Latest / Earn Your Leisure / Study Hall: HOW TO START A VENDING MACHINE BUSINESS

Transcript

Study Hall: HOW TO START A VENDING MACHINE BUSINESS · Earn Your Leisure

0:00
Speaker 1: You just realized your business needed to hire someone yesterday.
0:04
Speaker 1: How can you find amazing candidates fast? Easy? Just use Indeed.
0:09
Speaker 1: Stop struggling to get your job posts seen on other
0:12
Speaker 1: job sites. With Indeed sponsored jobs, your post jumps to
0:16
Speaker 1: the top of the page for your relevant candidates, so
0:19
Speaker 1: you can reach the people you want faster. According to
0:22
Speaker 1: Indeed data, sponsored jobs posted directly on Indeed have forty
0:26
Speaker 1: five percent more applications than non sponsored jobs. Don't wait
0:30
Speaker 1: any longer, speed up your hiring right now with Indeed,
0:33
Speaker 1: and listeners of this show will get a seventy five
0:36
Speaker 1: dollars sponsored job credit to get your jobs more visibility
0:39
Speaker 1: at indeed dot com slash pod katz thirteen. Just go
0:45
Speaker 1: to Indeed dot com slash pod katz thirteen right now
0:50
Speaker 1: and support our show by saying you heard about Indeed
0:53
Speaker 1: on this podcast. Terms and conditions apply. Hiring Indeed is
0:57
Speaker 1: all you need.
0:58
Speaker 2: All right, So now we go to get into some details.
1:01
Speaker 2: So all right, So for vending machines, right, first question
1:04
Speaker 2: is how much does the vending machine costs?
1:07
Speaker 3: So it could range. So I mean the cheapest you're
1:10
Speaker 3: going to find it is always going to be somewhere
1:11
Speaker 3: run one thousand dollars if you're using a used machine
1:14
Speaker 3: versus if you're coming in with something new. You're looking
1:17
Speaker 3: at about five grand five grand for a brand new
1:19
Speaker 3: one brand like brand new team in the top of
1:21
Speaker 3: the line of new or used.
1:23
Speaker 4: I didn't even know that there were new use machines.
1:26
Speaker 4: How where do we even get this?
1:27
Speaker 1: Like?
1:28
Speaker 3: Where am I finding a new machine? Where do I go? So,
1:31
Speaker 3: I mean new machines you could get from like the
1:33
Speaker 3: manufacturers actually making like coke, PEPSI like those type of
1:38
Speaker 3: places you can buy and trade from them.
1:39
Speaker 4: Those are where the new machines come from. And we're
1:41
Speaker 4: talking about actual what I mean, there's different types. We're
1:44
Speaker 4: talking about food vended machines, so we're talking about sodas, snacks.
1:48
Speaker 4: They do have food, they have ice cream machines. It's
1:51
Speaker 4: a lot of different different types. So if you're talking
1:53
Speaker 4: about used machines, which is you know, I use use machines,
1:56
Speaker 4: and that's what I recommend everybody else to use, mainly
1:58
Speaker 4: because it's easier than ain't team, and it's a lot
2:01
Speaker 4: more affordable, Like the price is nowhere close to you know,
2:04
Speaker 4: five thousand dollars. You can get a used machine for
2:06
Speaker 4: around nine hundred, which is what my first machine was,
2:09
Speaker 4: and you could find those on places such as like crackslist,
2:13
Speaker 4: offer up.
2:14
Speaker 3: Amazon, let go, it might be a little more Amazon.
2:18
Speaker 3: And then the only reason I wouldn't I would say
2:21
Speaker 3: not to get it off like a platform where it's
2:23
Speaker 3: like online, because I would recommend you checking the machine
2:26
Speaker 3: out first. You don't want to get it and get
2:27
Speaker 3: it in, get it where you want to put it,
2:30
Speaker 3: and then it's not working right, and then you have
2:31
Speaker 3: to ship it back Like that's a that's a long process.
2:33
Speaker 2: You said, let go, Yeah, what's what's that?
2:36
Speaker 3: So it's an app?
2:37
Speaker 2: It's an app?
2:37
Speaker 3: Yeah, so let go offer up a Facebook market. But
2:41
Speaker 3: it just depends that. And another thing is it matters
2:45
Speaker 3: is how are you How are you trying to scale this?
2:48
Speaker 3: Do you wanted this to be on some side hustle
2:50
Speaker 3: passive income stuff or do you want to grow it
2:53
Speaker 3: into like a full time business. Because if you're just
2:56
Speaker 3: doing it as a side hustle, just earn some extra
2:58
Speaker 3: realdum assign you know you and those resources such as
3:01
Speaker 3: like you know cress is fine. But if you really
3:04
Speaker 3: want to do it, like for a time, you want
3:06
Speaker 3: to find like what I what I call vending warehouses.
3:09
Speaker 3: So a vending warehouse is just a vending company that
3:13
Speaker 3: is large enough to sell you vending machines. So that's
3:16
Speaker 3: kind of how we make our money. On the back end,
3:18
Speaker 3: I might have some machines setting around and then our
3:20
Speaker 3: cellos to anybody who's looking to buy it.
3:24
Speaker 2: Where do you find vending warehouses?
3:25
Speaker 3: So you would have to google vending machine companies in
3:28
Speaker 3: your area and then contact them and see if they.
3:31
Speaker 2: It's all regional, it's all regional.
3:33
Speaker 4: Yeah, after I order it, I'm thinking to myself right
3:35
Speaker 4: now I'm ordering machine, Probably need the location first, right,
3:39
Speaker 4: because they're going to send that to your house, right,
3:41
Speaker 4: So do they send it to?
3:42
Speaker 3: What happens after I order it? So you could you
3:46
Speaker 3: could pick it the machine up first. Our I recommend
3:48
Speaker 3: to people always always always get the machine after you
3:52
Speaker 3: have the location, for multiple reasons. Because if you go
3:55
Speaker 3: out and you get excited, Okay, I'm going to vending thing.
3:57
Speaker 3: I see a cheap soulda machine, This is a great deal.
4:00
Speaker 3: You buy it. Maybe you got it in your garage
4:02
Speaker 3: or something like that. You don't know what type of
4:04
Speaker 3: location you're gonna get first, So that means you don't
4:06
Speaker 3: know what that location is going to need. Maybe they
4:08
Speaker 3: already got a sort of machine, maybe they need a
4:10
Speaker 3: slack machine. Maybe it won't right. And then that's another thing.
4:13
Speaker 3: You don't know what the measurements are for that space
4:17
Speaker 3: they have to put the machine. So it could be
4:19
Speaker 3: the machine you make you could have maybe too big,
4:21
Speaker 3: maybe it's too big to fit through the doorway. Maybe
4:23
Speaker 3: it's too big for the space that they actually want
4:25
Speaker 3: the machine. So it's always best to wait until you
4:28
Speaker 3: get that location you know, on a paper, and then
4:31
Speaker 3: you go out and get your machine. But on the
4:33
Speaker 3: flip side, you also want to know your resources first,
4:36
Speaker 3: Like you want to know where you're getting that machine
4:37
Speaker 3: from prior to you know, finding your location.
4:41
Speaker 2: So like what's some typical are they like typical profit margins?
4:44
Speaker 2: Like how much money can should a person expect to
4:46
Speaker 2: make off of like one machine?
4:48
Speaker 3: So an average good a good location, well, you'll see
4:51
Speaker 3: around five hundred dollars for the foot per machine. Right,
4:54
Speaker 3: most locations have two machines, you know what I'm saying,
4:56
Speaker 3: unless it's like a combo if most of the time,
4:58
Speaker 3: if you'll find a combo machine, it's in a smaller
5:01
Speaker 3: in a smaller space because they can't fit two machines,
5:04
Speaker 3: or it's because maybe it's a slower that has slower traffic,
5:08
Speaker 3: lower traffic, and you don't want to put two machines
5:10
Speaker 3: in there, you know that type of situation.
5:12
Speaker 2: So like a thousand dollars if you have two machines
5:14
Speaker 2: in one location.
5:15
Speaker 3: Yeah, that's about that, right.
5:16
Speaker 4: When you have to find locations, you obviously looked at
5:18
Speaker 4: your life. You said, look, I played ball here, I'm
5:20
Speaker 4: gonna put one here. That's my high school, that's my barbershop.
