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All right, So now we go to get into some details. So all right, So for vending machines, right, first question is how much does the vending machine costs?
So it could range. So I mean the cheapest you're going to find it is always going to be somewhere run one thousand dollars if you're using a used machine versus if you're coming in with something new. You're looking at about five grand five grand for a brand new one brand like brand new team in the top of the line of new or used.
I didn't even know that there were new use machines. How where do we even get this?
Like?
Where am I finding a new machine? Where do I go? So, I mean new machines you could get from like the manufacturers actually making like coke, PEPSI like those type of places you can buy and trade from them.
Those are where the new machines come from. And we're talking about actual what I mean, there's different types. We're talking about food vended machines, so we're talking about sodas, snacks. They do have food, they have ice cream machines. It's
a lot of different different types. So if you're talking about used machines, which is you know, I use use machines, and that's what I recommend everybody else to use, mainly because it's easier than ain't team, and it's a lot more affordable, Like the price is nowhere close to you know, five thousand dollars. You can get a used machine for around nine hundred, which is what my first machine was, and you could find those on places such as like crackslist, offer up.
Amazon, let go, it might be a little more Amazon. And then the only reason I wouldn't I would say not to get it off like a platform where it's like online, because I would recommend you checking the machine out first. You don't want to get it and get it in, get it where you want to put it, and then it's not working right, and then you have to ship it back Like that's a that's a long process.
You said, let go, Yeah, what's what's that?
So it's an app?
It's an app?
Yeah, so let go offer up a Facebook market. But it just depends that. And another thing is it matters is how are you How are you trying to scale this? Do you wanted this to be on some side hustle passive income stuff or do you want to grow it into like a full time business. Because if you're just doing it as a side hustle, just earn some extra realdum assign you know you and those resources such as
like you know cress is fine. But if you really want to do it, like for a time, you want to find like what I what I call vending warehouses. So a vending warehouse is just a vending company that is large enough to sell you vending machines. So that's kind of how we make our money. On the back end, I might have some machines setting around and then our cellos to anybody who's looking to buy it.
Where do you find vending warehouses?
So you would have to google vending machine companies in your area and then contact them and see if they.
It's all regional, it's all regional.
Yeah, after I order it, I'm thinking to myself right now I'm ordering machine, Probably need the location first, right, because they're going to send that to your house, right, So do they send it to?
What happens after I order it? So you could you could pick it the machine up first. Our I recommend to people always always always get the machine after you have the location, for multiple reasons. Because if you go out and you get excited, Okay, I'm going to vending thing. I see a cheap soulda machine, This is a great deal. You buy it. Maybe you got it in your garage or something like that. You don't know what type of location you're gonna get first, So that means you don't
know what that location is going to need. Maybe they already got a sort of machine, maybe they need a slack machine. Maybe it won't right. And then that's another thing. You don't know what the measurements are for that space they have to put the machine. So it could be the machine you make you could have maybe too big, maybe it's too big to fit through the doorway. Maybe it's too big for the space that they actually want
the machine. So it's always best to wait until you get that location you know, on a paper, and then you go out and get your machine. But on the flip side, you also want to know your resources first, Like you want to know where you're getting that machine from prior to you know, finding your location.
So like what's some typical are they like typical profit margins? Like how much money can should a person expect to make off of like one machine?
So an average good a good location, well, you'll see around five hundred dollars for the foot per machine. Right, most locations have two machines, you know what I'm saying, unless it's like a combo if most of the time, if you'll find a combo machine, it's in a smaller in a smaller space because they can't fit two machines, or it's because maybe it's a slower that has slower traffic, lower traffic, and you don't want to put two machines in there, you know that type of situation.
So like a thousand dollars if you have two machines in one location.
Yeah, that's about that, right.
When you have to find locations, you obviously looked at your life. You said, look, I played ball here, I'm gonna put one here. That's my high school, that's my barbershop.
What does the average person have to do in terms of finding locations? So step one now, Now to be honest with y'all, Like, I had experience in like different marketing before beforehand, so I was already kind of seasoned season with uh networking and more and reaching people and
calling all that type of stuff. The wholesaleing I did do whole something, So yeah, so I used those same type of tactics to find locations because it was I learned a lot from actually going out and trying to find properties, you know what I'm saying when I was doing the wholesaling thing. So the first thing I did was network so I reached out to everybody, aroun me, all my friends, all my family members, let them know
what I was doing. And this through doing that, it led me to having like my first few locations, you know what I'm saying. So that's how I ended up getting a school like you do this name, which is my prior in high school. I talked to them, you know, they let me place a vending machine in there, and it led me to you know, getting a few other spots.
