January 19, 2022 • 19 mins
In this deep dive, Kashief offers a step-by-step guide for anyone interested in entering the business. He shares the candy that sells the best, the weekly amount of a vending machine, the cost of a vending machine, and how to find locations for your vending machine.
The details he shares will cause you to get a vending machine.
After receiving two degrees, Kashief, like many, entered the workforce. He was tired of living that busy grind of paycheck to paycheck; he wanted freedom. Today, Kashief owns over twenty vending machines that produce over 100k annually in sales. In addition, he teaches others about the vending machine business through his youtube and Instagram account.
Host IG: @itstanyatime
Guest IG: @the_vending_bizz
Website: How to start a vending machine business
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Episode Transcript
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Speaker 1 (00:00):
What's up, money movers. Welcome back. Today's steep dive into
entrepreneurship and our community is brought to you by our
partners at MasterCard, bridging the wealth gap together Retreat one.
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 locations, people usually
go forward, UM hotels, motels, schools, office buildings. The majority
of over over fifty of 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 do
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 stores 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 has done good for
(01:53):
me that I didn't really expected to do good. I've
been in 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
even know, whatever they do when they're it's a bunch
of guys maybe girls having the munchies in the middle
of the night and they need 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 runding 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
costs 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 craigslists 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 fifts on average. Um. Now it's I'll break it
down so you can get it from individual for a
round on the thousand hours. So that's your Craigslist, that's
(04:04):
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 brought 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 and 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, and you
have some type of H guarantee behind it, like in
the minimum 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 Vendom machines in it. Now,
(04:48):
with that the machine UH, that's where they start costing
around fift 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 thirty day the 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 thousand 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 used
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,
my mind, you have to stock the machines and stuff,
but this is it's a really great investment. So one
(06:36):
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 mean so in terms of this is what I share?
(06:56):
Is this on on our platform in general? I just
share tidbits and information on getting started. Like somebody could
really go on on like one of our 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 to do that, you know, if you guys want to. UM.
(07:18):
But you know, some people don't like doing that. So
they like it organized, they like it in order. So
UM 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.
The course covers a lot more information and it goes
(07:40):
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 guys. It's like something you have to show people
that's in the course. Um. They're also they're actually websites
like on and everything like so you could go to, um,
(08:03):
it's like three different websites. Is one is like for
the city, one is for the state, and one is
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
like cleaning contracts and all types of the contracts on
these websites. UM. But you know that's that's how the
(08:24):
machine is getting prisons in different places. Like that is
your contracts anything to like hospitals and things that this
all thing you have to bid on the contracts to
get in those type of places. Yeah, that's definitely big money.
So our hospitals, hospitals very very big money. Amazing. So
(08:45):
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
account if they decide to buy a vending machine. UM,
(09:05):
I would say, definitely take into account the all right,
if you're going to go into the vendom machine business,
find a location first. Don't get the machine when you
get the location. I like that. Okay, great tip. All right,
So now I've made the decision. I've done my diligence.
I've got a perfect location for a vending machine. Where
(09:29):
do I get my vending machine? So you can find
them on places like craigulous offer, Facebook market if you
want to find dintributors, they are not really listed in
too many cities, so you what you would have 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
(09:52):
you can get them from my We haven't 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 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
(10:13):
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 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
(10:34):
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.
So usually now going into this, a lot of people think, okay, well,
what what are you giving them to put these machines
(10:56):
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
whatever they have going on. So if it's an office building,
Now you have the Vendom machines. Okay, so now your
(11:17):
staff are happier, they are more productive throughout 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
UM have their machines. Had us set our machines to
(11:40):
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
machine set to free, they have free call to have
(12:00):
a lot of free a lot of free stuff for
that stuff. And you know, so they're not They didn't
ask to the bringing machines in there. We didn't have
to convince them too. They really wanted them. I don't
you 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, I don't know, 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
(12:48):
the machine, 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 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 vending 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 the bracelet
(13:32):
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. 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 of pro tep for my people of pro
tip creeksh if if you have one last pro tip
for us, please share that with us as we take
(13:53):
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 semnikeys thirty Semni keys on one
(14:13):
key ring. Right, So long story short, 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
(14:36):
the Vendom machine. So um, now they ended up trying
to charge me five dred 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
Vendom machine, UM, at least most of them have the
same keys. So now I can I only have about
(14:57):
three keys and they go to the change so and
now 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 prote 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
(15:18):
found my location. UM, and even though you're providing 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 of tended
they come looking for your service, You're donna have to
pay them anything. They're just gonna want the service. They're
(15:40):
going to want a service that that is good and
as 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 a commission. So the
commission for the man the machine industry is usually around
timper cent, so it could be timper center gross a
temper center profits. Where depends on how to how you
(16:01):
negotiate that. For other situations, if you have specialty machines,
like let's 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 soldia 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 know,
(16:24):
like gonna say the name different any drinks. Certain energies
and energy 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 uh guarantee you hit a certain amount
of selves per month with that machine, or they have
(16:47):
to 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 fresh food machines, so like solids and
(17:10):
sandwiches and things like that. It's not typical with the
Red Liver vending 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 I'll give you
one of the most I need two of the most
(17:31):
profit products I need too, Mater, I need you too
in too, because 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, demographics play a
partners like it depends when you're selling too that that
(17:52):
that's always a factor. But most of the time pepsi
sells better than uh anything, elks. When the snacks peanut
eminems to 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 year around,
you know, especially in summertime, and it has very very
(18:13):
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, which
is a crazy mic work up crackers with the peanut
(18:35):
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.