5:23
Speaker 3: What does the average person have to do in terms
5:24
Speaker 3: of finding locations? So step one now, Now to be
5:28
Speaker 3: honest with y'all, Like, I had experience in like different
5:32
Speaker 3: marketing before beforehand, so I was already kind of seasoned
5:36
Speaker 3: season with uh networking and more and reaching people and
5:40
Speaker 3: calling all that type of stuff. The wholesaleing I did
5:44
Speaker 3: do whole something, So yeah, so I used those same
5:48
Speaker 3: type of tactics to find locations because it was I
5:50
Speaker 3: learned a lot from actually going out and trying to
5:53
Speaker 3: find properties, you know what I'm saying when I was
5:55
Speaker 3: doing the wholesaling thing. So the first thing I did
5:57
Speaker 3: was network so I reached out to everybody, aroun me,
6:00
Speaker 3: all my friends, all my family members, let them know
6:02
Speaker 3: what I was doing. And this through doing that, it
6:04
Speaker 3: led me to having like my first few locations, you
6:07
Speaker 3: know what I'm saying. So that's how I ended up
6:08
Speaker 3: getting a school like you do this name, which is
6:11
Speaker 3: my prior in high school. I talked to them, you know,
6:14
Speaker 3: they let me place a vending machine in there, and
6:17
Speaker 3: it led me to you know, getting a few other spots.
6:19
Speaker 2: You know, I'm just thinking about it. A lot of
6:21
Speaker 2: places that yeah they have two vendom machines, like a
6:24
Speaker 2: community center, a school. Yeah, you have two vending machines. Yeah,
6:29
Speaker 2: I never thought about that before. I mean, or trying
6:32
Speaker 2: to cut you off. You can have two vending machines
6:34
Speaker 2: right next to each other, Like one is sodas and drinks,
6:37
Speaker 2: the other one is candies and chips and stuff.
6:40
Speaker 3: Yeah, they always like right next to right next to
6:41
Speaker 3: each other.
6:42
Speaker 2: So that's not bad if you think about it, Like
6:44
Speaker 2: a thousand dollars, that's like you could be getting rental income,
6:48
Speaker 2: but it's a lot less overhead as far as buying
6:50
Speaker 2: a home.
6:51
Speaker 3: Yeah, So that was what I was gonna say. Two things.
6:54
Speaker 4: Well, first of when these big corporations, like if I
6:56
Speaker 4: see a Coca Cola machine, right, that's a vending machine.
6:59
Speaker 3: Can I purchase that from?
7:00
Speaker 4: Or is the corporation putting that in the location, because
7:02
Speaker 4: you could have two venom machines and then they have
7:03
Speaker 4: all coke products?
7:05
Speaker 3: Can you purchase that? Can you purchase it from home
7:07
Speaker 3: from like Coca Cola? Is that like a thing? Can
7:09
Speaker 3: you get a venom machine from a corporation you're talking
7:13
Speaker 3: about as far as have if the machine is placed
7:15
Speaker 3: somewhere or if there is manufacturing the machines.
7:17
Speaker 4: Well, so I'm thinking in terms of I have my
7:20
Speaker 4: venom machine, you right, I have two of them there.
7:22
Speaker 3: And then there's like a coke machine those coke products.
7:24
Speaker 3: Is that something like the average person can purchase or
7:26
Speaker 3: is just straight from the corporation? So so all right,
7:29
Speaker 3: so Coke does Coke actually places machines themselves. So but
7:33
Speaker 3: then what they'll do is they don't they actually just
7:36
Speaker 3: will place the machine, right, But the thing is the
7:41
Speaker 3: person they would have to like charge a certain amount
7:44
Speaker 3: the in products. So the products. Once you buy a
7:47
Speaker 3: certain amount of products from from Coke, they'll play they
7:50
Speaker 3: get you. They get a place of vendo machine for free,
7:52
Speaker 3: so and then they'll service it or whatever like. So,
7:55
Speaker 3: if you're talking about like that machine is there, most
7:58
Speaker 3: more than likely your machine won't be because they'll have
8:00
Speaker 3: some type of contract with Coca Cola and they're not
8:02
Speaker 3: gonna let nobody else in there.
8:04
Speaker 2: So as far as location, because I know you said
8:06
Speaker 2: that you had a couple of different keys, foot traffic, isolation, uh,
8:14
Speaker 2: waiting rooms, so all of these different things. But before
8:19
Speaker 2: you even get to that, how do you approach somebody
8:21
Speaker 2: to put a vending machine in their place?
8:23
Speaker 1: Like?
8:24
Speaker 2: All right, so you see a school, like, what's the
8:28
Speaker 2: process to say, Hey, can I put a veto machine here?
8:30
Speaker 3: I talked to the principal.
8:31
Speaker 2: How does that work?
8:32
Speaker 3: So that's a good question. Man, That's a lot of
8:34
Speaker 3: questions everybody ask us. But at all I really do
8:37
Speaker 3: is I'll approach whoever the receptionist is that they're at
8:40
Speaker 3: first point in contact, and I'll ask them who I
8:42
Speaker 3: need to speak to to place a machine here. So
8:46
Speaker 3: it's usually the person that everybody usually has a person
8:48
Speaker 3: who's in charge of doing business. So the high school,
8:51
Speaker 3: as a you know, a business manager, I had to
8:53
Speaker 3: talk to them So if you're if I'm going into
8:56
Speaker 3: a motel or something, most of the time they have
8:57
Speaker 3: a business manager if you talk to them. So it's
8:59
Speaker 3: just a about asking that first point of contact get
9:02
Speaker 3: you know, obviously if you could find a manager or
9:04
Speaker 3: something like that, reach you, you could reach and but then
9:06
Speaker 3: ask that person, who's the person who's that I have
9:09
Speaker 3: to talk to? That actually makes the decision.
9:11
Speaker 4: So once you get in the high school, you get
9:13
Speaker 4: into the recreation center, is there a fee that you
9:14
Speaker 4: have to pay for being there or it's just part
9:17
Speaker 4: of the profit margin you have to give to the places?
9:18
Speaker 3: Like how's that work? So it's all about from my experience,
9:22
Speaker 3: it's all about how you get that how you get
9:24
Speaker 3: that spot. So if you have you have different resources
9:29
Speaker 3: you're using to get locations. Right, If one thing that
9:32
Speaker 3: you could do is you out, you go out yourself
9:35
Speaker 3: and you actually look for locations. Like you know, when
9:38
Speaker 3: we talk about the whole sort of thing, it's called
9:41
Speaker 3: like driving for dollars. You're that term, yeah, right, So
9:44
Speaker 3: that's a method you go out driving around. I actually
9:46
Speaker 3: found the laundrymat the other day just driving around. I
9:49
Speaker 3: wasn't even looking for it, but I just happened to
9:51
Speaker 3: see it, and actually I'll put it on Instagram, So
9:53
Speaker 3: I put it on a lot just to show people
9:54
Speaker 3: like this is like, you know, how easy it is
9:56
Speaker 3: to find something and if you're paying attention to what's
9:58
Speaker 3: around you. So that's one method and another methods like
10:02
Speaker 3: cold calling, which is you just make a list of
10:05
Speaker 3: multiple places and that that may be suitable for a
10:09
Speaker 3: vendom machine in your area that you're looking at place
10:12
Speaker 3: one like using zip codes or whatever, and you know,
10:15
Speaker 3: and you just call them if you're doing that method.
10:17
Speaker 3: Most of the time I found when you found it
10:18
Speaker 3: like a location like that, they ask for a commission
10:20
Speaker 3: because you're asking to come into their space and do
10:22
Speaker 3: business like you're asking for something from them. Right now.
10:26
Speaker 3: On the flip side, you get a website right the top,
10:29
Speaker 3: the most the top that the most common thing people
10:32
Speaker 3: do is when they're looking for vending services. If you know,
10:35
Speaker 3: you're just opened up your store, your business or whatever
10:38
Speaker 3: it may be, it's Google, So they go right to
10:40
Speaker 3: Google Vendom Machine service and Philadelphia my joone is like
10:44
Speaker 3: one of the top ones on there. So you click
10:46
Speaker 3: on that, they they call you, they contact you, and
10:50
Speaker 3: then they're gonna ask you to place a vending machine
10:52
Speaker 3: in their place of business. So most not in that scenario.
10:56
Speaker 3: Most of the time they don't ask you for a
10:57
Speaker 3: commission because they just want your service. They want your
10:59
Speaker 3: service for their customers, are for their employees off for
11:02
Speaker 3: whatever reason. It's just like, yeah, we just want to service.
11:04
Speaker 3: We're not worried about commission.
11:06
Speaker 2: So if you approach them, you got to pay them
11:09
Speaker 2: most of the time. If they approach you, you don't
11:11
Speaker 2: have to pay.
11:12
Speaker 3: Most of the time most of the time. That's how
11:13
Speaker 3: that goes. That also depends on what type of place
11:16
Speaker 3: it is, you know, because if you're dealing with like
11:17
Speaker 3: recreation centers and schools, a lot of times those those
11:20
Speaker 3: facilities are like the prod the funds already, so they
11:25
Speaker 3: always looking for different ways to supplement, you know, some income.
11:28
Speaker 3: So they're going to bring that up.
11:30
Speaker 2: So what kind of commission is fair? Like if somebody
11:32
Speaker 2: I'll let you put ahead, but here's you gotta give
11:34
Speaker 2: me twenty percent temper, Like what's a fair amount that
11:38
Speaker 2: a fear.