You know, I'm just thinking about it. A lot of places that yeah they have two vendom machines, like a community center, a school. Yeah, you have two vending machines. Yeah, I never thought about that before. I mean, or trying to cut you off. You can have two vending machines right next to each other, Like one is sodas and drinks, the other one is candies and chips and stuff.
Yeah, they always like right next to right next to each other.
So that's not bad if you think about it, Like a thousand dollars, that's like you could be getting rental income, but it's a lot less overhead as far as buying a home.
Yeah, So that was what I was gonna say. Two things.
Well, first of when these big corporations, like if I see a Coca Cola machine, right, that's a vending machine.
Can I purchase that from?
Or is the corporation putting that in the location, because you could have two venom machines and then they have all coke products?
Can you purchase that? Can you purchase it from home from like Coca Cola? Is that like a thing? Can you get a venom machine from a corporation you're talking about as far as have if the machine is placed somewhere or if there is manufacturing the machines.
Well, so I'm thinking in terms of I have my venom machine, you right, I have two of them there.
And then there's like a coke machine those coke products. Is that something like the average person can purchase or is just straight from the corporation? So so all right, so Coke does Coke actually places machines themselves. So but then what they'll do is they don't they actually just will place the machine, right, But the thing is the person they would have to like charge a certain amount
the in products. So the products. Once you buy a certain amount of products from from Coke, they'll play they get you. They get a place of vendo machine for free, so and then they'll service it or whatever like. So, if you're talking about like that machine is there, most more than likely your machine won't be because they'll have some type of contract with Coca Cola and they're not gonna let nobody else in there.
So as far as location, because I know you said that you had a couple of different keys, foot traffic, isolation, uh, waiting rooms, so all of these different things. But before you even get to that, how do you approach somebody to put a vending machine in their place?
Like?
All right, so you see a school, like, what's the process to say, Hey, can I put a veto machine here?
I talked to the principal.
How does that work?
So that's a good question. Man, That's a lot of questions everybody ask us. But at all I really do is I'll approach whoever the receptionist is that they're at first point in contact, and I'll ask them who I need to speak to to place a machine here. So it's usually the person that everybody usually has a person
who's in charge of doing business. So the high school, as a you know, a business manager, I had to talk to them So if you're if I'm going into a motel or something, most of the time they have a business manager if you talk to them. So it's just a about asking that first point of contact get you know, obviously if you could find a manager or something like that, reach you, you could reach and but then ask that person, who's the person who's that I have
to talk to? That actually makes the decision.
So once you get in the high school, you get into the recreation center, is there a fee that you have to pay for being there or it's just part of the profit margin you have to give to the places?
Like how's that work? So it's all about from my experience, it's all about how you get that how you get that spot. So if you have you have different resources you're using to get locations. Right, If one thing that you could do is you out, you go out yourself and you actually look for locations. Like you know, when we talk about the whole sort of thing, it's called like driving for dollars. You're that term, yeah, right, So that's a method you go out driving around. I actually
found the laundrymat the other day just driving around. I wasn't even looking for it, but I just happened to see it, and actually I'll put it on Instagram, So I put it on a lot just to show people like this is like, you know, how easy it is to find something and if you're paying attention to what's
around you. So that's one method and another methods like cold calling, which is you just make a list of multiple places and that that may be suitable for a vendom machine in your area that you're looking at place one like using zip codes or whatever, and you know, and you just call them if you're doing that method. Most of the time I found when you found it like a location like that, they ask for a commission because you're asking to come into their space and do
business like you're asking for something from them. Right now. On the flip side, you get a website right the top, the most the top that the most common thing people do is when they're looking for vending services. If you know, you're just opened up your store, your business or whatever it may be, it's Google, So they go right to Google Vendom Machine service and Philadelphia my joone is like
one of the top ones on there. So you click on that, they they call you, they contact you, and then they're gonna ask you to place a vending machine in their place of business. So most not in that scenario. Most of the time they don't ask you for a commission because they just want your service. They want your service for their customers, are for their employees off for whatever reason. It's just like, yeah, we just want to service. We're not worried about commission.
So if you approach them, you got to pay them most of the time. If they approach you, you don't have to pay.
Most of the time most of the time. That's how that goes. That also depends on what type of place it is, you know, because if you're dealing with like recreation centers and schools, a lot of times those those facilities are like the prod the funds already, so they always looking for different ways to supplement, you know, some income. So they're going to bring that up.
So what kind of commission is fair? Like if somebody I'll let you put ahead, but here's you gotta give me twenty percent temper, Like what's a fair amount that a fear.
Amount really depends on the traffic and that location, but you typically it's around ten percent. Yeah, ten percent is It's like a fear amount most of the time if it's a good location.
