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 breaking down the four steps I used to scale my vending machine business to 31 cities.

• Step 1: Start Small and Master the Basics

• Step 2: Build Systems That Scale

• Step 3: Reinvest in Growth

• Step 4: Use Tech to Expand Faster

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Growing a vending business might sound simple, but scaling it to 31 cities?

That’s next level.

Most people quit after a few machines, but I went all in.

Here’s how I made it happen, step by step, and some lessons from the road. 👇

Step 1: Start Small, Master It First

In 2019, I launched my first vending machine in Carbondale, IL (yes, I didn’t know a city of such a name existed). A single machine at a nightclub brought in over $6,700 a month.

It wasn’t just luck.

I focused on finding the perfect location and ensuring the machine ran flawlessly. Once I proved the system worked, I knew it was time to grow.

Fun fact: I landed that nightclub location through a simple Facebook DM.

If you’re wondering how to use social media DMs (and other cold outreach methods) to secure locations, I covered it in a previous post. Go read it here!

Step 2: Build Systems That Scale

Paying an Instagram channel just $500 for promotions, I expanded to 10 campuses and got over 100 leads.

By the end of 2019, I had vending machines placed in frat houses, bars, and universities.

But let’s be real… it wasn’t all smooth sailing.

One machine in Austin had a 2-for-1 dispensing glitch (the machine spit out 2 products for every purchase). Fixing that issue taught me a valuable lesson: always test every machine before it goes out.

Every challenge I faced helped me create better systems to streamline operations as the business kept growing.

PS. If you’re new to the vending business, be sure to avoid these 5 mistakes. Trust me, it’ll save you a ton of headaches.

Step 3: Reinvest in Growth

Every dollar went back into the business.

A $550,000 friends-and-family loan helped me buy 80 machines, hire a factory team, and expand to 12 new locations monthly.

Along the way, I figured out what worked and doubled down on it.

For example, I created a college ambassador program to help get locations, and that strategy paid off big time.

Then COVID hit. 😷

90% of our contracts vanished, bars shut down, and machines were abandoned. I had to lay off staff and personally restock machines to keep things going.

During that downtime, I doubled down on learning: reading business books and refining our strategies.

By year-end, revenue rebounded 50%.

Step 4: Use Tech to Dominate

Smart vending machines were a game changer in 2023.

I used tech to track sales, monitor machines, and identify top-performing locations. This helped us maximize profits while minimizing wasted time.

PS. If you’re curious about the tools I use to manage a $1 million/year vending business, I’ve shared my entire tech stack in a previous newsletter.

And That’s a Wrap!

31 cities. Over a hundred machines. And still growing.

If I can do it, so can you.

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

Before you go, here are 3 ways I can help you get started in vending:

1.) Vending Machine LaunchPad - Learn exactly how to start and grow your vending business step-by-step. Feel free to book a free exploration call!

2.) Pod Plug Franchise - With a super low-cost entry franchise, you’ll get three smart machines, starting inventory, and hands-on training. Join the waitlist!

3.) Nayax - Add cashless payments to your machines with Nayax card readers. Use my promo code “ETHANPROMO” for a nice little discount.