11:38
Speaker 3: Amount really depends on the traffic and that location, but
11:42
Speaker 3: you typically it's around ten percent. Yeah, ten percent is
11:45
Speaker 3: It's like a fear amount most of the time if
11:47
Speaker 3: it's a good location.
11:48
Speaker 4: So you you sit down, you say that we can
11:51
Speaker 4: have the vend machine here.
11:52
Speaker 3: What we do next we drawing up a contract. Right
11:55
Speaker 3: so at the point where they give me the person
11:58
Speaker 3: of contact and they said they interested, and I'll schedule
12:01
Speaker 3: a meeting with them, so we'll sit there like we're talking. Now,
12:03
Speaker 3: I'll have a proposal, which is something I came up
12:06
Speaker 3: with just from doing the meetings, and it's all the
12:09
Speaker 3: information is in the proposal, which just cuts down the
12:11
Speaker 3: meet in town. So you know, in there it's just
12:14
Speaker 3: about the uh, your business, a little bit about yourself.
12:17
Speaker 3: You want to put the products that you use, what
12:19
Speaker 3: makes you different than other companies, your price points for
12:22
Speaker 3: your products. Just present all that to them and then
12:25
Speaker 3: you know, if if they like that, then I also
12:26
Speaker 3: have the contract there so and if they're good with
12:29
Speaker 3: the contract, you know we signed it right there. Do
12:31
Speaker 3: the deal right there. Now. Sometimes it doesn't go that way.
12:34
Speaker 3: Sometimes they might want certain contingencies or whatever in the contract.
12:38
Speaker 3: So if they want that and you ask, you have
12:40
Speaker 3: you know, obviously you have to go back and draw
12:41
Speaker 3: up a new contract and get them to sign that. One.
12:43
Speaker 4: Yeah, I'm thinking of like the school, right, so I'm
12:45
Speaker 4: thinking like one of the contendencies they might have is
12:46
Speaker 4: like you can't serve a certain amount of sugar.
12:49
Speaker 3: Yeah, exactly, certain certain products. And then it's like some
12:53
Speaker 3: people will want your actual service hours in there, or
12:57
Speaker 3: they'll want if basically like if if something goes wrong,
13:02
Speaker 3: you have to repair it by all this amount of
13:04
Speaker 3: time type of thing like, so that stuff is usually
13:06
Speaker 3: people usually tweak, but for the most part, they did
13:08
Speaker 3: go about what's on the paper.
13:10
Speaker 2: So okay, So as far as let's go back to location.
13:14
Speaker 2: So like you said, you said foot traffic, accessibility, isolation,
13:17
Speaker 2: and waiting rooms. Those are like your four golden rules, right,
13:20
Speaker 2: oh the one second. So and then for the commission
13:23
Speaker 2: that I never bring up commission. So never never sit
13:25
Speaker 2: down with a location and say, all right, well, this
13:27
Speaker 2: is the amount that we're paying commission.
13:29
Speaker 3: If they don't mention it, oh yeah, no, give them money.
13:32
Speaker 3: Yeah no, no, no no. Some people think that that's like
13:35
Speaker 3: a pitching like point, is that we can pay you
13:37
Speaker 3: this much in commission, but don't mention.
13:39
Speaker 2: That, because it's not. That's a good that's a good
13:41
Speaker 2: point because you might automatically assume that you have to
13:45
Speaker 2: pay because you're you're in their space. But like you said,
13:47
Speaker 2: it's kind of like an attraction where it's like, like
13:50
Speaker 2: my son goes to camp. Every time I pick him out,
13:53
Speaker 2: he's like, can you give me something? The venom machine.
13:55
Speaker 2: So it's like, you know what I'm saying, It's like
13:56
Speaker 2: the vending machine is actually helping in that situation because
14:00
Speaker 2: it's like people something you might just walk into a
14:02
Speaker 2: space just to use the vending machine.
14:04
Speaker 4: Right, So that now I'm thinking about from the business standpoint,
14:07
Speaker 4: having a school during the year is great. Having a
14:09
Speaker 4: recreation center during the summer gold month all kids.
14:13
Speaker 3: Want, well no recreations. Recreation centers doing the school year
14:17
Speaker 3: are good too because they have different programs and they
14:20
Speaker 3: have basketball games and stuff.
14:24
Speaker 2: Yeah. So all right, so location, location, location is the
14:30
Speaker 2: most important thing in real estate period. And I guess
14:33
Speaker 2: it's no different from vending machine either, Right, you got
14:35
Speaker 2: the best vending you could be giving away gold bars
14:38
Speaker 2: if it's in the desert, doesn't matter. So how do
14:41
Speaker 2: you know what's a good look? I mean obviously, well
14:43
Speaker 2: I don't say obviously. How do you know what's a
14:44
Speaker 2: good location or not so, I mean from what you
14:47
Speaker 2: just basically what you just mentioned, but I picked them
14:50
Speaker 2: up as time went on, just noticing different things. So
14:53
Speaker 2: when I'm walking into a location, I go with a checklist.
14:56
Speaker 2: I don't really use it anymore because I kind of
14:58
Speaker 2: like know now, but it's best to have a checklist
15:00
Speaker 2: and use this. And this is what you want to
15:01
Speaker 2: look for. So you want to look for when you
15:04
Speaker 2: pull up to the space. Is it any stores around
15:07
Speaker 2: that building? So when I say isolation, that that's what
15:09
Speaker 2: I'm talking about. So I'll take a lap of two
15:12
Speaker 2: laps around. See I'm looking for corner stores. I'm looking
15:14
Speaker 2: at this for other places to eat, all right. So
15:17
Speaker 2: if if I don't see no other places to eat,
15:18
Speaker 2: I'm like, okay, so that's that's a good sign.
15:21
Speaker 3: Right. And then when I walk in the door, I'm
15:23
Speaker 3: looking in terms of moving I'm looking for steps and
15:25
Speaker 3: all that type of stuff because you have to move
15:26
Speaker 3: the machine in there. When it terms of what makes
15:28
Speaker 3: it a good location, I'm I'm looking to see where
15:31
Speaker 3: the machine will be placed, all right. So I'm like,
15:34
Speaker 3: all right, well, is it placed somewhere where it's visible
15:36
Speaker 3: and people could see it? Because I had one situation
15:38
Speaker 3: where I had a it was a hotel wanted me
15:40
Speaker 3: to put a machine in there, but they wanted a
15:42
Speaker 3: machine like in the in the back way in the
15:44
Speaker 3: back where nobody would see it. And on the flip side,
15:47
Speaker 3: it had a gas station right next door. So when
15:50
Speaker 3: I was watching, I'm watching people come in and they
15:52
Speaker 3: just making the left turn, right out or right to
15:54
Speaker 3: the gas station.
15:54
Speaker 4: I'm like, the gas station is the place now that
15:57
Speaker 4: they're gonna get that.
15:59
Speaker 3: They see the gas station because it's right because it
16:00
Speaker 3: was a big glass, you know door obviously and it's
16:03
Speaker 3: right there. Versus if that machine is placed in the lobby,
16:05
Speaker 3: they just would have used the machine. Then nobody wants
16:07
Speaker 3: to walk all to be over there if you ain't
16:08
Speaker 3: got too only in the night shift, right, So so
16:11
Speaker 3: you know that's that's real important. It's important is is
16:14
Speaker 3: it being visible and it being accessible to everyone? So
16:18
Speaker 3: if everybody can use it, if it's visible, that that's
16:21
Speaker 3: a good sign. Another thing I'm looking for is hours
16:26
Speaker 3: of operation. So how long is this place open? Like
16:29
Speaker 3: you said night shift, Some places open twenty four hours, right,
16:32
Speaker 3: That gives you more selves versus it only being opened
16:34
Speaker 3: for nine to five like, so that's another that's another
16:38
Speaker 3: important brieteria close now right, So, and then probably the
16:42
Speaker 3: last thing I'm looking for is foot traffic, right, which
16:48
Speaker 3: is one of this is the most important thing. You
16:49
Speaker 3: want to see. How many employees they got, how many
16:52
Speaker 3: people are visiting this place, how many people are in
16:54
Speaker 3: and out coming past this machine?
16:56
Speaker 4: Yeah, one of the things you said, And as you
16:58
Speaker 4: said it, I was like, wow, that's brilliant. Places that
17:00
Speaker 4: have ideal time where people are just waiting. So I
17:02
Speaker 4: would say a hospital, but when you just set laundry mat,
17:05
Speaker 4: I'm thinking like, oh my gosh, yeah, like people are
17:08
Speaker 4: sitting in there all day watching machines.
17:10
Speaker 2: Though, no, laundry mats are big. Schools are big, Recreation
17:14
Speaker 2: centers are big, Hospitals are big.
17:17
Speaker 3: I'm thinking that's a number one.
17:19
Speaker 2: Office buildings are big. Dorms dorms, college dorms. College dorms
17:24
Speaker 2: are big. Yeah, yeah, yeah.