So you you sit down, you say that we can have the vend machine here.
What we do next we drawing up a contract. Right so at the point where they give me the person of contact and they said they interested, and I'll schedule a meeting with them, so we'll sit there like we're talking. Now, I'll have a proposal, which is something I came up with just from doing the meetings, and it's all the information is in the proposal, which just cuts down the meet in town. So you know, in there it's just about the uh, your business, a little bit about yourself.
You want to put the products that you use, what makes you different than other companies, your price points for your products. Just present all that to them and then you know, if if they like that, then I also have the contract there so and if they're good with the contract, you know we signed it right there. Do the deal right there. Now. Sometimes it doesn't go that way. Sometimes they might want certain contingencies or whatever in the contract.
So if they want that and you ask, you have you know, obviously you have to go back and draw up a new contract and get them to sign that. One.
Yeah, I'm thinking of like the school, right, so I'm thinking like one of the contendencies they might have is like you can't serve a certain amount of sugar.
Yeah, exactly, certain certain products. And then it's like some people will want your actual service hours in there, or they'll want if basically like if if something goes wrong, you have to repair it by all this amount of time type of thing like, so that stuff is usually people usually tweak, but for the most part, they did go about what's on the paper.
So okay, So as far as let's go back to location. So like you said, you said foot traffic, accessibility, isolation, and waiting rooms. Those are like your four golden rules, right, oh the one second. So and then for the commission that I never bring up commission. So never never sit down with a location and say, all right, well, this is the amount that we're paying commission.
If they don't mention it, oh yeah, no, give them money. Yeah no, no, no no. Some people think that that's like a pitching like point, is that we can pay you this much in commission, but don't mention.
That, because it's not. That's a good that's a good point because you might automatically assume that you have to pay because you're you're in their space. But like you said, it's kind of like an attraction where it's like, like my son goes to camp. Every time I pick him out, he's like, can you give me something? The venom machine.
So it's like, you know what I'm saying, It's like the vending machine is actually helping in that situation because it's like people something you might just walk into a space just to use the vending machine.
Right, So that now I'm thinking about from the business standpoint, having a school during the year is great. Having a recreation center during the summer gold month all kids.
Want, well no recreations. Recreation centers doing the school year are good too because they have different programs and they have basketball games and stuff.
Yeah. So all right, so location, location, location is the most important thing in real estate period. And I guess it's no different from vending machine either, Right, you got the best vending you could be giving away gold bars if it's in the desert, doesn't matter. So how do you know what's a good look? I mean obviously, well I don't say obviously. How do you know what's a good location or not so, I mean from what you just basically what you just mentioned, but I picked them
up as time went on, just noticing different things. So when I'm walking into a location, I go with a checklist. I don't really use it anymore because I kind of like know now, but it's best to have a checklist and use this. And this is what you want to look for. So you want to look for when you pull up to the space. Is it any stores around that building? So when I say isolation, that that's what I'm talking about. So I'll take a lap of two
laps around. See I'm looking for corner stores. I'm looking at this for other places to eat, all right. So if if I don't see no other places to eat, I'm like, okay, so that's that's a good sign.
Right. And then when I walk in the door, I'm looking in terms of moving I'm looking for steps and all that type of stuff because you have to move the machine in there. When it terms of what makes it a good location, I'm I'm looking to see where the machine will be placed, all right. So I'm like, all right, well, is it placed somewhere where it's visible
and people could see it? Because I had one situation where I had a it was a hotel wanted me to put a machine in there, but they wanted a machine like in the in the back way in the back where nobody would see it. And on the flip side, it had a gas station right next door. So when I was watching, I'm watching people come in and they just making the left turn, right out or right to the gas station.
I'm like, the gas station is the place now that they're gonna get that.
They see the gas station because it's right because it was a big glass, you know door obviously and it's right there. Versus if that machine is placed in the lobby, they just would have used the machine. Then nobody wants to walk all to be over there if you ain't got too only in the night shift, right, So so you know that's that's real important. It's important is is it being visible and it being accessible to everyone? So if everybody can use it, if it's visible, that that's
a good sign. Another thing I'm looking for is hours of operation. So how long is this place open? Like you said night shift, Some places open twenty four hours, right, That gives you more selves versus it only being opened for nine to five like, so that's another that's another important brieteria close now right, So, and then probably the last thing I'm looking for is foot traffic, right, which is one of this is the most important thing. You
want to see. How many employees they got, how many people are visiting this place, how many people are in and out coming past this machine?
Yeah, one of the things you said, And as you said it, I was like, wow, that's brilliant. Places that have ideal time where people are just waiting. So I would say a hospital, but when you just set laundry mat, I'm thinking like, oh my gosh, yeah, like people are sitting in there all day watching machines.
