Discover the best of the web!
Learn more about Digg by taking the tour.
iPod vending machine sells $50,000 in first month!
tuaw.com — The Atlanta Journal-Constitution reports (subscription) that a single iPod vending machine sold thousand dollars worth of iPods in one month. A VP of Business Traveler Services is quoted as saying, "We've done about $55,000 in a month in gross sales just for the one on Concourse A.
digrob- 1620 diggs
- digg it
- eizooo, on 10/12/2007, -1/+20does anybody know where i can get such vending machines? and their price?
- anicejew, on 10/12/2007, -132/+8I have tried one of these, and they are fantastic!! (The iPod i mean, not the vending machine)
- Software2, on 10/12/2007, -0/+22In the US, try Sam's Club. They'll run you about $2000 - $6000 depending on the size and features.
Of course, you have to buy the iPods, find a good (and safe) location, etc. - jake3456, on 10/12/2007, -1/+15I'd like one too, but I think an airport is pretty much the only place where it would be destined for success.
- Software2, on 10/12/2007, -9/+21anicejew, why do you even talk anymore? Looking at your history I see that every time you say anything you get buried.
- Tonyisbad, on 10/12/2007, -6/+8Holy crap i've seen this ipod vending machine when i went to down to Atlanta this past july for my brother's wedding. I remember taking pictures of it with my sisters camera. I remember thinking what genius puts an ipod vending machine in an airport with no way to put music on it once you buy it unless you go away the way back to the main hub where there is free wifi. I was like this thing is never going to make money other than those people who come in off of flights and forgot to buy someone a present at the last min. Apparently i was wrong....
- spiderland, on 10/12/2007, -0/+8Link to actual article: http://www.ajc.com/news/content/metro/stories/2006/12/26/1227metipod.html
- OMGWTFROFLMAO, on 10/12/2007, -2/+11@tonyisbad
the kind of genius who forgets to buy one of their family members a christmas/birthday/havent-seen-you-in-a-while-hope-this-makes-up-for-it present and doesn't have time to go anywhere during their 30 minute layover in the airport and doesn't want to buy a cheap "georgia peach" keychain? I'm probably reaching, but hey, it could happen. - demonsofgoetia, on 10/12/2007, -6/+6I'd rather have a Freedom Toaster:
http://www.freedomtoaster.org/
Ever hear of the Shuttleworth Foundation? I know you've heard of Mark Shuttleworth. :) - dpcamp, on 10/12/2007, -4/+9I hope these vending machines have some kind of arm or mechanism that carries the item down to the door where you get it, like the newer coke vending machines..
I like my $300+ items handed to me after i purchase them, not dropped 6 feet for me to pick it up.. - funkychikensays, on 10/12/2007, -0/+14ipod vending machine hack,
im still waiting. - pinky24, on 10/12/2007, -0/+4@dpcamp
http://www.youtube.com/watch?v=ifwesPfLCYc&mode=related&search= - Phatt138, on 10/12/2007, -1/+4I live in the Atlanta area, and NorthPoint Mall in Alpharetta has both a vending machine -and- (about 100 yds away) an Apple Store; amazingly, both are doing very, very well.
- Burmask, on 10/12/2007, -2/+2Hopefully that will be enough to pay the lawyers to keep Jobs from getting raped in prison.
- OBKenobi, on 10/12/2007, -0/+6I think Steve Jobs could convince people to wear asshats. Not just asshats, but asshats with a subscription.
- DCMacHead, on 10/12/2007, -0/+4I don't know, but I bet you'd need lots of quarters to buy an iPod through the vending machine.
- MEbuDDy6, on 10/12/2007, -3/+68I wish that old coke hack would work on these....
- monergism, on 10/12/2007, -54/+4I hate thieves.
- Ninjab3ar, on 10/12/2007, -1/+34I like free stuff...
- capiCrimm, on 10/12/2007, -1/+12apparently digg hates you.
- capiCrimm, on 10/12/2007, -2/+8Wait till someone figures out a hack for the mchine and clears it.