17:28
Speaker 3: And give give an example is Temple. We have a
17:32
Speaker 3: Temple dorm. God was doing business with that location does
17:37
Speaker 3: around thirty five hundred?
17:38
Speaker 2: My mom, how many machines? How many machines?
17:40
Speaker 3: Who machines? You know what I mean? Cos kids don't
17:43
Speaker 3: have a lot of money, and they don't have transportation.
17:46
Speaker 2: So if you put the vend machine and that's that's you,
17:47
Speaker 2: that's your machines.
17:49
Speaker 3: These to those two are mind it's the guy. Actually,
17:51
Speaker 3: I know we were talking a little camera. So another guy,
17:53
Speaker 3: one of my first my first mentee, I helped him
17:55
Speaker 3: find a spot and that was the spot that we got.
17:57
Speaker 2: Yeah, thirty five hundred. That's that's the bread.
18:00
Speaker 3: Two machines, two machines, thirty five And then on top
18:03
Speaker 3: of that, since that building is to build the way build,
18:05
Speaker 3: it could be more machines placed in there. And you said,
18:07
Speaker 3: there's a difference in what I mean.
18:09
Speaker 4: The older machines don't have something that's very important that
18:11
Speaker 4: you said, and that's the card readers, right, because now
18:14
Speaker 4: a lot of people don't have cash, but they do.
18:15
Speaker 3: Have cards to use. So what we do is we'll
18:18
Speaker 3: take the older machines and add upgrades. So we might
18:21
Speaker 3: change the door. We might use what we call like
18:24
Speaker 3: the lead lighting, so you know the little light strips.
18:26
Speaker 3: Put that in the door, makes it a little brighter. Yeah,
18:28
Speaker 3: and we can add to car readers, but we would
18:30
Speaker 3: just have to change what's in there. It's called the
18:32
Speaker 3: circuit board. Okay, expensive circuit board costs about two hundred dollars.
18:37
Speaker 3: Car readers are about four hundred, so you're looking at
18:39
Speaker 3: to use that as about additional six hundred dollars. But
18:42
Speaker 3: on the flip side, those usually increase yourselves by at
18:45
Speaker 3: least thirty forty percent. Like, so you know it's worth
18:48
Speaker 3: for actually getting those on there if you know you
18:51
Speaker 3: plan on doing it on a serious note.
18:53
Speaker 2: So, okay, so as far as installation, right, how do
18:57
Speaker 2: you know which products to put? So you just in
19:00
Speaker 2: a machine and you can put anything in the machine, correct,
19:02
Speaker 2: anything you want? How do you know what products do
19:06
Speaker 2: you do?
19:06
Speaker 3: Like?
19:07
Speaker 2: Okay, I like three those, so like how do you
19:10
Speaker 2: how do you know like which is a good product?
19:13
Speaker 3: That's asking the question because all right, So my first
19:16
Speaker 3: location that I got when I when I said it
19:18
Speaker 3: was only doing only a few a few dollars or
19:20
Speaker 3: whatever I was putting in there when I like, so
19:24
Speaker 3: what I like, I was talking to I'm walking through
19:26
Speaker 3: Sam's cub like okay, this is good, this is good.
19:29
Speaker 3: But after a while I was like, no, you you
19:31
Speaker 3: have to put in what they want. So what I
19:33
Speaker 3: like to do is in my first if it's an office,
19:35
Speaker 3: building and something like that. I'll use a newsletter and
19:38
Speaker 3: outside the newsletter introducing my services, and I'll give them
19:40
Speaker 3: an opportunity to put to tell me what they want
19:42
Speaker 3: in the machine. That's like step one. Other than that,
19:45
Speaker 3: it really comes down to demographics like this, certain certain demographics,
19:51
Speaker 3: certain in the certain groups of people like like like
19:55
Speaker 3: certain things. So from my experience, I know if I'm
19:57
Speaker 3: dealing with a mostly like Carcasian, they tend to like
20:00
Speaker 3: more of like the plane chips and like it, like
20:06
Speaker 3: for the plain tips, whereas though it might be more
20:09
Speaker 3: like you know, the flavor fold barbecue type. Yeah. Man,
20:15
Speaker 3: it depends what you have, but it's it's definitely best
20:17
Speaker 3: to always let the people tell you what they want
20:19
Speaker 3: and the inventory you're actually going to get. Right. So,
20:21
Speaker 3: like you would go into these warehouses I go to,
20:25
Speaker 3: I go to Sam's Club, so I go to the
20:26
Speaker 3: most mostly shop at Sam's Club, but I do have
20:30
Speaker 3: a warehouse that I go to to get products. Now,
20:31
Speaker 3: the thing with sam Club is it's good if you're
20:34
Speaker 3: just doing it like small scale, but if you're buying
20:36
Speaker 3: like variety boxes and chips and whatnot, they're going to
20:39
Speaker 3: put a few they're going to put the good chips
20:41
Speaker 3: in there. Then they're going to put like a they
20:44
Speaker 3: always selection and that right, and that's the one that's
20:47
Speaker 3: not going to sell. So when you're doing that on
20:48
Speaker 3: a larger scale, you have to keep buying those boxes
20:50
Speaker 3: and boxes. It's like, well, that's not that's that's losing
20:53
Speaker 3: making me lose money. So when you get to a
20:55
Speaker 3: certain point, you could just cut that out and then
20:57
Speaker 3: if you go find a source, you have to find
20:59
Speaker 3: a So you could just get the straight fire products,
21:02
Speaker 3: but as you have to buy it in a larger quantity.
21:04
Speaker 3: So that box of Sam's Club comes in a box
21:07
Speaker 3: of thirty most of the time, whereas though if I
21:10
Speaker 3: buy that in the larger quantity, I got about sixty
21:12
Speaker 3: four box of sixty four all one selection, which is
21:15
Speaker 3: gonna cost you more money because now you have to
21:17
Speaker 3: put that that that variety box points is gonna take
21:20
Speaker 3: about four or five roads because it's different chips in
21:22
Speaker 3: there versus it just being one whole box and one
21:25
Speaker 3: product that's only one row a product. How often are
21:28
Speaker 3: you changing the machines weekly? Weekly, weekly? Yeah, So if
21:32
Speaker 3: I mean, if you're doing it more than more than
21:35
Speaker 3: once a week, you probably need a bigger machine. If
21:37
Speaker 3: you're if you're not doing it once a week, you
21:39
Speaker 3: probably need a smaller machine.
21:41
Speaker 2: And like, so, how do you know what to charge?
21:45
Speaker 2: Because you can charge anything. I just found that out.
21:47
Speaker 2: You can tuch anything.
21:48
Speaker 3: The prices, yeah, you set you set all your own prices.
21:50
Speaker 3: And once again, it just comes down to demographics. It
21:53
Speaker 3: comes down to the region, the area you actually you
21:55
Speaker 3: know working in. I know earners. What's up?
21:58
Speaker 4: You ever walk into a small business and everything just
22:01
Speaker 4: works like the checkout is fast, the receipts are digital,
22:04
Speaker 4: tipping is a breeze, and you're out the door before
22:07
Speaker 4: the line even builds odds are they're using Square. We
22:12
Speaker 4: love supporting businesses that run on Square because it just
22:14
Speaker 4: feels seamless. Whether it's a local coffee shop, a vendor
22:18
Speaker 4: at a pop up market, or even one of our
22:20
Speaker 4: merch partners, Square makes it easy for them to take payments,
22:24
Speaker 4: manage inventory, and run their business with confidence, all from
22:28
Speaker 4: one simple system. If you're a business owner or even
22:31
Speaker 4: just thinking about launching something soon, Square is hands down
22:35
Speaker 4: one of the best tools out there to help you start,
22:37
Speaker 4: run and grow. It's not just about payments, it's about
22:41
Speaker 4: giving you time back so you can focus on.
22:43
Speaker 3: What matters most ready.
22:45
Speaker 4: To see how Square can transform your business, visit Square
22:48
Speaker 4: dot com backslash go backslash eyl to learn more that
22:53
Speaker 4: Square dot Com backslash, go backslash eyl. Don't wait, don't hesitate.
22:59
Speaker 4: Let's Square handle the back end so you can keep
23:01
Speaker 4: pushing your vision forward. This episode is brought to you
23:07
Speaker 4: by P and C Bank. A lot of people think
23:09
Speaker 4: podcasts about work are boring, and sure they definitely can be,
23:14
Speaker 4: But understanding a professionals routine shows us how they achieve
23:17
Speaker 4: their success little by little, day after day. It's like
23:21
Speaker 4: banking with P and C Bank. It might seem boring
23:24
Speaker 4: to save, plan and make calculated decisions with your bank,
23:27
Speaker 4: but keeping your money boring is what helps you live
23:30
Speaker 4: a more happily fulfilled life. P and C Bank Brilliantly
23:34
Speaker 4: Boring since eighteen sixty five. Brilliantly Boring since eighteen sixty
23:39
Speaker 4: five is a service mark of the PNC Financial Service Group, Inc.
