Perfume Vending Machine Business: The Next Big Thing?

All Koerner Office Episodes

20 Jul 202408:00

Summary

TLDRIn this episode, the hosts discuss intriguing business ideas related to vending machines. They explore two unique concepts: a perfume vending machine that dispenses cologne sprays for $1, and an unusual urinal leaderboard that ranks customers based on the strength and volume of their urine. The perfume machine, popular in Europe and the Middle East, has potential in the U.S., with high margins and opportunities for ad revenue. The hosts debate cultural differences in fragrance usage but agree there’s a market for these innovations in certain locations. The episode provides an engaging dive into the vending machine industry.

Takeaways

💼 The vending machine business can be profitable with high margins, such as perfume vending machines.
💰 Perfume vending machines cost around $2,000-$2,500 and can be mounted on a pedestal or wall.
💳 Customers swipe their card and pay $1 to receive a spray of cologne or perfume, which yields 90%+ margins.
📊 Each bottle can deliver up to 300 sprays, making the machines highly profitable with minimal product usage.
🌍 These perfume vending machines are currently popular in Europe, Dubai, and the Middle East, but not widely available in the US.
🔗 The machines can also include QR codes under each bottle, linking to an affiliate program where the owner earns money from perfume sales.
👃 The hosts discuss the cultural differences in deodorant use, highlighting that in certain regions, like the Middle East, there might be a higher demand for such machines.
🏋️‍♂️ Perfume vending machines could work in gyms, malls, or movie theaters in the US, where people may want a quick freshen-up.
🧮 The US leads in perfume and cologne sales, generating $8.7 billion in 2023, followed by Brazil and France.
🌟 The idea is discussed as a low-barrier, approachable business for entrepreneurs interested in the vending machine space.

Q & A

What is the main product idea discussed in the transcript?
-The main product idea discussed is a perfume vending machine that dispenses one spray of cologne or perfume for a dollar. The machine has a credit card reader and buttons underneath each perfume bottle, with a glass display showcasing the bottles.
How much does the perfume vending machine cost to purchase?
-The perfume vending machine costs around $2,000 to $2,500.
What are the profit margins for the perfume vending machine?
-The perfume vending machine has a profit margin of over 90%, as each bottle can provide around 300 sprays.
In which regions are these perfume vending machines currently available?
-These perfume vending machines are currently available in Europe, Dubai, Saudi Arabia, and the Middle East, but not yet in the United States.
What additional feature does the perfume vending machine offer besides perfume dispensing?
-The perfume vending machine can also display ads and offer QR codes underneath each bottle, allowing customers to purchase the perfume through affiliate links.
Why does the speaker believe the machine could work in the U.S. despite cultural differences?
-The speaker believes that the machine could work in the U.S. if placed in the right locations, such as gyms, malls, or movie theaters, where people might want a quick spray of cologne after a workout or while waiting in line.
What is a potential cultural challenge to the perfume vending machine's success in the U.S.?
-A potential cultural challenge is that Americans typically wear deodorant and may not feel the need for perfume or cologne as frequently as people in other regions, such as the Middle East or parts of Europe.
What are some ideal locations suggested for placing the perfume vending machine?
-Ideal locations for the perfume vending machine include gyms, busy malls, and movie theaters.
What did the speaker find surprising about perfume sales in the U.S.?
-The speaker was surprised to learn that the U.S. is a major market for perfumes and colognes, with fragrance sales reaching $8.7 billion in 2023.
What is a unique vending concept discussed earlier in the transcript?
-A unique vending concept discussed earlier is a urinal device that measures the strength and volume of a person's pee and ranks them against others, while also displaying ads.

Outlines

00:00

💡 Perfume Vending Machine Business Idea

The speaker introduces an innovative business concept involving perfume vending machines. Priced at around $2,000-$2,500, these machines can either be wall-mounted or placed on pedestals and resemble large mailboxes. Each unit contains five bottles of cologne or perfume, and customers pay $1 per spray using a credit card. The machine offers high profit margins (90%+) due to the large number of sprays in each bottle. Additionally, these machines can display ads and offer affiliate links via QR codes for purchasing the perfumes. This idea stems from observing similar machines in Europe and the Middle East, but they have yet to enter the U.S. market.

