🍫 7 Surprising Reasons Why Vending Machines Can Help You Escape the 9-5 (And Make Your First $10,000 Faster Than You Think)

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, I’m revealing why vending machines are the ultimate “starter” business.

🤫 Spoiler: They might just be the best entry point for aspiring entrepreneurs.

Here’s what we’re covering:

• Benefit #1: Low Startup Costs

• Benefit #2: Easy to Grow & Scale

• Benefit #3: Semi-Passive Income

• Benefit #4: Diverse Product Offerings

• Benefit #5: Quick ROI & High-Margins

• Benefit #6: Minimal Overhead Expenses

• Benefit #7: Enter and Exit the Business Anytime

But before we jump into more details, I want to share a few quick updates on my vending business, Pod Plug:

Business Updates

• 🚀 Just installed another smart machine in a busy Dallas nightclub. Should bring in around $3,000/mo.

• 👨‍💼 Had the final interview for our first full-time marketing hire.

• 💰 Sealed the deal on selling 8 machines in Austin for $150,000.

• 🤝 Chatted with a big-time Vegas hospitality exec who might come on as a strategic investor. Picture this: he gets us into top Vegas and Miami clubs, and each machine rakes in $15,000/mo over 20 machines. Mind-blowing potential!

P.S. Want in on the Pod Plug franchise action? Hit the button below to get on our franchisee waiting list!

Now, let’s jump into this week’s newsletter!

Thinking about ditching the 9-5 and starting your own business?

It can feel very overwhelming.

When you search online, vending machines might not top the list.

They often don’t seem like the “practical” or “realistic” choice.

Many aspiring entrepreneurs share these doubts:

• "Is this really one of the best businesses to start?"

• "What makes it stand out?"

I’ve been there, evaluating the pros and cons.

But forget the standard responses…

The advantages of a vending machine business are real and significant, especially if you're just getting started (and I’m going to show you why).

Here's proof from my journey:

• I install 6 new machines each month.

• My revenue has increased by 30% year-over-year.

• Three of my locations in Texas bring in $20,000 a month.

• I've expanded to over 100 machines across 16 cities in the US.

These tangible benefits have been the foundation of my success.

Interested in the full story? Check out my tweet below 👇

Without further ado, here are 7 compelling reasons why I think vending machines are the best route to financial freedom.

1. Low Startup Costs

Launching a vending machine business is more affordable than most think.

Here's a quick breakdown of estimated startup costs:

1. 🍫 Candy and Snack Machines:

   • Machine cost: $1,500 - $3,000

   • Initial inventory: $200 - $500

   • Total estimated startup cost: $1,700 - $3,500

2. 🥤 Soda and Beverage Machines:

   • Machine cost: $2,500 - $5,000

   • Initial inventory: $300 - $600

   • Total estimated startup cost: $2,800 - $5,600

3. 🍿 Bulk Vending Machines (gumballs, toys, etc.):

   • Machine cost: $50 - $200 per machine

   • Initial inventory: $50 - $100 per machine

   • Total estimated startup cost: $500 - $1,500 (for 5-10 machines)

4. ☕ Coffee Vending Machines:

   • Machine cost: $3,000 - $8,000

   • Initial inventory: $200 - $500

   • Total estimated startup cost: $3,200 - $8,500

Depending on your product and machine, you can start with under $2,000 in less than 2 weeks.

Meanwhile, other popular businesses often demand startup expenses exceeding $30,000…

This does not include the hefty marketing and operational costs needed to get off the ground.

Ready for the next benefit?

2. Easy to Grow & Scale

Once you've established the basics, expanding is simple. Here’s why:

1. Location Flexibility: From offices to hospitals, every spot is a vending opportunity.

2. Unlimited Offerings: Beyond snacks and drinks, you can sell gadgets, personal care, and even printing and charging services.

3. Tech Integration: Enhance operations and customer experience with smart features (e.g., touchscreens, remote monitoring, cashless transactions.)

4. Ad Revenue: It’s not only about product sales. Another smart way to earn passively is to sell advertisement space on your machine’s screens.

2 months ago, I had a chat with the CEO of a digital screen advertising company. It's a clear example of how vending machines can drive extra revenue (at 100% margins, passively).

