How to Start a Vending Machine Business in 2023 (step by step)

what's up guys so the new year is about to start and it is our goal to get you guys to start your own vending machine business we get DMS every day of people asking us how do you start a vending machine business so today we're going to break it down step by step knowledge how to get into this business so Donald and I have a vending machine business that does five figures every year and I know it's so weird you only hear six figures so you're like five figures with five figures up to 99 000 miles yeah not that we're close 99 but like close you know what I'm saying anyways so we're going to show you guys how we got into it what to do how to find your first location and yeah let's get started so the first step find your first location how do you find your first location center cap so there's multiple ways to do it and as Donald and I stay in our ebook which you guys can find linked down below you can do multiple things the first thing you can do is literally knocking on businesses around your door and you start with like barber shops hair salons little restaurants daycares private schooling which is like essentially daycares schools and Office Buildings will be a little harder because usually they want like um commission yeah commission and contractual agreements especially schools like with them for maybe five years or something but if you start with these little businesses around your area ask your parents where they work hey Mom at your job do you guys have a vending machine oh could you talk to your employer and see if I can get like that's how you start that's the that's the first way the second way is to go on Facebook Marketplace and look for vending machine locations that are being sold so you look for vending machines that are being sold on location let me tell you this is a double whammy this is what you need to look out for usually they're on Facebook Marketplace or offer up for like a week and that's it because people are feeling to get these so explain what is a vending machine being sold on a location so vending machine being I saw it on location it's just a vending machine that has a location already like it's already on the location so no moving involved because vending machines are heavy like if you you can see me and say if you ever watch or like other videos we were moving a vending machine up the stairs it took us forever putting in the truck sliding it in so if it's already on location no moving involved but the only setback when you buy vending machine on location you have to think why would someone be selling a vending machine on location usually people that sell vending machines on locations they're usually losing money on their locations so then they sell it to you guys at a loss so you have to make sure that you're looking out for that we bought three locations all at once because there was a man who was selling his vending machine business and he had like over 50 locations 50 locations and we were like oh my gosh let's see if we can just buy three from him and he gave us a list of where the locations were and Donald was able to pick out the ones he wanted like this was God guys like this was a supernatural opportunity for us that we were able to get these three locations all at once and we paid thirty five hundred dollars thirty five hundred dollars eight vending machines this is Ace the way this was a steal this was a still like remarkable this was a remarkable still like three thousand dollars usually people sell One location we got three for the price of one what that's interesting insane for context we bought our first vending machine location these two vending machines on the screen we bought for three thousand dollars so the fact that we were able to get eight many machines three locations for thirty five hundred dollars was crazy if you break that down if you do 3 500 you divide that by three that's a thousand one hundred sixty six dollars for every single location some of the vending machines that we got from those locations cost about like a thousand dollars that was crazy so if we were just to sell those vending machines we probably would have made all the money that we spent already so usually what I do I put I type in vending machine location for sale okay so when you guys scroll down you're gonna select a bunch of vending machines like when you look at something like this this is basically someone that's trying to get vending machines to companies like trying to sell their vending machines to companies let me see right here 1700 this guy's just selling their vending machine so I wouldn't buy this let's see look at that it was at 454 uh oh yeah this is uh ATM location oh 450 I might I might text this guy actually but uh let me see so usually I check every single day sometimes you find something machines on location I did see one this morning when I was looking so look so this location I actually messaged this guy I wanted to buy this vending machine but the guy was giving me like a hard time I told him 500 this vending machine he's selling this vending machine it's a Dixie Narco vending machine he's selling it with the location but the vending machine only makes a thousand dollars a year a year a year so if you guys do the math on it that's like that's 83 a month that's ridiculous that's ridiculous so I told him 500 from the vending machine but of course he told me no so what I usually do I usually wait like a few weeks for these people and then I'm gonna come back and tell them like oh 400 like that's what I'm gonna do when he texts me again like oh do you want to buy it so this is an example read the description this vending machine has been low volume a thousand dollars annually Staten Island collision shop several years boom um ideal purchase for 850 blah blah blah blah so this is basically a vending machine location what else what else what else this is a this is also a vending machine location 2 4500 so what we do when we're trying to find a vending machine on location we take the sales price so what the people are selling it at and we divided by 10 and whatever that number is we try to make sure that that's what the vending machine is doing every single month so for vending machine is sales price that they're selling the vending machine and the location for four thousand dollars it needs to be making four hundred