with the recording um so by way of background my name is Chris Kerner I live here in Dallas Texas uh I'm a Serial entrepreneur I love business and I have a podcast and YouTube channel and we own a bunch of businesses and I have been importing things from other countries uh for 16 years now since I was 22 years old um maybe it's iPhone Parts iPhone accessories Bitcoin miners perfume machines bounce houses trampolines you name it um I've reported a lot of different things and I enjoy it I love I love business and so um I'm grateful for this opportunity that we have um to help import these um wonderful perfume vending machines uh my business partner is Nick heski um he might be in here right now he might not um and we have a company called co-founders uh that owns and starts uh companies much like this one um the owner of the perfume vending machine company is called perfuma and they are an amazing company out of Spain and we are the authorized distributor for North America and for everyone that's tuning in uh that's International I will get to that uh later so for now I want to talk about the machine I know a lot of you are curious about pricing um I know a lot of you are curious about profit potential so I'm going to cover all that um there is no question that's off limits and if it is off limits it's not off limits so um you were probably here because you saw a viral video on Instagram with this uh this ugly mug on it and when I posted that video I had no idea what would happen I post videos about business ideas all the time now I did have somewhat of a relationship with perfuma um because we had spoken three months ago about me buying a bunch of their machines because I genuinely think this is an awesome idea uh regardless of what country you're in uh and so this idea had always just been kind of sitting in my mind and then one day I'm like um I was recording my podcast with Nick and I brought up the idea cuz we never really talked about it and then I made the Instagram video to talk about the idea to promote the podcast not to promote the machines um and then the video went viral and then I started talking to performatic again and they said let's work something out um let's make something more official because coincidentally Chris you have a lot of experience doing this this type of thing not with perfume I have no experience with perfume and I won't pretend that I do um but in business and in Commerce and even a little vending machine experience so that's why you're here from that viral video that's why I'm here I didn't know I would be here uh last week but here here we are and so let's roll with it um I let's just get straight to to the Brass tax so um performatic has has sold thousands of these machines from across the world um North America is a fairly new market to them and I'm proud and excited and honored um to be authorized to distribute them here um once again we'll get to the international questions uh in a little bit but these machines hold five bottles of perfume or colog um and there it holds 30 milliliters per bottle and you are able to charge per spray whatever you like um the average charge is a dollar um at more high-end nightclubs it goes up to uh 250 um The Profit potential of these machines is pretty incredible um the payback period is largely based on the location and the volume of course right and so if you put this machine in the middle of nowhere your payback period might be a long time but if you put it in a hot location um such as a nightclub a gym University campus a nicer gas station Believe It or Not movie theaters then the The Profit potential is between anywhere from $7 to $900 USD per month um to thousands of dollars per month which means the payback period as in when you can get your investment back out uh ranges from a month or even less than a month if it's a really good location to three or four months um if it's a bad location it could be five six seven eight plus months if it's an amazing location and you find lightning in a bottle it could be a few weeks um their best performing location receive 7,000 sprays a month um I assume they're charging a dollar so that's 7 ,000 a month um fairly passively these bottles take about 5 to 7 minutes to refill they last a long time um and the warranty on these machines is good for two years or 100,000 sprays uh whichever comes first so I haven't even really referred to my notes let so so let me go to my notes and and see what I'm missing so these cards uh these machines accept either card uh paper cash or coin um the price varies somewhat based on what you prefer um some they also have a a free version of the machine for um perfume companies that just want to use it for samples and don't want to charge um or for people that rent out the entire machine to festivals events or weddings and they just want to charge a flat fee for someone to have the whole machine for a day um you don't really need a credit card terminal in that case so you can get credit card coin or paper um and and the the locations where these machines work best largely vary on the culture and the country so what we've seen in um Scandinavia for instance they work really well at universities on campus um because college students want to smell good um in Eastern Europe we see that it's more common for women to use the machines so they do better in places where women are in Western Europe it's more common for men to use the machines um so they do really well in nightclubs in Croatia they do really well in high-end nicer gas stations um