He Makes $35,000 Per Month Working 3 Days a Week | Vending Machines

foreign [Music] welcome back to another video today I'm with my good friend Jamie and we're about to tour his vending machine business he is 23 years old and he has over 50 total vending machines and he's actually had months where he's made up to 35 thousand dollars with his vending machine business and now you're branching out into a bunch of other stuff which we're going to talk about in a little while on the video Jamie I really appreciate you giving us a tour man yeah let's get to it yeah of course so you're 23 dude yep you've been selling snacks since what you're in high school my first ever job yeah before I could even work I sold I was that kid walking around class with a bag full of chips and at one point I even hired three of my friends to sell chips for me so I would give him a box every morning at the end of the day they'll give me the money and I would pay them at the end of the week on Friday fifty dollars wow so uh with the I made a lot of money selling chips and then my first job was at a concession stand also selling snacks and drinks and I was able to save up a good amount of money by the time I graduated and start this business what was your first ever vending machine that you bought it was a combo machine so it's like a like a two in one where you have snacks on top and drinks in the bottom and I actually bought it on location for twenty five hundred dollars no way but the thing that happened was the next day I got kicked out of that location and the owner that sold me the machine didn't tell me that he was getting kicked out so I just had a I was stuck with the machine had to take it out but good thing I started calling businesses and two days later I found the new spot for it no way what was that business that you ended up finding for that particular machine it was a barber shop okay um it was a great location and actually just took that machine out a couple months ago because sadly it wasn't doing as good as it was and I didn't want to take it out because I had like that emotional attachment as my first machine on location that I got but you know once you get to a starting point it's uh uh you've got to be efficient and you got to make money so did anybody help you actually get into the vending machine business I'm 4 fortunately no because the vending industry five years ago isn't what it is today so back then I had to learn everything I could I had to do a bunch of research on what type of machines to buy what type of locations to Target now I feel like you can go on YouTube Google and find a lot of information that can help you but back then I made a lot of mistakes and I just had to learn about myself and you didn't have any mentors or anything in the very beginning at the time no I do have a good Mentor right now but when I first started for the first four years now wow really crazy the fact that you were able to get in and did you ever actually have to like buy any locations or anything like that like obviously that first one you technically bought the machine right but not the location I got my first couple locations by already buying the machines placed and that was a great way to get started most of the locations call me so I've been able to build a good website and rank up on Google so I get most of my leads through Google and I don't really have to go out door-to-door or call businesses as much as I did the first couple years through Google it's very interesting have you ever had any locations call all you as a result of the content that you put out no and uh I don't know if I would want to yeah because uh you know I love making videos but like most of my locations have no idea that I make videos because it's private businesses it's Office Buildings so I don't want them to think that I'm gonna just run in there and start screaming you know what's up everyone let's see how much these machines made so I keep it very professional I loved it yeah which is really good right because at the end of the day the content is more to help the people that want to get into vending yeah and then the actual business is again like you're keeping it private for the the owners yeah exactly like I was telling you vending is something I want to do forever so I want to build great relationships with my customers and do you think vending will be around forever I think it will right it will be around forever but technology is advancing you know I got a couple things I can show you in just a bit that it kind of reflects that but yeah it's just constantly improving and there's a lot of great stuff coming out I'm excited to talk in a little while about the mini Marts and you're doing like water and coffee there's all kinds of things that you're doing which we'll get to here in a little while and right behind us really quick I mean this is a really cool wall you got going on here yeah I try to make it look nice yeah so talk to me like what do we have going on and in a little while we'll go inside too I know you have kind of the inside area but is this where you keep everything yeah so these are all the snacks that we sell in our vending machines everything you see on top is all the chips we kind of keep two boxes of each and then we have the shelves separated by the category so here we have some pastries uh candies cookies crackers and then some extra stuff as well we were in the warehouse obviously and you've got a lot of your chocolate indoors where there's air conditioning yes we're in Texas obviously in the middle of summer yes uh so how do you like I can imagine transporting chocolate and stuff could even be difficult right yeah so storage wise you know as you see here we do have to keep it inside outside it's a hundred and five hundred nine degrees right now so it gets pretty hot and even transporting it to the location is tough we have to use a lot of ice packs a cooler and during the summer we actually slowed down on selling chocolate because it's such a struggle so this is just a little bit some items that we have to have because some locations really go through it but in the winter we do sell a lot more chocolate really what is your best selling chocolate out of all that chocolate right the M M's really and it's probably like in the top three most uh popular items out of everything out of everything yeah that one right there yeah peanuts peanut M M's so like what is the second most popular thing or like if the other the other top one the one is Dr Pepper Pepper so Dr Pepper we love it down here more than