News

Photo kiosks begin developing profits

October 26, 2004

The digital camera has changed the relationship between consumers and their photos. Since 2001 traditional film development in the United States has declined, while photo kiosk use has surged.

The photo kiosk itself is undergoing a speedy evolution from a loss-leader to a profitable destination. And from a tech standpoint, the next wave of these machines is offering greater ease of use, higher quality and more convenience.

"We developed a system that was designed for retailers to profit from photography - which retailers have been giving up on," said Steve Giordano, president and CTO of Lucidiom. "They've been thinking of it as a loss-leader. We're saying `no, wait a minute, this can be a high-margin business for you.'"

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Lucidiom's answer to the confusing, often "out-of-order" first wave of photo kiosks is the Automated Photo Machine, a small-footprint device that hooks up via the Internet to APMNetwork.com.

"Every APM logs in every hour on the hour to the network, and gives statistics - usage, camera types that were used, memory card types used, amount of time spent, dollar amount, types of product," Giordano explained. "It also gives maintenance statistics - is there enough receipt paper? Is the CD burner is failing?

"Your cash register doesn't go down - why should your kiosk?" he added.

From digital to print

One satisfied APM customer is Michael Woodland, co-owner of Dan's Camera City, a chain of specialty camera stores in Pennsylvania. The networked APMs have been a part of Dan's locations for a year-and-a-half - 10 of them in the main store, with another dozen scattered to various drop sites. Woodland said it was the potential for customization that led him to choose the APM over the many competitors.

"We were purposely looking for something we could differentiate - with our own logos in there, it truly looks like a Dan's Camera City product," he said.

Woodland said the network functionality is one of the things that makes the machines so useful in his business.

"I watch all my units several times a week - I'm always dialing in to see how they're doing in different locations, with different promotions. I can see right away what people are responding to."

Although some industry insiders feel that photo kiosks have reached critical mass, Lucidiom still sees a growth market.

"Customers have digital cameras, and they want to print," Giordano said. "People are printing more pictures than they ever did with analog photography. The same customer that is printing four or five pictures at home is going to print 40 or 50 at a store, because they're not going to feel the pain. They don't have to worry about having enough cyan ink or the right paper.

"Pictures are what cameras are all about," he added. "They are the only tangible memories we have, the only real memories we can share."