Though, no, laundry mats are big. Schools are big, Recreation centers are big, Hospitals are big.
I'm thinking that's a number one.
Office buildings are big. Dorms dorms, college dorms. College dorms are big. Yeah, yeah, yeah.
And give give an example is Temple. We have a Temple dorm. God was doing business with that location does around thirty five hundred?
My mom, how many machines? How many machines?
Who machines? You know what I mean? Cos kids don't have a lot of money, and they don't have transportation.
So if you put the vend machine and that's that's you, that's your machines.
These to those two are mind it's the guy. Actually, I know we were talking a little camera. So another guy, one of my first my first mentee, I helped him find a spot and that was the spot that we got.
Yeah, thirty five hundred. That's that's the bread.
Two machines, two machines, thirty five And then on top of that, since that building is to build the way build, it could be more machines placed in there. And you said, there's a difference in what I mean.
The older machines don't have something that's very important that you said, and that's the card readers, right, because now a lot of people don't have cash, but they do.
Have cards to use. So what we do is we'll take the older machines and add upgrades. So we might change the door. We might use what we call like the lead lighting, so you know the little light strips. Put that in the door, makes it a little brighter. Yeah, and we can add to car readers, but we would just have to change what's in there. It's called the circuit board. Okay, expensive circuit board costs about two hundred dollars. Car readers are about four hundred, so you're looking at
to use that as about additional six hundred dollars. But on the flip side, those usually increase yourselves by at least thirty forty percent. Like, so you know it's worth for actually getting those on there if you know you plan on doing it on a serious note.
So, okay, so as far as installation, right, how do you know which products to put? So you just in a machine and you can put anything in the machine, correct, anything you want? How do you know what products do you do?
Like?
Okay, I like three those, so like how do you how do you know like which is a good product?
That's asking the question because all right, So my first location that I got when I when I said it was only doing only a few a few dollars or whatever I was putting in there when I like, so what I like, I was talking to I'm walking through Sam's cub like okay, this is good, this is good. But after a while I was like, no, you you have to put in what they want. So what I like to do is in my first if it's an office,
building and something like that. I'll use a newsletter and outside the newsletter introducing my services, and I'll give them an opportunity to put to tell me what they want in the machine. That's like step one. Other than that, it really comes down to demographics like this, certain certain demographics, certain in the certain groups of people like like like
certain things. So from my experience, I know if I'm dealing with a mostly like Carcasian, they tend to like more of like the plane chips and like it, like for the plain tips, whereas though it might be more like you know, the flavor fold barbecue type. Yeah. Man, it depends what you have, but it's it's definitely best to always let the people tell you what they want
and the inventory you're actually going to get. Right. So, like you would go into these warehouses I go to, I go to Sam's Club, so I go to the most mostly shop at Sam's Club, but I do have a warehouse that I go to to get products. Now, the thing with sam Club is it's good if you're just doing it like small scale, but if you're buying like variety boxes and chips and whatnot, they're going to put a few they're going to put the good chips
in there. Then they're going to put like a they always selection and that right, and that's the one that's not going to sell. So when you're doing that on a larger scale, you have to keep buying those boxes and boxes. It's like, well, that's not that's that's losing
making me lose money. So when you get to a certain point, you could just cut that out and then if you go find a source, you have to find a So you could just get the straight fire products, but as you have to buy it in a larger quantity.
So that box of Sam's Club comes in a box of thirty most of the time, whereas though if I buy that in the larger quantity, I got about sixty four box of sixty four all one selection, which is gonna cost you more money because now you have to put that that that variety box points is gonna take about four or five roads because it's different chips in there versus it just being one whole box and one product that's only one row a product. How often are
you changing the machines weekly? Weekly, weekly? Yeah, So if I mean, if you're doing it more than more than once a week, you probably need a bigger machine. If you're if you're not doing it once a week, you probably need a smaller machine.
And like, so, how do you know what to charge? Because you can charge anything. I just found that out. You can tuch anything.
The prices, yeah, you set you set all your own prices. And once again, it just comes down to demographics. It comes down to the region, the area you actually you know working in. I know earners. What's up?
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We're over here in New York. My candy bors are going to be about two dollars, Like what if I'm in Philly over there is going to be about one twenty five. But the main thing I'm looking at is I'm looking at my internal investment, like my RRI or r Yeah. So I'm like, if I'm spending X amount, I want at least double that. So at minimum I'm doubling when I'm paying for the products. But I'm actually well,
I always try to reach like the triple. I try to, you know, get the three hundred percent mark what I'm actually paying back, what I'm actually paying for the product. So whatever I'm investing, I'm trying at least.