Coca-Cola yeah wow yeah Dr Pepper number one uh two or three is M M's uh the third one I don't remember I would have the double check but this is a pretty cool little setup you got here uh talk to me about like what is an average day look like for you so the vending business even though I have bought 50 machines it doesn't take long to run which is what I like so I can run the entire route Monday through Wednesday wow so I'll go and fill up all the machines Monday through Wednesday and then Thursday and Friday it's kind of where I would do like the Exotic snacks and then maybe edit a YouTube video if I filmed something that week so it doesn't take a long time and that's why I think we can handle probably a couple hundred machines before I have to hire somebody else yeah and you and your girlfriend are primarily doing right now or does your girlfriend like what role is she playing currently yeah so she's actually the route driver she fills up most of the machines fun fact and you know I gotta tell her sometimes to be careful because it can be heavy so I gotta tell her to only lift one case of drink at a time because she'll try to pull the entire thing but you know yeah she runs the route and I'm kind of like the like the operation manager I make sure all the locations are good they're happy and I answer any new clients so the goal and the immediate future is to get to a couple hundred machines in the near future yes couple hundred but end goal I mean this guy's a limit yeah for sure I mean literally right your Mentor how many does he have he has a couple hundred but he's in like the multi-million uh Revenue wow so cool and then obviously there's all the other ancillary stuff that you're starting to dabble into right correct uh which we're going to talk about and I'm really excited to talk about a lot of that and yeah and uh you know really really cool to see like what you've built and obviously we have all the boxes up here so you're shipping we were talking just a minute ago which I find fascinating like shipping chocolate yes right and you were saying like shipping chocolate can be a pain people have to acknowledge that it could melt and then exactly you know yeah so it's it's a nightmare and that's why like I was telling you I have two political checkbox a checkbox that they have to check letting them know that it's 110 degrees outside so if the chocolate arrives melted and then you know don't get mad at me but they'll still check it they'll receive the chocolate all melted then I get a mad email requesting a refund because they can't eat it right so like I told you yeah and I've almost even decided to stop selling chocolate because of that but I mean it still sells yeah so for sure you I feel like you have to do what you have to do yeah and people might be asking you know why don't you just ship it with ice packs and stuff like that and I do but again it's like 110 degrees on outside and I bet it's even harder inside of the UPS truck yeah so even with those iPad ice packs they don't last long maybe 24 hours talk to me Jamie about the splits you know how does it work when you place the vending machine in somebody else's business you know are they getting a cut every time somebody buys a bag of chips or how does that actually work yeah so that's the question I get asked the most is how much do you pay the owner or do you have to pay like a monthly rent most people that just get started think it's like a fixed rate every month maybe like 10 20 50 a month that will cover the electric bill but most of the time it's actually a percentage of the sales and the way if I ever have to pay commission I let them know it's out of the net sales not gross but the percentage starts at about 10 okay some vendors even do 5 five percent but the max is maybe 25 maybe 30 if you get like a hotel but you know it's not as much as you would give if it was like an ATM maybe because the margins are a lot thinner because of their snacks sure yeah and there's probably locations that they don't even care to have a percentage because you're technically adding value to their business by providing that service right yeah something I say is the smaller the location the more money they want because big locations they don't care about a percentage all they want is a good service they want to have drinks for their employees but if you go to like a small barber shop or like an auto shop we want 25 we want thirty percent just because you know it's more revenue for them but it's uh it is a convenient service that we're offering so we don't really give as much sure yeah and then obviously the business owners paying for all the electric and everything for the vending machine to be plugged in or are you paying for that no the owner pays for the electric but you know the new vending machines nowadays are very energy efficient it's maybe as much as like a fridge the the drink machines the snack machines a lot less so it's they'll barely see any difference oh wow interesting and so how do they even bill you for that or they if you were to pay for that how would you track all that uh we don't you would just be maybe like hey I'll give you 20 a month or I give commission only in one location that I have it's the laundromat that we're going to be going to okay and I give them 15 talk me through the process of prepping to go service that actual location so the way we do it is we actually it's called pre-kitting and that's where you grab all the product that you need for each location we do that the night before or the day before that way the next morning we just load everything into the van and head out early in the morning and you do that on your computer yeah so we have a software it's called the VMS and it's an inventory tracking software and we have all of our machines plugged in we can see exactly what selling how much each machine is making and we can schedule a route so we just put which locations we're going to on what day and then I have an app so they I'll pull up to my app and like I was showing you yeah it's pretty cool is the location that we're going to be going to in a bit it's a laundromat I have two machines there the laundromat combo and then the laundromat soap machine so if we click on the combo I'll click pre-kitting because we're gonna get the product ready and then this is the entire list of every item that we have to take so this is what sold and then on the right side we can see the add one add one at four and that's basically telling me to take that amount that's awesome and you have a machine at the