- jake3456, on 10/12/2007, -1/+2Ha, those'll be the days!
- chris9902, on 10/12/2007, -1/+8I'm sure they have somebody looking over it. I don't think they would leave than much stuff unattended.
- capiCrimm, on 10/12/2007, -2/+17chris9902, then whats the point of having the vending machine in the first place? If you can afford someone to stand there then why not dress him up in a chicken suit and have him dance and sing to sell the ipods?
- chris9902, on 10/12/2007, -0/+7they call them "security guards" and I'm pretty sure they make less per day than it would cost to run a shop.
- timing, on 10/12/2007, -0/+3The Vending Machine could be monitored from another location. With a web-based interface or so. If something weird happens (like 10 iPods in 10 minutes, without any money coming in), they could just shutdown the system.
- CiDirkona, on 10/12/2007, -3/+0Agreed - it's fairly easy to circumvent security codes on most/some soda machines. If only one had been dispensed for $5, they'd likely never find the price-changing h4x0r!!!!11!!1cos(0)
- thewaz, on 10/12/2007, -2/+2@ chris9902
one security guard (~$26/h) probably makes alot more than 2 apple employees (~$8/h x2). - pinky24, on 10/12/2007, -0/+5@thewaz
there are other things in stores that cost money, other then employees... like rent for example..
- monergism, on 10/12/2007, -4/+16What's the markup?
- freff, on 10/12/2007, -3/+5I don't know why you're getting dugg down. That's an excellent question, especially considering the normal markup on airport items.
- thejerm, on 10/12/2007, -1/+9The one I stock marks the ipods up 25-50 dollars. Most places are the standard price.
- salinemist, on 10/12/2007, -0/+4Figure they sold about 250-300 ipods at about $175-200 a piece plus their markup. Starts to look good if you can charge an average markup of $20-40 and the airport isn't reaming you to have the vending machine there.
- monergism, on 10/12/2007, -0/+7Interesting. I'd be interested in some more info on contacts.
If ~$30 avg. markup x 200 peices = $6000 per liquidation. Figure ~$2500 for the expenses, that's not too bad.
My problem would be coming up with the capital to purchase the inital stock. - salinemist, on 10/12/2007, -7/+1Who's digging you guys down, the digg commie brigade?
- williamdyer, on 10/12/2007, -2/+6@mongerism
Who isn't good for $50 in unsecured credit? That'll get you a mix of about 300 iPods. @ $55k/mo they are netting about $5-$10k, more if they sell headphones, too. The cost to rent the space is probably no more than $2k (for 6 s.f. the airport kiosk rental agent is raking in a nice commission, too). The cost of money is about $1k/mo. So that nets out $2-7k per machine per month.
Shiiiit. Gotta get me summa dat. - thewaz, on 10/12/2007, -0/+1yeah netting $7k a month, thats still more than twice what i make now, but its hard finding as good a location as the atlanta airport. put it anywhere else and you wont do as good.
- streaksinthesky, on 10/12/2007, -5/+0That is too awesome.
- OMGWTFROFLMAO, on 10/12/2007, -1/+2you know what would be awesome? Tracfone/GoPhone vending machines.
- timxpx, on 10/12/2007, -0/+21i saw one of these in a macy's at a shopping mall and thought to myself "who would buy an ipod / psp / etc from a vending machine?"
...turns out i have about the same business sense as a cup of coffee.- williamdyer, on 10/12/2007, -0/+4It's the floor space. Ask about the rent for a 100s.f. kiosk as the airport. Be sitting down when you get the answer.
- MrFoof82, on 10/12/2007, -0/+4I'm curious as to the motivation of the person that buys a $150-250 item from a vending machine. I could see folks buying the gift cards, and using the airport WiFi to stock up on songs or TV shows or whatnot from ITMS while you're there. Or maybe new earphones or a case.
