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People, the world is not flat

May 11, 2011 by Michael Rigato — V.P. of Operations, Signifi Solutions Inc.

Many people use blogs as forums to get the word out on a multitude of things. Some write blogs because they love to write, while some have other motives. Bloggers, including yours truly, often get asked to write based on their expertise in a specific field.

Some of us add a disclaimer because we might work for, or sell products for a company about which we are writing. There's nothing wrong with that. However, you need to ask yourself if the info is factual. Or, is it more how the blogger sees things? Remember the earth was thought to be flat at one time. Someone wrote it down, and it was accepted as fact. However, we eventually found out that the world was not flat!

Keeping that in mind, let's talk about the DVD kiosk market. There are many players in this field, some good, some bad. Most of them are like any other business out there, just trying to make a living, working hard and trying to deliver. Others may deliver an inferior product or service, while others say they'll deliver but never come through.

The fact, as I see it, is that there are only a few companies selling DVD units. I mean true companies, not two guys working out of an apartment reselling another company's equipment. Not that there is anything wrong with re-sellers. The world is built on them, and we need them — the good ones that is. There are companies in this industry and many others that use resellers very well. The automobile industry has a chain of resellers. However, what if Honda didn't stand behind its product that the reseller sold? Worse yet, what if you didn't even know the real manufacturer, Honda, existed?

This might be a time for a "Buyer Beware" sign to be placed on the door. China, Korea, Italy, Canada, the U.S. and several other countries have companies that make DVD kiosks. Some are reputable, some not so much. Anyone can put out a statement, or write a blog, but it takes a really good company to put out a high-quality piece of machinery. You really need to ask yourself some hard questions. Will they stand behind the product? If it's a reseller, what agreement does the reseller have with the manufacturer? Will I get the support I need? Will the damn thing work?

Ladies and gentlemen, this is a business, and that kiosk is a store. If you're entering into the DVD rental business, you will absolutely need a few things — No. 1 is Money. This is a cash- intensive business, and if you do not have the capital you will not succeed in this venture.

Two, you need a machine that WORKS. No need to explain this one. If the unit doesn't work, your store is closed.

Three, you need a good Partner. Yes, I said "partner." The company you purchase your unit from is your partner. If, and when, the unit goes down (they all do at one time or another) does your partner have the infrastructure to support you for the long run, or will he sell you a box and be on his way?

Four, you have to grow. Is the company you purchased from engaged in R&D, and does it continue to innovate its hardware and software platforms?

So when you read a blog — any blog — take it with a grain of salt. The blog you're reading may have facts, or it might be the way the blogger sees it. But, when buying a DVD kiosk, make sure the people selling you your new store know that the world is definitely round. Then ask them to prove it — just to be sure.

About Michael Rigato

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