laundromat that actually sells soap Yes dang that's pretty cool yeah so it's the first you know I guess weird machine you could call it uh but yeah it's a new laundromat so they were saying hey can you sell US Open the machine and I've never done it and you'll see when we get there it's literally just a snack machine I just made the coils bigger to be able to fit the soap bottles so all you really had to do so like on it kind of it looks like this yeah you made the coils bigger yeah there's some wider coils but it's just a regular snack machine they do make some machines designed for laundromat products but those are like eight nine ten thousand dollars brand new and in my head I was like you know if I spend ten thousand on the soap machine but I get kicked out like a year later what am I going to do with the soap machine right so sure I just converted one maybe one day you just have to buy your own laundromat yeah one day and then you can have this help machine you know I love it dude we'll go ahead and check that out right now then yeah this is it and let's also if you could I'd love to see you like pack up everything to get ready to go out there of course awesome foreign [Music] thank you [Music] here at the laundromat yes um how much does some of the soap you know products cost that you're selling so the soap and like detergents it's all actually about the same price I buy it for about a dollar fifty so I do like I was telling you I double almost everything or I tried to so I sell them for three dollars nice and also I do pay commission this is the location I was telling you that's one of the only ones that I do I pay the owner 15 so I did bring the check with me I just put an envelope and I drop it off it looks like the owner isn't here though so I'll probably just bring it in this next time I love that and this was the machine where you were saying another one of these trays you had to widen the coil yes so these up here uh I didn't just because it's perfect for these boxes but but for the ones down here I did because even though these are pretty small they're still wider than your average snack coil yep so you can see they're pretty wide and I can fit three four five six seven back and how um where did you get like the new coils can you just order those online yeah so there's like a website where you can order parts from the manufacturer directly I can get parts I can get a new keypad uh whatever I need nice I love that and what type of machine is this right here this is uh the brand is called AP the model is one it's a 112 okay so it's a pretty older machine but like they say they don't make them like they used to because this is like it's all metal good quality the brand new ones they make nowadays it's just more plastic so kind of like cars you know they say they don't make them like they used to uh so it's a Workhorse same type of thing yeah so I'm not sure if you're aware but I own a couple of companies myself and a couple of them actually do anywhere from seven to eight figures a year a lot of them have to do with the real estate industry uh real estate investing in particular and I'd love if you check out some of the other content on my channel it would mean the world to me if you would consider subscribing also if you know the business that you want us to feature definitely shoot us an email there will be a link down in the description below and we're always looking for new unique businesses to go out and actually tour now let's just go ahead and get right back to it foreign [Music] and you put a couple of different selections in there we just saw you not only change the inventory but actually change the front facing like product right yes and then you mentioned you also have to change the pricing so can you change the pricing virtually I have to do it in front of the machine okay so yeah I gotta I just go into service mode I press a button on the motherboard and then I have to uh it comes with like a little manual but I already have it memorized I would press number five for pricing and then one for a specific selection so then I would pick I can actually show you live maybe yeah so yeah to change the prices I just pressed the button on the motherboard we press five we'll see PRC yeah price then I can change the price for a single selection an entire tray or the whole machine got it so I obviously just for selection let's do one then I'm going to change the Vitamin Water because I just put that one in there I replaced it with water so selection 50. it's 125 I sell the Vitamin Water for 150 so let's just move that up to 150 and then enter and then I can just switch another one but that's the only thing I had to change for now dude I love that yeah really super cool yeah yeah but you do in fact have to be out the machine to do it yes got it but you were you were talking about the mini Marts I'm excited to talk about that more yeah in a little while you can do all that virtually right and I if anything I probably like those a little bit more you know there's more money to be made but it's more work for sure also for sure and it does it cost more money to get a mini mart started depends how fancy you want to make it look yeah so it depends on what type of equipment you want and how big you want it and you just did your first ever mini Mark yes yeah I love it I'm excited to talk about that in a little while so Jamie you were just telling me a minute ago that that right there is the first machine that you ever bought and that was the machine you were telling us about a little while ago yes so five years ago August 1st hit five years when I bought and placed that machine on location and as you can see it's still up and running and I've never had a single issue with it so that's why I think it's very important that people buy good equipment even if it costs a little bit more because it's Gonna Last you years and years for sure and what type of machine is that the brand is wearing and it's a wedding combo machine got it okay awesome and then you know talk to me about like finding locations right you talked a little while ago about like you know Finding locations you know a lot of people talk about like how it's so saturated right yeah like what do you say to the people who say it's saturated like you can never find a good location I think people give up too early in terms of finding locations because uh like I was telling you people jump into the vending industry so fast but just as fast as people jump in people are getting out because people go to maybe two three barbershops