23:42
Speaker 4: P and C Bank National Association Member FDIC.
23:48
Speaker 1: You just realized your business needed to hire someone yesterday.
23:52
Speaker 1: How can you find amazing candidates fast? Easy? Just use
23:57
Speaker 1: indeed stop struggling to get your job posts seen on
24:00
Speaker 1: other job sites. With Indeed sponsored jobs, your post jumps
24:04
Speaker 1: to the top of the page for your relevant candidates,
24:07
Speaker 1: so you can reach the people you want faster. According
24:10
Speaker 1: to Indeed data, sponsored jobs posted directly on Indeed have
24:13
Speaker 1: forty five percent more applications than non sponsored jobs. Don't
24:17
Speaker 1: wait any longer. Speed up your hiring right now with Indeed,
24:22
Speaker 1: and listeners of this show will get a seventy five
24:24
Speaker 1: dollars sponsored job credit to get your jobs more visibility
24:27
Speaker 1: at indeed dot com slash pod Katz thirteen. Just go
24:33
Speaker 1: to Indeed dot com slash pod katz thirteen right now
24:38
Speaker 1: and support our show by saying you heard about Indeed
24:41
Speaker 1: on this podcast. Terms and conditions apply. Hiring Indeed is
24:45
Speaker 1: all you need.
24:46
Speaker 3: We're over here in New York. My candy bors are
24:49
Speaker 3: going to be about two dollars, Like what if I'm
24:51
Speaker 3: in Philly over there is going to be about one
24:52
Speaker 3: twenty five. But the main thing I'm looking at is
24:54
Speaker 3: I'm looking at my internal investment, like my RRI or
24:57
Speaker 3: r Yeah. So I'm like, if I'm spending X amount,
25:01
Speaker 3: I want at least double that. So at minimum I'm
25:06
Speaker 3: doubling when I'm paying for the products. But I'm actually well,
25:08
Speaker 3: I always try to reach like the triple. I try to,
25:11
Speaker 3: you know, get the three hundred percent mark what I'm
25:13
Speaker 3: actually paying back, what I'm actually paying for the product.
25:16
Speaker 3: So whatever I'm investing, I'm trying at least.
25:18
Speaker 2: If I buy a candy bar for a dollar, I
25:20
Speaker 2: need to I need to charge three dollars in the
25:22
Speaker 2: vending machine. Just using that as like an exact exam. Obvious,
25:24
Speaker 2: you're not gonna charge three dollars for candy bar.
25:26
Speaker 4: But saying they did that at my job, Like I
25:28
Speaker 4: went to the vendor machine in the sixty five cent
25:31
Speaker 4: bag of chips is now five dollars?
25:33
Speaker 2: Is it really five dollars? The picture I was like, no,
25:36
Speaker 2: this is a job impossible.
25:37
Speaker 3: I'm gonna say the picture it was ridiculous.
25:39
Speaker 2: I'm like, wait, impossible, I seen a picture.
25:42
Speaker 3: No, Joe, I'm like, this is ridiculous.
25:43
Speaker 2: What kind of tips are.
25:44
Speaker 3: The souths no sound chips? How big is the bag
25:48
Speaker 3: of ship? It's the sisty like the normal sixty five cent.
25:51
Speaker 2: Bag of ship. No, it's impossible.
25:52
Speaker 3: So it was like the two houns bag it's like
25:54
Speaker 3: zero point seven, so I will sending out the picture.
25:56
Speaker 2: Yeah, it's impossible us, that's crazy.
25:58
Speaker 3: But they do, you know, people do do that. I
26:00
Speaker 3: mean no, I never seen five dollars. I see. It's
26:02
Speaker 3: like the airport located like the airport or like the hotels,
26:07
Speaker 3: you could really charge more.
26:08
Speaker 2: For you vendom machines in the airport. That's that's where
26:11
Speaker 2: you make money. Airport prices is just ridiculous just because
26:14
Speaker 2: it's airport.
26:15
Speaker 4: Because now they got the vending machines that sell electronics.
26:19
Speaker 3: So that's that's another thing I wanted to touch on too,
26:21
Speaker 3: is like you could think outside the box and get creative.
26:24
Speaker 3: You could sell anything out of the machine. You can
26:26
Speaker 3: sell electronics. Uh. Somebody I found online was selling nick
26:30
Speaker 3: knacks out of them in the in the airport and
26:32
Speaker 3: she was making eight thousand dollars a year.
26:34
Speaker 2: What what what's a nick knack?
26:36
Speaker 3: So like the stuff that you know you might get
26:38
Speaker 3: while you're in that city or whatever. Like there was
26:40
Speaker 3: a little whatever.
26:41
Speaker 2: Like the little trunkeets and like little Welcome to l A,
26:44
Speaker 2: I Love New.
26:45
Speaker 3: York arms and stuff like that. And she had like
26:47
Speaker 3: bought up T shirts in there, like you know, making
26:49
Speaker 3: making good money, like just taking outside the box. I
26:52
Speaker 3: also see no one but you put two and trying
26:56
Speaker 3: to do it every time, right, Like, so it's just
26:58
Speaker 3: a lot of different things you could you could put
26:59
Speaker 3: in there if you like, get creative with it. What's
27:01
Speaker 3: the craziest one you've seen? Craziest one?
27:06
Speaker 2: You have one on your page when you buy and
27:08
Speaker 2: they have gold bars.
27:09
Speaker 3: Yeah. I haven't seen that one though, but yeah I've
27:11
Speaker 3: seen that. Yeah, yeah, yeah bar.
27:15
Speaker 2: You can buy go bars for pieces of gold.
27:18
Speaker 4: I don't know why you want to buy it, but
27:19
Speaker 4: you know that's just let's go to the machine and
27:22
Speaker 4: get some gold.
27:22
Speaker 3: Yeah, yeah, but you know, it's a lot. That's a
27:24
Speaker 3: lot of crazy ones out there. Man, I've seen something
27:26
Speaker 3: for you selling water. I've seen pizza is a piece
27:29
Speaker 3: of that. There was there was an article about that
27:30
Speaker 3: they're putting that on college campuses. But it makes the
27:32
Speaker 3: pizza in like ninety seconds or something. They had a
27:35
Speaker 3: planing d machine on college campus another college campus, and
27:40
Speaker 3: it's actually not for.
27:42
Speaker 2: Well, that's actually honestly, honestly contraception machine. No, that's not
27:47
Speaker 2: a bad idea. Now that's the contraception machines is not
27:49
Speaker 2: a bad idea. You have condoms, the used to put
27:50
Speaker 2: them in a bathroom.
27:51
Speaker 3: Remember you used to put a quarter and then you
27:54
Speaker 3: don't remember.
27:55
Speaker 2: No, I haven't seen it.
27:56
Speaker 3: It's a little like you put a quarter and you
27:57
Speaker 3: get a contraception.
27:59
Speaker 2: That wow, is that is that even legal?
28:04
Speaker 3: I know, I know they got them out there, like
28:06
Speaker 3: the like here weave and eyelashes, so.
28:09
Speaker 2: You know what what about medical marijuana? Marijuana period, that too.
28:13
Speaker 3: They got those out in California, they got the America.
28:15
Speaker 3: So I'm not exactly sure how those operate because you
28:18
Speaker 3: know that's that's regulated. So you need I D and whatnot.
28:21
Speaker 3: Security of that machine probably, yeah, that's a little different,
28:25
Speaker 3: but they do have dudes out there.
28:27
Speaker 4: What about vandalism, Like, if somebody destroys your machine, how
28:31
Speaker 4: does that you have.
28:31
Speaker 3: Insurance on it? Yeah, I haven't. I had that happen
28:34
Speaker 3: before once. But yeah, so basically, if somebody destroys it,
28:37
Speaker 3: messes up you just if you got insurance on it,
28:40
Speaker 3: then you cover. If not, you know, you can.
28:43
Speaker 4: Go through any insurance company. Got closed State Farm and
28:45
Speaker 4: then it's literally I'm not sure if it's any I
28:48
Speaker 4: know State.
28:48
Speaker 3: Farm it's one, but it's this regular, regular insurance companies covered.
28:53
Speaker 3: Is it prizy, No, it's not pricey at all.
28:55
Speaker 2: It's not you recommend always having that, I would reo.
28:57
Speaker 3: I would definitely recommend having insurance. But the thing is
28:59
Speaker 3: when you actually go through the process, but picking out
29:01
Speaker 3: a good location, if you're meeting the criteria, it's hard
29:04
Speaker 3: to do vandalism because if the machine is somewhere open
29:07
Speaker 3: and somewhere is you know, it's if it's in that
29:09
Speaker 3: And if a place is always you know, has long hours,
29:11
Speaker 3: most of some of their security, and mostly nine times
29:13
Speaker 3: out of ten that's that been the machine is somewhere
29:15
Speaker 3: near that security, like wherever it's sitting at in the
29:17
Speaker 3: lobby somewhere, So it's always gonna be somewhere where people
29:20
Speaker 3: where people see it. And like it's always if it's
29:21
Speaker 3: foot traffic, it's going to be. If it's good foot traffic,
29:23
Speaker 3: then people are always going to be around. So it's hard
29:25
Speaker 3: to vandalyize, you know, machines.