The iPod itself though? That's where I'm failing to find a motivating factor where I'd drop that kind of cash on the spot, especially at an airport (at least at a department store I'd be home soon), aside from gift-giving. Anyone able to provide some insight?- BrK1, on 10/12/2007, -0/+2Everyone has a different level of "disposable income". If you're traveling you're often spending many hours on a long/boring flight. Laptops are also very common on flights, and there is little to do. What better opportunity to move all those MP3's over to an iPod? Or perhaps upgrade your old, scratched iPod to a new Nano or Video ipod?
iPods are clearly selling well. Why does it matter where you buy them from? Vending machines are a simple, easy way to get what you want without having to deal with sales people, stand in long lines, etc. - freff, on 10/12/2007, -0/+4My first thought was that people were buying them to listen to music on the plane, and I wondered who that would work. They would have to come precharged and already loaded with music (which would be problematic, to say the least). But, now that I think about it, people probably bought it as a Christmas gift while waiting at the airport. Still surprised that it turned that large a profit though.
- yoursh, on 10/12/2007, -1/+5An airport makes the most sense. I've heard of more than one case of someone going on a business trip and forgetting their ipod at home. They don't want to go a week+ with all their music stuck on their laptop, so the say 'f*** it' and buy a lower end model while traveling. My guess most of the sales come from lower end models like the shuffle.
- dalewj, on 10/12/2007, -0/+2I would say any international travelers. People I know coming to the US for business conventions always have the apple store on their trip menu. One of my friends brough home 8 on his last trip, I figure they are willing to pay full price, instead of the cost of a rental car and time and all that to get it done. And i bet the vending machine probably has a better selection. Makes sense to me.
- williamdyer, on 10/12/2007, -0/+6I dropped $100 (some models were up to $300) on in-ear isolating headphones at the airport a couple trips ago. Granted, I was on my way to China, and a Benjamin was a small price to pay not to have to hear anything for 14 hours. Nobody discounts iPods, so if I didn't have one already, I would not even be thinking of the "didn't plan ahead" cost. I highly reccomend it, by the way: Sensory isolation is the only way to travel. I just wish they had Valium in addition to red wine on the cart.
Compared to a $30 hard cover book, an $80 Shuffle is a good deal, and well within the range of an impulse purchase at the airport. Heck, I see people buy that crap turquoise jewelry.
- BrK1, on 10/12/2007, -0/+2Everyone has a different level of "disposable income". If you're traveling you're often spending many hours on a long/boring flight. Laptops are also very common on flights, and there is little to do. What better opportunity to move all those MP3's over to an iPod? Or perhaps upgrade your old, scratched iPod to a new Nano or Video ipod?
- bryancharles, on 10/12/2007, -2/+36Shouldn't the iPod vending machine sell iPods, and not $50,000?
< /pedantry> - goatswii, on 10/12/2007, -5/+32I saw Zunes being dispensed from an old cigarette machine.
- xptweakerntn, on 10/12/2007, -13/+1i wonder if you can use the "free coke trick" on these things?
after all, how often does apple update its software?
REMEMBER, UPDATING SOFTWARE IS A SIGN OF FAULTY HARDWARE! - djmollusk, on 10/12/2007, -2/+3The ones i saw in Atlanta, while waiting for a flight, only had 3 different ipods and the rest of the stuff was cameras and other assorted electronics. I don't know why they call it an ipod vending machine.
- chriskzoo, on 10/12/2007, -3/+2I guess these are being picked up as gifts, b/c what's the point of buying an iPod in an airport (presumably to pass the time) when it has no music or video on it?
- goatswii, on 10/12/2007, -0/+5It's so the guy in the seat next to you will see you're wearing headphones and hopefully won't be inclined to incessantly yammer about god-knows-what for the duration of the flight. That's worth a bill 20 at least.
- williamdyer, on 10/12/2007, -0/+3My laptop goes about 4 hours in optimal conditions. Just getting an iPod to offload the music playing makes sense.
- arjayl642, on 10/12/2007, -1/+0Very good point. Unless you have a laptop handy full of songs, I don't see the point in vending iPods other than the fact that it looks really cool.