laundromats and call it a day yeah and just give up because they they all said no but I told everyone you know it might take a hundred no's before you actually get your first yes so that was the first machine I bought on location I got kicked out the next day so I didn't have anywhere to bring it back to my house I didn't have storage so I had one week to find a new location yeah so for the next two days I literally sat in my in my room for hours and hours calling businesses until that Barbershop gave me a yes wow if somebody's watching and they're first getting started right do you recommend the best way to getting a location is like over the phone or do you recommend people like go drive around their local area and like walk in and talk to the business owners like face to face I tell everyone to figure out what their strengths and weaknesses are so for example even though I might look uh like an ongoing person on camera you know in person I'm actually pretty shy and I would be terrified walking into a business talking to the owner and asking them if I can put my machine in there but I'm very good at advertising my website and emailing locations so that's how I find most of my locations but you know if you're like a people person and you're comfortable talking to people then your best bet is going to go door-to-door and talk to people face to face yeah so if you're shy get out there make it happen you know at the end of the day you can just send an email too right yeah exactly and you just like craft the email really well I'm sure and uh you know I'm sure it's just a numbers game too yeah and at the same time even if you're shy it's something that you're gonna have to work on because yeah I'm shy but I used to be a lot more shy but you know even once you start placing machines on location you're still gonna have to be talking to customers responding to cause about machines not working so you're still going to be talking to a lot of people so you have to be comfortable doing that right so if you're shy you got to stop being shot yeah exactly do the honor how do I do it okay it's like an ATM I'm not just like an ATM uh you see the button on top press that while you pull out oh nice and then it's easier than an ATM yeah and then like this yep push the cash back and take it out and then like without ripping any belts yes and then we'll see do we have any fives uh it's always good luck if you find a five at the very front really yeah oh we got another five there how much do you think oh and another five here how much do you think this is uh I would say about maybe forty dollars really Thirty forty yeah I feel like this is way more than that yeah I think so maybe with the fives yeah but um it's funny because a lot of times I go and collect cash from my machines and I don't put out I don't pull out a lot of money and I even have to ask myself am I really making money because it doesn't feel like it but it goes back to you know it's all in the card readers for sure yeah it's a lot of it's in the car you were saying 60 about yeah some locations are more some are less but about pretty cool there's the coins right that's quite a bit of money in quarters yeah maybe about a hundred dollars maybe yeah I bet it is especially between the two yeah you know So Jamie talk to me a little bit about where you get the product you know now you've been in the business obviously for quite some time yes have you found that going to like Costco or Sam's Club is better or going direct to the distributor I currently buy all of my product for maybe like five six different sources and the reason is because there's not one source that's going to be the best and has the most variety for the lowest price so Sam's Club is always going to be your cheapest option but the thing about Sam's Club is that they don't have a large variety so for drinks they might just have like a Coke your Dr Pepper and your Sprite but they don't have like that flavored soda like fantas or big red so those either I would go to Walmart or yes I do have an account with Coke and Pepsi directly those uh it's a minimum that you have to order so I had to wait a couple years until I can order enough product from them and then there's a couple other warehouses here in my city that I go to and got it by product so if somebody was just starting in the vending machine business would you recommend they just go to Sam's Club for the first couple years yeah Sam swap is going to be the cheapest I think the membership starts at about maybe 30 dollars and and like I said the prices are going to be the cheapest so your soda like for example the Sprite these you can buy from Sam's Club for about 70 cents a unit okay uh maybe like 65 cents so you can easily double your money and sell it for 125. uh we have ours at 175. okay so uh we got good margins on those but if you buy for example like a 20 ounce bottle of soda from Coke directly theirs are like a dollar and 20 cents oh wow yeah way more almost for what we sell them for dang so it's not really worth me buying from Kroger Pepsi right now yeah is the average markup typically about like double like if you buy a product for a dollar do you typically want to try to sell for two dollars is there any sort of like formula to that yeah so right now for me I at least double every item some items do have better margins to where I can triple them but good rule of thumb for me is at least double and I feel like that's a mistake that a lot of new vendors make is they want to be the cheapest out there so they don't look at the exact percentage for the profit margin but for me I have to double everything to cover the cost of my warehouse and everything yeah and make sure I make enough money yeah no I absolutely love that and does it depend at all on the location and the demographic of people or do you just kind of have a price and regardless of the location that like the price is the price uh yeah it depends a little bit on the location so for example if it's a corporate office building I'll kind of have the prices a little bit higher because they can afford it uh but if it's like a nursing home where it's mainly just older residents there that get 25 a week for their allowance then that's where I have the lowest prices sure yeah no I definitely love that and talk to me while we're in the warehouse a little bit about your Warehouse itself like at what point did you decide that you needed a warehouse so my last apartment I had a garage it was a town home and I ran my business out of that garage I've made a lot of YouTube videos