dollars a month that's average like 40 a month that's how we will buy it lowball don't be afraid to lowball they're selling for a reason guys don't be afraid to lowball see this is a location this is a very nice location credit card readers Dixie Narco machines AP snack machine this is a very nice location but no I wouldn't I wouldn't I wouldn't buy it it's all the way in yeah I want to buy it we want to buy 4 500 this is all the way in Virginia too so it's out of part of our region but if you're in Virginia guys hit this lady up this is probably the last location um I did Texas lady actually if you guys want to see the conversation I asked her how much does the vending machine do every month but she never replied to me so that's probably like a done deal I'll probably pay like two thousand dollars for this location if we were low ball at 2 000 and then they'll probably be like oh no I'll go three and then you'll do like 250. and you just go back and be ready to negotiate because these people are gonna negotiate with okay guys so now let's move on to step number two after you find your location let's say you don't have the vending machine you find the location you cold call all these different businesses and you finally get someone that says yes the next step is finding the vending machine on average circuit how much did you spend for a used vending machine I would say starting at 400 to 700 for a used vending machine but if you're getting it from a warehouse like a company that sells used vending machines and they're providing you with renovation cleaning making sure everything's working then I would be like okay I would pay a thousand dollars for this because they're providing a full package service and I know I'm purchasing this and I know it's gonna work I would pay like a thousand and up to 2000 dollars for like one from a warehouse but if you're just buying it on Facebook Marketplace from some random person who's not going to guarantee anything yeah 400 to 700 definitely me and said can we bought this vending machine for 500 we bought this vending machine right here for six hundred dollars so we just told you guys two ways so whether you could buy it on Facebook Marketplace offer up in Craigslist for like an individual seller or you could go to a vending machine Warehouse vending machine Warehouse they're usually like refurbished machines that these people get in bulk and then they sell it to you at a discounted price usually it starts from like a thousand dollars and up when it comes to these vending machines but to be honest with you the warehouses they are they're about their business but when you're buying it off of Facebook Marketplace and stuff like we can give you story after story about the things we've witnessed like it's insane like going to this guy's house he's not even there he's on the phone with Donald we pick it up we load it into the car we get back to the garage and we can't close the door to the vending machine and he's like oh there's a special way to close the door you have to get a piece of cardboard do this screw it then twist it and we're like are you kidding you you sold us a vending machine which door cannot be closed are you kidding so the next thing we're going to tell you is how do you inspect these vending machines so first you have your location somebody said yes to you that could be a barber shop an office building a factory whatever it is next you have the vending machine off the Facebook Marketplace or you're going to the the warehouse I suggest Facebook Marketplace at first if you could guarantee the location is a good location start with the warehouse but if you're getting like a right location find it on Facebook Marketplace offer up for Craigslist so now you have this machine how do you inspect this machine circuit for a snack machine how do you inspect it so the most important thing when you're going to buy you need to plug it in to see if it works if they have no plugs don't say oh we don't have a plug oh it's in my it's in my garage how am I getting next because that's the most important it doesn't turn on because you'll be surprised these vending machines don't be turned on or they're like a slow starter like and then like oh my gosh it needs to plug in even we were trying to sell a vending machine and we couldn't find an extension cord we have these people waiting for an hour because y'all not leaving until y'all see that it can be plugged in and it couldn't even be plugged yeah that was the first day we were trying to sell a vending machine it was such we just did not know what we were doing like we were all over the place but anyways you need to make sure it can turn on guys then so let's do I'll do the snack routine you can do the drink machine for a snack machine you need to make sure it takes all the coins from pennies even though vending machines don't necessarily have to take pennies from pennies like put every single coin in it make sure it reads all the coins and that it pops up on the screen make sure that screen is working you check the buttons check every single button and then this is the tedious part you need to check the coils don't get a vending machine and first row you check and then there's like rolls and some of the coils don't work check every single row check every single coil make sure everything is working and I think that's pretty much it for a vending machine also check if it's like super dirty and and gross you don't want to really gross vending machine like why Why did Why was it kept in this condition where was it previously that made it like you know ask those types of questions but make sure the coils work make sure the buttons in the main framework make sure the screen is working and make sure the coins are working for the snack machine you will not be able to get a dollar and get change back if the coin Mech isn't filled with coins the machine is going to be like I'm not able to give this person change so I won't accept dollar bills because I know if I take dollar bills I won't be able to give them change so what they do is they say we're only taking coins because they want to Spill the coin Mech up before it's able to take a dollar I I don't know if you guys are understanding that rewind the video watch that part again it will not take your dollar bills if the coin Mech isn't filled enough to give you change if that makes sense we're gonna put