,000
Total Annual Expense: $ 7,662

Total Potential Profit: $ 3,959

Let’s assume you have 2 kiosks:
Total Projected Annual Profit: $ 7,918.

Your ROI at this rate is a tad over 5 years and not nearly as attractive as the first one.

Please do not use figures from this website as an influential factor in your kiosk business decision process. I am only attempting to entertaining you with stories about my personal experiences.

Related posts:

1. DVD Kiosk: 10 things to expect as a store owner What is all the hoopla surrounding this dvd rental machine...

Related posts brought to you by Yet Another Related Posts Plugin.