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 want to talk about why I strongly believe vending machines are a better investment than real estate. Here are 6 reasons why:

1. Low start up costs

2. Faster ROI

3. Easier maintenance

4. Location flexibility

5. Scalable business model

6. Recession-proof income

🔗 Best Links

Curated picks for vending entrepreneurs

📱 Top Reads

• A 12-year-old entrepreneur from South Florida, launched his vending machine business with a $1,500 investment. (NY Post)

• Are vending machines a solution to Christmas Day supermarket closures? (NewstalkZB)

😱 Trending Now

• The future of fast food is here with meat bento vending machines. (YouTube)

• A vending machine selling live fish? You have to see this to believe it! (YouTube)

Reason #1 - Low Startup Costs

If you’ve ever looked into real estate, you know it can take tens of thousands (or even more) just to get started.

Vending machines? Way less.

A quality vending machine can cost as little as $3,000 to $5,000. And unlike buying a property, there’s no long waiting process or expensive renovations.

And don’t forget the flexibility.

With vending machines, you can start small (maybe with 1-2 machines) and scale up as your business grows. You’re not locked into a massive loan or tied to a specific location like you would be with real estate.

Reason #2 - Faster ROI

With real estate, profits take months or even years to show up.

For example, purchasing a property for $1,000,000 that generates an annual rental income of $100,000 would result in a payback period of 10 years.

Vending machines, on the other hand, can start making money almost immediately.

If you invest $3,000 in a machine and place it in a busy location, earning $800 a month is entirely possible. At that rate, you’d recoup your investment in just under four months.

P.S. I broke down the ROI of Jaime Ibanez's vending business in a past newsletter. Check it out here!

Reason #3 - Easier Maintenance

Real estate comes with a long list of responsibilities.

From fixing plumbing issues to replacing broken appliances, maintenance can quickly become a full-time job (or a major expense if you hire someone else to handle it).

With vending machines, maintenance is much simpler.

You just stock them with snacks and drinks, clean them occasionally, and check for minor issues like jammed products. Many modern machines even have remote monitoring, so you know when to restock without constant visits.

Repairs, if needed, are quick and inexpensive — most common fixes cost under $150.

Reason #4 - Location Flexibility

One of the biggest advantages of vending machines is mobility.

If a location isn’t performing well, you can simply move the machine to a new spot. This flexibility allows you to test different locations until you find the best one.

Try doing that with a house or a rental property! It’s impossible without selling or going through a lengthy process.

Moving a vending machine is straightforward and affordable, often requiring just a hand truck or minor help.

Reason #5 - Scalable Business Model

Scaling a real estate portfolio requires massive investments and financing.

Vending machines, however, let you grow your business gradually and affordably.

Once one machine is profitable, you can reinvest those earnings into another machine, and then another.

P.S. In case you missed it, I broke down exactly how to scale a vending business to $100K in 12 months. Read it here!

Reason #6 - Recession-Proof Income

People will always need snacks, drinks, or basic necessities.

Vending machines thrive in any economy, unlike real estate that fluctuates with the market.

If you’re looking for a business with low costs, high flexibility, and quick returns, vending machines just might be your best bet.

Plus, you’re in full control. You choose the locations, the products, and how much time you want to dedicate to managing your machines.

It’s a business that grows with you. Time to think outside the (real estate) box!

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

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.