# Setting Up DVD Shop



## InfoSeeker (25 Jul 2007)

I live in an area where there has been a lot of residential development in the past few years.

There is no DVD Rental shop in the locality and requires a drive into a traffic congested area to get to the nearest rental shop.

I have not done market research on this but based on friends living in the area it is annoying, there is a very well populated catchment area which has a large % of younger adults (ie people who would have dvd players).

My query is whether anyone else has set up such a shop and did they investigate the option of self setup versus using a franchise?


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## BlueSpud (25 Jul 2007)

Dont know about that but Screenclick and others are already catering to this market.


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## ciano6 (26 Jul 2007)

InfoSeeker said:


> I live in an area where there has been a lot of residential development in the past few years.
> 
> There is no DVD Rental shop in the locality and requires a drive into a traffic congested area to get to the nearest rental shop.
> 
> ...


 
I'm afraid the days of the local video store are almost gone my friend.  Even the large chains are clutching at straws now.  Youtube, online dvd rental and online movies have taken over.


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## ButtermilkJa (26 Jul 2007)

I would have to disagree somewhat. I understand that with technology the market has changed, but if I decide on the spot that there's nothing on the telly, and that I'd like to watch a DVD, I don't want to wait until it can be posted out by ScreenClick or the likes. I'd like to get in my car or go for a walk around the corner and get it straight away.

Having said that, I would be interested to find out just how big (small?) the market is at this stage.


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## z103 (27 Jul 2007)

I remember seeing a DVD vending machine (for renting DVDs) on a garage forecourt a few years ago, when I was in London. This might be a cheaper route to investigate.


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## ButtermilkJa (27 Jul 2007)

leghorn said:


> I remember seeing a DVD vending machine (for renting DVDs) on a garage forecourt a few years ago, when I was in London. This might be a cheaper route to investigate.


Actually, come to think of it, I've seen them in quite a few Spar shops lately.


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## ang1170 (27 Jul 2007)

Whatever way you look at it, "traditional" video/DVD rental shops are a declining market. It would take a brave person to start a new business in any declining market.....


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## efm (27 Jul 2007)

The return for a video rental store is quite low - you need to shift a lot of dvd's to cover your costs: costs can be substantial because you need multiple copies of new releases, plus a decent back catalogue, plus your midweek rentals are going to be very low.

Take a look at how Xtravision et al have moved into sales of tvs, game consoles, phones etc to try and boost return.

I wouldn't touch it with your barge pole!


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## aircobra19 (27 Jul 2007)

Our local centra has a DVD rental system too. Rather than setting up your own store maybe set up a system in an existing store. Lower cost if it doesn't work out.


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## ubiquitous (27 Jul 2007)

aircobra19 said:


> Our local centra has a DVD rental system too. Rather than setting up your own store maybe set up a system in an existing store. Lower cost if it doesn't work out.



This is hardly a suitable business model for a beginner especially given the obvious need for watertight business agreements including processes and procedures as to how the instore business would operate.


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## aircobra19 (27 Jul 2007)

ubiquitous said:


> This is hardly a suitable business model for a beginner especially given the obvious need for watertight business agreements including processes and procedures as to how the instore business would operate.



I would have assumed you'd need agreements, operating  processes and procedures for any business model. Operating instore is only a means of reducing overheads. If possible.


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