June 2, 2022 • 19 mins
In this classic episode, Kashief offers a step-by-step guide for anyone interested in entering the vending machine business. He shares the items that sell the best, the weekly amount of a vending machine, the cost of a vending machine, and how to find locations for your vending machine.
Guest IG: @the_vending_bizz
Website: The Vending Bizz
See omnystudio.com/listener for privacy information.
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
What's up, money movers. Welcome back. Today's deep dive into
entrepreneurship and our community is brought to you by our
partners at MasterCard, bridging the wealth gap together with treet Boys.
So okay, talk about locations now, so um hotels, Where
(00:24):
are some of the classic places and maybe untraditional places
where you're seeing really great success with vending machines? Okay?
So um. In terms of the classic locans, people usually
go forward, UM hotels, motels, schools, office buildings. The majority
of over over fifty of the machines are located office buildings. Um.
(00:49):
Then we have other things like you know, you could
do stops like certain bus stops, card car dealerships. UM.
I would say in traditional and traditional, I've seen d
wells like a music studio. Because typically what you're looking
for when you're looking for a location, I look for
about four factors. I look for competition, so I look
(01:10):
to see if there's any stories in the area. UM.
If there's no stories around, that's great. That gives you
more of an opportunity to get selves. People don't want
to have to go to the store in their lunch break,
you know. UM. I look for hours an operation so
how long is this place open, whether they always when
they are open, so on and so forth. Um, I'm
(01:32):
looking for foot traffic. How many people do they have
working here? How many people are coming in and out
of the building a day and then last year. I'm
just looking for where they want the machine place like. So,
I don't like it when it's an abasement in the
corner somewhere. It should be somewhere visible where everybody has
access to it. That's how you're gonna maximize yourselves. But
I would say a place that's done good for me
(01:53):
that I didn't really expected to do good. I've been
a situations where I brought other routes out like I
have like somebody can sell a part of that business.
And I brought about two routes at this point, um,
and one of the locations they had was a music studio.
So I'm like, okay, you know that's probably And what
I will do is I'll keep the good ones and
(02:13):
then I'll sell or just giveaway the ones that I
don't like. So it's like, if it's something I feel
like it's not gonna do what I wanted to do,
I'll even like, you know, pass it. To a family
member or something, or I'll sell it to somebody. But
the music studio was one, according to her, like sales
record was one of the best locations. I'm like why, like,
you know, because it's you know, when you think when
(02:35):
I look at my criteria, what I look at, I'm
looking for foot traffic. I'm looking forward, like you know.
The music studio doesn't have staff. It's like two people,
you know, whatever they doing there, it's a bunch of
guys maybe girls having the munchies in the middle of
the night and they need try. Yes, that's exactly and
that's and that's exactly what it is. That's exactly what it's.
(02:56):
So music studios do well. And and then I've seen
somebody else say that too, so it's not even just
the one that I have. Is like, I guess that's
a common thing with music studios, and that's something you
wouldn't think, would do you know that well with the
actually running machines. Okay, so let's take us back to
the initial startup price of buying a machine. How much
does your average candy machine cost and how much does
(03:18):
your typical big vending machine with you know, twenty different
slots cost so a little like gumball machines, they only
cost around maybe two hundred dollars three hundred dollars depending
on the size of the machine that you get. You
can get some cheaper off like Craigslist and different things
like that. Um, the bigger actual vending machines or that
(03:41):
he just gave away a secret right there, the biggest,
the biggest um like vending machines. You can get four
around fifteen hundred dollars on average. Um. Now it's i'll
break it that so you can get it from individual
for a round on the thousands. So that's your Craigslist,
(04:03):
that's your offer up, that's your Facebook market, that's that
type of stuff. But if you think of it, if
you think of as in a sense of the way
you think of like purchasing a car, if you run
a car from Craigslist, like you're buying it off an individual,
like most of the time, like you're buying off of
a person. You're not buying from a company anything like that.
