Lecture Notes: Perfume Vending Machines by Chris Kerner

Introduction

• Presenter: Chris Kerner, Serial Entrepreneur
• Background:
  • Based in Dallas, Texas
  • Has been importing goods for 16 years
  • Involvement in various businesses, YouTube channel, and podcast
  • Specializes in importing different products including iPhone accessories, Bitcoin miners, and more

Business and Partnership Details

• Business Partner: Nick Heski
• Company: Co-Founders
  • Focus on starting and owning companies
• Collaboration with Perfuma:
  • Authorized distributor for North America
  • Perfuma, a company from Spain, focuses on perfume vending machines

Product Information

• Machine Specs:
  • Holds 5 bottles of perfume/cologne, 30ml each
  • Charge per spray: $1 on average, up to $2.50 in high-end locations
  • Profit potential: $700 - $9000 per month depending on location
  • Payback period: As short as one month in optimal locations
  • Best performing locations: Nightclubs, gyms, universities, gas stations, movie theaters

Operational Details

• Payment Options:
  • Accepts cards, cash, or coins
  • Machines can be customized when ordering 5+ units
  • Comes with an LCD screen for advertisements
• Customization and Usage:
  • Opportunity to sell ads on the machine's screen
  • Free sample version available
  • Equipped with GSM/CDMA SIM cards, classifying them as communication devices in some regions
  • Built-in reporting capabilities for tracking sales and status

Financial and Logistical Details

• Pricing:
  • Starts at $3000 per machine
  • Prices decrease with larger orders
  • Excludes shipping, taxes, and customs charges
• Production and Shipping:
  • 60-day production time
  • Requires 70% deposit upfront, 30% before delivery

Challenges and Market

• Potential Challenges:
  • Finding the right location is crucial
  • Cultural differences may affect machine popularity
  • Flexibility in contract terms is advised
• Market Insights:
  • Proven success in Scandinavia (universities), Eastern Europe (women-focused), Western Europe (men-focused)
  • Creativity required to discover new lucrative locations

Technical Details

• Machine Features:
  • Wi-Fi and 3G/4G modem capabilities
  • Anti-vandal options available
  • Power configured for global use, low cost
  • Refill time: 5-7 minutes, 1500 sprays per full load

Installation and Maintenance

• Setup:
  • Hardwired for power
  • Wall-mounted or pedestal options
  • Repair manual provided; support available
• Maintenance:
  • Common issues involve spray nozzles
  • Option for additional backup battery

Questions and Answers Session Highlights

• Revenue Sharing:
  • Typically 10-20% with business owners
  • Comparisons with other business models (e.g., Tesla superchargers)
• Security:
  • Anti-theft materials and options
• Customization:
  • Different languages, branding, and pricing available
• Insurance and Legal:
  • Often covered under venue insurance
  • Perfuma holds the patent, ensuring legality and compliance

Conclusion

• Next Steps: Contact and Orders
  • Email Chris at Co-Founders for further inquiries, especially international interests
  • Open to partnerships and further discussions
  • Emphasis on the importance of research and strategic planning for success