- fleury29, on 10/12/2007, -1/+1Freff has the right idea, thats the only logical explination.
- Lain1k, on 10/12/2007, -0/+12They have one of these at my local mall. Its a HUGE machine. About 3-4 of the treadmill coke machines side by side(groups of 2 back to back). Ours is double sided. One has Ipods and accessories and the other has DVDs. The prices are the same as stores and I have noticed that there were times that the items were all sold out (like the video ipod when it first came out). I like the idea about buying something from a machine but I think it has its downside. I am for anything that removes me from the general public, I hate dealing with people at stores, finding a clerk, checking to see if they have them in stock, if not then checking in the back, unlocking the cabinet, walking you to the front or making you pay on the spot, trying to sell you accessories and extended warranties, waiting in line behind the old lady paying with pennies.
But do these offer returns? What happens if you buy it for a present and find out the person already has one. What happens if its broken in the box? What happens if the machine messes up and gives you the wrong item or you press the wrong key. Are you stuck with what you have? I sure you can contact the company but they will probably send you through loops.
The whole things seems very Japanese ^_^ - jeddyftb, on 10/12/2007, -2/+1It's very odd that this topic got posted today as I just saw one of these for the first time last night. I was in a Macy's department store (King of Prussia Mall, PA). At any rate, every person that walked past stopped for at least a full minute and stared at the thing in disbelief. I think you'll only find these things in rather affluent neighborhoods. The premise is quite intriguing; however, I wonder how they'll fare once the novelty wears off.
My mom bought a EVO iSkin from the machine. Watching the little arm dart out and dispense an iPod case was surreal, to say the least. - GunbladeVIII, on 10/12/2007, -0/+4I don't know. I've always wondered why things like high-end leather shops and jewelry stores are in airports, and for the record I've never seen an airport without them. The only difference between them and the iPod vending machine is the delivery mechanism, yet both deal in roughly equal, or at least high, amounts of cash. But either way, purchasing from either one requires an on-the-spot decision, since you're there primarily to fly if you're inside a security checkpoint. I don't see airport leather shops going out of business, so why wouldn't this do well?
- Brandondork, on 10/12/2007, -4/+1they've had an ipod vending machine in a Vegas mall for almost a year now... it's always full
- hipdeep, on 10/12/2007, -7/+7It's more than an impulse buy . . . the iPod airport buy is metaphoric, or metaphoricific. Taking flight into who you want to be, a spontaneous urge to reinvent one’s perception and expression of self, bowling alone. Or, a better bet, a purchase into a mile-high club hope of a clandestine music exchange with an alluring someone sitting next to you.
- freff, on 10/12/2007, -2/+11Wha...what?
- williamdyer, on 10/12/2007, -0/+13See, that's the ***** I was talking about. I want the drugs they must be giving this guy in first class.
- Markers, on 10/12/2007, -0/+5Tyler Durden.
- arjayl642, on 10/12/2007, -0/+0Just crank out an e-harlequin, why don't you.
- Lain1k, on 10/12/2007, -0/+8I would also think that maybe people from other countries would buy them in airports? When I worked at Best Buy I knew people that would buy PSPs and PS2s here because they were so much cheaper then what was offered overseas. Maybe you are here visiting and see that you could get it cheaper here and bring it home.
- totorototoro, on 10/12/2007, -0/+5Given all the incredible crap they sell at the other airport "stores", the iPod vending machine is probably like manna in the desert.
- Kappa3, on 10/12/2007, -0/+6I found a decent pic, apparently this one sells PSPs too
http://homepage.mac.com/tcherna/iblog/C498653361/E44989771/Media/IMG_6531.JPG - demonsofgoetia, on 10/12/2007, -9/+1"So why shouldn’t I buy an iPod?"
http://tibsplace.co.uk/blog/index.php/politics/so-why-shouldnt-i-buy-an-ipod/ - xeno439, on 10/12/2007, -7/+1I'd be down to buy an iPod at an airport for the duty free tarrif pricing. But it seems like the price tag is not much different there.
http://www.mp34.us has free mp3 players - psygnisfive, on 10/12/2007, -8/+3Unfortunately Apple has a ***** fit when it discovers these things as it's a branding nightmare for them. They close them down as fast as they can. Now that this one has made it into the news, Apple will find out and likely force it out of existence.