So you can get it cheaper, right, But if you
turn around, it's brought that same car from a dealership
(04:26):
is going to cost a little more money, but you'll
have some type of UH insurance behind it, or you
have some type of guarantee behind it, like in the
Minium machines are real similar. You could buy them off
interviews for the cheaper, but the best thing to do
the next best thing to do is to get it
from a Vendom machine distributor. So it's like a warehouse
with a whole bunch of Endo machines in it. Now,
(04:48):
with that the machine UH, that's where they start costing
around fifteen hundred. The other ones may cost a little
cheaper on a thousand, but you'll get with the teen hundred,
you'll get most of the time some type of warranty,
So you'll get like a a thirty day day warranty
on the machine, so if anything happens and that time period,
they will come out and fix it and show you
(05:08):
how to operate it. UM next level up besides that,
it's like brand new machines. You get those from the manufacture.
Those go from anywhere from four thousands to ten thousand,
depending on the type of machine that you get, and
they usually come with like a three or five year
of warranty. But I always recommend the UM the distributors.
(05:30):
Even a guy I know that does uh like millions
and whatnot. He he only uses distribute. He doesn't even
get the machine. I've never really seen somebody use the
new machines for just the whole business unless that's their
niche like sometimes you know, people have different pictures with
the companies that they're meeting with and you know, so
it might be healthy, it might be technology thing. And
(05:53):
some people whose pinchers like or we use on new
equipment like so that I've seen that like one or
two times. But other than that, people that's usually use
the refurbished machines because they have the sinks as the
new machines. Um, but you know, their lives cheaper. So no,
I love this fascinating industry. And you know, the startup
(06:13):
costs to get in are not that high. So you're saying,
you know, two hundred dollars for a candy machine. So
this is a great way for people to, like you say,
venture out. They might have their day job like you did,
but they want to create some other passive streams of
income that you know, don't take too much time. I mean,
mind you have to stock the machines and stuff, but
(06:33):
this is it's a really great investment. So one of
the other great things about what you're doing is you've
created courses and you're sharing this knowledge with so many people.
Tell us about um, you know, how many people you've
actually helped and some of the courses and UM not
like you know the information that you share, Okay, I
(06:53):
mean so in terms of this is what I share?
Is this on on my platform? In general? I did
share tidbits and information on getting started, Like somebody could
really go on on like one of one of my
platforms and piece together all of the stuff that we
post and come up with a whole game plan like
for free. Like so you know, be feel feel free
(07:15):
to do that, you know, if you guys want to UM.
But you know, some people don't like doing that. So
they like it organized, they like it in order. So
with the course we have, of course we have an
e book and other different things, you know, to help
people get started. So with the e book is more
so general knowledge UM and you know, organized and it's
taking you step out up of how to get started. UM.
(07:37):
The course covers a lot more information and it goes
more in depth and we cover things not just with vending,
but a little outside of it and talking about business
credit and different things like that as well. Um, and
it's also a technique that can't even go into a book.
That's it's like something you have to show people that's
in the course. Um. They're also they're actually websites like
(07:58):
on and every sing like so you could go to, um,
it's like three different websites. Is one is like for
the city, one is for the state, and one it's
like a private for privately owned businesses. And you'll be
able to bid on contracts like so you know it's
not just vending contracts, its contracts in general. Um, it's
(08:18):
like cleaning contracts and all types of the contracts on
these websites. Um. But you know that's that's how the
machine is getting prisons in different places. Like that is
your contracts anything to like hospitals and things. They this
all thing you have to bid on the contracts to
get in those type of places. Yeah, that's definitely big money.
(08:39):
So on hospitals, hospitals, very very big money. Amazing. So
I mean that's I'm sorry, that's basically what we're covering
with the content that I put out there for So,
so I'm gonna ask you some rapid fire questions so
that we can all get on our vending machine game.
So question number one, what should someone take in to
(09:00):
account if they decide to buy a vending machine. UM,
I would say definitely take into account the all right,
if you're going to go into the vedom machine business,
find a location first, don't get the machine. But when
you get the location, I like that. Okay, great tip. Alright,
(09:22):
So now I've made the decision. I've done my diligence.
I've got a perfect location for a vending machine. Where
do I get my vending machine? So you can find
them on places like craigulous offer, Facebook market if you
want to find the contributors, they are not really listed
in too many cities, so you what you would have
(09:43):
to do if you want to find it yourself is
call around with two different vendom machine companies and accident.