movie theaters gyms and I would bet that there are hundreds of potential types of locations that haven't even been discovered yet because this is a relatively young company um and there's a zillion different places where you could put these and I think a little creativity would go a long way here um these machines do take 60 days to produce um from the time you order whether you order one 10 or 100 it will take 60 days um 70% uh of the deposit is required up front and then 30% uh before delivery is required um the price of the machines it starts around 3,000 USD um that can go up um based on the payment options that you want adding a credit card terminal costs a little bit more um but the price of the machines at $3,000 comes down as you order more quantities so it's around 3,000 USD for 1 to 5 units as you scale up six plus 10 plus 100 plus that price can drop the price also does not include uh shipping taxes or Customs charges um so that gets that question out of the way um got a couple questions in the comments so you are able to customize the machines if you order five plus units um from 1 to four four units you're not able to customize them the machine does come with a an an LCD screen with a like a default advertisement for the perfume machine you are able to switch that out with whatever you want maybe your own ad your own logo your own video or uh what some customers are doing they're even selling ads um on this machine as an additional Revenue source so you're able to do that as well and all of the machines come with the video screen that's not an additional cost you are able to offer free samples on the machine so if You' like people to be able to try before you buy um these machines are equipped with a GSM or a CDMA SIM card um which can make import importing them um kind of tricky sometimes if you don't know what you're doing uh perfuma does own the patent on this m machine so others that might be selling something that looks similar or violating that patent um and you are at risk of interfering with um local laws because if a device has a GSM or a CDMA SIM card inside of it which these do they can be classified as a Communications device uh which is an entirely different ball game than merely a vending machine um so let me go back to my notes here um just to recap for people that have joined late the price is around $3,000 which does not include additional payment options on the machine or shipping or or local taxes um that price goes down as you add more quantities customization is available at 5 plus units um profit potential is anywhere between um 7 800 USD per month to 7,000 per month on an extreme case most people uh find that they're profiting between 700 and 2500 per month which would mean your payback period is call it 1 to three four months um which is that's a it's a pretty good investment in my opinion um let me get to some of the some of the questions here I'm scrolling all right let's see man so many people putting branding on the machine I just answered that thank you Bahamas uh okay power so the machine um it is hardwired I believe I'm almost positive it is hardwired into the power um so you would need an electrician to do that um and it only cost like depends widely on what your local power costs are but the power costs per month are like $2 to8 uh it's very very very small um but it the power is configured to work worldwide it doesn't have to be a specific plug um how many sprays do you get per 30 milliliters great question I have that in my notes I believe that uh Matt you might need to correct me I believe that's 250 to to 300 sprays um okay that's what I have in my notes so you would only have to refill it you know 300 sprays times five bottles in there of course it depends on which bottles are most popular um so the more you refill it means the more money you're making payment possible with credit debit card only cash um coin cash or credit/debit card all available um in your experience in a nightclub for example would the owner typically charge you rent to keep the device in their establishment great question so I I completely forgot to talk about the reporting capabilities so you are able to see and track from um iOS or Android the status the sales the the levels of your perfume or cologne from your phone at any given time or moment so what that means is you are able to negotiate whatever you can negotiate with the building or business uh establishment owner maybe that's a flat $100 per month uh maybe it's a profit share of 10 20 or 30% and you say hey I'm G to add you as a user um to the back end of our software so you don't need to worry about trusting me you can have full visibility into what that machine is putting out and I'll give you 20% of it um you're able to do either or uh what we're seeing is it's a good mix maybe 60 40 uh 60% of people are opting for um like a percentage Revenue share 10 to 20% and then 40% are getting a small dollar amount per month but ultimately this is a sales pitch and a lot of this depends on how you approach the the business owner for you for instance Tesla has thousands of superchargers all over the the world and when they approach a business owner they say we're not going to give you any of this um they might be paying 10 cents per kilowatt hour and then charging the Tesla owner 40 cents per kilowatt hour right so a four times markup and the the person that owns that parking lot gets nothing they get absolutely nothing from that no dollars no percentage nothing it all goes to Tesla Tesla's pitches we will