Latest / Financial Survival Network / Vending Machines: Profitable Side Hustle - Mike (Mr. Passive) Hoffman #6238

Transcript

Vending Machines: Profitable Side Hustle - Mike (Mr. Passive) Hoffman #6238 · Financial Survival Network

• 0:00
  Speaker 1: I'm very bullish right now on micro markets in this
• 0:03
  Speaker 1: kind of modern vending space, you know, traditional vending machines
• 0:07
  Speaker 1: and entering the codes and watching the motors spit down.
• 0:10
  Speaker 1: The Snickers is now going to a massive revolution. So
• 0:14
  Speaker 1: I think there's a prime opportunity right now for people
• 0:17
  Speaker 1: to grab market share with these newer micro market concepts.
• 0:21
  Speaker 2: You are listening to Carrie Letz's Financial Survival Network, where
• 0:25
  Speaker 2: you get valuable information you just can't find anywhere else
• 0:29
  Speaker 2: to thrive in today's trying times. You need the Financial
• 0:33
  Speaker 2: Survival Network now more than ever. Go to Financial Survivalnetwork
• 0:38
  Speaker 2: dot com and get your free newsletter and gift. Financial
• 0:42
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• 0:49
  Speaker 3: Ed. Welcome you are listening to and watching the Financial
• 0:52
  Speaker 3: Survival Network. I'm your host, Carrie Letz. Well, everybody's looking
• 0:57
  Speaker 3: for passive income, real estate, seeing property, all sorts of
• 1:02
  Speaker 3: different things, but this is a different take on it.
• 1:05
  Speaker 3: We've got mister passive dot Com on with us, Michael Hoffman.
• 1:08
  Speaker 3: If you've got a question for him or myself, shoot
• 1:10
  Speaker 3: me an email k L at Carrie Let's dot com. Michael,
• 1:13
  Speaker 3: great to have you on the show. So everybody's looking
• 1:17
  Speaker 3: for passive income. What's your take on the on the
• 1:20
  Speaker 3: on the space.
• 1:21
  Speaker 1: Yeah, Carrie, thanks for having me. Sorry it up to
• 1:23
  Speaker 1: be here. I think from my side, you know, everything
• 1:27
  Speaker 1: is as passive as or not passive as you allow
• 1:30
  Speaker 1: it to be. So I'm a huge believer and systems,
• 1:33
  Speaker 1: whether that's real estate or vending machines or what a
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  Speaker 1: bitcoin minding, all the different kind of investments I have.
• 1:41
  Speaker 1: But my take is trying to build something and then
• 1:45
  Speaker 1: remove myself from the business as quick as possible.
• 1:48
  Speaker 3: So what's your favorite passive income stream. Oh, that's a
• 1:51
  Speaker 3: tough one.
• 1:52
  Speaker 1: I'm very bullish right now on micro markets in this
• 1:55
  Speaker 1: kind of modern vending space, you know, traditional vending machine
• 2:00
  Speaker 1: and entering the codes and watching the motors spit down
• 2:03
  Speaker 1: a Snickers is now going through a massive revolution. So
• 2:07
  Speaker 1: I think there's a prime opportunity right now for people
• 2:10
  Speaker 1: to grab market share with these newer micro market concepts.
• 2:14
  Speaker 3: Okay, And so how much does it take to get
• 2:18
  Speaker 3: into that business?
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  Speaker 1: That's the beauty of it. And that's actually why I
• 2:21
  Speaker 1: got into it, as I couldn't for my real estate investments.
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  Speaker 1: I keep couldn't, right, I couldn't keep putting twenty percent down.
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  Speaker 1: So I went down this path, and all these machine
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  Speaker 1: manufacturers allow you to finance them just like a real
• 2:38
  Speaker 1: estate investment. And so for me a lot easier to
• 2:41
  Speaker 1: put ten percent down on a six grand venue machine
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  Speaker 1: than it is ten percent down on an investment in
• 2:48
  Speaker 1: real estate.
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  Speaker 3: So what about locations, Like, how do you get somebody
• 2:51
  Speaker 3: to accept your machine instead of somebody else's.
• 2:54
  Speaker 1: Yeah, so that's a really good question right now. We
• 2:57
  Speaker 1: like to target places that either have traditional machines and
• 3:01
  Speaker 1: now want to do salads and subs, or dayquill and
• 3:04
  Speaker 1: niquill and phone chargers that traditional machines wouldn't allow. So
• 3:09
  Speaker 1: a lot of our business, honestly, is we're replacing old
• 3:12
  Speaker 1: school machines with the newer concept.
