Hello, I am currently considering opening a video rental business in the fall. I am trying to gather as much information as possible via the internet. Does anyone know a good source of information for this? such as where I can find distributers, etc. Any information would be appreciated.

not sure if it's a good idea. so much competition. and now they have a NETFLICK.com for renting videos,dvd for 20 dollars a much. not a good idea. my personal opinion.

Hi,
I am at the very early stages of researching what is required to open a video store or online video rental site as well. What area are you in and thinking of opening your store? What is the competition in the area? Do you have any ideas that would make your store/service unique? Maybe we could help each other by exchanging information.

Please write me back at my email address: budshome@hotmail.com
and lets discuss.

Check out GlobalBX.com at http://www.globalbx.com. They have a number of established video store businesses for sale. You can find some useful information there. GlobalBX also has excellent resources on buying a business, selling a business, finding a business broker, and franchise information.

I am also entering this business too in a small niche that I don't think will be impacted by Netflix (training videos and some other things).

I'm curious as to the legalities -- what is required as far as renting out videos that I own but that I did not produce myself. Either of you guys run across the licensing part?

Thanks

quote:

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Originally posted by budman

Hi,
I am at the very early stages of researching what is required to open a video store or online video rental site as well. What area are you in and thinking of opening your store? What is the competition in the area? Do you have any ideas that would make your store/service unique? Maybe we could help each other by exchanging information.

Please write me back at my email address: budshome@hotmail.com
and lets discuss.

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I just opened a rental business a few months ago, here is my $0.02:

- You simply can't compete in large cities where Blockbuster and the like can be found. Your best bet is in small rural areas with populations in the 5 digits.

- Unless you plan on buying large amounts of New Releases, distributors will cost you more money (cause you will have to pay for shipping). Just apply for your Sales Tax License, then apply for tax exemption status at Wal-Mart. The only down-side is that you won't get your movies until the release date.

- Personally, I elected to not even enter the VHS market. They are too combersome, you can't tell when they are damaged, they cost more to stock, and they are slowly going the way of the 8-track. Instead, we stock only DVDs and we carry name brand players bought from liquidators at costs 50% below retail. We then mark up the price by $15 and give customers 5 free rentals. Anyone coming into our store asking for VHS gets our sales pitch on DVD. Currently we sell about 4 players per week, which equates to 4 new, loyal, customers (and 8 out of 10 will use all of the free rentals on the spot which then turn out to be late half of the time).

- I wouldn't concern myself with Netflix. Their weakness is they CANNOT compete with impulse buyers and people who want to see a new movie when it first comes out. Their market is the cautious consumer who just wants general entertainment available in their home with less hassle. Yes, they are big and will become bigger...but who want's to wait on a "list" for weeks or months to see Matrix Reloaded when it comes out?

- Last, develop a system for the "shelf life" of your movies. Example: We may stock 6-9 copies of LOR: Twin Towers when it comes out. For the first 6 weeks all rentals will be due back the next day. We will then sell half of the copies. Then for about 6-9 months the rentals will be due back after 3 days. Then we will sell all but 1 copy and the rentals are due back after 5 days.

Hope this helps.

How much capital (appx) is required to start up a DVD business?

Treymendous

Gekea:

Thanks for a ton of good info. Love the DVD idea.

What about legalities. Do you just start buying videos and renting them? Don't you have to pay fees every time to the entertainment companies?

Thx

Nelson

quote:

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Originally posted by gekea

I just opened a rental business a few months ago, here is my $0.02:

- You simply can't compete in large cities where Blockbuster and the like can be found. Your best bet is in small rural areas with populations in the 5 digits.

- Unless you plan on buying large amounts of New Releases, distributors will cost you more money (cause you will have to pay for shipping). Just apply for your Sales Tax License, then apply for tax exemption status at Wal-Mart. The only down-side is that you won't get your movies until the release date.

- Personally, I elected to not even enter the VHS market. They are too combersome, you can't tell when they are damaged, they cost more to stock, and they are slowly going the way of the 8-track. Instead, we stock only DVDs and we carry name brand players bought from liquidators at costs 50% below retail. We then mark up the price by $15 and give customers 5 free rentals. Anyone coming into our store asking for VHS gets our sales pitch on DVD. Currently we sell about 4 players per week, which equates to 4 new, loyal, customers (and 8 out of 10 will use all of the free rentals on the spot which then turn out to be late half of the time).

- I wouldn't concern myself with Netflix. Their weakness is they CANNOT compete with impulse buyers and people who want to see a new movie when it first comes out. Their market is the cautious consumer who just wants general entertainment available in their home with less hassle. Yes, they are big and will become bigger...but who want's to wait on a "list" for weeks or months to see Matrix Reloaded when it comes out?