Check it out below👇

3. Semi-Passive Income

Vending machines: potentially the most rewarding side hustle for generating semi-passive income.

Here’s why stepping into a vending business might be your best move:

• Time freedom

• Stable income

• Work anywhere

• Unlimited growth

• Be your own boss

• Earn while you sleep

• Vacation on your terms

Set up your machines once, and they run with minimal fuss. That’s the beauty of vending.

But here’s why I lean towards niche vending over traditional:

Less spoilage and requires restocking only every 2 weeks! Check out my comparison below:

4. Diverse Product Offerings

A vending machine business isn't just about snacks and drinks anymore.

You can attract a broader audience and increase your revenue potential by going niche.

Here's a snapshot of what's currently trending in the vending world:

• Snacks: 🍪 Chips, candy bars, nuts.

• Healthy Eats: 🥗 Sandwiches, salads, yogurt, fresh fruit.

• Personal Care: 🪥 Toothbrushes, toothpaste, deodorant, sanitary products.

• Tech Gear: 🎧 Phone chargers, headphones, USB drives.

• Pet Treats: 🐾 Premium dog and cat snacks.

• Health Essentials: 💊 Over-the-counter medications, band-aids, first-aid kits.

• Beauty Products: 💄 High-end skincare, mini perfumes, cosmetics.

I was at the NAMA show in Dallas recently, the top vending machine event of the year.

One standout was a vending machines selling 🍊 orange juice! Check out below how much it could make in a single month (and it’s mind-boggling):

5. Quick ROI & High-Margins

Vending machines can be extremely profitable, especially when strategically placed in high-traffic areas and sourced from great supplier deals.

Going niche can significantly increase your margins.

Here's how the numbers break down in my business:

I purchase products for $8 and sell them for $30, securing a 73% gross margin.

From there, the location takes 15%, and additional expenses like processing fees, software fees, and permits account for another 8%.

What's left? A solid 50% net margin for me.

Each machine averages $1,500 in monthly revenue. After slicing that 50%, I pocket $750 every month.

With each machine costing $4,000, it's paid off in just about 5 months.

After that, it's all profit, which fuels further expansion.

Or, you can sell that machine for $20,000 and buy another 5 machines.

The flywheel just keeps turning.

There's hardly any other business model out there that offers such a quick payback and high margins like vending does.

6. Minimal Overhead Expenses

Running a vending business is incredibly efficient. You skip the hefty costs of large storefronts and big teams.

Your main expenses? Just machine maintenance and restocking.

Plus, software fees are minimal, a fraction of the cost of manual labor.

For a detailed breakdown of the tools I use and their monthly costs, you can find more in one of my most popular newsletters:

Another game-changer for me as a vending operator was hiring a VA from the Philippines. It costs me $1,000/month for a full-time VA (40 hours/week).

If you value your time at $100 per hour, by delegating just 15 hours a week, you save $1,500 weekly—that's $6,000 a month!

Here are 10 tasks my VA has efficiently handled last month:

• Bookkeeping

• Paying invoices

• Running payroll

• Ordering inventory

• Ordering holiday gifts

• Processing customer refunds

• Recruiting and scheduling interviews

• Designing and ordering business cards

• Managing emails, to-dos, and calendar

• Scheduling a vending machine technician

After 5 machines in, I highly recommend bringing on a VA (and yes, they can do sales for you too).

7. Enter and Exit the Business Anytime

Starting a vending business is straightforward with minimal regulations, and exiting is just as simple.

You can sell your machines and routes, offering flexibility and an easy way to recoup your investment.

Getting Started:

Check out last week’s newsletter for tips on launching a vending business by buying an existing route:

Planning Your Exit:

• Prepare essential financial documents like P&L statements, balance sheets, and cash flow analyses.

• Provide training and support during the transition, which typically lasts a few weeks.

• List your business on reputable marketplaces like BizBuySell (my personal favorite), OfferUp, LoopNet, Craigslist, Vending Connection, and Facebook Marketplace.

This level of flexibility makes vending an appealing option for many entrepreneurs.

And that’s it for this week!

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.