In the episode of this week’s episode, podcast, Mike Hoffman of Vending Preesers and I discuss the attractive world of vending machines as a side hustle and passive income opportunity.
While our podcast usually covers online businesses, this episode explores a more traditional, offline business model that offers incredible advantage and scalability capacity. Mike shares his expertise when a vending machine starts a vending machine route, selecting the right place to the management of the inventory, and even scaling it for a complete business with hundreds of machines across the country.
Watch the full episode
Start with vending machines
Mike’s visit to the vending machine business began in 2016 after the “Aha Mal” at the airport. As he waited for the delayed flight, he realized that a bottle of water from a vending machine costs $ 3, and yet the owner of the machine earned money at bedtime. This created his interest in unaccounted retail and gave him a route of research in vending machines.
- Location key is: Finding the right place is the first step of success. Mike’s first machine was placed in an apartment campus in his college city. He learned that modern “micro markets” (luxury grab-and-go setup) were more attractive to businesses than classic papsi or coke machines.
- Finance your machines: Initially, Mike did not know that he could finance vending machines. After learning it, he was able to avoid heavy upfront costs and made his first machine more profitable than his first fare property.
How to find the right places
Mike emphasizes the importance of foot traffic in choosing an ideal place for your machines. Whether it is an apartment complex, office building, or immediate care center, the key is to find places where people need snacks and drinks throughout the day.
- Pop-in best work: Mike’s tip is to “pop-in” to secure places-visiting businesses in a person to pitch the thoughts. He finds that the in-person visit has a much higher success rate than email or cold calls.
- Understanding foot traffic: It is necessary to gauge when and how many people will interact with the machine. For example, immediate care centers can be beneficial because patients often wait for a long time, making them more likely to buy snacks and drinks.
Types of machines and products to consider
The traditional vending machines have gone. Modern machines are now equipped with advanced technology, including AI-powered inventory tracking, remote management and even cashless payments. Mike’s machines can automatically monitor inventory and provide data on which items sell the best.
- Smart machines and micro markets: These machines provide more sophisticated options, such as large product offerings and more flexible pricing. For example, a machine can sell everything from protein shake to laundry pods.
- Pay attention to location needs: To determine which products are meant to stock, the mike recommends studying people’s habits at each location. In one of his apartment complexes, he found that college students preferred health-conscious options such as Celsius drinks and protein bars, while older inhabitants preferred more traditional snacks.
Capacity for profit
The capacity of income in vending is highly variable, depending on the location and type of the machine. Mike’s first machine made $ 600 per month, with a profit of $ 300. As he scored, some machines made much more. Their best performing micro market recently was more than $ 22,000 in a single month.
- profit margins: Vending machine businesses usually have high profit margin, especially with modern machines. The cost of goods is usually three times the value, ensuring good returns on each sale.
- Scaling for passive income: Efforts are required when starting a vending route, the mike emphasizes that it becomes too inactive over time, especially when you rented the employees to rented the machines.
Score your vending business
Once you mastered the basics, the next step is scaling. Mike’s advice is to focus on construction systems – tracking inventory, revenue and locations. As your path increases, you can hire others to manage manual labor, such as stocking machines.
- Vending route: A shortcut for development is buying the installed vending routes by retiring the owners of the business. By purchasing the routes, you can leave the process of finding new locations and start with a proven, profitable base.
- Technology makes it easier: As Mike’s business grows, he included more technical solutions. Even he created a platform, Wendidihab, to streamlined the process of sourcing products and to streamline the process of managing the inventory. With technology, it becomes easier to monitor machines remotely, scaling the business becomes very short time consuming.
Risk and award
Like any business, vending has its own risks, but Mike believes they are relatively low. The biggest challenge is the advance work involved in installing your machines. Once you detect the right locations and products, the process can be largely passive.
- Not a gate-rich scheme: While vending machines can be a great passive income source, it is important to understand that success will not come throughout the night. Mike recommends getting ready for some initial work and faces some rejection before finding profitable places.
- Robbery and risk of stolen and tear: Although technology has modernized the vending industry, there are still risks, such as theft or machine malfunction. These are manageable, especially if you focus on new machines with high quality, warranty.
final thoughts
Vending machines may look like a “boring” business, but thanks to new technology, they provide an exciting opportunity for passive income and scalability. Whether you are looking for a side hustle or full -time business, can be a great way to earn money by learning valuable skills in vending operations, marketing and scaling.
Mike’s experience proves that with the right strategy, the vending machine business can get away from the worldly – it is a dynamic, developed industry that is accompanied by the ability to scale and generate impressive returns. If you are interested in starting your own vending machine business or scale to any existing, then you can learn more by following Mike’s journey through your website and YouTube channel.
