🍫 How I Would Make $100K in Profit in 12 Months with Vending Machines

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'll walk you through my step-by-step plan to make $100k in profit with vending machines in just 12 months:

• Step 1: Choose Structure

• Step 2: Find Locations

• Step 3: Secure Agreements

• Step 4: Buy Machines

• Step 5: Install and Test

• Step 6: Stock Machines

• Step 7: Monitor and Maintain

• Step 8: Market Business

• Step 9: Scale and Expand

• Bonus: Optimize Operations

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

Business Updates

Quick update from the gorgeous beaches of the south of France. While I was soaking up the sun, the business kept humming along. Here's the scoop:

• 🍻 Big win in Dallas: We just installed a machine in what's shaping up to be a top 5 location. It’s a massive bar generating over $500k a month in alcohol sales. We're projecting our machine to hit $6k+ per month in revenue.

• 🎁 Mystery bags are coming: We're cooking up some exciting new products and we’re wrapping up the sourcing. Stay tuned - I think you're going to love what we've got in store.

• 📊 Sales strategy overhaul: Had a killer meeting with our sales consultant. We dug deep into our offer, customer pain points, and solutions. Result? We're revamping our sales scripts and marketing materials to pack more punch.

• 🤝 Expansion through partnership: Sealed a deal in Oxford, MS. We're partnering with a local operator to run our 3-machine route for a 25% profit share. Bonus: He's already lining up new locations, with a $500 incentive for each successful placement.

• 💼 Investor talks heating up: Just wrapped my second call with a potential strategic investor. This could be big - they've got connections to thousands of student housing complexes, bars, and nightclubs across the US.

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!

Investing in your first vending machine can be the start of something big.

Start with less than $2,000 and get your first machine up and running in less than 2 weeks.

As the money rolls in, reinvest in a second machine, then a third, and rinse and repeat until you have 10+ machines.

This strategy can bring you $100,000 a year from vending machines alone.

With that kind of income, you can quit your 9-5 job forever.

Imagine more travel, more family time, and the freedom of being your own boss.

If this sounds appealing, know that it's absolutely achievable with vending machines.

Don’t know how to start?

Follow these steps to scale your operations and push past $100k in profit within 12 months:

Step 1: Choose Your Company Structure

I get tons of DMs and comments on Twitter/X about setting up an LLC, getting the right licenses, and the like.

It’s easy to fall into analysis paralysis, but let me simplify the process for you.

Here's how to nail the business setup fast (you can start now and sort these details out later):

1. Open an LLC. Why? It's simple, offers tax breaks, flexible management, and shields your personal assets.

2. Choose a name, add "LLC" at the end, and ensure it’s available with a quick online search here.

3. Use LegalZoom to automate legal setup. They can get you an EIN (a fancy term for company social security number). Costs about $249 + state fees.

But, if I were to launch my vending business without any formal setup…

I’d just grab the phone, scout a location, and dive right in. Sometimes, you've just got to start. 👇

Step 2: Find Your Locations

First, identify the ideal location for your vending machine, which should:

• Have high foot traffic.

• Be within 15 miles of your home.

• Host a large number of daily population.

For examples of prime locations, check out my past newsletter.

Use Google to find these spots near you, & where you can easily access their contact details.

For outreach, I've seen great success with cold-calling, emailing, and in-person visits.

You can access my script, email template, and other free resources via the link at the bottom of this email. 😉

Step 3: Secure Your Agreements

After initial emails/calls, you’ll typically get one of two responses: interest or silence.

If they reply, they’re probably interested.

Take this as a cue to suggest a face-to-face meeting.

If there's no response, follow up after 48 hours.

Interests can change, and they might be more receptive on a second attempt.

If they agree, prepare the contract.

A solid contract for your first vending machine location should cover:

• Commission (if any)

• Termination clauses

• Duration of the agreement

• An exclusivity clause, if feasible

I’ve put together a free vending machine location contract template. You can download it from the resources section at the bottom of this email.