If they sell machines, already know somebody who does other
than you can get them from my We have them
listed on that app as well. UM I'm trying to
think of like what my ideal vending machine business would be.
It's really funny because um I think I would go,
(10:04):
like you said, for schools cafeterias like the library, you
know on a college campus. I feel like that would
be the perfect place because I used to be a
geek spending all these late nights in the library, but
I'd be hungry. Um, how about airports? How easy is
it to get into airports? Airports are actually pretty complicated
and actually pretty hard to get into. But um, and
(10:26):
usually to get the airports, you would have to go
through a bidding process. So you have to bid, they would,
they'll put a contract out there. You have to bid
on a contract and win that contract to get the
machine inside the airport. All right, Okay, next question, what
is the relationship between you, the machine owner and the
building or facility that houses your machine? Nice? Nice question.
(10:48):
So usually now going into this, a lot of people think, okay, well,
what what are you giving them to put these machines
in here? Like how how are you convincing them to
put these machines in here? But you have to remember
where providing a service, right, So at the end of
the day, they like the machines in their facility because
it it adds value to that business, adds value to
(11:12):
whatever they have going on. So if it's a office building,
now you have the vending machines. Okay, so now your
staff are happier, they are more productive through all the day.
Maybe you have less turnover if it's a if it's
an apartment complex. Now you added an amenity, you know,
the same thing. You can charge more for your your
your spaces, so on and so forth. And then what's
actually funny is the a recent location we just got
(11:36):
UM have their machines. Had us set our machines to
free then, so all the products in the machine are
actually free. And the reason they did this is because
they're competing with a local UM competitor and they and
they you know that they're trying to make it more
competitive for for staff, you know, if they want to
have to come over to them. So they have the
(11:58):
machine set to free. They have free call to have
a lot of free a lot of free stuff for
that stuff. And you know, so they're not They didn't
ask to bring the machines in there. We didn't have
to convince them too. They really wanted them. I don't
wanted them. They want the machines to be free. So
we voiced them at the end of every month. Great,
I love it. Have you ever got your hands stuck
in the machine. I have you have you really? Yeah?
(12:27):
That's crazy. No, No, I've never done that. No, this
is really embarrassing. I was like eight years old and
I remember we went on a family trip to like
Nova Scotia or something, and me and my idiot sister
were like down the hall and we tried to put
our hand up and we got it stuck in the
fire department actually had to come and open up the machine,
(12:48):
and my dad was mad. It was really embarrassing. It's
totally like a sam family laugh. We can laugh at
it now. Story. You know, it was, you know, it
was crazy. So some some of the the location get
like the more so the more fancy locations, it require
us to put list of them as on on our
(13:10):
insurance certificate, Like so we have to add them to
our insurance and it covers um their staff just in
case anybody gets hurt. And I've always thought, like, how
can somebody get hurt from a Vendom machine? But now
I'll see it. So, but you were eight doesn't really count,
you know, But you know, but now I think about
I always thought, you know, maybe somebody pushing them a
(13:31):
friend of bracelet that I remember I got hooked on
the thing and I couldn't get out, and it was like,
oh no, we didn't want to tell my dad and
it was a total disaster, right, Okay, yeah, I can
see that. I do have a pro tip if you
would like me to share a pro tep for my people,
A pro tip perfect gosh. If if if you have one
last pro tip for us, please share that with us
(13:52):
as we take us out from this episode. Okay, so
I'll share this. Um A few a few years ago,
maybe about two years ago. Uh, every time I brought
a Vendom machine, Um, they came with different keys. So
I had a key ring with about twenties semitikeys thirty
Semni keys on one key ring. Right, So long story short,
(14:16):
I lost the key ring and I had no idea
which which keys were required to open each lot, so
I didn't even think about it. I never even you know,
I had the keys for so long. I lost the
keys and then I had to get each a lot
pop on the Vendom machine. So um, now they ended
(14:39):
up trying to charge me five hundred dollars per machine,
which you could do the math on that. I figured
out how to pop the locks myself. And then from
that point on, I used the same lot for every machine.
So every random machine, UM, at least most of them
have the same keys. So now I can I only
have about three keys and they go to the cheage
(15:00):
so and and I know which keys they are now,
so if I would lose it, I could order it
again from offline. So that's a pro to your business.