Also, if you think Apple wouldn't simply because of the potential profit, you don't realize how little this is bringing in. Stand in an Apple store for a few hours, watch how many people buy iPods. You'll find that a single day will sell as many iPods as this thing did in it's month of operation.- psygnisfive, on 10/12/2007, -5/+1Uh.. why the digging down? o_o
- Portwineboy, on 10/12/2007, -0/+8@psygnisfy probably because like most people, I haven't seen any articles about Apple trying to shut down iPod vending machines. Care to enlighten us with a linkee?
- RichStevenson, on 10/12/2007, -2/+4When they fixed the problem with my $.75 bag of chips getting stuck in food vending machines, then I'll think about buying from this thing. Doesn't look like you can tip it very easily. ;-)
- nicpedersen, on 10/12/2007, -5/+2Borat says: "Very Nice!"
- naio21, on 10/12/2007, -10/+5Stop diverting from the mainstream news regarding Apple today:
http://digg.com/apple/Apple_shares_fall_5_percent_on_latest_options_scare
Nothing else matters (iPod Vending Machines, iPods, Apple Stores, Macbooks et al) as you fanboys will be left in the rain alone when Steve Jobs gets arrested and Apple bankrupts. ;-) - EricJD, on 10/12/2007, -0/+5Isn't that only like 6 iPods sold per day?
- psygnisfive, on 10/12/2007, -0/+3Yes, that's really very little in terms of iPod sales. And by very little I mean single digit percentages of a small Apple Store's sales for the same day.
- jmickey, on 10/12/2007, -0/+7I think a more successful vending machine to go along with it (especially at airports where casual travelers don't always have computers with them) would be an iTunes vending machine - just a kiosk with a USB port so you can buy songs for your ipod while waiting for your 4 hour layover.
- nicepants, on 10/12/2007, -1/+2You've got one in your bag...it's called a laptop ;-)
- waterdrop, on 10/12/2007, -3/+2You want a coke, a sprite, or an iPod?
- tjdoom, on 10/12/2007, -0/+1It's not exactly their first month - I remember seeing one at a hotel back in July this year.
- Shshashazam, on 10/12/2007, -0/+0I know, TJ, you had to tackle me to make sure i didnt feed it money.
- Yankees368, on 10/12/2007, -0/+2I saw an ipod vending machine once in a Macys on Long Island. It was in the most random part of the store and probably gets little to no business.
- winnch, on 10/12/2007, -2/+1"I have tried one of these, and they are fantastic!! (The iPod i mean, not the vending machine)"
Why was this buried? This is so funny. - jeremiahx, on 10/12/2007, -0/+1Saw one of these at the Mall of GA over the weekend... and it was pretty much all sold out... I think it had a couple of belkin cases and that was it. Yeah I guess it is a concept people are comfortable with.
- Fearnight, on 10/12/2007, -1/+2Sadly, you still can't kick the machine when your iPod gets stuck.
- pinky24, on 10/12/2007, -1/+2digg down
- Chexee, on 10/12/2007, -2/+1There's one in the local Vons around here. I can't imagine the logic in sticking one in a grocery store. Hmm, I need to pick up some milk, bread, cereal ... ooooh, let's pick up some expensive electronics out of the big shiny machine!
- manical, on 10/12/2007, -0/+5Lain1k has got a good point. In France they sell 5G 30gig Ipods for 249 Euros. If they come into an airport with these things at US prices, it is actually a bargain.
249US * tax (8.25% at LAX) = 269.54US
249EURO (current exchange rates 1.3127US = 1E) = 326.86US
That is a significant savings.
