A Closer Look at the Redbox Franchise
Franchising is a great way to take control over your own destiny and be exactly where you want to be. With this innovative business model, you get to invest in things that you love and you are guaranteed success. With this business model, many people have been able to earn a living for their families in a very short time with just a little bit of investing and passion. With franchising, you don’t have to do all the groundwork that is involved with starting a new business and get it on track. You get to invest in a business that has already been established and has been proven to have an impressive cost to sales ratio meaning that returns on your investment are guaranteed.
Video Rental Kiosks Franchised
The great thing about franchising is that almost any business can be modeled for growth this way. One franchise that has proven to be very promising is the Redbox franchise. With their automated kiosks, people are able to rent video games, DVDs and Blu-rays at a very reasonable cost. The name is derived from the very distinctive red boxes that are located near fast food restaurants and busy stores. One great benefit to having these vending machines is that they can be operate all day and night. They are also very quick and easy to set up and operate requiring minimal supervision and maintenance from the owner.
Considering This Franchise Opportunity?
Suppose you have been asking yourself whether you can be a part of this vending machine franchise. Owning a Redbox does not have to be a difficult process as long as you have the right kind of information beforehand. For one, you can have it in addition to a business you are already running such as a fast food restaurant or some other place that is always frequented by people.
Redbox has been proven to be very successful with a huge number of Redbox locations all over the country and the growing number of competitors that are trying to replicate the Redbox business model. This success has been attributed to the fact that Redbox places their vending machines outside popular stores all over the country making it easy for people to rent a DVD or game by impulse when they are out shopping or eating.
The interaction with the vending machine is also made simple and intuitive with touch screens and beautiful user interfaces. The only thing that a customer need to have is a credit card in order to make the rental. Through the touch screen user interface, the customer is informed of the rental terms of the DVD or game and the only thing they need to keep in mind is the return date. In case the customer does not follow the terms of agreement when renting the game or DVD a flat fee will then be charged to their credit card for the purchase cost of the video or game. This way, you don’t run into losses even when the customer does not return the rented game or DVD. Instead, it is regarded as a purchase of the item and they are charged the same amount they would have if they had decided to purchase it.
The Video and Game Rental Business Opportunity
As you can see, the Redbox franchise is very lucrative, has promising returns and very minimal risks to the business owner. The business model is very innovative and works even when the customer does not return the item rented. So, now that you know what it takes to run a Redbox business, let us take a look at how you can be up and running with this video and game rental vending franchise.
For one, you will be required to fill the application to have a Redbox machine in addition to meeting all their starting requirements. The main requirement that you are absolutely needed to fulfill is have enough volume business in order to justify placing the kiosk at your location. It is very important that there is a high volume passing the vending machine in order to make it profitable. As long as you meet this requirement, you are assured of having good returns with the kiosk.
Once you have done the initial application and you meet their requirements, you will then be contacted in order proceed with the application process. If your application is successful, you get to have a Redbox vending machine set up in your location. Please remember that the kiosk is still owned and maintained by Redbox and you are the operator.
You are provided with all you require in order to begin as a DVD/BluRay vending machine operator and even give you the initial training needed in order to bring you up to speed with the setup and maintenance. This means that you only need to have the high business traffic required and the rest is up to Redbox. You might be wondering how much revenue you will be raking in with this franchise. Well, the revenue share is that you get to have 30% of all the income and purchases made on the vending machine. Considering that you are not even going to be maintaining the Redbox kiosk on your own or even refilling DVDs and games, this is very good revenue. As long as you have a huge volume of human traffic coming to your business, you are assured of getting some good money from this kiosk.
Being part of the Redbox franchise is a great way to get supplementary income from your current business and monetize the huge number of customers coming to your store or restaurant. Just to look at the success statistics briefly, it is interesting to note that Redbox had more than 42,000 kiosks at more than 34,000 locations by the end of November 2012. The company also had 47.8% of the physical rental market as at the first quarter of 2013.
If you are looking to invest in a franchise that has guaranteed returns, now would be the best time since Redbox has gained a lot of traction and is guaranteed to make you good money so long as you have the human traffic needed to monetize. In case you have a fast food outlet, a convenient store or any other place that is frequently visited by a lot of people, getting a Redbox today would be a great place to get good income.
Images courtesy of Redbox