You know, you just use the same that's a great protein.
One more question because I think this is really fascinating
when you talk about finding a location. So let's say
I've found my location. UM, and even though you're providing
(15:21):
a service to the location, is there like a revenue share? UM?
Do they pay you a fee to be in the building?
Do you pay them a fee to be in the building.
So it's really situational UM. None times out oftended they
come looking for your service, You don't have to pay
them anything. They're just gonna want the service. They're going
to want a service that that is good and as
(15:43):
you know, that's clean, that's operating that you keep up with. UM.
If you come looking for them and you kind of
have to sway them to put the machine in there,
they might want to commission. So the commission for the
meno machine industry is usually around timper cent, So it
could be timper cent and gross a temper center profits.
What do you dependent on? How to how you negotiate that.
For other situations, if you have specialty machines, like let's
(16:05):
say you have a solid, a solid machine or something
like that, the solids have a shorter shelf life, like
your chips and your soldiers. That stuff last for a while,
like a soda canda, Solda can set around for a
few months and be fine. I think something like uh
uh in a different energy drinks, I don't like gonna
say the name different any drinks. Certain energies and energy
(16:26):
drinks don't even expire at all, like so um. With
the solid you might have. With the solid, you might
have a week before that expires and you have to
then throw it out so Um. In the contract, they
can either h guarantee you hit a certain amount of
selves per month with that machine, or they have to
(16:47):
pay you a monthly fee in order to keep it
in there. So, for example, with it, you might have
to say, okay, but this machine has to do at
least twelve hundred or you guys, will be responsible for
paying us a monthly fee of five hundred something like that.
But that's something that's common, that's not really and heard of.
But it's really it's really only more so with like
(17:07):
fresh food machines, so like solids and sandwiches and things like.
It's not typical with the Red Liver vendor machines. Okay, well,
thank you so much. I love it. So before you leave,
tell us your number one best selling product out of
the vending machine. I'll give you too things. I'll give
you the number one best selling product that I feel
with you. It does good in almost every machine. And
(17:28):
I'll give you one of the most I get two
of the most profit products. I need to. I need
you two into it. It's hard to pick one. So
peanut Eminem's pepsi always the top seller. Those two things
are always out of the snack machine. Pepsi does better
than coke. Yeah, pepsi does very better than coke. Now,
(17:49):
demographics play a partner, like it depends when you're selling
too that that that's always a factor. But most of
the time pepsi sells better than uh anything elks. When
the snacks peanut Eminem's toen do better than anything else. Um.
But when it comes to the most profitable items, water
is also really a good seller. Um. It sells all
(18:10):
year around, you know, especially in the summertime, and it
has very very hard a very high profit origin. And
um Lands crackers, those little little those little packs of crackers,
those only calls around fifteen cents, maybe somewhere around that range,
maybe thirteen cents, and you sell them for dollars. Some
people sell them for like a dollar twenty five, like,
(18:30):
which is a crazy Mike mark up crackers with the
peanut butter in the middle. Right, they can have peanut butter,
and yeah, they have different selections, but peanut butter is
the main one that sells. Yeah, I can see that.
So I can see that for sure. Well, cause she
thank you so much for joining us. So many of
us can't walk past the vending machine without at least
thinking of buying just something. So imagine the revenue that
(18:53):
you can generate on the other side of that when
you are an owner. You have definitely put our money
moves family onto a whole new hostel and we are
grateful for it. Thank you so much for your time today,
all right, thank you for having that's it for our
time with Kip Edwards, but stick around for the Money
Moves Podcast powered by Greenwood. You won't want to miss
what's coming up next. Thank you so much for tuning
(19:13):
in Money Moves audience. If you want more or a
recap of this episode, please go to the bank Greenwood
dot com and check out the Money Moves podcast blog.
Money Moves is an I heart Radio podcast powered by
Greenwood Executive produced by Sunwise Media, Inc. For more podcast
on I heart Radio, visit the i heart Radio app,
(19:36):
Apple Podcasts, or wherever you get your podcasts from
What's up, money movers. Welcome back. Today's deep dive into
entrepreneurship and our community is brought to you by our
partners at MasterCard, bridging the wealth gap together with treet Boys.