about it and great memories there but I ended up getting so many locations the last couple years that I eventually ran out of space and I wanted to have more space to keep machines here work on them because I also had a storage unit and I had to go back and forth between them so I mean this place it wasn't too expensive I was able to afford it so I was like it's great for me right now and I'll be able to grow into it in the three-year lease that I have yeah that's awesome what if you don't mind me asking does something like this run like about a thousand or 1500 a month or yeah it's uh 1500 and it's about 2300 square feet so it's actually one of the cheapest I found for these guys when would you recommend I guess like if somebody was just starting in the vending business like when do you think they would need to get a warehouse like how long do you think they could run it out of their garage I think the you can wait a pretty long time I met a vendor recently that he had has about 100 machines on location and he still runs it out of his garage wow so you don't really want to move into a warehouse because it's an extra expense you want to keep as much money as you can but if you want to be organized and professional then maybe once you start actually making maybe 10 000 a month 10 000 a month yeah and that guy must not have an HOA uh yeah no he doesn't right I love it you just started your first mini market right and talk to me about the difference between a mini market and a vending machine the biggest difference is that a mini market or a micro Market people call it different is it's basically like a self-checkout kiosk so you know when you go to Walmart you scan your items one item at a time then you pay at the end yourself so that's kind of what it is and it sounds like a great idea but I know a lot of vendors don't like it because it's like uh it's self-serve so people can technically just grab the item and walk away without paying for it well first off I have cameras installed so if I catch people stealing I'll save the footage I'll send it over to the management and say hey these are the people that stolen and all I ask is for you do something about it because people have gotten fired before over a Snickers bar over a bag of chips so I always let them know like hey if they're stealing a bag of chips from me what are they stealing from you so it's better for them to set that example with the first person that way the rest of the crowd doesn't steal yeah it's the best place like for micro mini market to do like in a commercial building where it's mostly like employee only yeah so the markets you can only place them in employee only I've seen companies start placing them in like public places like at the airport here in the Dallas airport there's a couple micro markets but I think um it's better for employee only locations so Office Buildings warehouses yeah because you have a relationship with the employer right and like you were telling me a little while ago that you literally have a contract with the employer that you will cover the cost of up to I think you said two percent so explain what you mean by that yeah so with vending machines I never do a contract I always just give them a good service but with markets since you have the risk of people stealing then yeah I have to make them sign an agreement letting them know that if people steal they're gonna have to pay for it yeah not every business wants to pay for it though so that's whenever you can tell them like okay well if you don't want to pay for it then at least fire this employee yeah and what do you think it would cost if somebody wanted to go start a mini market what do you think it would be to to start one up it depends on on the size so for example the first one I place is two coolers one freezer and then two snack shelves so it was pretty big that one was about fifteen thousand I would say so it was pretty expensive but it holds a lot of inventory it was meant for a location with about two three hundred employees but uh you can have smaller ones maybe just one cooler one snack shelf and the kiosk is the biggest expense so that'll cost you anywhere from three to six thousand wow all right and how much would you expect to make on like that micro Market um so the more employees you have the more money that you're gonna make of course but the great thing about markets is that the average amount per transaction is a lot higher than vendor machines because of course if you have a soda and a snack machine next to each other the customer might just buy a snack they might just buy a drink or if you're lucky they'll buy both yeah but with the market people are just grabbing items you know a bag of chips um I showed you a video that you can probably show them I have a customer that buys six Mountain Dews at a time every Friday so you make more money in that way so a micro Market at the end of the day like what type of person would you recommend getting into that industry and what type of person would you recommend just going the vending machine route I know some people have gone straight into micro markets but I think uh it's probably better for you to start with vending because you still want to get used to managing inventory talking to customers because uh even though it's pretty similar to vending it's still a completely different game uh it's more inventory that you have to track because you got to make sure people aren't stealing so it takes more work uh so the easiest bed would be starting with vending machines I love that so if you're watching start with a vending machine and also you have a course where you actually teach people about about vending machines how do people find that so I promoted through my social media Instagram and YouTube and the reason I I started that is because you know people would DM me all the time hey can you help me start a vending machine business and that would help probably hundreds of people but then I would reach back out a couple weeks from now and be like hey how's it going so far and they'll just be like oh no I decided to do something else yeah so I was wasting a lot of time helping people out for free uh so I decided to just take the people that were serious and actually do like a one-on-one which is really cool and how do people figure out about the one-on-one uh so we they can actually book a call directly through my team it's at vendingempire.org and like I said it's a one-on-one so it's a three month program we'll walk you through like literally A through Z setting up your uh permits