bring you more traffic people will go inside your building and spend more money with you and over time that's proven to actually be true and they can point to to data data points that proves that out um so if you approach the business owner with the attitude of like hey like do you think maybe it's possible like I'll I'll share the profits with you then that's definitely not as high leverage of a conversation of approaching him and saying listen I actually that today's your lucky day I want to bring you a lot more customers today you own this movie theater I own this thing that attracts people to a movie theater if they smell good in your movie theater they'll want to be in your movie theater if someone has to choose between a movie theater where they can smell good uh or a movie theater that requires them to spend $70 on a bottle of cologne that they only use once every time they go to the movies they're going to choose yours right you just have to attack them up front with this logic and then when you hit him with the pitch it's listen so how would you feel about me placing this in your movie theater what do you have to lose not hey so how about I give you $200 a month to put this in your movie theater it just changes the whole dynamic of the conversation you're the one with the knowledge you're the one approaching them so you should be the one to frame it in the way that's most advantageous uh for you uh what is the average share okay I just answered that great question I agree Rudy what's the security of the machine like what materials are used to prevent theft I have that information let me grab that that is a great question um give me just a second so um let me just give you some like facts about the machine um it has a 3G or a 4G modem it also have has Wi-Fi capabilities um it has an a lock for an an vandalism it has uh you can get an anti- Vandal housing material um you can get plexiglass they have all types of additional options um obviously some locations might be more dangerous than others um so that option is up to you as to how many anti- theft or anti- Vandal um protections you would like on the machine but they are available yes um the the HD screen is 10.1 Ines it's an LED screen I said LCD um and I said 300 sprays per bottle that is incorrect the you have the display bottles um the retail bottles that people actually see those hold um 300 or 250 to 300 sprays but then there's like a wholesale bottle beneath that the customer can't see that holds um like a thousand more um and so I believe I could be wrong if I'm wrong I'll send a retraction and a correction but that it holds the machine holds 1,500 sprays uh before you have to ref fill it um electricity bill $2 to $10 per month um you can integrate it with several uh payment uh systems uh and you can operate it uh remotely you can get daily reports and statistics does the machine come with any sort of system data analytics to gauge spray count yep okay thank you I answered that can you change the language yes you can actually have two different languages at the same time as well um they support all the major languages and then you can have two uh at any given time physical dimensions of the machine great question let me grab that it is 700 by 400 MM uh length and width and5 millim deep um so convert millimeters 700 by 400 by 185 and empty with no perfume it weighs 24 kg which in pounds is like 52 lb or so so 52 lb 70 by 4 700 by 400 by 185 millimet how do you maintain these machines such as cleaning refilling servicing uh great question so repairs are they do happen but they're not common whatsoever they're somewhat straightforward machines there is a repair manual um it it financially doesn't usually make sense to ship these all over the country and world to get them repaired and so there is a a a generic repair manual for the most common things for something more complex you would be able to get on the phone um with the manufacturer and have them uh talk you through it for something more complex than that you would be able to ship it if needs be what are examples of how you could customize the machine I will send some of those afterwards because I don't have that offand power consumption what if some breaks the glass um voltage of the machine let me see what that is that's a good question I don't have that but I will send that afterwards uh but I'm imagining since it draws such uh low power it it would be 110 how would manager store owners be paid for placing machines okay answered that insurance and maintenance um answered that insurance um that would probably be covered it's typically covered under the establishment where you have the machine um what challenges do you think one would have in the US great question David I think the challenge here is finding the right type of location um I feel like certain locations are already proven and they're going to work in basically any culture and that is a nightclub some sort of a nightclub um other locations I think could be riskier but have potential reward uh universities are well established to work in in Scandinavia I feel like they would work very well here in North America although I don't know of anyone currently doing it um universities do not work well in many other parts of Europe because that's not the culture um I think you you're really just going to have to draw on the data um that I'm providing and we'll try to send more hard data on locations after this um but other than that you're going to have to be flexible and be creative to be honest and leave