So okay, talk about locations now, so um hotels, Where
(00:24):
are some of the classic places and maybe untraditional places
where you're seeing really great success with vending machines? Okay?
So um. In terms of the classic locans, people usually
go forward, UM hotels, motels, schools, office buildings. The majority
of over over fifty of the machines are located office buildings. Um.
(00:49):
Then we have other things like you know, you could
do stops like certain bus stops, card car dealerships. UM.
I would say in traditional and traditional, I've seen d
wells like a music studio. Because typically what you're looking
for when you're looking for a location, I look for
about four factors. I look for competition, so I look
(01:10):
to see if there's any stories in the area. UM.
If there's no stories around, that's great. That gives you
more of an opportunity to get selves. People don't want
to have to go to the store in their lunch break,
you know. UM. I look for hours an operation so
how long is this place open, whether they always when
they are open, so on and so forth. Um, I'm
(01:32):
looking for foot traffic. How many people do they have
working here? How many people are coming in and out
of the building a day and then last year. I'm
just looking for where they want the machine place like. So,
I don't like it when it's an abasement in the
corner somewhere. It should be somewhere visible where everybody has
access to it. That's how you're gonna maximize yourselves. But
I would say a place that's done good for me
(01:53):
that I didn't really expected to do good. I've been
a situations where I brought other routes out like I
have like somebody can sell a part of that business.
And I brought about two routes at this point, um,
and one of the locations they had was a music studio.
So I'm like, okay, you know that's probably And what
I will do is I'll keep the good ones and
(02:13):
then I'll sell or just giveaway the ones that I
don't like. So it's like, if it's something I feel
like it's not gonna do what I wanted to do,
I'll even like, you know, pass it. To a family
member or something, or I'll sell it to somebody. But
the music studio was one, according to her, like sales
record was one of the best locations. I'm like why, like,
you know, because it's you know, when you think when
(02:35):
I look at my criteria, what I look at, I'm
looking for foot traffic. I'm looking forward, like you know.
The music studio doesn't have staff. It's like two people,
you know, whatever they doing there, it's a bunch of
guys maybe girls having the munchies in the middle of
the night and they need try. Yes, that's exactly and
that's and that's exactly what it is. That's exactly what it's.
(02:56):
So music studios do well. And and then I've seen
somebody else say that too, so it's not even just
the one that I have. Is like, I guess that's
a common thing with music studios, and that's something you
wouldn't think, would do you know that well with the
actually running machines. Okay, so let's take us back to
the initial startup price of buying a machine. How much
does your average candy machine cost and how much does
(03:18):
your typical big vending machine with you know, twenty different
slots cost so a little like gumball machines, they only
cost around maybe two hundred dollars three hundred dollars depending
on the size of the machine that you get. You
can get some cheaper off like Craigslist and different things
like that. Um, the bigger actual vending machines or that
(03:41):
he just gave away a secret right there, the biggest,
the biggest um like vending machines. You can get four
around fifteen hundred dollars on average. Um. Now it's i'll
break it that so you can get it from individual
for a round on the thousands. So that's your Craigslist,
(04:03):
that's your offer up, that's your Facebook market, that's that
type of stuff. But if you think of it, if
you think of as in a sense of the way
you think of like purchasing a car, if you run
a car from Craigslist, like you're buying it off an individual,
like most of the time, like you're buying off of
a person. You're not buying from a company anything like that.
So you can get it cheaper, right, But if you
turn around, it's brought that same car from a dealership
(04:26):
is going to cost a little more money, but you'll
have some type of UH insurance behind it, or you
have some type of guarantee behind it, like in the
Minium machines are real similar. You could buy them off
interviews for the cheaper, but the best thing to do
the next best thing to do is to get it
from a Vendom machine distributor. So it's like a warehouse
with a whole bunch of Endo machines in it. Now,
(04:48):
with that the machine UH, that's where they start costing
around fifteen hundred. The other ones may cost a little
cheaper on a thousand, but you'll get with the teen hundred,
you'll get most of the time some type of warranty,
So you'll get like a a thirty day day warranty
on the machine, so if anything happens and that time period,
they will come out and fix it and show you
(05:08):
how to operate it. UM next level up besides that,
it's like brand new machines. You get those from the manufacture.