and all the way to figuring out what machines to buy and then how to find your location hello we try to do all that within the three months vendingempire.org yes and we'll put the information down below and I want to go talk in just a minute about the coffee and the water yeah okay we'll go do that now so you're starting to get into the coffee business and you bought that machine right there yes very expensive probably more than a lot of machines I buy actually what did it cost about 45 4 500 yeah for a coffee machine yeah just for this it's uh one of the best though so it's worth the money what does it do so this is what you call a bean to cut machine so it actually has a grinder inside to grind the whole beans so it's a good selling point because with ground coffee you know people that actually are coffee drinkers they'll be able to taste the difference between ground coffee and whole beans so makes a huge difference what type of like upkeep does it take that's the thing about the coffee service is you kind of have to train one of the one of the employees at that location to do like the basic maintenance and that's simple stuff that I can show you in a bit uh but there's like daily weekly and monthly maintenance on it let's open it up I wanna I wanna see what it looks like check it out so I do have it plugged in I've been testing it that's why you can see a whole bunch of uh coffee grounds already used but the great thing about this machine is that you also have like a milk and chocolate powder inside so you can actually make uh cappuccinos and lattes with this so you put the beans up here and then what is that little wheel right there this is the filter paper so the way it makes the coffee is through like a reverse French Press it's one of the methods to make coffee and it's just basically it extracts more coffee making it taste better and fresher dang so it's a really good machine and makes a lot of different drinks yeah and what is your game plan with a coffee machine like obviously you've got 50 you know vending machine locations you know a lot of the owners um you know you're getting more delivered like you're growing right are you planning to rent that machine out yes so I'm going to be renting it to the location and I decided to start doing it because I started growing my vending business and I have a lot of office and Warehouse locations and sometimes when I would put my vending machines in there they would ask me hey do you also provide coffee and I would always say no because I I didn't but I started doing more research about it uh my mentor that I was telling you about he does a lot of coffee so he kind of taught me what machines to get you know where to get the products from what type of beans to use and all that stuff and what do you think you'll be able to rent out a machine like that for and is the main income stream from renting the machine itself or do you make money in like the coffee and all of that too I make the money on actually selling the coffee itself so the renting I'm going to be charging the location a hundred dollars a month and that's basically because they're going to start with about 30 employees so I don't think they're going to be using it as much but once they get to about a hundred employees I'll probably just waive that monthly rent fee and just charge them for the coffee itself got it so you'll eventually work to get them the machine for free yeah and then will you be the one actually coming and delivering the coffee then yeah exactly I'm gonna deliver the coffee the cups the lids the milk the chocolate and I'm going to be doing the weekly and monthly maintenance which is basically taking literally everything apart cleaning it sanitary using it and make sure it's working properly the only thing they have to do is refill the beans if they get empty refill the milk and chocolate if that gets empty and of course empty out the waste bin dang I'm telling you right now I own a couple of different businesses real estate being some of the businesses I own I would definitely pay somebody like you to come do all what you just described for me yeah you know like I wouldn't want to do that if I was a business owner you know yeah like it's a lot of work to go and like have somebody you know a secretary or somebody deliver everything and like upkeep the entire machine yeah we try to provide the entire break room service so everything from vending to coffee and then like I was mentioning we want to do water also and then maybe in the future also other services okay so we're standing here Jamie in what would you call this so this is the front office of the space and this is where I run my exotic snack business exotic snack business walk me through what that is so you know other countries make flavors that the US doesn't for brands that we know like lays Oreos Pringles Twix so I import them and I sell them on my website which is really cool by the way you were showing me one a minute ago this is beer flavor yeah beer flavor lace I've never like I never thought that they would come where I would see that open it up it really it tastes like beer oh right now you have to open it yeah all right we're gonna do it live okay we're gonna taste it smell it it smells like beer does it I feel like it smells and tastes like the like the foam part of the beer okay let's get a little baby one it does taste like beer yeah good how much of the back what does this run so about six dollars six dollars okay everything is you know pretty expensive and that's the complaint we get the most but you know with importing costs and fees uh I mean I'm paying maybe like three dollars for it so I'll basically double it also how do you import an exotic snack uh how to find suppliers and like I was telling you it took me about eight months to find so I had to find suppliers from each country and just build a relationship with them say hey can you send me the stuff and of course I'll pay you for it but yeah the question I get asked the most is people that see me do this is hey you know where do you buy the product from and it's not like a website you can just go and buy all this stuff from you have to find a supplier for sure yeah you were saying it took you a long time to like figure it all out right yeah a long time but as you can see I was able to Source a lot of really cool stuff yeah do you sell any of this in your actual vending machines no people have been telling me to do that I feel like it's a a great idea it's just about the location I mean of course if you put all this stuff in like