Kiosk Krazy

Photo Marketing Association International
Annual Convention
Las Vegas, Nevada
Thursday, February 12, 2004
 

Presented by,
Mitch Goldstone
President
30 Minute Photos Etc.
3 Corporate Park
Irvine, CA 92606
Ph: 949.474.7654
www.30minphotos.com
Email: goldstone@30minpotos.com
 

We need to inspire and launch entirely new business models and new products that spawn a renewed excitement for photography. We need to make photograph fun. We need to make photography profitable and simple. We need to figure out how to get consumers to capture and output more pictures.
 

Do you remember years ago when the big new at PMA was a “whiter-white” paper, or more colorful emulsion film base? That was the news.
 

Today we have entirely new technologies which are coming online with lightening fast speed. These new technologies are reawaken the entrepreneurs and the visionary leaders who helped launch the photo industry and are now ushering in all types of new business models.
 

Each of us must become great leaders, much the way George Eastman of Eastman Kodak Company was legendary for transforming and creating our industry by dreaming and implementing.
 

We need to place bets on our future. The way to make money and make a sure bet isn’t across the street – over at the black jack table, but rather by betting on the technologies which are reinvigorating our industry.
 

Today’s sure bet is all the new output solutions for making real photographic prints from digital cameras, camera cell phones and from traditional film cameras too.
 

Last year we witnessed the first part of what we all wished for; people were taking more pictures than ever before. The transition and broad appeal for digital imaging led to capturing more images than ever, but then people did nothing with those memories. It just staying in their camera or on their computer.
 

Here’s the good news: PMA reported that in 2002, 84% of images printed from digital cameras were made at home. Now that number plunged 25% in just one year to just 68%. Prints ordered online, at retail and from digital self-service kiosks were just 14% of the total in 2002. In 2003, it rocketed to almost 30%. From 14% to 30% in one year! That’s great. That’s our future. The rapid growth in the volume of prints make by retailers has resulted, according to PMA, in a shift in the share of digital prints away from home printers and towards prints options outside the home. The shift towards retail printing and using photo kiosks is expected to rise as digital cameras move further into the mass adoption phase. People are understanding and valuing the convenience of having prints made in a retail environment. They are saving money, they are saving time, they are smiling and not getting frustrated.. No matter how easy it is to print at home, the true monetary and emotional costs weigh heavily on their decision to print at retail.
 

There is now a huge new market. In 2002, prints made using digital self-service kiosks accounted for just 2% of all images printed. In 2003, it was nearly 8%, according to the recent PMA Monthly Processing Survey
 

This represents a huge new market. What we need to do is keep the momentum going.
 

We need to promote and customize our services. Customization is the new buzz word. And, today, along with online services, “do-it-yourself” photo kiosks are the newest tool for creating entire new growth centers. These “ APM’s” – Automatic Photo Machines will become as prevalent at ATM’s and soda machines. They will entice digital camera and phone camera users to do more with their photos than ever before. But it has to be easy, fast and inexpensive.
 

Photo kiosks are making digital photo finishing easier for consumers. New and versatile photo kiosks are appearing everywhere! These self-service photo finishing models are providing new retail opportunities.
 

Online Photo Kiosks

 

APM’s apply to online and at retail. If you operate an online photo service then you effectively have an APM on every home computer and office computer too.
 

If you don’t have an online presence you can and you don’t have to invest in an entire digital photo lab. For instance, my company also manages a contract fulfillment operation. Businesses without an online photo presence are contracting with us to do their fulfillment. It’s so easy. Either they, or us design the website and connect it to Photogize. All orders are transmitted to 30 Minute Photos Etc. and fulfilled the very same day. The customer thinks that the place they ordered from is doing all the work, but instead all they are doing is the marketing and cashing the checks. Pretty good service. We use their custom packaging and imprinting. While all orders originate from my company, the customization enables anyone to enter the business for only a few thousand dollars.
 

In Store kiosks

 

Example:

Kodak G3
 

As a study of the APM’s, I want to walk you through the advantages of one brand as an example to model how you can prosper from these APM photo reprinting services. The biggest advantages from in-store photo kiosks are the convenience and quality.
 

Convenience

 

Because the Kodak Picture Maker lets your customers make prints, enlargements and more from their original prints, they don’t need to dig through their negatives. And, they get their customized prints in minutes. There is no need to make a second trip to the store. Customers can zoom-in, fix “red-eye”, color and saturation. They can edit the images, add borders, text and change color photos into b/w or sepia prints and make enlargements. Among the newest features are enhanced photo restoration options to easily make an old photo look like new. The G3 lets you turn images from camera phones into real Kodak photos using Blue tooth connectivity.
 

Quality

 

The output is either produced from a dye-sublimation process, or linked to your digital lab. Our Noritsu digital lab is connected to the Picture Makers so customers’ output is on the identical photographic paper as they are accustomed to from film and digital images.
 

Tools for profiting from photo kiosks:

  • Location, location, location
  •  

  • Signage
  •  

  • Is it On?
  •  

  • Employee training
  •  

  • Three ways to successfully promote photo kiosks
  •  

  • Three ways to advertise the benefits of your photo kiosk
  •  

  • What services do customers want most?
  •  

  • What are the price points?
  •  

  • How important is speed of service?
  •  

  • How to compete with the chain stores?
  •  

  • Service
  •  

  • Output options
  •  

  • Marketing
  •  

  • Photo inserts
  •  

  • Word-of-mouth
  •  

  • Demos
  •  

  • Percent-off coupons
  •  

  • Creating a “buzz,” are customers cued up waiting to use your APM?