Those go from anywhere from four thousands to ten thousand,
depending on the type of machine that you get, and
they usually come with like a three or five year
of warranty. But I always recommend the UM the distributors.
(05:30):
Even a guy I know that does uh like millions
and whatnot. He he only uses distribute. He doesn't even
get the machine. I've never really seen somebody use the
new machines for just the whole business unless that's their
niche like sometimes you know, people have different pictures with
the companies that they're meeting with and you know, so
it might be healthy, it might be technology thing. And
(05:53):
some people whose pinchers like or we use on new
equipment like so that I've seen that like one or
two times. But other than that, people that's usually use
the refurbished machines because they have the sinks as the
new machines. Um, but you know, their lives cheaper. So no,
I love this fascinating industry. And you know, the startup
(06:13):
costs to get in are not that high. So you're saying,
you know, two hundred dollars for a candy machine. So
this is a great way for people to, like you say,
venture out. They might have their day job like you did,
but they want to create some other passive streams of
income that you know, don't take too much time. I mean,
mind you have to stock the machines and stuff, but
(06:33):
this is it's a really great investment. So one of
the other great things about what you're doing is you've
created courses and you're sharing this knowledge with so many people.
Tell us about um, you know, how many people you've
actually helped and some of the courses and UM not
like you know the information that you share, Okay, I
(06:53):
mean so in terms of this is what I share?
Is this on on my platform? In general? I did
share tidbits and information on getting started, Like somebody could
really go on on like one of one of my
platforms and piece together all of the stuff that we
post and come up with a whole game plan like
for free. Like so you know, be feel feel free
(07:15):
to do that, you know, if you guys want to UM.
But you know, some people don't like doing that. So
they like it organized, they like it in order. So
with the course we have, of course we have an
e book and other different things, you know, to help
people get started. So with the e book is more
so general knowledge UM and you know, organized and it's
taking you step out up of how to get started. UM.
(07:37):
The course covers a lot more information and it goes
more in depth and we cover things not just with vending,
but a little outside of it and talking about business
credit and different things like that as well. Um, and
it's also a technique that can't even go into a book.
That's it's like something you have to show people that's
in the course. Um. They're also they're actually websites like
(07:58):
on and every sing like so you could go to, um,
it's like three different websites. Is one is like for
the city, one is for the state, and one it's
like a private for privately owned businesses. And you'll be
able to bid on contracts like so you know it's
not just vending contracts, its contracts in general. Um, it's
(08:18):
like cleaning contracts and all types of the contracts on
these websites. Um. But you know that's that's how the
machine is getting prisons in different places. Like that is
your contracts anything to like hospitals and things. They this
all thing you have to bid on the contracts to
get in those type of places. Yeah, that's definitely big money.
(08:39):
So on hospitals, hospitals, very very big money. Amazing. So
I mean that's I'm sorry, that's basically what we're covering
with the content that I put out there for So,
so I'm gonna ask you some rapid fire questions so
that we can all get on our vending machine game.
So question number one, what should someone take in to
(09:00):
account if they decide to buy a vending machine. UM,
I would say definitely take into account the all right,
if you're going to go into the vedom machine business,
find a location first, don't get the machine. But when
you get the location, I like that. Okay, great tip. Alright,
(09:22):
So now I've made the decision. I've done my diligence.
I've got a perfect location for a vending machine. Where
do I get my vending machine? So you can find
them on places like craigulous offer, Facebook market if you
want to find the contributors, they are not really listed
in too many cities, so you what you would have
(09:43):
to do if you want to find it yourself is
call around with two different vendom machine companies and accident.
If they sell machines, already know somebody who does other
than you can get them from my We have them
listed on that app as well. UM I'm trying to
think of like what my ideal vending machine business would be.
It's really funny because um I think I would go,
(10:04):
like you said, for schools cafeterias like the library, you
know on a college campus. I feel like that would
be the perfect place because I used to be a
geek spending all these late nights in the library, but
I'd be hungry. Um, how about airports? How easy is
it to get into airports? Airports are actually pretty complicated
and actually pretty hard to get into. But um, and
(10:26):
usually to get the airports, you would have to go
through a bidding process. So you have to bid, they would,
they'll put a contract out there. You have to bid
on a contract and win that contract to get the
machine inside the airport. All right, Okay, next question, what
is the relationship between you, the machine owner and the
building or facility that houses your machine? Nice? Nice question.