If I buy a candy bar for a dollar, I need to I need to charge three dollars in the vending machine. Just using that as like an exact exam. Obvious, you're not gonna charge three dollars for candy bar.
But saying they did that at my job, Like I went to the vendor machine in the sixty five cent bag of chips is now five dollars?
Is it really five dollars? The picture I was like, no, this is a job impossible.
I'm gonna say the picture it was ridiculous.
I'm like, wait, impossible, I seen a picture.
No, Joe, I'm like, this is ridiculous.
What kind of tips are.
The souths no sound chips? How big is the bag of ship? It's the sisty like the normal sixty five cent.
Bag of ship. No, it's impossible.
So it was like the two houns bag it's like zero point seven, so I will sending out the picture.
Yeah, it's impossible us, that's crazy.
But they do, you know, people do do that. I mean no, I never seen five dollars. I see. It's like the airport located like the airport or like the hotels, you could really charge more.
For you vendom machines in the airport. That's that's where you make money. Airport prices is just ridiculous just because it's airport.
Because now they got the vending machines that sell electronics.
So that's that's another thing I wanted to touch on too, is like you could think outside the box and get creative. You could sell anything out of the machine. You can sell electronics. Uh. Somebody I found online was selling nick knacks out of them in the in the airport and she was making eight thousand dollars a year.
What what what's a nick knack?
So like the stuff that you know you might get while you're in that city or whatever. Like there was a little whatever.
Like the little trunkeets and like little Welcome to l A, I Love New.
York arms and stuff like that. And she had like bought up T shirts in there, like you know, making making good money, like just taking outside the box. I also see no one but you put two and trying to do it every time, right, Like, so it's just a lot of different things you could you could put in there if you like, get creative with it. What's the craziest one you've seen? Craziest one?
You have one on your page when you buy and they have gold bars.
Yeah. I haven't seen that one though, but yeah I've seen that. Yeah, yeah, yeah bar.
You can buy go bars for pieces of gold.
I don't know why you want to buy it, but you know that's just let's go to the machine and get some gold.
Yeah, yeah, but you know, it's a lot. That's a lot of crazy ones out there. Man, I've seen something for you selling water. I've seen pizza is a piece of that. There was there was an article about that they're putting that on college campuses. But it makes the pizza in like ninety seconds or something. They had a planing d machine on college campus another college campus, and it's actually not for.
Well, that's actually honestly, honestly contraception machine. No, that's not a bad idea. Now that's the contraception machines is not a bad idea. You have condoms, the used to put them in a bathroom.
Remember you used to put a quarter and then you don't remember.
No, I haven't seen it.
It's a little like you put a quarter and you get a contraception.
That wow, is that is that even legal?
I know, I know they got them out there, like the like here weave and eyelashes, so.
You know what what about medical marijuana? Marijuana period, that too.
They got those out in California, they got the America. So I'm not exactly sure how those operate because you know that's that's regulated. So you need I D and whatnot. Security of that machine probably, yeah, that's a little different, but they do have dudes out there.
What about vandalism, Like, if somebody destroys your machine, how does that you have.
Insurance on it? Yeah, I haven't. I had that happen before once. But yeah, so basically, if somebody destroys it, messes up you just if you got insurance on it, then you cover. If not, you know, you can.
Go through any insurance company. Got closed State Farm and then it's literally I'm not sure if it's any I know State.
Farm it's one, but it's this regular, regular insurance companies covered. Is it prizy, No, it's not pricey at all.
It's not you recommend always having that, I would reo.
I would definitely recommend having insurance. But the thing is when you actually go through the process, but picking out a good location, if you're meeting the criteria, it's hard to do vandalism because if the machine is somewhere open and somewhere is you know, it's if it's in that And if a place is always you know, has long hours, most of some of their security, and mostly nine times out of ten that's that been the machine is somewhere near that security, like wherever it's sitting at in the
lobby somewhere, So it's always gonna be somewhere where people where people see it. And like it's always if it's foot traffic, it's going to be. If it's good foot traffic, then people are always going to be around. So it's hard to vandalyize, you know, machines.
With cameras like a school or community center.
Min's minds happened more so when I had it in that hotel, were talking when that when it shut down, it was like when I went back there, it was over.
What's the what's the life span of a machine?
That's a great question. I mean I have some machines I haven't had any issues with like since I had and some of them you get it's just like problems. I have one machine in particular that's it's always giving me a problem. I actually switched it out recently with what type of problems?
Like the mechanical doesn't dispense the merchandise?
