How To Make $15,000/Month With A Vending Machine Business

i see vending machines on our thing and i i think that a vetting machine business is probably the most predictable simple understandable guaranteed type of business you could do is that what you're going to yeah so these uh two folks came to me and they pitched this idea they're raising money for it it's a vending machine business uh for it basically it's mostly female products so tampons and stuff in uh bathrooms and oddly enough i had another guy email me a deck about a vending machine business and i'm not gonna do that one but this first one was kind of intriguing they've got some traction they're making money it's kind of intriguing and i started doing some research and i tweeted out who knows everything about who's the person he talked about vending machine it got a ton of traction for some reason i think it's a lot of people are interested in this this guy named quinn miller reached out to me and i did a call with him this morning very fascinating he worked and i just want to bring this up because this is the exact opposite of what we were just talking about right but it's oddly as compelling and as interesting even though it's the two totally different uh parts of the world so this guy he's 27 he worked in software sales he quit about a year ago to start this business he's got a vending machine business and he gave me all of his numbers and he said i could reveal it so he's about 10 months into the thing he's currently doing fifteen thousand dollars in monthly revenue and he's doing that across 27 machines his startup costs were six hundred dollars five hundred dollar or four hundred dollars to buy a machine and two hundred dollars to fix it and move it to the place where it had to go by the way this is our weekly blue collar side hustle this is the perfect college side hustle yeah so on the 15 000 in revenue 65 is profit so he's doing around uh 97 9 800 a month in profit so far total investment into the biz so far after he already bought his first machine has been 50 000 time involvement per week relatively high 20 hours a week because he's actually delivering all the stuff i asked him all about i was like how does this work because the reason i reach out to this guy was i was like hey there's this like tampon startup it kind of looks interesting what's your tampon vending machine startup what's your opinion he goes yeah i mean i obviously don't know anything about that like too much but basically my opinion is the world uh he goes america runs on coke and monster energy drink and i was like what do you mean he goes let me let me explain so i put these vending machines i love that so let's slow down so so the guy basically buys vending machines like you and i are used to just a snack vending machine nothing nothing innovative there well he does one quote innovative thing um he puts uh he installs a credit card machine on him for about 250 bucks you can get a credit card okay so he gets he's a very machine he says all right people aren't carrying quarters so i'm going to take cards he puts them uh he puts them so he buys each machine you said for 500 bucks the first one was 500 he has 27 machines uh with 50k so whatever that math is so what's that 2k a machine roughly yeah okay so he buys a thousand to 2000 machine he puts it in places like what office building department yeah so he cold calls uh lower income hotels uh motels assisted living places in in uh low-income apartments so sorry low-income apartments dash or comma motels comma assistant living places okay and so he goes and he basically says hey put this here and he there's a revenue split or he pays rent how does that so most of these businesses the way that they work is they give ten percent to twenty percent to the real estate folk right uh this guy he goes i actually because i sold software i'm pretty good at sales and i do what's called a value sell and he goes basically i say look your tenants are are if i just improve your tenant experience by just a small percent maybe you're going to make more money because someone will want to stay or want to rent it he gives him nothing he gives him nothing and so he's got a bunch of machines in like 10 different locations and he just cold calls them and then it's so unsophisticated where does he get his stuff costco so he buys a can of coke from costco for 33 cents and he charges a dollar for it right uh and it's very simple uh not complicated at all by the way my grandfather used to have a vending machine so this was probably the first business i ever encountered was i think i was probably five years old and my parents you know they worked so my dad would work in an office building and he needed me to be babysat but then like you know old people also kind of need babysitting so my dad went for a two-for-one he basically bought or rented out a little like kind of like a corner store inside like like a little deli inside of the office building and um and then my my grandfather ran it and we used to go like work to register at the age of you know seven um and he was like baby baby he basically he occupied his grand grandparents and his kids without having to like do any pay for any like caretakers in fact it made a little bit of money and then my grandfather had this vending machine that we used to go and do this exact refill we would go to costco buy the cokes put it in he would collect a bag of like change and then we would like go to the bank and like exchange the change and i remember being like what is this he had one vending machine as his business it sounds awesome and i asked the guy by the way this guy's name is quinn miller i'll give him a shout out quinn miller i asked him i go how big can this get he goes look i'm not trying to be offensive or anything but the operators of these businesses typically are pretty hillbilly um and so they're pretty unsophisticated which doesn't mean they're dumb they're just not sophisticated in terms of like technology or anything like that and they like there's a low-key easy life he goes but i met a guy in palm springs who had about 1600 machines and he was making anywhere from five to 10 million in revenue with about half in profit right and i was like well that's pretty amazing how else can it get big like what else is big and he said there's a company called canteen and i looked it up i i think it's public uh but they do like 15 billion in sales of this and they're the largest vending machine company in america they operate them yeah and they do distribution so the thing is is like what this guy does uh quinn he finds he finds his route so he finds a route so he's like all right if i go from destination a to b it's a straight line i'll do everything in between and so i try to find locations on the way so one truck can do all of it in an easy short amount of time and he's like i'm very specific specific about where i choose and that's where you make a lot of money is you can be very efficient with your time and so basically that's what he does and he said this company just does that on a huge scale and they're ultimately at the end of the day a logistics company and a bit of a supply chain company but at this point quinn told me he was like i rented a small warehouse now because i'm getting so much freaking coke he goes the reason i like doing that and so back to tampons he goes you have to like look at what the repeat purchase rate is he goes if i go to like a lower income area these folks love coke and love monster to the point that one guy will drink five cokes a day i'm getting five dollars from them you have to ask yourself can you get that for uh tampons or other products and he goes in fact a lot of the wedding guys once they move from coke and monster energy they're starting to go with into what's called honesty market so basically at a we work you know how they like you swipe your credit card and you only take one sandwich for eight dollars yeah he's like that's where the money is right now huh and um yeah that's so it's almost like there's whales for the vending machine it's not like everybody buys one every three days it's like one guy drinks nine cokes a day uh or you know four red bulls you know a week and that's where you make your money is on the like 10 of the of the residents who buy like 90 of the goods or something like that probably yeah this guy was interesting man he's only 27. he's the lives in san diego worked in tech sales he told me that uh he goes like basically i'm a pr he goes i'm pretty i was pretty good at selling software um i'm not the best but i'm pretty good and this industry that i went into they're just kind of not that great at that many stuff and i could outsell relatively easily i could kind of outwork relatively easily and so anyway fascinating story [Music] you

Channel: My First Million

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Keywords: my first million, my first million podcast, my first million podcast episodes, the hustle, the hustle daily, the hustle trends, shaan puri, sam parr, sam parr the hustle, the hustle podcast, the hustle podcast my first million, startup podcast, entrepreneurship podcast, business entrepreneurship podcast, business, podcast, entrepreneurship

Id: NK1QIrMpcIs

Length: 8min 0sec (480 seconds)

Published: Mon Jan 31 2022