(10:48):
So usually now going into this, a lot of people think, okay, well,
what what are you giving them to put these machines
in here? Like how how are you convincing them to
put these machines in here? But you have to remember
where providing a service, right, So at the end of
the day, they like the machines in their facility because
it it adds value to that business, adds value to
(11:12):
whatever they have going on. So if it's a office building,
now you have the vending machines. Okay, so now your
staff are happier, they are more productive through all the day.
Maybe you have less turnover if it's a if it's
an apartment complex. Now you added an amenity, you know,
the same thing. You can charge more for your your
your spaces, so on and so forth. And then what's
actually funny is the a recent location we just got
(11:36):
UM have their machines. Had us set our machines to
free then, so all the products in the machine are
actually free. And the reason they did this is because
they're competing with a local UM competitor and they and
they you know that they're trying to make it more
competitive for for staff, you know, if they want to
have to come over to them. So they have the
(11:58):
machine set to free. They have free call to have
a lot of free a lot of free stuff for
that stuff. And you know, so they're not They didn't
ask to bring the machines in there. We didn't have
to convince them too. They really wanted them. I don't
wanted them. They want the machines to be free. So
we voiced them at the end of every month. Great,
I love it. Have you ever got your hands stuck
in the machine. I have you have you really? Yeah?
(12:27):
That's crazy. No, No, I've never done that. No, this
is really embarrassing. I was like eight years old and
I remember we went on a family trip to like
Nova Scotia or something, and me and my idiot sister
were like down the hall and we tried to put
our hand up and we got it stuck in the
fire department actually had to come and open up the machine,
(12:48):
and my dad was mad. It was really embarrassing. It's
totally like a sam family laugh. We can laugh at
it now. Story. You know, it was, you know, it
was crazy. So some some of the the location get
like the more so the more fancy locations, it require
us to put list of them as on on our
(13:10):
insurance certificate, Like so we have to add them to
our insurance and it covers um their staff just in
case anybody gets hurt. And I've always thought, like, how
can somebody get hurt from a Vendom machine? But now
I'll see it. So, but you were eight doesn't really count,
you know, But you know, but now I think about
I always thought, you know, maybe somebody pushing them a
(13:31):
friend of bracelet that I remember I got hooked on
the thing and I couldn't get out, and it was like,
oh no, we didn't want to tell my dad and
it was a total disaster, right, Okay, yeah, I can
see that. I do have a pro tip if you
would like me to share a pro tep for my people,
A pro tip perfect gosh. If if if you have one
last pro tip for us, please share that with us
(13:52):
as we take us out from this episode. Okay, so
I'll share this. Um A few a few years ago,
maybe about two years ago. Uh, every time I brought
a Vendom machine, Um, they came with different keys. So
I had a key ring with about twenties semitikeys thirty
Semni keys on one key ring. Right, So long story short,
(14:16):
I lost the key ring and I had no idea
which which keys were required to open each lot, so
I didn't even think about it. I never even you know,
I had the keys for so long. I lost the
keys and then I had to get each a lot
pop on the Vendom machine. So um, now they ended
(14:39):
up trying to charge me five hundred dollars per machine,
which you could do the math on that. I figured
out how to pop the locks myself. And then from
that point on, I used the same lot for every machine.
So every random machine, UM, at least most of them
have the same keys. So now I can I only
have about three keys and they go to the cheage
(15:00):
so and and I know which keys they are now,
so if I would lose it, I could order it
again from offline. So that's a pro to your business.
You know, you just use the same that's a great protein.
One more question because I think this is really fascinating
when you talk about finding a location. So let's say
I've found my location. UM, and even though you're providing
(15:21):
a service to the location, is there like a revenue share? UM?
Do they pay you a fee to be in the building?
Do you pay them a fee to be in the building.
So it's really situational UM. None times out oftended they
come looking for your service, You don't have to pay
them anything. They're just gonna want the service. They're going
to want a service that that is good and as
(15:43):
you know, that's clean, that's operating that you keep up with. UM.