an office building where they just want some regular Cheeto pups they probably won't buy a six dollar bag of chips right but if we go to maybe like a mall or like at an airport that would be a good idea and that's something uh hopefully I can do one day that'd be really cool I feel like you'd have to have a way to like tell them a story about like why you're selling it you know like there'd have to be like a picture of like hey here's what this is right yeah there's some pretty cool vending machines that you can sell like specialty items with like some huge touchscreens so I think a machine like that would be perfect for the these items because you know we can put like a promotional video of like where the item is from and why they're priced the way they are yeah it'd be really cool I like that so we're checking out all of your exotic drinks and you've got a lot of really cool like exotic drinks in here we were talking about like the orange Fanta right yes it's not white peach white peach Fanta yeah which is really interesting I've never seen that before yeah I got a lot of like I guess you could say normal flavors like Peach and apple but of course you know you gotta have the crazy stuff so this one is pretty cool it's a 7UP mojito which is a an alcoholic drink but you know it doesn't have alcohol but it's uh it's pretty good that and I mean I've never seen anything like that before yeah that one's from France another thing that I've never seen before is that right there the giant Fruit Loop that is one single Fruit Loop yeah it's one uh you can guess what color it is I've opened it really okay don't mess it up one single Fruit Loop I've never seen that in my life what country is that like what is that it's uh here in the U.S so there's a company called mischief and they make a lot of I guess um off-brand yeah items like these so it's not it's not a legit fruit loop it's a different company but they make stuff like this and they actually also made the Mischief Pepsi and the wow and the Barefoot wine that's actually a real Barefoot Wine yes but it's an oreo Barefoot Wine yeah they did a collab with Barefoot and this is actually very very rare you can only buy it off of their website which sold out in like seconds and I just got lucky that I got two bottles I opened one of them I tasted it I tried offering him he didn't want to taste it uh it's not good but like I was saying it's just for an experience yeah maybe when we were done filming I'll be able to try a little bit of it but I still got to stay sharp for the camera you know I love it dude yeah and you know it's kind of a cool little hobby I feel like that you have right yeah I mean I've always liked snacks even before I even had a job I've always just like munching on on chips and Candy I have a sweet tooth so it's just what I know yeah which is so cool you know and then you get to run the vending machine company and this is just something you can do like a day or two out of the week yeah just an extra sad income to have fun my vending machine business yeah I love that man so talk to me a little bit Jamie about like the numbers you know for somebody watching I mean like how much does it really cost to get into the vending machine business I started with twenty five hundred dollars and I feel like that's a good number to start with because the more money you spend on machines probably the better because you can get nicer equipments you don't want to start with the cheapest you can find because a lot of people will buy a three four hundred dollar snack machine which you can find some at that price but it's a machine that's maybe like 20 30 years old that you can't even add a credit card reader to it and people don't know that so you can't add a card reader to just any machine so I think 2500 could get you a good snack machine a good a good dream machine but of course the more the better yeah for sure and do you recommend that people buy a brand new machine is there places where people can buy like a used machine what do you think I think if you can get a new machine then yeah would recommend it because if you buy a brand new machine one you know it's going to be working out of the box second they give you a warranty on parts for like two years and three you can Finance machines a lot of times so you can sometimes maybe start your vending machine business with almost no money down if you can Finance machines yeah and I'm sure you could also probably throw a vending machine on the credit card as well right yeah exactly and another thing that people don't know is that you can actually get free machines from Coke or Pepsi if you just buy the product from them directly no way so they'll give you free drink machines but you know again they give you like a minimum of maybe 10 cases a month or something so you would have to make sure you at least find a good first location to be able to buy that much obviously you own 50 machines right what is like the average that a machine does if you had to put an average to it obviously it depends on the location I'm sure right I think they've uh there's like an association that has come up with a average per machine and it's about four to five hundred dollars a month okay and it's actually a per location so yeah for two machines but you know again that's that could be on the low end because my least performing machine makes me yeah maybe like three four hundred but I have some locations making 3 500 4 000 a month so what is your best out of all the locations that you have your highest uh earning vending machine location the highest one right now is a convention center and it doesn't do good like every single day it because they have events they have concerts stuff like that so it's mainly when they have events I could do maybe two three four hundred dollars for that night but yeah they have probably 200 employees there wow and how would you recommend for somebody watching like I would imagine getting a location like that is more difficult than just like your average location right like is there any recommendation you would have to eventually getting into somewhere like that yeah so it's important that people make connections because the way I was able to get that location is because I used to know or I still know the previous vendor that used to run it he was getting out of the business so he came to me and asked me if I wanted it and of course I took it uh but of course the more people you know the more access you add to more locations I've heard people start a venting industry and they work at a