some flexibility in your contract with the business owner to be able to pull out after 30 days if it's just not looking good um I'm friends with a gentleman named Quinn Miller he owns hundreds of vending machines in Southern California and it's very common to have a an option in your contract to exit free of penalty within 30 days if it's just not going well because he's been placing vending machines for a decade and even he'll find a perfect location that matches his other perfect locations and it just won't do well um and so you just never know until you really try all we can do is as much research and data Gathering as we can and yes Eric they are wall mounted and there is also pedestals for them um there's an additional pedestal option that has a much larger LED screen if you really get into selling ads um there's a much larger one for an additional charge after two years of warranty what is the best selection in getting your machine property insured knowing theft or accidental uh events occur in these retail areas I'll send that out afterwards um because I don't have a lot of answers about insurance other than the customers that I know that that piggyback on the the business owner's insurance I don't have answers about like if you rent out the machine to an event um or to a wedding do you get notified when the bottle is running out yes specs on the machine just did that how are customer issues handled since it's patented with perfuma um so we are the official distributor for North America for service and customer issues like that that would be handled directly with perfuma um yes you could go to us and we'll make an introduction we're not just to ignore you or anything um but they are the ones to go to is it possible to accept Apple pay and Google pay uh yes it is it integrates with n that's like a a big fancy payment processor that most have never heard of because they're not consumer facing um but if it integrates with Nix it integrates with you and that includes Google and Apple pay can you fit 3.4 ounce bottles um I'm not sure I'll send that out afterwards it's a machine made to be built in a wall or they're standardized to be built uh to be wall mounted um they can be Standalone but most of them are wall mounted and that's how they're they're built credit card processing fee is around 3% give or take um I can send out the exact one after what share of profits are business typically taking for allowing the machine so 10 to 20% um I'll try to get some more hard data on that are there any ongoing fees or costs from performatic um no no um has performatic any specified statistics on how well the product works on various countries like Greece um I know there's already an official um partner and distributor in Greece um they may have some statistics there um but I'm not sure I'll try to get that to you as well what does the process look like of getting it placed into business are there any ongoing cost from machine how often is a person typically going to replace it um so the machine lasts for many years the warranty lasts for two or 100,000 sprays um they've been manufacturing these um for 10 years um they've been in business for 10 years they've been manufacturing this particular model for five years um basically since Co started so we know they last for five years they're still doing really well um but yeah we don't really know how long they'll last past five but they're built very high quality they're not built in China they're built in Spain um with high craftsmanship uh do we get to choose the card processor for the card um terminal I don't believe so it's all done through NX but it also depends on the country and I'm also not 100% so Dallas is not saturated there are none in Dallas Fort Worth so we don't operate these machines ourselves we are distributor for them okay can you confirm this is not a vend machine telecommunic device no it is it is a perfume V and cologne vending machine but it is often classified as a telecommunication device based on the country that they are being imported into because of the fact that it has a SIM card which means that you're subject to different vat uh and different taxes and different customs duties um is there an option to be the sole partner in the country for a given period I believe so uh if you could email me Chrisco founders.com I can make the introduction how would you research a great location Eric I think you do that a lot very similarly to how you'd uh research any retail physical location uh it's kind of annoying it takes a while it's tedious um but it works really well and that's you spend all day there and you count the people going in and out for instance if I wanted to open now Chipotle doesn't franchise but pretend with me that they did uh if I wanted to open Chipotle and I wanted to know is there enough demand here then I would go to the next closest and I would literally sit in the parking lot and this sounds crazy crazy but people do this this is a common practice or sitting in an intersection and Counting Cars I would sit in the parking lot and I would count the people coming in and out um and I would see what that's like and then I would take an average order value I'd make an assumption there and say all right you know most people are by themselves they're probably spending $12 um and then I would use that math to figure out if if my location might be able to support um as many customers as the other location is getting or more um so you can often look at traffic counts if you're in the US you can go to the