29:28
Speaker 2: With cameras like a school or community center.
29:31
Speaker 3: Min's minds happened more so when I had it in
29:34
Speaker 3: that hotel, were talking when that when it shut down,
29:38
Speaker 3: it was like when I went back there, it was over.
29:40
Speaker 2: What's the what's the life span of a machine?
29:43
Speaker 3: That's a great question. I mean I have some machines
29:45
Speaker 3: I haven't had any issues with like since I had
29:49
Speaker 3: and some of them you get it's just like problems.
29:51
Speaker 3: I have one machine in particular that's it's always giving
29:53
Speaker 3: me a problem. I actually switched it out recently with
29:55
Speaker 3: what type of problems?
29:56
Speaker 4: Like the mechanical doesn't dispense the merchandise?
29:59
Speaker 3: No, So in the machine really is only about it's
30:02
Speaker 3: about three parts. You got your your bill accepted. A
30:05
Speaker 3: lot of people think like, oh what about that's that's
30:07
Speaker 3: one of the questions. I get a lot too. What
30:08
Speaker 3: about the cost of maintenance? I don't really Mainly the
30:10
Speaker 3: cost of maintenance isn't high at all, Like it's really
30:12
Speaker 3: like it's rare that something goes wrong with those machines.
30:15
Speaker 3: But you got your bill acceptor your coin mechanism, which
30:19
Speaker 3: is where you put the coins in, and then you
30:21
Speaker 3: have your your board. So your board is like the
30:24
Speaker 3: thing everything is connected to the press east four No,
30:27
Speaker 3: but yeah, basically but that that runs to a little
30:30
Speaker 3: board that's inside of the machine, right, And those are
30:33
Speaker 3: the main three parts that the coils and stuff don't
30:35
Speaker 3: really that. Those are run by little motors, but those
30:37
Speaker 3: don't really go bad. Those are typically okay with the
30:40
Speaker 3: with the the thing that gets the most used is
30:43
Speaker 3: the bill accepted because people are always putting the bills
30:45
Speaker 3: in there or whatever. I probably switched that out probably
30:49
Speaker 3: every like maybe like two years or something. But if
30:52
Speaker 3: you're if you're taking care of the right way, you're
30:53
Speaker 3: gonna have to do that. I'm bad at that part,
30:56
Speaker 3: but you know you could have. You could order a
30:58
Speaker 3: thing off Amazon. It's like a little sticky It looks
31:01
Speaker 3: like a sticky card. You put it in there and
31:03
Speaker 3: then pull it out and it pulls all the dirt
31:05
Speaker 3: and stuff out of the the bulletcept that which helps
31:08
Speaker 3: it keeps it clean because what's in there is it's
31:10
Speaker 3: a reader. So once that reader gets to like dirty
31:14
Speaker 3: or too like you know, beat up, it doesn't work anymore.
31:17
Speaker 2: So how do you all?
31:18
Speaker 3: Right?
31:18
Speaker 2: So the money you collect just you know you're going
31:20
Speaker 2: in But like the credit card, how that gets goals
31:23
Speaker 2: that in that process and that goes like directly to
31:25
Speaker 2: like a PayPal.
31:26
Speaker 3: Account, it goes directly to the bank account. The bank account,
31:29
Speaker 3: so every time somebody uses goes right, in, but it
31:31
Speaker 3: goes it doesn't go right in, it goes to that
31:34
Speaker 3: that service, It goes to that provider's account. Then they
31:38
Speaker 3: have a payout and then they pay similar to what
31:40
Speaker 3: you would us like what I can shopify.
31:41
Speaker 2: Yeah, like shoot.
31:43
Speaker 3: Your payout date and then on those days you get
31:45
Speaker 3: paid out for whatever card reader selves that you had.
31:48
Speaker 4: What about the process of buying and selling routes, I
31:50
Speaker 4: know sometimes you said that if there is a slow time,
31:53
Speaker 4: you might want to sell that machine or.
31:55
Speaker 3: Sell that route, and talk about that little bit. Yeah,
31:58
Speaker 3: So I mean in the business, you know, obviously the
32:00
Speaker 3: the bulk of your money is going to come from
32:02
Speaker 3: you selling products out of your machine, but it's also
32:05
Speaker 3: other ways to make money once you get going, of
32:08
Speaker 3: which one of the best ways is, like you just said,
32:10
Speaker 3: buying and selling routes. So I might like for the
32:14
Speaker 3: perfect the perfect scenario or the best scenario I had
32:15
Speaker 3: with buying buying a route and selling it was I
32:19
Speaker 3: brought a route for thirty five hundred. Now, originally the
32:22
Speaker 3: guy was trying to charge me like seven thousand Ford
32:24
Speaker 3: or something like that. I was like, no, I'm okay,
32:26
Speaker 3: I'm not even really That's what I'm not really looking
32:28
Speaker 3: for anything. But you know, he couldn't sell it. So
32:31
Speaker 3: he came back to me. He was like, you know,
32:33
Speaker 3: I still got this route. I'll give it to you
32:34
Speaker 3: for thirty five. And I'm like, okay, So I'm looking
32:37
Speaker 3: at it. It's six it's six Vendom machines, and it's
32:40
Speaker 3: three locations. So I'm like, man's that's that's like a giveaway.
32:44
Speaker 3: I'm like, okay, I'll take it for thirty five. So
32:47
Speaker 3: I brought it. I checked out the locations. Two of
32:50
Speaker 3: the locations I didn't I didn't like, so I'm like, okay,
32:52
Speaker 3: this location is bad, but it was good machines in there.
32:56
Speaker 3: The other location was bad. One location was good. So
33:00
Speaker 3: what I did was I kept a good location and
33:02
Speaker 3: I sold the other two locations for thirty five apiece.
33:06
Speaker 3: So I ended up making a profit of seven thousand
33:09
Speaker 3: off of that situation. So that's just another way to
33:12
Speaker 3: make money on the back. And so if you're into
33:14
Speaker 3: buying routes, like you could just buy a route out
33:17
Speaker 3: maybe set you could you could keep the machines, you know,
33:20
Speaker 3: sell the machines, or you could just try to sell
33:22
Speaker 3: the machine on location, which is easier to sell them
33:24
Speaker 3: if they already placed like that that takes work off
33:26
Speaker 3: of the next man.
33:27
Speaker 2: Is the any way to get a machine for free,
33:29
Speaker 2: like financing or pay it back on the back end
33:32
Speaker 2: through money that you make and future or no.
33:35
Speaker 3: It's a great question. So you can rent machines from
33:39
Speaker 3: the same type of people that I talked about before,
33:42
Speaker 3: as far as like with the if you're going through
33:44
Speaker 3: a vending warehouse, they do allow you to rent machines.
33:46
Speaker 3: Sometimes if you look online you can find some people
33:48
Speaker 3: that rent machines as well. I don't really suggest doing
33:50
Speaker 3: it because it gives you like an overhead you know
33:53
Speaker 3: where you know, if that's your way in and that's
33:55
Speaker 3: your way you know what I'm saying. But you could
33:57
Speaker 3: also once once you get to a certain point in
34:02
Speaker 3: the business, like like I mentioned before with Coca Cola
34:05
Speaker 3: and Pepsi with one of the one of the programs
34:07
Speaker 3: that they have is once you buy a certain amount
34:09
Speaker 3: of their product, they give you machines, but it has
34:11
Speaker 3: to be on a contract.
34:13
Speaker 2: So can you say, like buy their products, like.
34:15
Speaker 3: You're putting their sodas in your machine.
34:16
Speaker 2: So they got like ten thousand dollars worth of coke.
34:19
Speaker 3: It's not ten thousand dollars, but it's like it's definitely
34:22
Speaker 3: a good amount, and you have to buy. You have
34:24
Speaker 3: to you're committed to buying that amount at least at
34:27
Speaker 3: minimum every month. But they'll give you the Vendom machine
34:30
Speaker 3: for free because obviously it's helping them, it's helping you
34:33
Speaker 3: move that product, you know. But that's the way to
34:35
Speaker 3: get through your Vendom machines too, But that's not We
34:36
Speaker 3: probably won't do that until, like you know, later down.
34:39
Speaker 4: About the contracts. What are the typical links of the contract?
34:42
Speaker 3: Is it like six months of the year about two years?
34:44
Speaker 3: I do two years two year contract, yeah, two two
34:46
Speaker 3: year increments.
