[Berry18]

Here is a quick summarry of the business...It will be located on college campuses


1.Products
Hi-Def Scenes will provide customers with the best and mopst heavily rented DVD out there and the customer will also have the option to purchase the DVD at a lower cost than bigger retailers.

2.Product Description
Hi-Def Scenes uses one automated kiosk:
DVD terminal uses sophisticated and proven robotics to dispense and receive movies over and over without fail. Our state of the art terminals allow you to maximize your revenue by allowing customers to easily pick titles through the glass door. Movies are rented in their original packaging minimizing labor and maximizing sell-through potential.
Important features :

1.RFID - Radio Frequency Identification Tag, on disk like a barcode, unique disc, Tells who has it, when they are supposed to return and all their information and they will not be able to try and put DVD case back in without disc it can detect all that information

2.Inventory Managment - The system has inventory management software that allow us to run a variety of reports that show what titles and types of titles are most popular. We can also import that data into other data management systems such as Excel or Quicken. The system if fully automated even to the point of tracking late returns and charging the customer a late fee! This means potentially hundreds of dollars a month in automatic late fees. If a movie is not returned it is simply sold to that customer at a profit - automatically!

3.All credit cars types are accepted!!!

Competitive Comparison

The DVD kiosk will be the first to enter into this market.
The competetion will be Blockbuster Onlne, Blockbuster Store, and Netflix. Although those will be our main competition they can not in any means offer the customers what the DVD Kiosk does. With Blockbuster Online you you have to wait a day or two in order to receive the DVD you want and you are also being charged even when you do not rent any DVD's. The Blockbuster store over charges the cusomers and it is extremly inconvinent for the customers to go in and search for a specific DVD and then Blockbuster not having it. Netflix is a great service if you dont mind waiting for your DVD's and paying for DVD's even when you dont rent a DVD that month.
The DVD (Hi-Def Scenes) Kiosk provides a convenient way to rent DVD's. Today students are always busy and they try to minimize the number of stops when running errands. This is the reason why gas stations have added grocery items such as milk and bread into their stores, supermarkets offer pharmcy, and photo processing. This is also a reason why convenience stores have added ATMs.
In the traditional video rental store 90% or all moive rentals are new releases. The automated DVD rental kiosk focus exclusively on the heavily rented and highly profitable selection of new titles with the burden of having to carry an inventory of under producing older movies. The terminal can be set to manage the inventory automatically by selling off used DVDs as a movie's rental demand diminishes. With the DVD (Hi-Def Scenes) Kiosk the students (customers) can browse through a complete offering of the latest titles, watch trailers, and most importantly aviod a time consuming trip to an overcrowed big box DVD rental store.

4.Sourcing
All DVDs will be purchased through a DVD Wholeseller. All DVDs will be egilble for a buy back from the distrubitor.

5.Technology
DVD terminal uses sophisticated and proven robotics to dispense and receive movies over and over without fail. Our state of the art terminals allow you to maximize your revenue by allowing customers to easily pick titles through the glass door. Movies are rented in their original packaging minimizing labor and maximizing sell-through potential.
To cut ou losses on DVDs we will use
RFID - Radio Frequency Identification Tag, on disk like a barcode, unique disc, Tells who has it, when they are supposed to return and all their information and they will not be able to try and put DVD case back in without disc or put the wrong disc with the incorrect case.
Cost: $0.70

REMOTE Management
•Real Time information
•Reports accessed through a web browser or internet capable mobile phone
•Movie trailers are downloaded automatically
•Alert to be sent through email or SMS messages incase there is a error or loss of connection with their server
•Advertising content or changes to the kiosk configuration can be pushed out to a terminal or group of terminals through the connections

[akula]

yah..i don't really see any obvious problems
..provided you guys aren't rookies
seems like a legitimate opportunity
I'd have to look at the financials to see the break even

[bulkylime]

there already a dvdkiosk machine. in new york gorecery stores like shopand stop has a machine where u put in creditcard and u rent the movie $2 a day

[ADVERTISE HERE!]

My only concern is whether the startup (costs of the inventory, automated kiosks, etc.) will be too great, considering that you'll be needing to take advantage of your economies of scale in order to keep your costs down. Have you considered that? What I mean is that if you start small, with two or three kiosks, with the plan to use profits from these to fund further growth, will you be able to purchase your movies cheaply enough to beat your competition? And if you decide to go big, so that you are able to purchase your inventory at a price that will allow you to offer the cheapest price, do you have the funding to do so? And on another note, if you DO decide to go big, have you done your market research to know that this would work?

[haze]

I've seen these kiosks in wal-marts for a dollar a day. They're becoming more prominent in grocery stores, so you may want to look into that a little further.

[HiTechGadgets]

I think its a very good idea. We are not talking about putting them at stores like wallmart. Yes they do have them in stores but i have not seen any of them in colleges . Some college students cant drive or they dont want to drive around looking for stores to rent a DVD if they can find it on campus. We usually rent DVDs in Giant for like 1$ but they never have good movies or sometimes if they do they ran out. Most college students would want this service, i mean i would!! especially on the weekends if the price is good. Also make sure that you have enough stock for the college students so that they would be able to rent the latest DVDs that comes out.

But again do alot of research since there is alot involve in this kind of business. Thats just my suggestion.

Wish you well!!

[ltressel]

Berry18,

Well thought of idea. Anything that caters to the college kids and their instant gratification needs is brilliant and executable. I don't know all the rest of the operation works like refilling the machines (cost/labor), machine maintenance, other things that I can't think of but others might.

Sounds like you got a business plan that will be too much to share here. My congrats for accomplishing the project. Well wishes to the success of it down the line.

LT