Department of Transportation website um you can just start talking to people you can stand outside the business and say hey this is very random but if there was a perfumer cologne machine sitting right here and it cost a dollar and you were headed into the movies or heading out of the gym um would you use it would you pay a dollar for it and honestly like I would stand in the parking lot of a gym all day and ask every single person that and if it's a woman I would say the word perfume and if it's a man I would say the word cologne and I would have a spreadsheet on my phone and I would just take a record of that now that data isn't perfectly accurate because the amount of people that tell you yes I would buy that vers them actually doing it is you're going to have to apply a discount to it it it's not always one for one but it will give you a really really good idea of a the volume the traffic volume of that particular gym maybe you don't maybe you learn you don't even want to put the machine there because 70% of people would have to to buy a spray in order for you to make money um maybe you learn there ton of traffic way more than you thought and maybe you learn that no one would do it and that's probably going to tell you you're probably going to be able to take that data and use it for the gym across town right so I would go to a $10 a month plan of Fitness I would go to a $300 a month Lifetime Fitness I would do the same research compare notes and then use that data and extrapolate it against the whole maybe it's Dallas for worth and say okay someone in this part of Dallas is probably someone a lot like someone in that part of Dallas I could use this data everywhere and I'm going into all the plan of fitnesses or all the equinoxes or whatever you learn um but the great news is is you can do that research today before you spend a dollar um and it's kind of fun to be honest that's my favorite part of business is doing that research so shipping to the Netherlands I don't have that information um I'm not sure but just based on having a history in logistics and distribution um I would think it's anywhere from uh it depends if you do air or boat um but on the low end $150 to $250 um it depending on the quantity as well I'm I'm saying if you're only ordering one and on the higher end $600 $700 somewhere in there um but if I'm completely wrong I'll send a retraction um afterwards yes I will send a link to this to this recording all right I covered that can the SIM card be changed to my own for the data connection about the payment system um I'm not sure about that but I I do know that the the credit card deposits can be deposited to any bank account that you have or would prefer what are the most wear and tear parts that I have to do maintenance on um the machine it's usually on the spray nozzles um there's another one I can't remember the name of it I can't remember but I'll send that any maintenance cost of the machine 3,000 give or take depending on options in quantity what would you charge a country club so I if it's uh like a very specific question I'm going to pass over that because I've talked about a lot of this stuff and I want to be respectful of everyone's time um and I will send the recording per performatic makes this in-house um they manufactured these themselves in Spain we're taking orders immediately um starting today does it have a battery power storage in case of yes there is a backup battery in case of outages little refill bottles yes you can keep stock of them so you you're able to refill them more quickly of the perfume bottles you make contracts with only person is there a step on the pedestal for shorter people um I don't think so I'm sorry um so all of the international questions please email me Chrisco founders.com because we do have a solution for you I want to introduce you to perfuma to the person in your region um Chris C H RIS I'll put it here in the chat if you've these emails you've been receiving from me that's from Chris at Co founders.com um I don't know why hold on it's not letting me send a chat uh so M Matt if you could do that for me Chris at co-founders docomo dasc Fu n d rs.com if you're anywhere outside of Mexico Canada or the United States of America email me and I will make a direct introduction if you want to talk about exclusive distribution rights or connecting with them um but in North America specifically you can email me and we will help you uh directly uh does perfume life deg grade after certain days inside the machine no um it would have to be many years of sitting that inside the machine to degrade uh if you have to pay 70% in advance to buy the machine how can we ensure our money security can we pay that amount through a credit card great uh question yes you can pay it through a credit card and I understand I completely understand where you're coming from and you're also welcome to reach out and like validate us performatic is in this webinar but say hey like is this guy is this a scammer do you know this guy is is he just selling your stuff without authorization we are authorized to sell for them in North America uh and you're welcome to ask them that your yourself um so we do have a relationship with a a wholesale perfume and cologne distributor in Switzerland um that sells uh the actual liquid at a discount that you would have access to by buying a machine you are able great question about the prices so um one thing that we've shown in our research is high-end clubs um they demand more high-end perfumes Tom Fords and you can charge