• 3:15
  Speaker 3: So what kind of things are you selling there? You
• 3:17
  Speaker 3: said phone chargers? I heard probably cables? What else?
• 3:20
  Speaker 1: Yeah, so we just installed an urgent care, for example,
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  Speaker 1: and we'll probably do a lot of the items that
• 3:26
  Speaker 1: you know, a lot of the times when you leave
• 3:28
  Speaker 1: the urgent care and they're like, oh, just let the
• 3:30
  Speaker 1: cold play out, go to the pharmacy and get cough
• 3:34
  Speaker 1: drops in day quill and niquill. Those are options we
• 3:36
  Speaker 1: could put in our machines.
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  Speaker 3: They see, okay, and how much can you make of
• 3:41
  Speaker 3: off these.
• 3:41
  Speaker 1: Things depend on the location. We have one location that
• 3:46
  Speaker 1: does did over seventeen grand last month, and then our
• 3:50
  Speaker 1: standard locations are around fifteen hundred to three grand.
• 3:54
  Speaker 3: A month fifteen hundred, so how many machines could you
• 3:59
  Speaker 3: reasonably expect to get out there?
• 4:01
  Speaker 1: As many as you want? Most people will try to
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  Speaker 1: get to ten to twenty grand a month in cash flow,
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  Speaker 1: so they're trying to get to that five to ten
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  Speaker 1: machine mark. But we've bought and routes now remotely. We
• 4:14
  Speaker 1: own a route in Chicago, for example, that we bought.
• 4:16
  Speaker 1: Even though we live in Oregon. We have our route
• 4:18
  Speaker 1: here in Oregon, so it's kind of a scale. As
• 4:21
  Speaker 1: quickly as you'd like, you can buy baby Boom boom
• 4:24
  Speaker 1: or routes things.
• 4:25
  Speaker 3: Like that, so you basically have to go and restock
• 4:28
  Speaker 3: these things, right, I don't.
• 4:30
  Speaker 1: I mean, that's what we usually teach people how to
• 4:33
  Speaker 1: hire operators that would do that type of stuff. But
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  Speaker 1: in theory, I always recommend do it initially yourself, so
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  Speaker 1: you know what you're delegating.
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  Speaker 3: And so I sen with the location there's a profit split,
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  Speaker 3: and then with your route manager. There's also a profit split, right,
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  Speaker 3: that's correct? Yep, yeah, So how much do you wind
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  Speaker 3: up with at the end of the day.
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  Speaker 1: You usually want fifty percent margins, So like I seventeen
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  Speaker 1: grand locate, you're probably bringing on eighty five one hundred
• 5:02
  Speaker 1: to nine grand.
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  Speaker 3: Yeah, that's not bad, all right. So it sounds pretty
• 5:07
  Speaker 3: easy to get into this. Probably the credit is pretty simple, yeah, yeah.
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  Speaker 1: Yeah, not like you're taking out a three hundred thousand
• 5:15
  Speaker 1: dollars mortgage.
• 5:17
  Speaker 3: Sure, all right, So what other things besides mini marts?
• 5:24
  Speaker 1: These smart machines now with these AI cameras, they track
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  Speaker 1: what you grab out of the machine. So there's no
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  Speaker 1: honor systems. You know, you think you go to the
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  Speaker 1: Marriotte and they have the open market that you grab
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  Speaker 1: something and you got to go up to the front
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  Speaker 1: desk and throw the bottle of water on your your
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  Speaker 1: room charge. Nowadays, the smart machines, you have the kiosk
• 5:44
  Speaker 1: to unlock the door, and the AI cameras will charge
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  Speaker 1: you based on whatever you grab out of that machine,
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  Speaker 1: because you have to use your credit card to unlock
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  Speaker 1: that door. So we have people and with our routes
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  Speaker 1: that we've helped build that'll put in there, like thirty
• 5:58
  Speaker 1: five dollars shampoo they'll put and eggs, olive oil. Basically
• 6:02
  Speaker 1: the mini convenience store at these apartment complexes. So truly
• 6:06
  Speaker 1: it's kind of you know, you can put it's just
• 6:09
  Speaker 1: shelf space, so you can do whatever you want on
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  Speaker 1: these machines.
