How I Turned Vending Machines Into A $300K Business | On The Job

people love vending machines because they're convenient if you're thirsty get a coat if you're hungry get some doritos not many people know that anybody can own them there's low startup costs and there's a potential for high return my name is marcus graham and i made over 300 000 last year for my vending machine business [Music] i have 21 vending machines spread across baltimore philadelphia dc and detroit these are a couple of my vending machines this snack machine makes 800 a month and this drink machine makes a thousand dollars a month this machine makes a thousand dollars a month and this machine makes thirteen hundred dollars a month i started my vending machine business in 2018. i had a friend who saw a woman taking cash out of a vending machine and it kind of sparked the idea about maybe we should get into it it cost me about 4 500 to get started in the vending machine business between two machines and two credit card [Music] readers in 2018 it made four thousand dollars 2019 it made 25 000 2020 it made over 200 000 2021 and made over 300 000 and i'm currently projected to make over five hundred thousand dollars in 2022. before starting the vending machine business i was making 30 000 a year i was living in poverty and i was just hoping that one day i could turn my life around i used to try to be a music producer and that didn't work out so i moved back home and my goal was to live with my mother for a period of time to save money i stayed with my mother for about nine months and was able to save up ten thousand dollars from that point of time i wanted to move to philadelphia to start a business i didn't know what that business was going to be and i landed on the vending machine business what started out as a side hustle became my life i went from making thirty thousand dollars a year to over three hundred thousand dollars a year a few tips that i have for starting your own vending machine business is one never buy a machine until you have a place to put it when i'm looking for a good vending location i'm looking for places that have a lot of foot traffic you know places like apartments hotels motels um you know student housing to buy a vending machine you want to look for your local vending machine warehouse which i think is the best you can also find vending machines on places like craigslist facebook market or places like ebay a vendor machine can cost anywhere from one thousand dollars to ten thousand dollars depending on if it's new or refurbished this is the vendo 511 drink machine also known as your classic pepsi machine a refurbished machine like this will cost you around fifteen hundred dollars and a new one will cost you around thirty five hundred dollars well this is your standard ams snack machine if you were to have a refurbished ams snack machine you should expect to pay around fifteen hundred to two thousand dollars and if this was a brand new snack machine it would cost you roughly around five thousand dollars this is the crane national 449 combo machine if you were to have a vending location that only has room for one machine you can use something like this if you were to get a refurbished machine it would cost around 3 500 and if you were to get a new machine it would cost you roughly 7 000. before the pandemic this machine was fourteen hundred dollars and that was two thousand dollars this machine was a thousand dollars and that was fourteen hundred dollars [Music] a typical day for me as an owner join the vending is i wake up i check my vending machine sales i contact my staff to see what machines they're going to be stocking i then shop for product for the machines that i service and then i go stock the machines [Music] some of my best-selling products are coca-cola red bull peanut m ms nacho cheese doritos lipton iced tea those are some of the things that people love the most in my machines to get our vending machine product we go to wholesale distributors like sam's club bj's costco's we even come to our local vending machine warehouse that also sells vending machine product i buy a bottle of coke for 55 cent and i sell it for 175. i profit about 1.20 per bottle of coke that i sell i pay 60 for a bag of doritos at a wholesale price and i resell it for a dollar fifty so i'm profiting about 90 cent per bag of doritos that i sell i buy a can of red bull for a dollar 42 cent at a wholesale price and i resell it for 2.85 out of my vending machine so i profit 1.43 per can i buy peanut m ms for 75 at a wholesale price and i resell it for a dollar sixty cent so i'm profiting 85 per pack 30 of my revenue goes towards buying products for the vending machines 10 percent goes towards paying my staff another 10 goes towards miscellaneous things like gas and the other 50 i profit some of the things i love about running a vending machine business is that i have a lot of flexibility i can work when i want to work i also like the ability to service people to provide a need to them [Music] one of the challenges of running a vending machine business could be vandalism one time i had someone try to break it to my vending machine to steal cash they broke the bill validator where the cash goes in and efforts to take out the money fortunately for me they weren't able to do so in the future i'm looking to expand to multiple states add more vending machine locations around the nation i want to add more staff to the team and then potentially open up my own vending machine warehouse where i would sell my own vending machines card readers and vending machine product by being in the vending machine business and finding success in it i've been able to employ my sister which is something very very important to me and she's been able to turn her life around she's running my business in philadelphia while i live in the suburbs in a very nice house with my family in maryland i've been able to change my life i've been able to change my sister's life i've been able to change my family's life with the vending machine business and i want to change other people's life by talking about the business um doing speaking events seminars webinars whatever i can do to you know help everyone learn about a business that not a lot of people know about [Music] you

Channel: CNBC Make It

Views: 1,699,053

Keywords: CNBC Make It, Make It, CNBC, How To Make It, Entrepreneurs, Starting A Small Business, Business Success, Small Businesses, Finance Tips, Career Tips, Work Hacks, Lifehacks, Money Management, Career Management, side hustle, on the job, cost of living, salary, vending machines, six-figure salary, small business, vending machine, Joyner Vending, revenue from vending machines

Id: OnfPWmOMgPk

Length: 8min 1sec (481 seconds)

Published: Thu Aug 04 2022

Reddit Comments

[u/Dealbreaker102]

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[u/Finn101804]

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[u/Adamhbruh]

My kids were listening to Eazys rounds vs Goodz and one of my kids asked me “Does he own vending machines🤔” I said “No son sadly he doesn’t.” I had to turn on Goodz entire round discography to cheer him up My kids idolize someone better now! Thank you Goodz you’re a life saver!

[u/shutterbugsean]

Not bragging...... I used to work for a company that did similar thigns with vending machines and made lot of miney off the physical labor , just my first job afterhigh school. They paid me more because I was strong enoughf for the job ( exercising since 14 ) , Theres a lot of money to be made in this professional vocation field , Only reason I just left because I knew I could do even better

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