warehouse with maybe like 200 employees where they don't have machines so they just go and ask their boss you know it could be as simple as that so yeah the more connections the better locations you could get but it doesn't just come down to that yeah at the end of the day you've got to get out there and network with people I feel like right A lot of people might look at this industry or this business and say like oh yeah but you have to have all the product right and you've got the warehouse and the Machine and all that like you know how much profit do you actually make right and and I'd love to kind of get your thought on that yeah well the biggest expense is the product of course and that comes down to about 45 so you're left with about a 55 profit margin and yeah that doesn't include gas and rent and everything else but that's why I was mentioning that the way I price my items I have to at least double it some some of them I do triple it but you have to be minimum double in order to cover everything and the way I did it the first couple years that was a huge mistake is I used to do it by not by a percentage but by a certain amount so if I at least made 50 cents for an item then that was good for me but you know know a monster for example will make a huge difference if they were going to focus on a type of location you know whether it be like barber shops or like you know whatever it might be like laundromats right obviously like do you have a favorite type of location yeah my favorite is industrial places and that's mainly because I'm down here in Texas so it's there's industrial everywhere with a lot of employees so that's mainly what I Target but I know other people in smaller cities might not have a lot so just anywhere with high foot traffic yeah could be a dealership could be a laundromat an office building so how do you determine that like when you're talking to a business owner like how much foot traffic did they have do you just ask them yeah I should have asked him and it's very important that I do before but even a lot of times believe it or not they lie about how many employees they have because they might not have a lot of employees so a bigger company might not want them because some bigger companies have like a minimum it could be 100 employees could be 200. but yeah I asked him and then they'll tell me but what I've noticed is I have to ask him how many employees are actually in the building because they'll give me like a like the total amount of employees but 80 of them could be working from home right which makes you know it makes it really especially in 2023 yeah you know yeah so and I've been through that I've had a location tell me they have like a hundred employees so I'll go and buy some really nice big fancy machines I get there I don't see a lot of people in the parking lot so I'll go inside and ask them like hey is everyone on on break or what's going on and they're like oh no most of them just work from home yeah so I was just like yeah yeah what the heck spend all this money yeah I had to bring those machines back and bring smaller ones then you got to find a new location for it probably too right exactly yeah foreign [Music] so you just had two brand new vending machines just delivered right now yes um and these are two that we haven't seen yet so what is the brand of both of these two vending machines so this is a 501e it's a what's called a stacker drink machine so the drinks are actually being stacked on top of each other I can probably open it up real quick that's really cool but it also has three six nine selections oh wow so it's good for like smaller break rooms uh compared to that one where you have 40 selections and like what is the I mean is this like a really good vending machine in terms of like it not breaking like is it reliable yeah 501e's are like one of the most reliable machines that vendors use oh wow and so you just stack all the drinks like right inside out here they stuck on top you can put bottles you can put cans and it holds about five to six hundred cans wow so it's a little smaller but it still holds a lot dang and then this whole thing is like completely refrigerated yes got it okay and then what type of machine do we have right here uh next to that one this is a Dixie Narco 5800 which is also called all the bevmax for and it's the only drink machine I use for every location just because visually it looks so much better I mean this machine looks nice too don't get me wrong but physically seeing the bottles locations love that they look nice the only downside is it has like a little arm that goes up and grabs the drink but if that arm for some reason gets jammed or stops working the entire machine is down right compared to this where if one selection is jammed you can still buy from the other ones so it's very annoying the the service calls I get the most is about this machine really but if you know how to work it you know and take care of it then you know what to do what did you pick this machine up for uh I would imagine you bought that used yeah this is uh it's refurbished so it is used but they clean it up they make sure everything's working I bought it from a local supplier for about 4 500. brand new these are like 8 000. Jamie had a lot of fun today I really appreciate you letting us tour your business you know we talked about numbers we talked about everything thank you for being so transparent and honest and just open with everybody yeah hopefully you learned the thing or two and you'll probably go back and start your own vending business yeah I just might dude I'll probably call you yeah I'll partner with you you know sounds good where can people find you you can find me on Instagram or YouTube at Jaime ivanes I make videos about my vending machine business collecting cash or if you just want to be entertained and see me fill up some machines come check me out dude really appreciate it bro thank you thank you foreign [Music]

Channel: Austin Zaback

Views: 180,966

Keywords: austin zaback, austin zaback youtube, how to start a vending machine business, passive income ideas 2023, vending machine business, jaime ibanez, vending, vending machine, vending machine business for beginners, starting a vending machine business, vending machine business startup, vending machine collection day, vending machine business collection, ice vending machine business, how to start a vending machine company, how to start a vending business, side hustle, upflip

Id: uiV3FMSmpgE

Length: 46min 32sec (2792 seconds)

Published: Thu Aug 31 2023