Hey there, Vendpreneur!

Welcome to Becoming a Vendpreneur—where every week I help you navigate the challenges of running a vending machine business, whether you’re just starting out or looking to expand your operation.

This week, let’s dive into choosing and buying vending machines. Here are 5 reasons why I prefer refurbished:

• Reason #1: Faster Availability with Lower Lead Times

• Reason #2: Technician Familiarity

• Reason #3: Customization and Upgrade Options

• Reason #4: Ongoing Support

• Reason #5: Easy Installations, Upgrades, and Replacements

But before we jump in, I have my first announcement…

🚀 _{Big news, Vendpreneurs!}

I’m excited to announce the launch of my exclusive community to jumpstart your vending journey. Think weekly live calls, expert insights, downloadable templates, (and a lot more) to ditch the 9-5.

Only 5 spots available for the launch next month.

What should I call this community? Please drop your vote below and help shape the future of financial freedom through vending! 👇👇👇

Before we jump into this week’s newsletter, I want to share a few quick updates on my vending business, Pod Plug:

Business Updates

• 🎙️ Scheduled my first podcast interview in Phoenix, AZ. Excited to share my story in person!

• 🤝 Connected with LineLeap and chargeFUZE about strategic partnership opportunities. This will be an intro for intro type of deal because their nightlife networks are elite.

• 🙍‍♀️ Welcome aboard, Pat! Our new Senior Marketer starts Monday. Looking forward to fresh ideas, strong copywriting, and growth.

  📞 Had my first one-on-one consulting call with a New York Vendpreneur (rare opportunity b/c of my time constraints).

• 💼 Finalizing company valuation for our upcoming capital raise. Big moves ahead!

  📚 Met to discuss our franchise operations manual. Streamlining processes for future success.

  🚀 Kicked off our franchise marketing strategy. Building a roadmap for expansion.

  🌟 Launched partnership in Oxford, MS with Luke, our new operating partner. He'll manage and grow the market.

  🍣 Celebrated the $150,000 sale of our Austin, TX machines with a lunch at Nobu in Malibu. Thanks to Quinn for brokering the deal (and picking up the tab!).

  🔍 Crafted a job description for our new Account Executive position. Seeking a killer remote salesperson to join the team.

  🎁 Finalizing our fun mystery bags. Here’s a sneak peek! (And let me know if you have any wild ideas!)

  

Now, let’s dive in!

Investing in a brand new, expensive machine (costing around $6k-$10k) is how most people will tell you to start a vending machine business.

This method didn't work for me when I first started.

Instead, I took a different approach:

• I went for refurbished, high-quality machines (starting at $1.5k).

• I stocked only high-margin products (over 70% gross)

• I chose locations wisely

The first path leads to high startup costs.

The others lead to operational reliability, strong location revenue, and high customer satisfaction.

For those just starting or on a budget, go for refurbished.

Here are 5 reasons why: 👇

Reason #1: Faster Availability with Lower Lead Times

Refurbished vending machines are almost available immediately after purchase.

New machines often have long lead times (often take 1-2 months) due to manufacturing and shipping.

Choose refurbished and get them in just 1-2 weeks.

This quick turnaround is crucial if you're launching or expanding your business rapidly.

Being able to deploy machines fast means you can start generating revenue sooner.

While competitors are still waiting for their deliveries, you're already capturing the market.

And being first? That’s where the profit is.

In the world of vending, speed isn’t just convenient. It’s crucial.

Want an intro to the supplier I use for my refurbished machines?

Reply to this email and I’ll intro you to the owner. Here’s their website:

Reason #2: Technician Familiarity

Refurbished vending machines bring a key advantage: industry familiarity.

Here's what that means in simple terms:

Technicians often have years, even decades, of hands-on experience with these older models.

Familiarity = speed.

Because they're so familiar, issues get diagnosed and fixed on the spot, cutting downtime from days to hours.

The ripple effect? Lower training costs.

There's no need to bring techs up to speed on old tech, so you save on training.

Quick repairs also mean less disruption for users. This efficiency keeps customer satisfaction high.

Bottom line: choosing refurbished isn't just cost-effective. It taps into a wealth of experience, making your operation more reliable and responsive.

If you want to find a local one, simply Google search: “Vending machine technician near me.” Works every time.

If you’re looking for a nationwide technician service, Phoenix Vending Systems may have you covered with their over 200 factory trained and certified technicians. Check them out below:

Reason #3: Customization and Upgrade Options

Refurbished vending machines offer tons of customization possibilities, making them a perfect match for your specific business needs.

Here's how this flexibility benefits you:

You aren't stuck with a one-size-fits-all approach.

Refurbished machines allow for detailed adjustments. This means you can tweak, tune, and transform them to meet exact specifications.

Take product compatibility, for example.

If you're selling Bose headphones, you can customize the coils to fit this exact product. With this high ticket item, you can also add secure locks and anti-theft features to safeguard your products.

Next, consider technology upgrades.

You can equip older machines with modern features like touchscreen interfaces, Wi-Fi, 4G/5G communication, and contactless payment systems.

Don't forget about branding.

You can wrap your machines with your company colors and logos. This turns them into mobile billboards that enhance your brand visibility wherever they're placed. Cost: $300-500.

P.S. Check out this example of how I customize our machines with neon lights to attract more customers:

Reason #4: Ongoing Support

Ongoing support from your supplier is crucial, especially for those new to the vending machine business.

Here’s the deal:

Whenever issues arise, help is just a call or text away.

Nearly 6 years ago, my supplier’s immediate assistance when I had a card reader go down boosted my confidence as a first time vending owner.

99% of the time, my supplier was available same-day, and immediately most of the time!

In addition to quick issue resolution, my supplier gave me comprehensive training materials and sessions.

To this day, I still text my supplier almost weekly.

Reason #5: Easy Installations, Upgrades, and Replacements

Upgrading your vending machines? Suppliers offer key services to enhance functionality and ensure efficiency.

Here's the breakdown:

• Tech Upgrades: Suppliers can install modern features like credit card readers. This upgrade is a non-negotiable considering over 50% of transactions are now cashless.

• Enhanced Functionality: Additional upgrades include digital displays which can significantly improve the user experience.

When it comes to maintenance:

• Part Replacements: Critical components such as bill validators and coin mechanisms are readily available. Suppliers keep these parts in stock to avoid any significant downtime. And if they don’t have them in stock, they’ll connect you to the direct source.

• Operational Efficiency: Access to essential parts means your machines experience minimal operational disruption. This availability ensures your machines continue to run smoothly, maintaining steady service and revenue.

And That’s a Wrap!

Thanks for reading this week’s newsletter.

Hit reply and let me know what you found most helpful this week—I read every single reply and I’d love to hear from you!

See you next Saturday!

-Ethan

Whenever you're ready, here are 3 free resources that can help you:

1. Cold Call Scripts: Get the confidence to cold call like a pro. My guide provides you with tried-and-true scripts to approach potential vending locations and turn conversations into contracts.

2. Cold Email Scripts: Break the ice with decision-makers using our effective cold email template. It’s designed to capture attention and spark interest, helping you start valuable conversations and grow your business.

3. Location Contract Template: Nail down the best spots for your vending machines with a rock-solid contract template. This easy-to-use template covers all the bases, so you can secure prime locations without the hassle.