If you come looking for them and you kind of
have to sway them to put the machine in there,
they might want to commission. So the commission for the
meno machine industry is usually around timper cent, So it
could be timper cent and gross a temper center profits.
What do you dependent on? How to how you negotiate that.
For other situations, if you have specialty machines, like let's
(16:05):
say you have a solid, a solid machine or something
like that, the solids have a shorter shelf life, like
your chips and your soldiers. That stuff last for a while,
like a soda canda, Solda can set around for a
few months and be fine. I think something like uh
uh in a different energy drinks, I don't like gonna
say the name different any drinks. Certain energies and energy
(16:26):
drinks don't even expire at all, like so um. With
the solid you might have. With the solid, you might
have a week before that expires and you have to
then throw it out so Um. In the contract, they
can either h guarantee you hit a certain amount of
selves per month with that machine, or they have to
(16:47):
pay you a monthly fee in order to keep it
in there. So, for example, with it, you might have
to say, okay, but this machine has to do at
least twelve hundred or you guys, will be responsible for
paying us a monthly fee of five hundred something like that.
But that's something that's common, that's not really and heard of.
But it's really it's really only more so with like
(17:07):
fresh food machines, so like solids and sandwiches and things like.
It's not typical with the Red Liver vendor machines. Okay, well,
thank you so much. I love it. So before you leave,
tell us your number one best selling product out of
the vending machine. I'll give you too things. I'll give
you the number one best selling product that I feel
with you. It does good in almost every machine. And
(17:28):
I'll give you one of the most I get two
of the most profit products. I need to. I need
you two into it. It's hard to pick one. So
peanut Eminem's pepsi always the top seller. Those two things
are always out of the snack machine. Pepsi does better
than coke. Yeah, pepsi does very better than coke. Now,
(17:49):
demographics play a partner, like it depends when you're selling
too that that that's always a factor. But most of
the time pepsi sells better than uh anything elks. When
the snacks peanut Eminem's toen do better than anything else. Um.
But when it comes to the most profitable items, water
is also really a good seller. Um. It sells all
(18:10):
year around, you know, especially in the summertime, and it
has very very hard a very high profit origin. And
um Lands crackers, those little little those little packs of crackers,
those only calls around fifteen cents, maybe somewhere around that range,
maybe thirteen cents, and you sell them for dollars. Some
people sell them for like a dollar twenty five, like,
(18:30):
which is a crazy Mike mark up crackers with the
peanut butter in the middle. Right, they can have peanut butter,
and yeah, they have different selections, but peanut butter is
the main one that sells. Yeah, I can see that.
So I can see that for sure. Well, cause she
thank you so much for joining us. So many of
us can't walk past the vending machine without at least
thinking of buying just something. So imagine the revenue that
(18:53):
you can generate on the other side of that when
you are an owner. You have definitely put our money
moves family onto a whole new hostel and we are
grateful for it. Thank you so much for your time today,
all right, thank you for having that's it for our
time with Kip Edwards, but stick around for the Money
Moves Podcast powered by Greenwood. You won't want to miss
what's coming up next. Thank you so much for tuning
(19:13):
in Money Moves audience. If you want more or a
recap of this episode, please go to the bank Greenwood
dot com and check out the Money Moves podcast blog.
Money Moves is an I heart Radio podcast powered by
Greenwood Executive produced by Sunwise Media, Inc. For more podcast
on I heart Radio, visit the i heart Radio app,
(19:36):
Apple Podcasts, or wherever you get your podcasts from
Popular Podcasts
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations. Follow now to get the latest episodes of Dateline NBC completely free, or subscribe to Dateline Premium for ad-free listening and exclusive bonus content: DatelinePremium.com
24/7 News: The Latest
The latest news in 4 minutes updated every hour, every day.
Therapy Gecko
An unlicensed lizard psychologist travels the universe talking to strangers about absolutely nothing. TO CALL THE GECKO: follow me on https://www.twitch.tv/lyleforever to get a notification for when I am taking calls. I am usually live Mondays, Wednesdays, and Fridays but lately a lot of other times too. I am a gecko.