• 6:12
  Speaker 3: It's interesting like the Bright Line railroad here in Florida,
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  Speaker 3: their stations have got totally unattended convenience stores and like
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  Speaker 3: you say, you scan your card to get in and
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  Speaker 3: then it automatically charges you on the way out.
• 6:28
  Speaker 1: Yeah, yeah, I mean the same thing when you come
• 6:30
  Speaker 1: down the escalator and it says welcome to Las Vegas
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  Speaker 1: and the Las Vegas Airport. They have an entire seven
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  Speaker 1: eleven that is unattended. You scan it or to get
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  Speaker 1: in the seven eleven. Yeah, that's where all these huts
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  Speaker 1: and bookstores are going to be going too.
• 6:44
  Speaker 3: It's a brave new world here.
• 6:46
  Speaker 1: Huh AI's crazy Carrie crazy.
• 6:49
  Speaker 3: Amazing, amazing, says somebody's starting out today, Say with twenty
• 6:54
  Speaker 3: five thirty thousand dollars, what would you tell them to do?
• 6:58
  Speaker 1: Either tap in your connection and try to if you
• 7:01
  Speaker 1: know someone a place that might have high foot traffic,
• 7:04
  Speaker 1: like somewhere someone lives, like an apartment complex, or like
• 7:07
  Speaker 1: an urgent care or pet hospital. If you want to,
• 7:11
  Speaker 1: if you want some help and get accelerated help, you
• 7:14
  Speaker 1: can always go to our website entrepreneurs dot com and
• 7:19
  Speaker 1: book a free call with our coaches as well.
• 7:22
  Speaker 3: So, so from what you're saying, it's pretty easy to
• 7:25
  Speaker 3: actually get these locations.
• 7:28
  Speaker 1: If you know the right things to say. Absolutely.
• 7:30
  Speaker 3: Yeah. So what do you tell somebody when you're trying
• 7:33
  Speaker 3: to get into their location.
• 7:35
  Speaker 1: Well, depending on the type of location. If it's a business,
• 7:38
  Speaker 1: every business owner loves to keep their employees at work
• 7:41
  Speaker 1: during their break, so they want to bring food to
• 7:44
  Speaker 1: the employees. If it's an apartment complex, the number one
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  Speaker 1: complaint residents have is having a door dash or get
• 7:51
  Speaker 1: in their car to go get something from the seven eleven.
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  Speaker 1: So the mini convenience store in the lobby is always
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  Speaker 1: gonna have value for them as well.
• 8:00
  Speaker 3: Interesting, so we could be seeing a lot of these
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  Speaker 3: mini convenience smarts, unattended pop up in apartment buildings and
• 8:08
  Speaker 3: condos around the nation.
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  Speaker 1: Anywhere, urgent cares, peed hospitals, I mean, think about where
• 8:14
  Speaker 1: there's a there's people congregating and just hanging out with
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  Speaker 1: foot chofolate.
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  Speaker 3: Interesting. All right, Hey, so tell us how do we
• 8:22
  Speaker 3: connect with you on the web. How do we find
• 8:25
  Speaker 3: out more?
• 8:26
  Speaker 1: Yeah, you can go to go to our website than
• 8:28
  Speaker 1: entrepreneurs dot com and watch some videos on how you
• 8:32
  Speaker 1: could do it yourself, or if you want to schedule
• 8:34
  Speaker 1: a free call to see if you need some help
• 8:36
  Speaker 1: or not.
• 8:37
  Speaker 3: All right, excellent. I appreciate you coming on here, Michael.
• 8:41
  Speaker 3: If you've got any questions or comments for Michael myself,
• 8:44
  Speaker 3: shoot me an email kl at Carrie LUTs dot com
• 8:48
  Speaker 3: and hey to find a link in the show notes
• 8:51
  Speaker 3: of this interview on Financial Survival Network dot com. All
• 8:55
  Speaker 3: we ask is if you go there, just sign up
• 8:57
  Speaker 3: for a free newsletter like over seventy five thousand and
• 9:00
  Speaker 3: FSA members have done already. Michael, we'll talk to you, sir.
• 9:04
  Speaker 1: Thanks for stopping by, Harry, thanks for having me, really
• 9:06
  Speaker 1: appreciate it.
• 9:07
  Speaker 2: Thanks for listening to carry Lenz's Financial Survival Network, your
• 9:12
  Speaker 2: solution to today's trying times. For the latest, go to
• 9:16
  Speaker 2: Financial Survivalnetwork dot com. Financial Survival Network now more than
• 9:22
  Speaker 2: ever