Perfume Vending Machine Business: The Next Big Thing?
Chris Koerner and Nick Huber explore perfume vending machines, a business model from Europe and the Middle East. Machines cost $2,000–$2,500, charge about $1 per spray, and claim 90%+ margins. The US fragrance market alone is worth $8.7 billion annually.
Chapters
It's $2,000, maybe $2,500. You can put it on a pedestal or you can mount it to a wall. It's about the size of a large mailbox and it just looks like this. It just. It's got like this glass display with five bottles of cologne or perfume. And then there's a little tube going into each bottle. And then there's a credit card reader and five buttons underneath each one. You swipe your card for a dollar and. And you put your hand up to it or your neck or whatever, and you pay a dollar to get one spray of perfume. And it's so it's like 90 plus percent margins. Welcome to the Kroner office. We have another Holdco Bros. Episode for you today where Nick and I talk business ideas. So hope you enjoy. Hope you have fun. Please, like and subscribe and we'll see you next time. I got a couple ideas for you. You ready? I'm ready. You know Quinn Miller, the vending guy?
Yeah.
Yep. So we just spoke today, and he owns a ton of vending machines in Southern California and he does really well. And he also owns a bunch of ATMs. So we talked all about that business, yada, yada, yada. And I asked him what was the most interesting vending concept you've ever seen? And this blew my mind. He went to a bar in Lansing, Michigan once and he went to the bathroom and they had. They had like a leaderboard display screen above the urinal, and they had a device in the urinal that you pee into that measures the strength of your pee and the volume of your pee. And then it ranks you against other guys that have been to that bar and you have to pay for it. And then it runs ads as you're peeing and you pay. You. You pay to pee and be shown Ads.
No freaking way.
Yeah. Isn't that amazing?
That is amazing. Because what guy is gonna be like, I don't. I'm not feeling it right now.
I don't want to know how strong my pee strength is. I don't. It doesn't matter to me. My wife says it doesn't matter.
No, my wife. I. I would lose this game because as I'm getting older, my stream is not strong.
My stream, I'm like an inch thick and just short burst. Like I just get it out. I've heard you pee. It's aggressive. It's aggressive.
It's a super soaker.
Like the line in the other guys and the sound of your piss hitting the urinal. It sounds feminine. Anyway, I thought that was interesting. No, I'm not about to go launch that, but that's the most interesting vending concept I've ever heard of. Second one, which I've talked to you about, and I like this idea. I still like it. Is the perfume vending machines.
Yeah, I remember this. Yeah.
They're based out of, like, Latvia or Estonia or something. They're only in Europe.
Oh, yeah.
By Saudi Arabia, Middle East. They're not in America yet. It's $2,000, maybe 2500. You can put it on a pedestal or you can mount it to a wall. It's about the size of a large mailbox. And it just looks like this. It's just. It's got like this glass display with five bottles of cologne or perfume. And then there's a little tube going into each bottle. And then there's a credit card reader and five buttons underneath each one. You swipe your card for a dollar and you put your hand up to it or your neck or whatever, and you pay a dollar to get one spray of perfume. And it's so. It's like 90 plus percent margins because those bottles have, like 300 sprays in them. Right? Okay. And then in addition, you can play ads on it, and then you can put QR codes underneath each bottle to like, oh, I like that smell. I want to buy that. And it's just an affiliate link. You don't. It's not an e commerce business. You don't have a website. It's just an affiliate link for you to make 10 bucks every time you sell a bottle. What do you think?
As I thought about it, here's what I hate about that business.
Where are they?
Can you describe it again?
What type of venue?
Just tell me geography where they are.
Europe.
Smelly.
Yep.
Keep going.
Keep going with what? What do you want? Where's the other place?
Where's the other place? You said there's the other places.
Okay. Middle east places where they don't wear deodorant.
Places where they want. Don't wear deodorant.
Like, we wear deodorant here.
We don't stink as bad. So it's like, oh, Ivan, you stink very bad. Go to bathroom, get l little spritz of perfume. Like, yeah, okay. Those guys freaking need it. Have you smelled a guy after he's had borsch? It's not. It's not good, dude.
But do people in America buy perfume and cologne? Yes or no?
If I had to answer that. If I had to answer that.
Yes. Okay. I just asked Chat GPT and it's looking good for you so far. I said, what countries sell the most cologne and perfume? Number one, France. Largest exporter, largest exporter. Exporter.
Get out of here, Chat.
I mean, I completely agree the big risk here is the cultural thing, but here's. I think you could solve that. Solve for that by placing these in 10 to 20 different locations and just learning, because I think in the right location, even in America, these could do really well. I was talking to Sam about this, and he's like, I keep a bottle of cologne in my gym bag. When I go to the gym, I just. I don't want to shower, but I don't want to stink, so I just. I give a little spray. So if there is one of these in the bathroom or at the exit and I might use it, or I'm thinking, like, just in, like, a very busy mall. Like, just a pedestal in the middle of the mall. Because you've got youths. You've got these. You know, those youths walking around. They might be interested in this or even, like, next to the line at the Cinemark at the movie theater, and people are standing next to it in line.
I'm all about incentivizing, less cleanliness.
All right?
So if I go to the gym, I work up a sweat little spritz.
All right, Shower. I. I followed up with Chad GPT. And this one's not looking good for you. Okay. All right. I said no, tell me. Consumer purchasing. This is number one. The US Is a major market for perfumes and colognes. Country accounted for 8.7 billion in fragrance sales. 2023. Brazil, number two, 4 billion. So half as many people and half as much perfume and cologne. France, number three, 2.6 billion. UK 2.3. Germany, $2 billion.
Interesting.
There you go.
Math checks out.
Hey, other notable. Yada yada. Turkey stands out with 85 of its population regularly wearing perfume. The highest percentage of globally.
Are you supposed.
There you go. No, I'm not surprised. No. I was in Turkey's neighbor's country, y. You know, last week. Checks out.
Okay.
Rub it in.
We. We get it. You went to Greece. Jeez Louise dud.
Rub it in. Is that a. Is that a cologne pun?
My friend? Were they like, my friend, my friend. Please come try the color.
No, no, no.
Come on. I want to hear some accents.
I got nothing.
Really. I love it.
I've got more notes, but it's just. Yeah, I think this is a good. This is a good cutoff.
I love it. And I love you. I've never heard that before. This is a good cutoff.
All right. Thanks for listening. Please like and share with your friends, especially if someone is entrepreneurial and they might want to own a vending machine, because it is a very approachable business to get involved with. That's why a lot of people are interested. So please subscribe and share this with your friends, and we will see you next time.