more for it up to 250 per spray uh mid-range clubs mid-range perfumes and you usually charge between one and a150 for those but you are able to change the price to whatever you want how many sprays per bottle um yeah so it's I covered that in the beginning cost per month of the actual perfumes so the the cost of the perfumes is generally four to8 4 to 7% of what you're charging of course that would be cut in half if you're charging $2 as opposed to one but at a $1 price point the cost of the actual perfume perfume is a single digit percentage it's it's very very dominal um yes I will send a copy of the recording so if a customer wanted to buy perfume through the vending machine do I have to have my own system of shipping it to them um this is one thing I talked about in my video you can you could start an e-commerce website and try to Source the perfumes and but I would not recommend that because the volume of people that elect to buy a whole bottle after buying a spray is small it's it's a numbers game right um so with that in mind it's not worth building out a whole infrastructure and website and distribution system for that small amount of people that want a whole bottle um you just need to find an existing website that is already doing that and say hey do you have any affiliate links uh where you can cut me 10 to 20% of the sale for all the traffic I sent you and you take that affiliate link you convert it into a q QR code you put the QR code right under the picture of the bottle and say buy a whole bottle here you can even do that on Amazon um here in North America you you can apply to become an amaz Amazon affiliate very simple and straightforward and that would work really well it's a smaller percentage it's more like four or five percent but people you know when they scan the QR code and they see Amazon pop up they trust it or and so your conversion rate is going to be higher than if some random perfume or cologne website pops up uh uh uh from the limited data funny you ask about one spray so in certain countries a lot of people do two three four five sprays um it depends on the culture the average is about 1.5 sprays per person I would think in North America um so North America is the biggest market for perfume in Cologne on dollars sold basis it doesn't mean it's the biggest as big of our uh culture as it is in European or middle eastern companies or countries but it is the biggest market for perfuming cologne um that said I I would not think that um Americans are getting three to five sprays uh per use like you see in Kazakhstan for example maybe it's AER Bajan I can't remember uh um wholesale bottles so we take payments to purchase the machines um just we'll send an invoice to you and you're welcome to set up a uh sales call I emailed everyone a link everyone that's in here should have a link to our calendar and so if you want more information you want to talk to us one-onone you can book a call there for next week um but we'll just send an invoice you can pay via wire credit card U or anything can you pick them up in person uh yes with advanced notice if you're in Spain and yes I will send a recording there's no deadline to have the machine up and running after you buy it it's up to you it's in your hands at that point there's no you don't pay a percentage of sales there's no there's no obligation to ever place it that's all in your hands I don't have data on the specific fragrances used but if I can get it I will send it um okay thank you for posting that comment the analytics are via um it's a web app so you can pull it up on your phone through a web app 70% in advance pay required correct full amount correct 70% in advance and 30% upon delivery or right before delivery um Ashley I'll try to get the data on like which perfumes perform best delivery time is is about 60 days um it you could pay more like 60 days from to for it to be manufactured um once it's actually shipped typically a week um if you're going from Spain to the US to New York it would be via air um if you want to ask about Partnerships or anything like that or other countries email me once again and I'll make a direct introduction to the person that you need to talk to uh Chris coof founders.com um and that's including within North America um you you are able to use your own um suppliers like if you're in a pinch and you need to refill it and you didn't have any wholesale on hand you are able to do that uh it's it's just going to be at a higher price can the machine be set up for uh multiple sprays with one purchase I'm not sure on that but I will find out there is no fee for the the um data product for the software multiple prices on one machine depending on the perfume let's say I have one expensive perfume and I want to CH charge a premium price for that one yes you can charge different prices based on the perfume great question um all right you don't need Wi-Fi at the location um not four months for making and shipping um two months it's yeah shipping does not take that long the 60 days is for manufacturing and then it will be shipped right thereafter and you it would not take too long to receive it um I uh Cantor if if you could uh email me about that I can make an introduction I don't see any more questions um so if you have any more you can email me Chrisco founders.com once again if you're International email me Chrisco founders.com we'll make sure you get routed to the right place and taken care of thank you for joining I appreciate your time and we look forward to doing business with you