In today's world where convenience is king, it's fascinating to revisit ingenious ideas from the past that once captivated the public. Imagine this: a bustling train station in the 1950s, where travelers are greeted not just by the aroma of fresh coffee or the sound of chugging engines, but by the subtle, enchanting scents of perfumes available at the touch of a button.
This was the era when perfume vending machines made their stylish debut, offering a quick spritz of luxury to on-the-go individuals. Does this sound lovely - and nostalgic? Then maybe the time to bring back the perfume vending machine, The Koerner Office YouTube channel explores why this idea might be the next big thing in retail.
In a recent episode titled "6 Budget Friendly Businesses to Start in 2024. Perfume vending?!," the hosts explored this unique business idea - and it's truly intriguing!
Cohosted by Chris Koerner and CofoundersNikonomics, the episode discussed concepts for different businesses like a hidden gem finder app, an anonymous insider story podcast, a business failure podcast, niche call centres, pee strength measuring machines, and, of course, perfume vending machines.
According to CofoundersNikonomics in the video, a perfume vending machine costs around $2,000 to $2,500. These machines are about the size of a large mailbox and offer flexibility in placement – you can either mount them on a wall or put them on a pedestal. They typically feature a glass display showcasing five fragrance options.
Each bottle connects to the machine via a small tube, allowing for fragrance dispensing. The machine features a credit card reader and a user interface with five buttons corresponding to the fragrances for customer convenience.
A simple swipe of your card for a dollar activates the selected fragrance, which is dispensed through a sensor-activated nozzle positioned for easy application.
To dispense a fragrance, users swipe their credit card for a dollar and select their desired scent using the intuitive interface. This translates to a remarkable profit margin – according to the video, perfume vending machines boast margins exceeding 90 percent.
Now, let's delve deeper into the world of perfume vending machines and explore why The Koerner Office, in their "Holdco Bros" episode, sees them as a potential business game-changer.
Perfume Vending Machines: A Potential US Debut?
Koerner circles back to the concept that piqued his interest: perfume vending machines. He recalls their limited availability, primarily concentrated in Europe, Dubai, and Saudi Arabia.
While not yet established in the United States, these machines present a potentially lucrative opportunity. As discussed earlier, they offer a relatively compact footprint (roughly the size of a large mailbox) and flexible placement options (either mounted on a wall or resting on a pedestal).
For payment convenience, a credit card reader is integrated alongside a user interface with five buttons corresponding to the displayed fragrances. Here's the real intrigue: the video estimates a remarkable profit margin exceeding 90 percent.
This stems from the high volume of dispenses per bottle – some containing up to 300 sprays. But the potential revenue doesn't stop there. The machines offer additional monetization avenues. They can display targeted advertisements, further boosting income.
Additionally, QR codes placed beneath each fragrance bottle can connect users directly to an affiliate link for full-size bottle purchases, creating a seamless transition from sampling to full enjoyment without the complexities of running a full e-commerce operation.
The affiliate link earns $10 per perfume sale, but the video raises concerns. It mentions these machines are currently in Europe and the Middle East, implying potential cultural differences in hygiene habits. The deodorant humour might be offensive to some viewers.
While the video suggests these machines are in Europe and the Middle East, testing in select US locations could be a solution. After all, cologne use isn't limited to specific regions. CofoundersNikonomics says imagine these vending machines in gyms for a post-workout spritz, busy malls for a quick fragrance boost, or even near lines at movie theatres for a pre-show touch-up.
The US market for perfume and cologne is massive, with sales reaching $8.7 billion in 2023. The fragrance industry's allure is undeniable. Remember the buzz surrounding Kim Kardashian's perfume launch in 2017, inspired by a 2016 Paris robbery? The socialite made $10 million in one day off the new perfume.
This suggests strong potential for perfume vending machines, especially considering Turkey's high perfume usage rate (85 percent). Who needs a friend in Turkey suggesting cologne when you have a convenient vending machine offering a delightful spritz? Let's explore how Perfumatic, a company with a rich history dating back to the original Perfumatic machines of the 1950s, can help you get started in this exciting business venture.
Partnering With Perfumatic
Perfumatic, a company with a heritage dating back to the 1950s, can simplify your journey into this business by building on the potential of perfume vending machines. Here are the six steps to get you started with your very own Perfumatic perfume vending machine:
Secure Your Machine: Purchase your Perfumatic machine and any necessary accessories to get it up and running.
Find Your Ideal Location: Identify a high-traffic area in your city that aligns with your target audience. Think busy malls, gyms, or entertainment venues.
Secure Your Space: Negotiate a lease agreement for a compact space of approximately 0.2 square meters to accommodate your Perfumatic machine.
Machine Installation: Perfumatic can likely assist with setting up the machine in your chosen location.
Connect and Control: Establish a connection to the remote control system to manage your Perfumatic machine easily.
Start Earning & Growing: Begin generating revenue and consider expanding your perfume vending network with additional machines.
Perfumatic goes beyond traditional vending machine placements. While shopping centres, gyms, and entertainment venues are great options, you can also explore locations like sports clubs, nightclubs, restaurants, public restrooms (consider the target audience carefully!), airports, train stations, and even gas stations.
Perfumatic offers a wealth of free resources to ensure your success, including a comprehensive vending business guide and promotional POS materials. This empowers you to hit the ground running.
Start or Expand Your Business: Three Perfumatic Options
Perfumatic caters to different entrepreneurial aspirations. Here are your choices:
Individual Entrepreneur: Purchase a single machine and begin generating revenue immediately.
Official Dealer: Invest in multiple machines to establish your own vending business network.
Distributor: Secure exclusive rights to sell and install Perfumatic machines throughout your entire country. This option requires a significant initial investment.
The return of the perfume vending machine is upon us, offering a unique and potentially lucrative business opportunity. With a massive US fragrance market and these machines' convenience, they're poised to become a familiar sight in malls, gyms, and more.
Think about it this way. Austin Russell, CEO of Luminar, emphasises the importance of finding high-growth fields. His company develops cutting-edge laser sensors for self-driving cars, a truly revolutionary industry. But high-growth potential is wider than flashy tech.
Perfume vending machines, with their potential to tap into the booming $8.7 billion US fragrance market and offer on-the-go convenience, could be a prime example of a hidden gem in the vending machine world.