- Last, develop a system for the "shelf life" of your movies. Example: We may stock 6-9 copies of LOR: Twin Towers when it comes out. For the first 6 weeks all rentals will be due back the next day. We will then sell half of the copies. Then for about 6-9 months the rentals will be due back after 3 days. Then we will sell all but 1 copy and the rentals are due back after 5 days.

Hope this helps.

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Obviously it depends on the size you wish to start out with, BUT...

We started with around 400 titles and 450 copies (i.e. 4 copies of Ghost Ship equates to 1 title). You can figure to get older copies from sources such as Half.com and pawn shops for about $9 each, with newer titles fetching $19.99 a piece.

Having said that, here's a breakdown:
POS Software $1000
QuickBooks $170
Computer $275
Monitor $50
Laser Printer $75
Receipt Printer $145
Credit Terminal $100
Cash Drawer $100
Barcode Scanner $70
POS Desk $350-$1000
Roadside Sign $250
Lumber Materials $450 (to build your shelves)
Shrink Wrap Kit $75
TV/DVD $225
DVD Cases @ $0.40 each
Double Disc Insert @ $0.50 each
Drop Box $200-$500
Beverage Cooler $500-$1500

I did some pretty extensive research on getting the lowest prices on this stuff. Actually, some of this stuff I got for dirt cheap on ebay (like the shrink wrapping kit). Most came from ebay, I got lucky on the beverage cooler for $250 used and $250 in repairs.

Also, I have a relative that built our display cases which saved us tons of money. A good carpenter would probably ask for $50-70 per hour.

I still have the URLs for a lot of stuff I bought on the net. I will reorganize them and post them later for everyone.

quote:

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Originally posted by Treymendous

How much capital (appx) is required to start up a DVD business?

Treymendous

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quote:

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Originally posted by nelson_sf

Gekea:

Thanks for a ton of good info. Love the DVD idea.

What about legalities. Do you just start buying videos and renting them? Don't you have to pay fees every time to the entertainment companies?

Thx

Nelson

quote:

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Originally posted by gekea

I just opened a rental business a few months ago, here is my $0.02:

- You simply can't compete in large cities where Blockbuster and the like can be found. Your best bet is in small rural areas with populations in the 5 digits.

- Unless you plan on buying large amounts of New Releases, distributors will cost you more money (cause you will have to pay for shipping). Just apply for your Sales Tax License, then apply for tax exemption status at Wal-Mart. The only down-side is that you won't get your movies until the release date.

- Personally, I elected to not even enter the VHS market. They are too combersome, you can't tell when they are damaged, they cost more to stock, and they are slowly going the way of the 8-track. Instead, we stock only DVDs and we carry name brand players bought from liquidators at costs 50% below retail. We then mark up the price by $15 and give customers 5 free rentals. Anyone coming into our store asking for VHS gets our sales pitch on DVD. Currently we sell about 4 players per week, which equates to 4 new, loyal, customers (and 8 out of 10 will use all of the free rentals on the spot which then turn out to be late half of the time).

- I wouldn't concern myself with Netflix. Their weakness is they CANNOT compete with impulse buyers and people who want to see a new movie when it first comes out. Their market is the cautious consumer who just wants general entertainment available in their home with less hassle. Yes, they are big and will become bigger...but who want's to wait on a "list" for weeks or months to see Matrix Reloaded when it comes out?

- Last, develop a system for the "shelf life" of your movies. Example: We may stock 6-9 copies of LOR: Twin Towers when it comes out. For the first 6 weeks all rentals will be due back the next day. We will then sell half of the copies. Then for about 6-9 months the rentals will be due back after 3 days. Then we will sell all but 1 copy and the rentals are due back after 5 days.

Hope this helps.

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Nelson_sf:

That last post messed up when I didn't type in my password. Sorry.

What I meant to say was...The back of DVDs plainly state (paraphrase) "This DVD is not authorized for sale or rent outside of the United States." Which to me means, IT IS authorized for sale or rent WITHIN the United States.

Next, technically, you are renting your personal property. It would be as if a friend is paying you $10 to borrow your lawn mower. Just make sure you report the income to the IRS.

Again, this is just MHO, where I used logic and deduction to come to my conclusion.

quote:

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Originally posted by nelson_sf

Gekea:

Thanks for a ton of good info. Love the DVD idea.

What about legalities. Do you just start buying videos and renting them? Don't you have to pay fees every time to the entertainment companies?

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