Step 4: Buy Your Machines

When selecting a vending machine for your business, you have two main options:

1. Food & Beverage Vending: Refurbished units cost between $1,500 and $3,000, while new ones range from $3,000 to $5,000.

2. Specialty Vending: New machines are priced between $3,000 and $10,000; refurbished models are less common.

As a beginner, I recommend starting with refurbished machines.

They're affordable and effective for entering the market. You can upgrade to newer models as your business grows.

Here are 5 reputable vending machine suppliers in the US:

1. Crane Merchandising Systems

2. Wurth Industry North America

3. Cardinal Distributing, Inc

4. Betson Enterprises

5. Mars Inc

Step 5: Install and Test

On installation day, make sure you're on-site when the machine arrives.

Having the delivery service handle the placement saves you effort and ensures it’s set up correctly right from the start.

First, get the credit card reader up and running.

Then, move on to testing the motors and giving the entire machine a thorough inspection.

It’s rare to find issues, but always good to double-check everything is in top shape after transport.

Finally, don’t forget to check these key components:

• Coils

• Keypad

• Bill validator

• Pricing display

• Coin mechanism

• Product dispensing

These checks ensure your machine starts off strong and stays reliable.

Step 6: Stock Your Machines

The day before installation, stock up on inventory from Sam’s Club, Costco, or a local wholesaler.

Meet your mover on-site to deliver and stock the machine.

Ensure:

• Products fit each coil properly.

• The card reader is operational.

• All motors are tested (they can shift during transport).

There's no set amount needed for initial inventory, but I typically spend between $200-300.

It’s wise to stock conservatively (stock half-full), especially with new installations

Once filled, set the product prices using pricing psychology strategies.

For insights on how I price, check out my tweet on pricing strategies below.

Now that the products are stocked and prices are set, the next step is to test the machine.

Conduct a transaction to ensure:

• The credit card reader functions properly.

• The item dispenses correctly.

• The process is quick.

If all checks out, the machine is ready for operation.

Once everything is confirmed to be working, visit the machine weekly to restock it.

Step 7: Monitor and Maintain

To run your vending machine business smoothly, you need the right tools.

Consider Nayax or Cantaloupe for your POS & inventory tracking system.

They support cashless payments and streamline detailed inventory tracking.

PS. If you choose Nayax, use my promo code “ETHANPROMO” for a discount.

For your toolkit, add:

• Google: For emails.

• Instagram: For marketing.

• QuickBooks: For accounting.

• Google Drive: For file storage.

• ZippyAssist: For customer support.

Don’t hesitate to test different tools to see what fits your business best.

Step 8: Market Your Business

Vending is a business like any other, and smart marketing can increase your sales.

The most effective strategy is to focus on high-margin products (this is why specialty vending is my favorite).

If a product sells well, stock more of it and replace less popular items.

There’s more:

• Use discounts and buy-one-get-one-free offers to boost sales.

• Create a website listing your vending locations to make them easy to find.

• Hosting events at your vending sites can also draw in more customers.

By applying these strategies, a machine can easily generate $1,000 per month (with the right volume, too).

The possibilities are endless!

Step 9: Scale and Expand

Once your first machine is profitable, reinvest the profits into more machines for new locations.

This rinse-and-repeat process will help you grow your business.

This is why creating “The List” is crucial. Read my past newsletter to learn how to build it.

Additionally, you can finance new machines for $0 down and pay them off with their revenue.

Try:

1. Local bank

2. SBA micro lender

3. Equipment lenders

4. Vending supplier financing

5. Vending supplier lender referrals

Bonus Step: Optimize Operations

After 5 machines placed, consider hiring a VA to help scale your business. (They can handle sales too).

Where to find VAs:

• Upwork or Fiverr for short-term contracts.

• Superpowers, GrowthAssistant, or Somewhere for tailored matches.

Additionally, hire an operator at $20/hour or a profit share to stock your machines.

Each machine takes about 30 minutes to stock.

It’s worth every penny, so you can focus on sales while your business is running for you.

And that’s a wrap!

To make sure each of your vending machines makes $1k/month, ensure:

• The right location

• The right machine

• The right products

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.