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, we’re breaking down the ROI from Jaime Ibanez’s vending machine business. Here's what we’ll cover:

• How much it cost to start

• Monthly revenue breakdown

• Expenses and profit margins

• How quickly he earned his money back

🔗 Best Links

Curated picks for Vendpreneurs

📱 Top Reads

• How a pet care business made 6 figures with vending machines 🐾 (Vulcan Post)

• Cantaloupe launches smart store — the vending machine alternative (Cantaloupe)

😱 Trending Now

• The smallest Red Bull vending machine ever. You won’t believe how tiny this thing is. (YouTube)

• Japan’s biggest toy vending machine is insane. This takes vending to the next level! 🎡 (TikTok)

Last month, Jaime and I made $142,487 from vending machines.

Yeah, you read that right. Six figures in a single month just from vending.

You might know Jaime from YouTube (he has over 500,000 subscribers following his vending journey 😎).

He’s also the co-founder of Vending Machine Launchpad.

It’s our coaching program designed to help people start and grow successful vending businesses.

Every day, we get flooded with questions like, “What’s the ROI in the vending business?”

It’s a great question, and today, I’m here to break it all down for you.

We’re diving into the real numbers from Jaime’s vending machines so you can see exactly how this business makes money.

Read on! 👇

1. Starting the Business

Jaime spent $3,500 to buy a refurbished combo vending machine and $400 to stock it with inventory. Shipping and delivery added another $75 to the total.

Key Expenses:

• $300 for LLC registration

• $350 for a Nayax card reader

• $0 on installation and repairs

• $0 on property agreements

• $0 on permits

In just 1 month, everything was set up and ready to go!

Jaime now operates 50 machines across 25 locations, but the fundamentals for starting remain the same.

2. Revenue Breakdown

Here’s how the business performs today with 50 machines:

• Total Revenue: Jaime’s machines bring in $45,000 per month across 25 locations.

• High Performers: The best location makes $4,500 monthly.

• Lower Performers: Even the least active machine earns $500 per month.

• Top-Selling Products: Dr. Pepper, Peanut M&M’s, and Monster Energy.

• Revenue Per Machine: Each machine generates an average of $900 monthly ($45,000 ÷ 50 machines).

Next, let’s explore the ROI and how quickly these machines pay for themselves!

P.S. I’ve created a vending machine projection calculator that you can use to plan your profits and track your growth. Try it out!

3. Costs to Consider

Operating 50 machines comes with manageable monthly expenses:

• Restocking Costs: Jaime spends $22,500 monthly to stock all machines ($450 per machine on average).

• Revenue Share: Some locations take 0–10% of sales as a fee.

• Transportation: Restocking all 50 machines costs $450 per month in travel expenses for two vehicles.

• Unexpected Repairs: Jaime budgets $2,500 annually for emergency repairs and replacements across all machines.

Here’s how Jaime balances these expenses with his impressive revenue:

4. ROI Results

Jaime made back his initial investment of $3,500 from his first machine in just 7 months.

By reinvesting profits, he scaled his business to 50 machines across 25 locations, all without taking on extra costs.

Today, Jaime’s vending business operates at a 40% profit margin after product costs and taxes.

Monthly Financial Breakdown:

• Total Revenue: $45,000

• Total Expenses: Approximately $23,450 (including restocking and transportation).

• Profit: Around $18,000/month.

Key drivers of Jaime’s success include:

• 0–10% revenue share agreements: Minimal profit-sharing allowed him to keep more revenue.

• Efficient restocking trips: Transportation costs remain at just $450/month across all 25 locations because they’re all super close to each other in proximity.

• Low repair costs: Spending only $2,500 annually minimized downtime and kept machines operational.

And That’s a Wrap!

P.S. If you’re ready to start your vending business, join our private community for personalized coaching from us (Jaime & Ethan).

You’ll get 24/7 access to us, weekly live calls, and all the tools you need to succeed.

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