the coinback on the screen so you understand what we're talking about so the drink machine guys drink machines are a little more complicated than the snack machines so when you're going to take a drink machine tell the owner 15 minutes before you're there tell them to turn on the vending machine remember like Sarah K said if they said they don't if they say they can't turn it on or it's in the back of my truck no deal no deal I'm not coming don't waste my time we have to turn this thing on I don't care if we have to go get a generator attach it put it in someone else's house like we're gonna make sure that this vending machine turns on so after you do that you get to the house it's on for 15 minutes put your hand in the condenser if you do not feel that it's cold do not buy the machine don't take anybody's word for it because too many people are lies out here remember the same thing applies to the drink machine as a snack machine you've got to test every single selection so you put like have them put like different bottles or cans because remember every machine is different some machines just have the six selections and then you have some of the big glass row machines where it has like a bunch of selections so fill up the coin Mac test every single coin so nickels dimes quarters dollar bills and if you're getting back chains it works the condenser is working stuff is rolling out the machine then it's a good deal guys the next thing what makes a good location I had three things so I have seclusion make sure that's long hours and make sure there's a lot of foot traps I can explain what foot traffic is okay so foot traffic would be the amount of people that are walking in and out of the building like how many people are there daily during the week how many people are there dearly during the weekend um we had a place that had a lot of foot traffic and it was doing really good and then we did a church and we were like oh let's put out of church because it has a lot of foot traffic but the church isn't open except for Sundays and then during the week only at night and it's older people and you know children are usually the ones who are buying from vending machines so it didn't necessarily have a lot of foot traffic even though it had a lot of people in the building there wasn't a lot of people walking in and out constantly like Sunday is your best day so this this location that had more people because it was a church it didn't do better than the other inclusion that had less people but it had more foot traffic because it was like I'm a beauty school or whatever so it's really important to find a place that has good foot traffic okay so long hours places like churches Office Buildings daycares like they're there for a very long time so they're more likely to use your vending machine also seclusion make sure that the vending machine if there's a bunch of stores around the vending machine people could always go to this store there's a lot of competition might yeah one of the first location we had there was there was nothing next to it like any food joints or anything the closest thing was like Dunkin Donuts that was like a mile away so we had we didn't have any competition so if you needed a drink you're like oh I'm gonna go over to that building because it's more convenient yeah so make sure like you guys don't have a lot of competition and it's in a secluded area where there's not a lot of food spots or anything because like think about putting a vending machine in a restaurant are you kidding you're gonna have so much competition because they're selling drinks and food and you have vitamins you know it's going to buy from here you'll never go into a restaurant and see if any machine there maybe like Walmart or Walgreens but how many times do you go into Walmart and Walgreens and buy like a water because there's water and snacks and drinks inside so it's like heavy coffee so you don't really want your vending machine there so the best combo that in our personal opinion is a snack and drink vending machine snack and drink right next to each other across from each other that's probably the best combination combo machines are smaller than snack and drink machines so you're going to be refilling constantly if it's a very quick location but combo machines are smaller so they can fit into smaller spaces so make sure you guys are measuring doorways sometimes we one time we have the struggling we struggling we have to take a a door off of any machine to make sure that fit through the door so make sure that you're measuring these places out so now let's do a recap go Donald first you find the vending machine location someone says yes to you a business says yes we want you to put a vending machine in our location and remember this is the hardest step finding the location that's the hardest step or you find it on Facebook Marketplace whatever now it's time to find the vending machine so you go all the coils work all dollar bills coins everything works and now you're ready to buy 500 700 nothing over a thousand for a used vending machine only personal seller from personal seller nothing over a thousand guys okay what's after buying the vending machine after you buy the vending machine you have to move it because you're moving on your own so you oh we forgot about this so you either get someone who has a truck like Donald has a truck or you have to get a U-Haul and a U-Haul is going to be a little bit more a little bit of money guys so that is another thing because since we were buying vending machines by ourselves we were also moving the bars I was like when you buy it from a warehouse or like someone who sells it professionally they include in the sale they include the moving fee like a 50 movie or 20 or whatever moving fee and they have their nice huge truck and they put it for you and it's beautiful but now you're doing it on your own so not only do you need a U-Haul or a truck you need Manpower so make sure you have friend or your dad or your mom or whatever to help you move it because vending machines are heavy like there are a ton like the equation that you find make sure it has good foot traffic is secluded so it's not around it doesn't have a lot of competition make sure that you're putting the right vending machine so you know what what um whether it's a snack machine or combo machine or a drink machine or a snack combo machine yeah