‘I just need to work 6 hours a week’

Before the pandemic, I operated at an ad-tech start-up in California and made $240,000 a year, consisting of sales commission.

But as the nation entered into lockdown in March 2020, so did a lot of my retail, dining establishment and home entertainment customers. Even after putting in long hours, I had a hard time to satisfy my sales quota.

That spring, I keep reading Twitter about somebody making passive earnings by putting vending makers in office complex. It instantly stimulated my interest.

So in June and July, I bought 2 makers for $5,000 to get a side hustle going. Things were sluggish initially, however I was confident that I might scale business. I stopped my day task that summer season to focus all my energy and time into it.

I’m thankful I took the threat: Today, I have 57 vending makers spread throughout my home town and generate approximately $30,000 in regular monthly income.

Over the last 2 years, I’ve invested about $160,000 on makers, however I have a favorable capital and no financial obligation. I just need to work 6 hours a week on vending maker operations. I can invest the rest of my time on other tasks, like my online training company and attempting to land brand-new maker areas.

Here’s my five-step procedure on how to get going in the vending maker company:

For my very first area, I called a buddy whose daddy owns a mechanic store. The store had 10 workers and just offered $181 worth of items throughout the very first 3 months, however it got my foot in the door

My 2nd area remained in an apartment, and offered $1,200 worth of items in the very first month.

The finest method to land a place is by cold-calling. I target structures that have a great deal of workers or foot traffic. I advise utilizing D7 Lead Finder, which helps you find different types of businesses in a specific area and the contact information.

Ask to speak to the business owner or manager and tell them that you’d like to place a machine in their location. Explain the benefits (e.g., convenience of snacks and drinks for employees or customers) and lay out how you’d be handling all of the responsibilities.

Many venues just want the vending machine services without having to pay a premium for installation and upkeep. One vending machine business owner, for example, has 21 locations but only pays one venue 15% of his monthly profits.

I bought my first vending machine on Craiglist for $1,000. I also got some deals on OfferUp and Facebook Marketplace.

But looking back, it was a waste of time and money. I’ve found that it’s more worth it to buy new machines through a local supplier, even though it could cost up to $4,000. They are more reliable and require less maintenance.

I frequently purchase from Ross Vending, which has an entire warehouse of new and refurbished machines.

For first-time vendors, I suggest getting a stacker drink machine. It holds six to 10 types of products, which means you don’t have to buy as many variations and can experiment with what sells.

I only buy three types of vending machines. For snacks, I use the Crane 167/168. For drinks, I use the Royal stackers or the BevMax 4.

Not all machines come with credit card readers, so I bought one from Nayax for my first machine. They can cost up to $399, but are well worth the price.

Nayax card readers show you sales on a live basis through their website and app, meaning you don’t have to physically go to the machine to see what needs to be restocked.

Credit card readers give customers an alternative payment option. Losing a sale because someone doesn’t have cash on them isn’t good for business.

Plus, it’s the customer who takes on the credit card processing fees, not the seller.

Once you have a location, you can visit to scout out where that will be.

Vending machines are heavy and dangerous to move, so it’s hard to fit them into tight spaces.

It costs about $100 to $150 to pay for a professional mover, but it’s worth it. Your machine distributor can connect you with a local and experienced mover.

I have a 2,000-square-foot warehouse where Pepsi and wholesale suppliers deliver products that my two part-time employees use to stock our machines.

But I still buy products from bulk stores because the deals are great. When it comes to stocking, Sam’s Club takes the crown.

Depending on your product mix, it costs anywhere from $250 to $1,000 to fill a machine. My first machine cost $250 to stock.

When deciding what to sell, start with popular, recognizable brands. Test what sells and what doesn’t. Aim for items will give you a profit margin of between 50% and 75%.

I love being a vending machine business owner. My biggest problem is when coin slots getting jammed, but I wouldn’t trade that in for the stresses that came with my previous 9-to-5 job.

Quinn Miller quit his six-figure sales job in 2020 to run his vending machine business full-time. Follow him on Twitter @quinnmiller

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