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 you
can generate on the other side of that when you
(18:55):
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 Kashif Edwards, but stick around for the Money
Moves Podcast powered by Greenwood. You won't want to miss
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(19:16):
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(19:37):
or wherever you get your podcasts from
What's up, money movers. Welcome back. Today's steep dive into
entrepreneurship and our community is brought to you by our
partners at MasterCard, bridging the wealth gap together Retreat one.
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 locations, people usually
go forward, UM hotels, motels, schools, office buildings. The majority
of over over fifty of 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 do
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 stores 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 has done good for
(01:53):
me that I didn't really expected to do good. I've
been in 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
even know, whatever they do when they're it's a bunch
of guys maybe girls having the munchies in the middle
of the night and they need 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 runding 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
costs 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 craigslists 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 fifts on average. Um. Now it's I'll break it
down so you can get it from individual for a
round on the thousand hours. So that's your Craigslist, that's
(04:04):
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 brought 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 and 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, and you
have some type of H guarantee behind it, like in
the minimum 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 Vendom machines in it. Now,
(04:48):
with that the machine UH, that's where they start costing
around fift 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 thirty day the 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 thousand 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 used
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,
my mind, you have to stock the machines and stuff,
but this is it's a really great investment. So one
(06:36):
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 mean so in terms of this is what I share?
(06:56):
Is this on on our platform in general? I just
share tidbits and information on getting started. Like somebody could
really go on on like one of our 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 to do that, you know, if you guys want to. UM.
(07:18):
But you know, some people don't like doing that. So
they like it organized, they like it in order. So
UM 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.
The course covers a lot more information and it goes
(07:40):
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 guys. It's like something you have to show people
that's in the course. Um. They're also they're actually websites
like on and everything like so you could go to, um,
(08:03):
it's like three different websites. Is one is like for
the city, one is for the state, and one is
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
like cleaning contracts and all types of the contracts on
these websites. UM. But you know that's that's how the
(08:24):
machine is getting prisons in different places. Like that is
your contracts anything to like hospitals and things that this
all thing you have to bid on the contracts to
get in those type of places. Yeah, that's definitely big money.
So our hospitals, hospitals very very big money. Amazing. So
(08:45):
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
account if they decide to buy a vending machine. UM,
(09:05):
I would say, definitely take into account the all right,
if you're going to go into the vendom machine business,
find a location first. Don't get the machine when you
get the location. I like that. Okay, great tip. All right,
So now I've made the decision. I've done my diligence.
I've got a perfect location for a vending machine. Where
(09:29):
do I get my vending machine? So you can find
them on places like craigulous offer, Facebook market if you
want to find dintributors, they are not really listed in
too many cities, so you what you would have 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
(09:52):
you can get them from my We haven't 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 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
(10:13):
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 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
(10:34):
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.
So usually now going into this, a lot of people think, okay, well,
what what are you giving them to put these machines
(10:56):
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
whatever they have going on. So if it's an office building,
Now you have the Vendom machines. Okay, so now your
(11:17):
staff are happier, they are more productive throughout 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
UM have their machines. Had us set our machines to
(11:40):
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
machine set to free, they have free call to have
(12:00):
a lot of free a lot of free stuff for
that stuff. And you know, so they're not They didn't
ask to the bringing machines in there. We didn't have
to convince them too. They really wanted them. I don't
you 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, I don't know, 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
(12:48):
the machine, 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 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 vending 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 the bracelet
(13:32):
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. 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 of pro tep for my people of pro
tip creeksh if if you have one last pro tip
for us, please share that with us as we take
(13:53):
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 semnikeys thirty Semni keys on one
(14:13):
key ring. Right, So long story short, 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
(14:36):
the Vendom machine. So um, now they ended up trying
to charge me five dred 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
Vendom machine, UM, at least most of them have the
same keys. So now I can I only have about
(14:57):
three keys and they go to the change so and
now 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 prote 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
(15:18):
found my location. UM, and even though you're providing 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 of tended
they come looking for your service, You're donna have to
pay them anything. They're just gonna want the service. They're
(15:40):
going to want a service that that is good and
as 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 a commission. So the
commission for the man the machine industry is usually around
timper cent, so it could be timper center gross a
temper center profits. Where depends on how to how you
(16:01):
negotiate that. For other situations, if you have specialty machines,
like let's 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 soldia 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 know,
(16:24):
like gonna say the name different any drinks. Certain energies
and energy 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 uh guarantee you hit a certain amount
of selves per month with that machine, or they have
(16:47):
to 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 fresh food machines, so like solids and
(17:10):
sandwiches and things like that. It's not typical with the
Red Liver vending 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 I'll give you
one of the most I need two of the most
(17:31):
profit products I need too, Mater, I need you too
in too, because 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, demographics play a
partners like it depends when you're selling too that that
(17:52):
that's always a factor. But most of the time pepsi
sells better than uh anything, elks. When the snacks peanut
eminems to 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 year around,
you know, especially in summertime, and it has very very
(18:13):
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, which
is a crazy mic work up crackers with the peanut
(18:35):
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.
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 you
can generate on the other side of that when you
(18:55):
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 Kashif 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
in Money Moves audience. If you want more or a
(19:16):
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
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