also to remember we do full-line vending there's other different types of vending machine there's food vending machines there's ice cream vending machines there's so other there's so many other types of vending machines so yeah running so like you could look at it so you don't you don't only have to sell food guys remember that but uh experience vending machine person told her don't buy it don't buy food vending machines don't buy ice cream yeah hot food or ice cream food in these ice cream machines don't do them coffee machines don't do them right it's like coffee machine different personal experience he's really working but if you lose power on one of those machines you're gonna lose your whole instance don't even entertain it so I've lost it next after that you have to start shopping you go to a wholesaler Costco BJ's Sam's Club anything like that we also go to Walmart but we go to Walmart to get like special snacks like um flavored flavored drinks that are different that you can't really find Pepsi Cherry yeah like Pepsi vanilla like stuff like that yeah but Walmart is a little more pricey so we don't necessarily go there all the time core readers we don't have any card readers on any of our vending machines we did have older models too yeah also too if you're when you're going to look at vending machines MDB compatible means that you can put a card reader on your vending machine if it's not MDB compatible then you can't put a credit card reader you can ask that so the reason we have any credit card readers because credit card readers charge you three ways I don't really like that I feel like it takes a lot of your profit away they charge you to buy next at least I don't buy any other companies next they charge you three they charge us 399 dollars to buy the card reader they charge you every sale and they charge you every month so they take like like I don't know what it is it's like three percent plus ten cents something like that for every snack for every snack and the snack only a dollar like how much you're gonna take we don't even charge that much you you'll notice like snack machines that have card readers the snacks are usually more expensive because they're they're taking like mad money but it does boost your sales though because you know more people have cars and it's more accessible yeah in the future we will get um credit cards but are one of the machines that we bought for five hundred dollars is not MDB compatible okay this is gonna be the last part of the video different plays that you go on with vending machines so what we did we bought three venomation locations for thirty five hundred dollars one of those locations wasn't doing really well it was having a bunch of problems we didn't want it anymore so we took that one vending machine locations after like three months and we sold that vending machine for four thousand dollars that that basically we paid off the money that we spent and we made a profit yeah there was a time where we went to buy a location and they were selling it for five thousand dollars it was a great location 5500 three people showed up three different people one was us another was this um lady who was all by herself and then another was a whole family like this woman brought her whole family we go in we see the location we're like wow this is great then the next girl comes and she's like wow we she sees the location she's like this is great everyone have their own turn being in there by themselves the last family goes in and they're like wow this is great here's the money we're buying it and we had the money like yeah like everybody has somebody else why are you giving it to her she's like oh she just said she wants to buy she was she was talk or to say like I'll buy it but we all wanted the other lady was mad trying to give everybody a chance to look at it but it was just so weird we should have done the same thing we should do this one like yo yo we ready we ready here the money hit the money but we were like oh you guys want to take a look go ahead let's say that a location wants a vending machine but they don't want your service you can sell the vending machine to him that's what I would that's what I would do oh yeah so let's say someone's like okay sell the vending machines to the business owner and say like I know you guys don't want to be serviced anymore or like we need to leave but before we go and sell it to just some random person on Facebook Marketplace we're gonna try and sell it to you guys that's a plus two all right so guys um two things when you're buying vending machines I didn't say this but try to find for drink machines try to find Dixie knuckle machines and rolling machines for snack machines trying to find AP vending machines stay away from Sega machines we didn't we made it through 2022. not only with a vending machine business but with an amazing support team from YouTube guys we're this close to being monetized we're so so so so so so close and we're just so thankful like this has been a great year we're at 2 000 subscribers we're almost at 4 000 watch hours like it just has been an amazing year and I cannot believe the amount of support the comments all the Beautiful Stories you guys share in the comments it's just been a lot and we feel loved we do we really do we really do feel loved we just want to carry this Support over to 2023 and we just want to have a great year like it's gonna be an amazing year new locations new businesses more subscribers we're going to be monetized it's just going to be great great great great great great binge watch all the videos guys you feel me let it play on all your phones all your laptops if you made it to the end of this long video give yourself a pat on the back we love you guys Donald say you love them I don't love y'all brother we love you guys

Channel: Everything DSK

Views: 71,367

Keywords: vending machine, how to start a vending business, vending business, vending machine business, passive income, passive income 2022, passive income ideas 2023, passive income 2023, passive income crypto, vending machine collection, how to start a business, how to start a business without money, how to start a business on etsy, passive income 2023 for beginners, how to start a vending machine business with no money, best passive income ideas 2023 make

Id: ZJfI7QjAoTc

Length: 22min 7sec (1327 seconds)

Published: Tue Jan 03 2023