These things may not be for all of you savvy diggers, but for the average (actually above average) middle class person, it would be rather convenient. - technofiend, on 10/12/2007, -0/+1I purchased the 2GB black ipod nano and a protective case from one of these machines at the Las Vegas Hilton in February of this year. Sure there's an Apple store at the Fashion Show Mall now but it's not open 24 hours and I'm not sure if it was there at the time.
Frankly I bought it out of a machine because of the geekiness factor (people are still suprised to hear
you can buy an iPod from a vending machine) and because it was incredibly convenient for
an impulse purchase.
Some people discount the machine at the Atlanta Airport because an empty iPod isn't much use.
But most technically savvy travelers have a laptop anyway, and wireless is ubiquitous these days and surely available at the airport, so a full iPod is just a few mp3 transfers or itunes purchases away.
Best ~$300 purchase I ever made out of a vending machine. :-) :-) - CBTF, on 10/12/2007, -4/+4Yeah, well it's Apple. $50K? This means they sold about 6 products total.
- broeks, on 10/12/2007, -1/+1like gettin dvd's at mcdonalds
- Black913Hole, on 10/12/2007, -0/+1try burgerking
- gregnorc, on 10/12/2007, -0/+3Can anyone say "credit card fraud"?
Imagine: Some lowlife manages to snag a credit card, and needs some good to ebay^H^H^H^H fence. Now he could make a bunch of low value purchases and return the merchandise, but he needs to use this card QUICK... before the cardholder reports it stolen.
So he goes to the iPod vending machine and has that baby spit them out like candy from a pinata until the card is declined or the machine runs out of iPods, whatever comes first.
These things aren't just in airports, there's one in a mall near me apparently. I haven't seen it for myself, so I don't know what secuity it has, but this seems to me to be a pretty big risk for fraud.- diggsIt, on 10/12/2007, -0/+1That was my first thought, too.
- zaprowsdower, on 10/12/2007, -0/+1When are we going to start seeing digital Itunes vending machines? There's not a lot of point in spending £200 on an empty ipod at an airport, but if you could load it up with music before you left then it would be worthwhile.
- PRlME, on 10/12/2007, -1/+1oh yeaaa come on apple plz put one of those in kings plaza mall(Brooklyn)
- nicepants, on 10/12/2007, -0/+4Coming soon, MacBook pro vending machines.
- mark101, on 10/12/2007, -0/+0I don't get who's buying it. If at an airport, there is no music on it, you are on the plane with a useless ipod.
- thesixthdesign, on 10/12/2007, -0/+1I wonder how much they sell for, do people really carry hundreds of dollars in their pockets? Or maybe you can pay by credit card ..
- wellzy4eva, on 10/12/2007, -0/+0erm, if you got one at an airport for a flight, wouldn't it be empty anyway? however...if you had one with a itunes interface you could interact with via terminal then you'd make serious money (Think about it, you are in a airport awaiting a plane, ooh I'll buy some new albums for my ipod)
- TravisS, on 10/12/2007, -0/+1I think these would do beter at airports if they had some sort of loading interface (ie enter credit card info and download tune from itunes to load it
- lemonloser, on 10/12/2007, -0/+0when i saw the video of the iPod vending machine, it seemed that the computer system was quite advanced. I'm assuming that it double checks, maybe even triple checks your selection with you before it charges your credit card and/or dispenses the item. I mean it only makes sense. they would configure a computer to do a simple extra task to save a HUGE hassle of Customer Service phone calls and exchanges.
- rfMetro, on 10/12/2007, -0/+0These machines are evidently owned/operated by ZoomSystems (http://www.zoomsystems.com/ ).
They're the ones creating the partnerships with airports, etc...I guess you aspiring extra income-ers are out of luck, unless you have the spare time to invent your own robotic arm. -
Show 51 - 56 of 56 discussions
Digg is coming to a city (and computer) near you! Check out all the details on our 
© Digg Inc. 2008 —
Content posted by