No, So in the machine really is only about it's about three parts. You got your your bill accepted. A lot of people think like, oh what about that's that's one of the questions. I get a lot too. What about the cost of maintenance? I don't really Mainly the cost of maintenance isn't high at all, Like it's really like it's rare that something goes wrong with those machines. But you got your bill acceptor your coin mechanism, which is where you put the coins in, and then you
have your your board. So your board is like the thing everything is connected to the press east four No, but yeah, basically but that that runs to a little board that's inside of the machine, right, And those are the main three parts that the coils and stuff don't really that. Those are run by little motors, but those don't really go bad. Those are typically okay with the with the the thing that gets the most used is the bill accepted because people are always putting the bills
in there or whatever. I probably switched that out probably every like maybe like two years or something. But if you're if you're taking care of the right way, you're gonna have to do that. I'm bad at that part, but you know you could have. You could order a thing off Amazon. It's like a little sticky It looks
like a sticky card. You put it in there and then pull it out and it pulls all the dirt and stuff out of the the bulletcept that which helps it keeps it clean because what's in there is it's a reader. So once that reader gets to like dirty or too like you know, beat up, it doesn't work anymore.
So how do you all?
Right?
So the money you collect just you know you're going in But like the credit card, how that gets goals that in that process and that goes like directly to like a PayPal.
Account, it goes directly to the bank account. The bank account, so every time somebody uses goes right, in, but it goes it doesn't go right in, it goes to that that service, It goes to that provider's account. Then they have a payout and then they pay similar to what you would us like what I can shopify.
Yeah, like shoot.
Your payout date and then on those days you get paid out for whatever card reader selves that you had.
What about the process of buying and selling routes, I know sometimes you said that if there is a slow time, you might want to sell that machine or.
Sell that route, and talk about that little bit. Yeah, So I mean in the business, you know, obviously the the bulk of your money is going to come from you selling products out of your machine, but it's also other ways to make money once you get going, of which one of the best ways is, like you just said, buying and selling routes. So I might like for the perfect the perfect scenario or the best scenario I had with buying buying a route and selling it was I
brought a route for thirty five hundred. Now, originally the guy was trying to charge me like seven thousand Ford or something like that. I was like, no, I'm okay, I'm not even really That's what I'm not really looking for anything. But you know, he couldn't sell it. So he came back to me. He was like, you know, I still got this route. I'll give it to you for thirty five. And I'm like, okay, So I'm looking at it. It's six it's six Vendom machines, and it's
three locations. So I'm like, man's that's that's like a giveaway. I'm like, okay, I'll take it for thirty five. So I brought it. I checked out the locations. Two of the locations I didn't I didn't like, so I'm like, okay, this location is bad, but it was good machines in there. The other location was bad. One location was good. So what I did was I kept a good location and I sold the other two locations for thirty five apiece. So I ended up making a profit of seven thousand
off of that situation. So that's just another way to make money on the back. And so if you're into buying routes, like you could just buy a route out maybe set you could you could keep the machines, you know, sell the machines, or you could just try to sell the machine on location, which is easier to sell them if they already placed like that that takes work off of the next man.
Is the any way to get a machine for free, like financing or pay it back on the back end through money that you make and future or no.
It's a great question. So you can rent machines from the same type of people that I talked about before, as far as like with the if you're going through a vending warehouse, they do allow you to rent machines. Sometimes if you look online you can find some people that rent machines as well. I don't really suggest doing it because it gives you like an overhead you know where you know, if that's your way in and that's
your way you know what I'm saying. But you could also once once you get to a certain point in the business, like like I mentioned before with Coca Cola and Pepsi with one of the one of the programs that they have is once you buy a certain amount of their product, they give you machines, but it has to be on a contract.
So can you say, like buy their products, like.
You're putting their sodas in your machine.
So they got like ten thousand dollars worth of coke.
It's not ten thousand dollars, but it's like it's definitely a good amount, and you have to buy. You have to you're committed to buying that amount at least at minimum every month. But they'll give you the Vendom machine for free because obviously it's helping them, it's helping you move that product, you know. But that's the way to get through your Vendom machines too, But that's not We probably won't do that until, like you know, later down.
About the contracts. What are the typical links of the contract?
Is it like six months of the year about two years? I do two years two year contract, yeah, two two year increments.
So all right, well that was a lot of information for sure. So in the next second, we're gonna bring you home, all right, so we're gonna close it out. But before I got I got a few questions. So all right, it's in schools with kids and stuff like that. What's your thoughts on because it's childhood. PCD is a big thing, So what's your thoughts on like junk food because you can have healthy stuff in there as well, obviously not as popular. Do you ever think about that?
