102: How To Start An AI-Driven Vending Machine Business For $700
Why did sales 3x when Mike Hoffmann swapped out an old-style vending machine with an AI-driven vending machine? It’s just one of the insights he reveals about what you need to know today to start and profit from vending machines.
Why did sales rocket 3x when today’s guest swapped out an old-style vending machine with an AI-driven vending machine?
It’s just one of the insights Mike Hoffmann reveals about what you need to know to start and scale a profitable vending machine side hustle in today’s economy.
He’s grown his business from a single vending machine, to now having over 40.
In today’s episode you’ll discover;
- the hallmarks of a profitable location so you know what to look for,
- tips on pitching a location’s property manager or owner,
- Mike’s insights on buying a machine: new vs used,
- where to buy product and what to stock in your machines, and
- recent AI-driven developments that are now disrupting the vending machine industry!
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Need a little (and sometimes big) push to start and stay focused to grow your side hustle? Dive into my online Masterclass: How To Turn Your Thoughts Into Wanted Things.
What You’ll Hear:
03:08 Warren Buffet’s first income stream was from a vending machine
03:46 Mike’s first machine is still cash flowing a profit of about $600 per month
05:54 today he has over 40 vending machines
06:48 there is a trend to more healthy options
07:10 bestsellers include Celsius energy drink, Gatorade Zero, Prime, Liquid Death, protein chips
08:05 what you stock is going to depend on the machine’s location
08:40 AI camera type machines are trending now
10:24 cost of a “smart” vending machine runs about $5-$7,000 USD
10:56 first step for getting into this business - how to find a location
11:34 tips for pitching the property manager or owner
14:23 it’s not wise to say yes to just any location in placing your machine
15:37 lease vs month to month
17:00 be sure you have a clause where you can pull the machine out if it’s not sufficiently profitable
18:12 steps you go through from idea, to machine on location and being stocked
18:55 new vs. used machine - Mike’s big mistake
21:10 Mike finances his new machines over 60 months and has them paid off in 9 months from profits
22:30 main players in the space: Micromart, Cantaloupe, 365 Retail Markets
23:10 costs involved to get set up and running
24:41 with AI cameras there is no scanning or punching in codes
25:03 revenues climbed from $35/day to $120/day when machine was switched up to a smart machine
27:46 how the industry is currently going through a major disruption…it’s all about the data
30:20 drinks have the best markup
31:22 stores like Costco are a good place to start buying your products to stock a machine
33:35 what a newbie often overlooks
34:50 do a promo to generate awareness of your new machine
36:13 how to deal with a saturated market
38:22 there are even Lego vending machines!
41:01 biggest challenge for someone getting into this business
46:45 consider your exit strategy - you’re building up assets
48:39 Mike’s best tip to start and grow your side hustle
Wrap Up
49:41 don’t be discouraged if it takes time to find your first location
50:30 Reticular Activating System (RAS) will cause you to start noticing more and more vending machines
Connect with Mike:
Vendingpreneurs website
Connect with Joan:
Be on the show!
Tell us about your side hustle success story!
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