34:47
Speaker 2: So all right, well that was a lot of information
34:50
Speaker 2: for sure. So in the next second, we're gonna bring
34:53
Speaker 2: you home, all right, so we're gonna close it out.
34:56
Speaker 2: But before I got I got a few questions. So
34:59
Speaker 2: all right, it's in schools with kids and stuff like that.
35:02
Speaker 2: What's your thoughts on because it's childhood. PCD is a
35:05
Speaker 2: big thing, So what's your thoughts on like junk food
35:11
Speaker 2: because you can have healthy stuff in there as well,
35:13
Speaker 2: obviously not as popular. Do you ever think about that?
35:17
Speaker 3: Or yeah, that's something that actually comes up a lot
35:19
Speaker 3: of times in the meetings when I'm talking to like
35:22
Speaker 3: the potential locations, so they you know, they always want
35:26
Speaker 3: the healthy selections, which I'm big on healthy selections anyway.
35:29
Speaker 3: Definitely want to give people a choice. So I like
35:31
Speaker 3: to put half traditional and then I put half healthy.
35:36
Speaker 3: I tried the whole healthy thing one and go that well,
35:41
Speaker 3: So I definitely do. I do, like like some of
35:43
Speaker 3: my most of the time of vendom machine will have
35:45
Speaker 3: multiple roles of like two roaster chips, two roaster snacks,
35:49
Speaker 3: and then you got your candy roll or whatever. So
35:51
Speaker 3: on my top one, I'll make half of that like
35:54
Speaker 3: big or.
35:55
Speaker 2: Something like you know, like a power bar something like that.
35:57
Speaker 3: Not not not for the chips, but like this like
35:59
Speaker 3: something big. And then once we get to like the snack,
36:04
Speaker 3: when the candy road, I'll just make sure it's like
36:07
Speaker 3: some healthy stuff like trail mix or be like a
36:10
Speaker 3: power bar, so it is something something that's you know,
36:12
Speaker 3: it'd be good for something somebody grab quick that's still
36:16
Speaker 3: healthy for you.
36:16
Speaker 4: And depending on where you're at right like that, you
36:18
Speaker 4: have to take that into account as far as inventory,
36:20
Speaker 4: because like you said, Philly got the sugar tacks, right,
36:23
Speaker 4: so when buying stuff.
36:24
Speaker 3: You got to take that into account. So and we
36:26
Speaker 3: also have also have an old people's home, so you
36:29
Speaker 3: know in there, I can't put a lot of sugar stuff.
36:30
Speaker 3: So it really just depends on where you're putting that
36:32
Speaker 3: machine at. But it definitely, it definitely always comes up
36:35
Speaker 3: in the conversation when you're placing the machine. Is having
36:37
Speaker 3: healthy selections. Everybody, everybody wants healthy selections. And I think
36:41
Speaker 3: that's more so a big wave.
36:42
Speaker 2: Now, yeah, in the direction.
36:44
Speaker 3: That we're doing as a as a you know country
36:46
Speaker 3: as a country is getting more healthy stuff out there.
36:49
Speaker 4: So you know, yeah, you are the food source for
36:52
Speaker 4: a lot of us, Like we don't have a lot
36:54
Speaker 4: of us don't have time to go out for lunch.
36:55
Speaker 3: It's like, let me just add something quick, right, and
36:57
Speaker 3: you want to make sure they get out the choice
36:58
Speaker 3: to get something healthy having to get something you know
37:01
Speaker 3: it's not good for you.
37:02
Speaker 2: So like ramen noodles and stuff like that. I've seen
37:05
Speaker 2: that in there. I had those in there, So like
37:09
Speaker 2: what's the what's what's your sweet spot? Like kind of
37:11
Speaker 2: you said you don't like perishable goods for obvious reasons.
37:14
Speaker 2: Because they expire, just can't they expire?
37:19
Speaker 3: Yes, it has an aspersion. It's a long one though, yeah,
37:21
Speaker 3: a long like a long time, all right, It takes
37:23
Speaker 3: a while, but it really it depends on the conditions,
37:25
Speaker 3: like your temperature and all that. So if you in
37:27
Speaker 3: the summertime, snickers bar in the sun ain't gonna last,
37:30
Speaker 3: you know, because it once it once, it resets most
37:33
Speaker 3: of the time when it resets into being like the
37:34
Speaker 3: regular form. So it's like like not really molded, but
37:38
Speaker 3: it's just like this colored and it doesn't look at
37:40
Speaker 3: peeling for people to eat. They're not gonna eat it.
37:42
Speaker 2: So you try to have your but it's always inside though, right,
37:45
Speaker 2: like air conditioned more.
37:47
Speaker 3: But I'm also talking about like storage, so where you're
37:49
Speaker 3: storing your too.
37:51
Speaker 2: I never thought about that. You gotta store? Do you
37:53
Speaker 2: store it or do you just do you just buy
37:55
Speaker 2: it as you go?
37:57
Speaker 3: I stored, but when I first started out with binding
38:00
Speaker 3: as I go, So your your liver was full of boxes,
38:03
Speaker 3: you know. So I got a Halloween I gotta spot
38:06
Speaker 3: my career wild like something similarly like this area here,
38:08
Speaker 3: but like a little smaller. That whole area was filled
38:10
Speaker 3: with snatch. Ok. But you know, if you buy it
38:13
Speaker 3: that you go, it's a little easier, but once you
38:15
Speaker 3: get it down to a science. So the thing about
38:17
Speaker 3: buying that you go with you gotta take trips to
38:18
Speaker 3: the store every week. Like so you really want to
38:21
Speaker 3: figure out how much you need, so you could just
38:22
Speaker 3: buy your month's worth and then have it just sitting
38:25
Speaker 3: over there in the corner. So all you gotta do
38:26
Speaker 3: is grab the stuff and go fill up the machine
38:28
Speaker 3: versus multip making multiple trips.
38:31
Speaker 4: So a full time day is like, all right, I'm
38:32
Speaker 4: gonna schedule. I'm gonna go to this location to refill,
38:36
Speaker 4: this location to refill.
38:37
Speaker 2: Yeah.
38:38
Speaker 3: So it's like all right, so I'll do my day
38:39
Speaker 3: before our prep full up, all full up, all my
38:43
Speaker 3: my bens. I have bens that I carry the products
38:44
Speaker 3: in full up, all my bens. Pick the spots. I'm
38:48
Speaker 3: going to just knock the spots down one bout one,
38:51
Speaker 3: but I do. I'll pack everything the night before. That's
38:54
Speaker 3: the one man show yourself.
38:55
Speaker 2: Yeah wow, So I saw you saying like it's far
39:00
Speaker 2: the numbers on it, so it's like I think it's
39:03
Speaker 2: like under six locations. Is it's well under six machines?
39:07
Speaker 3: Let me see if I have it's run down someone
39:09
Speaker 3: like passive.
39:09
Speaker 2: Passive and Dan, yeah, can you explain that?
39:12
Speaker 3: Like the numbers, so it really now honestly it depends
39:14
Speaker 3: on your location obviously, but we're talking about this standard average.
39:18
Speaker 3: Like if you have around six machines, that's kind of
39:20
Speaker 3: still passive, Like that's not gonna take up too much
39:22
Speaker 3: of your time, and you know, you can still get
39:25
Speaker 3: whatever done. Once you get to like around like ten machines,
39:29
Speaker 3: you more so like on like a part time type
39:32
Speaker 3: of thing, like if you was working part time, because
39:33
Speaker 3: it's gonna take up a little more time as far
39:35
Speaker 3: as you keeping up with your products and you go
39:37
Speaker 3: into your spots depending on how far your spots are.
39:40
Speaker 3: Once you get past like fifteen, that's more like a uh,
39:44
Speaker 3: you know, once you get like fifteen twenty.
39:46
Speaker 2: It's like a real business full time situation.
39:49
Speaker 3: And now you're now you're doing that full time like
39:51
Speaker 3: you're making you should be if you're doing the right
39:52
Speaker 3: you should be making good money. But that's gonna take
39:54
Speaker 3: up a lot of your time.
39:55
Speaker 2: So if you have twenty, if you have twenty machines,
39:57
Speaker 2: theoretically you should be making like fifteen thousand around that
40:02
Speaker 2: at least at least twenty on the good.
40:03
Speaker 3: End, at least fifteen at minimum. At minimum, you should
40:06
Speaker 3: at least be doing like ten even if you don't
40:07
Speaker 3: have good location, like you should.
40:09
Speaker 2: Least ten a months right right now. The thing about
40:12
Speaker 2: the Vendom machine thing is just an interesting situation because
40:15
Speaker 2: it's one of these things where I always say, it's
40:18
Speaker 2: never about home runs. It's never about home runs in life.