Or yeah, that's something that actually comes up a lot of times in the meetings when I'm talking to like the potential locations, so they you know, they always want the healthy selections, which I'm big on healthy selections anyway. Definitely want to give people a choice. So I like to put half traditional and then I put half healthy. I tried the whole healthy thing one and go that well,
So I definitely do. I do, like like some of my most of the time of vendom machine will have multiple roles of like two roaster chips, two roaster snacks, and then you got your candy roll or whatever. So on my top one, I'll make half of that like big or.
Something like you know, like a power bar something like that.
Not not not for the chips, but like this like something big. And then once we get to like the snack, when the candy road, I'll just make sure it's like some healthy stuff like trail mix or be like a power bar, so it is something something that's you know, it'd be good for something somebody grab quick that's still healthy for you.
And depending on where you're at right like that, you have to take that into account as far as inventory, because like you said, Philly got the sugar tacks, right, so when buying stuff.
You got to take that into account. So and we also have also have an old people's home, so you know in there, I can't put a lot of sugar stuff. So it really just depends on where you're putting that machine at. But it definitely, it definitely always comes up in the conversation when you're placing the machine. Is having healthy selections. Everybody, everybody wants healthy selections. And I think that's more so a big wave.
Now, yeah, in the direction.
That we're doing as a as a you know country as a country is getting more healthy stuff out there.
So you know, yeah, you are the food source for a lot of us, Like we don't have a lot of us don't have time to go out for lunch.
It's like, let me just add something quick, right, and you want to make sure they get out the choice to get something healthy having to get something you know it's not good for you.
So like ramen noodles and stuff like that. I've seen that in there. I had those in there, So like what's the what's what's your sweet spot? Like kind of you said you don't like perishable goods for obvious reasons. Because they expire, just can't they expire?
Yes, it has an aspersion. It's a long one though, yeah, a long like a long time, all right, It takes a while, but it really it depends on the conditions, like your temperature and all that. So if you in the summertime, snickers bar in the sun ain't gonna last, you know, because it once it once, it resets most of the time when it resets into being like the regular form. So it's like like not really molded, but it's just like this colored and it doesn't look at
peeling for people to eat. They're not gonna eat it.
So you try to have your but it's always inside though, right, like air conditioned more.
But I'm also talking about like storage, so where you're storing your too.
I never thought about that. You gotta store? Do you store it or do you just do you just buy it as you go?
I stored, but when I first started out with binding as I go, So your your liver was full of boxes, you know. So I got a Halloween I gotta spot my career wild like something similarly like this area here, but like a little smaller. That whole area was filled with snatch. Ok. But you know, if you buy it that you go, it's a little easier, but once you get it down to a science. So the thing about buying that you go with you gotta take trips to
the store every week. Like so you really want to figure out how much you need, so you could just buy your month's worth and then have it just sitting over there in the corner. So all you gotta do is grab the stuff and go fill up the machine versus multip making multiple trips.
So a full time day is like, all right, I'm gonna schedule. I'm gonna go to this location to refill, this location to refill.
Yeah.
So it's like all right, so I'll do my day before our prep full up, all full up, all my my bens. I have bens that I carry the products in full up, all my bens. Pick the spots. I'm going to just knock the spots down one bout one, but I do. I'll pack everything the night before. That's the one man show yourself.
Yeah wow, So I saw you saying like it's far the numbers on it, so it's like I think it's like under six locations. Is it's well under six machines?
Let me see if I have it's run down someone like passive.
Passive and Dan, yeah, can you explain that?
Like the numbers, so it really now honestly it depends on your location obviously, but we're talking about this standard average. Like if you have around six machines, that's kind of still passive, Like that's not gonna take up too much of your time, and you know, you can still get
whatever done. Once you get to like around like ten machines, you more so like on like a part time type of thing, like if you was working part time, because it's gonna take up a little more time as far as you keeping up with your products and you go into your spots depending on how far your spots are. Once you get past like fifteen, that's more like a uh, you know, once you get like fifteen twenty.
It's like a real business full time situation.
And now you're now you're doing that full time like you're making you should be if you're doing the right you should be making good money. But that's gonna take up a lot of your time.
So if you have twenty, if you have twenty machines, theoretically you should be making like fifteen thousand around that at least at least twenty on the good.
End, at least fifteen at minimum. At minimum, you should at least be doing like ten even if you don't have good location, like you should.
Least ten a months right right now. The thing about the Vendom machine thing is just an interesting situation because it's one of these things where I always say, it's never about home runs. It's never about home runs in life. It's about base hits. Like if you play baseball, you
gotta get base hits consistently. And the Venom machine thing is like a base hit Like even if you got you know, a couple going and you're getting two thousand, like that's that's two thousand, like you know what I'm saying, three thousand whatever. It's like, Now, that takes pressure off of you. That's a nice passive stream of income. You build that up, you know, however large you wanted to grow.