05:01

🤔 Cultural Challenges in Expanding the Business

The speaker discusses potential cultural challenges with introducing perfume vending machines in the U.S., noting that their success in Europe and the Middle East may not guarantee the same reception. In those regions, personal hygiene habits differ, and perfume is used more frequently to mask odors. However, the U.S. market still demonstrates a large demand for cologne and perfume, ranking as the top consumer market in 2023. The speaker suggests testing the concept in 10-20 different locations in the U.S., such as gyms or busy malls, to determine its viability. They express optimism despite recognizing that cultural and consumer habits might present a hurdle.

Mindmap

Keywords

💡Vending Machine

A vending machine is a self-service device that dispenses products when money is inserted or a card is swiped. In the video, the hosts discuss innovative vending machine concepts like perfume vending machines, which offer a new way for customers to purchase small sprays of perfume for a dollar. This highlights the potential profitability of vending machines in niche markets.

💡Perfume Vending Machine

A specialized vending machine that dispenses individual sprays of perfume or cologne. This machine is described as having five bottles of cologne or perfume, a credit card reader, and a system that sprays perfume when a button is pressed. The hosts see it as a high-margin business opportunity, especially in busy places like malls or gyms.

💡High Margins

High margins refer to a business's ability to sell products at a significantly higher price than their cost. In the video, the perfume vending machine is mentioned as having 90% margins, as each bottle can deliver hundreds of sprays for a low cost, while each spray is sold for a dollar. This illustrates the profitability potential of the vending business.

💡Affiliate Marketing

Affiliate marketing is a business model where individuals earn commissions by promoting products and directing sales to other companies. The perfume vending machine integrates this model by allowing customers to scan QR codes beneath the bottles, leading them to affiliate links where they can purchase full-size bottles of the fragrances.

💡Cultural Differences

Cultural differences refer to the varying behaviors, customs, and purchasing habits in different regions. The hosts discuss the difference in perfume use between regions like Europe and the Middle East, where perfumes are more widely used due to less reliance on deodorant, versus the U.S., where deodorant use is higher. This influences the potential success of vending machine concepts.

💡Consumer Behavior

Consumer behavior refers to the purchasing habits and preferences of customers. In the video, the hosts analyze how different markets, like the U.S. and Europe, use perfume and cologne. They consider whether American consumers would use perfume vending machines, pointing to gym-goers or people in malls who might use the machines for convenience.

💡Advertising Integration

Advertising integration is the practice of embedding ads into business operations or products. In the perfume vending machine concept, ads could be displayed on the machine's screen or be part of the purchasing process, adding another revenue stream beyond just selling perfume sprays.

💡Location Strategy

Location strategy refers to the careful selection of where to place products or services to maximize customer interaction and sales. The hosts propose placing perfume vending machines in high-traffic areas like malls, gyms, or theaters to target potential customers who may want a quick refresh of their scent.

💡Market Research

Market research involves gathering data about consumer preferences and behaviors to make informed business decisions. The hosts suggest placing perfume vending machines in various U.S. locations to test the market and learn whether the concept would be successful in different cultural contexts.

💡Novelty Vending Concepts

Novelty vending concepts are unique or unusual vending machine ideas that stand out in the market. The video discusses examples like a perfume vending machine and a urinal that measures the strength of a person’s stream while displaying ads, emphasizing how creative vending ideas can capture attention and drive business.

Highlights

Perfume vending machine priced around $2,000 - $2500, mountable on pedestal or wall.

The machine holds five bottles of perfume, each connected to tubes for dispensing.

Users can swipe a card and pay a dollar for a single spray of perfume.

High profit margins, with 90% due to the large number of sprays per bottle (300).

The vending machine can play ads and include affiliate QR codes for perfume sales.

Potential target markets discussed: Europe and the Middle East.

Cultural differences in deodorant and fragrance usage pose a challenge in American markets.

Perfume use in public places like malls and gyms may be viable.

Fragrance sales in the U.S. reached $8.7 billion in 2023, showing strong demand.

The business concept benefits from simplicity, no need for e-commerce or large-scale logistics.

Machines could be placed in high-traffic areas like theaters and malls for convenience.

Other interesting vending machine concepts, like one that measures urination strength, were discussed.

Quinn Miller, a vending machine entrepreneur, shares experiences in Southern California.

Turkey has the highest percentage of regular perfume users globally (85%).

The perfume machine model relies on easy consumer access and impulse purchases.