Internet Vending

[buddyho]

Hi Forum,

I've been looking at internet vending. With more and more people wanting access to fast internet there's gotta be money to be made.

I've seen them around the shops and Westfields I saw a whole big setup in the middle of the shopping centre. There were lots of people using it (generally younger people).

Don't know if it is too late to start looking into internet vending or not...

Anyway, your thoughts would be appreciated as always.

BuddyHo

[lionvending]

Hi BuddyHo,

That's a big picture SPAM picture you've posted? What's that for?

I've seen the internet terminals at a lot of the shopping centres around Sydney. I agree, they look reasonably busy. With most people having internet access at home, why do people want to access the intenet at the local shopping centre? Again, is it a convenience thing? Is it a impulse thing? With people having instant access to the internet via their mobile phones and blackberry's will the need for internet vending decline?

I wouldn't think it would take that much to setup one or even multiple vending terminals. Computers are cheap, monitors are cheap and it's all depreciable for tax. Setting up the network so people can pay to use might be a bit tricky but again that's not new technology.

To rent a space at Westfield/shopping centre would be one of the main issues and major costs. However, you don't need any staff to look after the customers.

So, in my 5 min brain storm it sounds ok to me.

What does everyone else think

[Johnson]

There is a company called PieNet and they operate a whole group of internet vending machine in my local shopping centre. Looks quite busy..

[pennyj]

HI All,

I am looking into an internet vending franchise at the moment. I'm not going to say who they are because I don't want everyone going after the same deal.

From their stuff internet vending sounds pretty good....though expensive to break in. This franchise asks for $30,000 to $150,000 start up which depends a lot on area you put your internet kiosk. How many computers does $150,000 buy? And how much goodwill/commissions do you pay the franchisor? They take 15% of everything you earn by the way.

I'll let you know what research I find out....

[Xyooj]

HI All,

I am looking into an internet vending franchise at the moment. I'm not going to say who they are because I don't want everyone going after the same deal.

From their stuff internet vending sounds pretty good....though expensive to break in. This franchise asks for $30,000 to $150,000 start up which depends a lot on area you put your internet kiosk. How many computers does $150,000 buy? And how much goodwill/commissions do you pay the franchisor? They take 15% of everything you earn by the way.

I'll let you know what research I find out....

how do they justify taking $30K - $150K for franchise fee?
on top of that franchise fee is another 15% of revenues?

what is your expected revenues?
i've seen a few internet cafes on the market....so it would be good to know the differentials of these two