But it's one of these things that's extremely practical. Everybody has seen vendom machines or use it or used it. It's not rocket science, and it's not really that difficult as far as to understand that. The general idea of it.
Ma people thinking in mind like somebody spent the dollars. Somebody spent the dollar twenty five. It's not a lot of money, but enough dollars make sense now.
You know, it's not even about that. A lot of times we just mentally priced off, We just mentally psyche ourselves out of everything. So it's like you see a vander machine every single day. How many people have ever thought about owning a vending machine? But I've never thought about it. You see it? Why not somebody owns it?
You're getting killed every summer.
Somebody owns it. Like you know what I'm saying, Like why not? Yeah?
And I think a lot of people shot away from it too, Like even when they think about that idea is like they're scared of like the maintenance that we think, Okay, well I don't know how to fix it. But you know, at the end of the day, you it's not it's not too complicated. But for any business, you're gonna have hurt us where you have to figure stuff out. It's no different than that. Like, so once you once you get it going and you run into an issue, of
course you have to. I mean, YouTube is your friend. You probably to find a solution on YouTube. If not, find a resource to call in and just watch what they do, you know, and most of the time, you know, that's that's how I how to fix it.
Yeah, they're like, I'm going to ask you that, like do you fix yourself if you hire like mechanics that specialize in the machine.
So for the most part, I fix it myself. The only thing I really I can't fix is the refrigeration units is called the compressors. So the compressors are a little more complicated. I don't know how to fix those yet. But like the builds sceptors and the coin mechanisms and like that, that type of stuff, I can fix those because it's like it's just a common thing. And that's most of the time now times attempt that's what you're
gonna be dealing with. If something goes wrong. Most of the time, it's just like a dollar got stuck, or maybe your your bill accepted one't bad, it's just screw it out, put a new one in, screw it back in, like that type of thing.
What's the best what's the best item invented machine history? Peanut eminems for.
Snacks, for drinks, pepsi and pepsi cells like like nothing else, whatever, whatever you sell them on everything else. Pepsi is gonna sell dub pepsi selves more than coke pepsi something wasn't anything. Pepsi really everywhere, like everybody I know would do.
It more than water.
Yeah, your largest profile, you know item is water, though you.
Make the most water for water.
Yeah, but pepsi sells like nothing else. Peanut eminem so real.
Well to what's what's your favorite?
My favorite Skittles, starbirds and Peter Eminem's.
You know, I don't even know if I even had Peanut Eminem.
I don't like him personally, and that's and that's what kind of messed me up the first time. I was like, these ain't good. But when I was stocking, the combination of the pepsi and the peanut M and.
M but but but crunch, butter crunch cookie sign you got the machine though it should be. Those are smack pay day Payday candy bars.
That's a that's a niche thing.
And oil and vinegar chips.
That's another niche chip.
That's that's the tip that gets.
Niche oil because elite that's the lea.
That's the lea red bag of doritos. Yeah, that's going those are moving the black popcorn chip back. That's another item.
The cooler ranch playing cooler ranch.
Playing not really lays. People like well, and where I'm at, people like the hers like playing hers, those playing ships Doritos press also pressure pressures are depending where they at. But the do rito's, the pena Eminem's, Pepsi, that's selling no matter, no matter I call those like staple items, like those items will be in the machine no matter which I see.
Sometimes they'll put like the Eminem's in one row and then like put them at the next row too, just.
Because because they sell, like because if you don't do that, you're gonna run out, like so that that's gonna run out before. It's like a pepsi and most of the time you have two rows of pepsi. And because just because it's going to sell faster than anything that you have to come back once it sells out, right, you might even have to come back. It's just going to sell out, and then you'll be you could be losing out the money. If that person only came to that machine,
they can get some pena eminem's. They like, I don't want nothing in the type of thing.
Are you moving into other things to put in the venting machine, like it is there other items that you see in the future, like you know what, I might want to go that route.
No, I like, I like keeping it traditional. But I do see, you know, I'll see a lot of things, you know. I see people coming up with that's real creative. I see some celebrities coming out with different ideas. I know Calie Jenner, this launched like a in the machine with one of them had yeah, the other one had like a or makeup line, which I know is big.
That's not a bad idea either makeup little stuff like that like chapstick and things like that where it's like you want to run. That's not a bad idea. But yeah, you're never gonna lose with beverages, especially beverages. People always drink stuff candy. It's kind of like it's like a no brainer.
In the words of Mike, I'm addicted to candy. They always gonna be in business with them. My graduates from my school being force back drop.
Bag Drop, Mike, drop back drop drop.
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