40:21
Speaker 2: It's about base hits. Like if you play baseball, you
40:23
Speaker 2: gotta get base hits consistently. And the Venom machine thing
40:26
Speaker 2: is like a base hit Like even if you got
40:28
Speaker 2: you know, a couple going and you're getting two thousand,
40:31
Speaker 2: like that's that's two thousand, like you know what I'm saying,
40:34
Speaker 2: three thousand whatever. It's like, Now, that takes pressure off
40:36
Speaker 2: of you. That's a nice passive stream of income. You
40:40
Speaker 2: build that up, you know, however large you wanted to grow.
40:44
Speaker 2: But it's one of these things that's extremely practical. Everybody
40:48
Speaker 2: has seen vendom machines or use it or used it.
40:51
Speaker 2: It's not rocket science, and it's not really that difficult
40:56
Speaker 2: as far as to understand that. The general idea of it.
40:58
Speaker 4: Ma people thinking in mind like somebody spent the dollars.
41:01
Speaker 4: Somebody spent the dollar twenty five. It's not a lot
41:02
Speaker 4: of money, but enough dollars make sense now.
41:04
Speaker 2: You know, it's not even about that. A lot of
41:05
Speaker 2: times we just mentally priced off, We just mentally psyche
41:07
Speaker 2: ourselves out of everything. So it's like you see a
41:09
Speaker 2: vander machine every single day. How many people have ever
41:11
Speaker 2: thought about owning a vending machine? But I've never thought
41:14
Speaker 2: about it. You see it? Why not somebody owns it?
41:16
Speaker 3: You're getting killed every summer.
41:18
Speaker 2: Somebody owns it. Like you know what I'm saying, Like
41:20
Speaker 2: why not? Yeah?
41:21
Speaker 3: And I think a lot of people shot away from
41:22
Speaker 3: it too, Like even when they think about that idea
41:24
Speaker 3: is like they're scared of like the maintenance that we think, Okay,
41:27
Speaker 3: well I don't know how to fix it. But you know,
41:29
Speaker 3: at the end of the day, you it's not it's
41:32
Speaker 3: not too complicated. But for any business, you're gonna have
41:34
Speaker 3: hurt us where you have to figure stuff out. It's
41:36
Speaker 3: no different than that. Like, so once you once you
41:38
Speaker 3: get it going and you run into an issue, of
41:40
Speaker 3: course you have to. I mean, YouTube is your friend.
41:43
Speaker 3: You probably to find a solution on YouTube. If not,
41:45
Speaker 3: find a resource to call in and just watch what
41:47
Speaker 3: they do, you know, and most of the time, you know,
41:49
Speaker 3: that's that's how I how to fix it.
41:51
Speaker 2: Yeah, they're like, I'm going to ask you that, like
41:52
Speaker 2: do you fix yourself if you hire like mechanics that
41:55
Speaker 2: specialize in the machine.
41:56
Speaker 3: So for the most part, I fix it myself. The
41:58
Speaker 3: only thing I really I can't fix is the refrigeration
42:01
Speaker 3: units is called the compressors. So the compressors are a
42:03
Speaker 3: little more complicated. I don't know how to fix those yet.
42:06
Speaker 3: But like the builds sceptors and the coin mechanisms and
42:09
Speaker 3: like that, that type of stuff, I can fix those
42:10
Speaker 3: because it's like it's just a common thing. And that's
42:13
Speaker 3: most of the time now times attempt that's what you're
42:15
Speaker 3: gonna be dealing with. If something goes wrong. Most of
42:17
Speaker 3: the time, it's just like a dollar got stuck, or
42:19
Speaker 3: maybe your your bill accepted one't bad, it's just screw
42:22
Speaker 3: it out, put a new one in, screw it back in,
42:25
Speaker 3: like that type of thing.
42:26
Speaker 2: What's the best what's the best item invented machine history?
42:32
Speaker 2: Peanut eminems for.
42:34
Speaker 3: Snacks, for drinks, pepsi and pepsi cells like like nothing else, whatever,
42:43
Speaker 3: whatever you sell them on everything else. Pepsi is gonna
42:45
Speaker 3: sell dub pepsi selves more than coke pepsi something wasn't anything.
42:49
Speaker 3: Pepsi really everywhere, like everybody I know would do.
42:52
Speaker 2: It more than water.
42:53
Speaker 3: Yeah, your largest profile, you know item is water, though you.
42:57
Speaker 2: Make the most water for water.
42:58
Speaker 3: Yeah, but pepsi sells like nothing else. Peanut eminem so real.
43:01
Speaker 2: Well to what's what's your favorite?
43:03
Speaker 3: My favorite Skittles, starbirds and Peter Eminem's.
43:07
Speaker 2: You know, I don't even know if I even had
43:09
Speaker 2: Peanut Eminem.
43:09
Speaker 3: I don't like him personally, and that's and that's what
43:11
Speaker 3: kind of messed me up the first time. I was like,
43:13
Speaker 3: these ain't good. But when I was stocking, the combination
43:15
Speaker 3: of the pepsi and the peanut M and.
43:17
Speaker 2: M but but but crunch, butter crunch cookie sign you
43:21
Speaker 2: got the machine though it should be. Those are smack
43:24
Speaker 2: pay day Payday candy bars.
43:25
Speaker 3: That's a that's a niche thing.
43:27
Speaker 2: And oil and vinegar chips.
43:29
Speaker 3: That's another niche chip.
43:31
Speaker 4: That's that's the tip that gets.
43:36
Speaker 2: Niche oil because elite that's the lea.
43:38
Speaker 3: That's the lea red bag of doritos. Yeah, that's going
43:43
Speaker 3: those are moving the black popcorn chip back. That's another item.
43:47
Speaker 2: The cooler ranch playing cooler ranch.
43:49
Speaker 3: Playing not really lays. People like well, and where I'm at,
43:52
Speaker 3: people like the hers like playing hers, those playing ships
43:58
Speaker 3: Doritos press also pressure pressures are depending where they at.
44:03
Speaker 3: But the do rito's, the pena Eminem's, Pepsi, that's selling
44:07
Speaker 3: no matter, no matter I call those like staple items,
44:10
Speaker 3: like those items will be in the machine no matter
44:12
Speaker 3: which I see.
44:13
Speaker 4: Sometimes they'll put like the Eminem's in one row and
44:16
Speaker 4: then like put them at the next row too, just.
44:18
Speaker 3: Because because they sell, like because if you don't do that,
44:21
Speaker 3: you're gonna run out, like so that that's gonna run
44:23
Speaker 3: out before. It's like a pepsi and most of the
44:24
Speaker 3: time you have two rows of pepsi. And because just
44:27
Speaker 3: because it's going to sell faster than anything that you
44:29
Speaker 3: have to come back once it sells out, right, you
44:31
Speaker 3: might even have to come back. It's just going to
44:33
Speaker 3: sell out, and then you'll be you could be losing
44:35
Speaker 3: out the money. If that person only came to that machine,
44:37
Speaker 3: they can get some pena eminem's. They like, I don't
44:39
Speaker 3: want nothing in the type of thing.
44:40
Speaker 4: Are you moving into other things to put in the
44:43
Speaker 4: venting machine, like it is there other items that you
44:45
Speaker 4: see in the future, like you know what, I might
44:47
Speaker 4: want to go that route.
44:48
Speaker 3: No, I like, I like keeping it traditional. But I
44:50
Speaker 3: do see, you know, I'll see a lot of things,
44:52
Speaker 3: you know. I see people coming up with that's real creative.
44:55
Speaker 3: I see some celebrities coming out with different ideas. I
44:57
Speaker 3: know Calie Jenner, this launched like a in the machine
45:00
Speaker 3: with one of them had yeah, the other one had
45:03
Speaker 3: like a or makeup line, which I know is big.
45:06
Speaker 2: That's not a bad idea either makeup little stuff like
45:08
Speaker 2: that like chapstick and things like that where it's like
45:10
Speaker 2: you want to run. That's not a bad idea. But yeah,
45:12
Speaker 2: you're never gonna lose with beverages, especially beverages. People always
45:16
Speaker 2: drink stuff candy. It's kind of like it's like a
45:19
Speaker 2: no brainer.
45:20
Speaker 3: In the words of Mike, I'm addicted to candy. They
45:23
Speaker 3: always gonna be in business with them. My graduates from
45:27
Speaker 3: my school being force back drop.
45:30
Speaker 2: Bag Drop, Mike, drop back drop drop.
45:44
Speaker 3: Behind the delivery trucks that keep your life stocked.
45:47
Speaker 1: Thousands of employees at BP go to work every day.
45:50
Speaker 3: People bringing a new offshore production platform online.
45:53
Speaker 4: People making our refineries capable of more like making renewable
45:57
Speaker 4: diesel from agricultural waste. People trading and shipping fuels to
46:00
Speaker 4: our customers, and people helping truckers fill up and get
46:04
Speaker 4: maintenance at our convenient locations.
46:06
Speaker 2: They're part of almost three hundred.
46:08
Speaker 3: Thousand jobs VP supports across the country.
46:11
Speaker 2: Learn more ATVP dot com.
46:12
Speaker 1: Slash Investing in America