How To Make an Extra $5000/MONTH With Vending Machines

Summary

In this informative video, Don Lama shares his expertise on starting a successful vending machine business in 2024. He outlines the importance of structuring your business with an LLC, business phone, email, and bank account. Lama emphasizes finding the right locations with seclusion, high foot traffic, and long operating hours. He provides tips on pitching to potential hosts, leveraging social media, and negotiating smartly when buying vending machines. He also advises on the types of machines to buy, the importance of testing them, and using card readers for inventory and sales tracking. Lama's guidance is aimed at helping viewers avoid common pitfalls and set up a profitable vending machine business.

Takeaways

• 😀 Starting a vending machine business can provide a significant additional income stream, ranging from $1,000 to $55,000 per month.
• 🏢 It's essential to structure your business with an LLC, business phone number, email, address, domain, and bank account for credibility and potential funding.
• 📞 For a business phone number, consider services like Ring Central, Google Voice, or Freedom Voice.
• 💻 Use Google Workspace for a professional business email to replace generic email addresses like '[email protected]'.
• 📫 A business address is crucial for privacy and professionalism, and can be obtained from services like iPostal, Regus, or Alliance TimeMailBox.
• 🏦 Opening a business bank account with an existing bank can simplify financial management for the vending machine business.
• 🌐 A business domain and website, obtainable through platforms like Wix, Squarespace, or GoDaddy, are key to appearing professional online.
• 📝 Registering for an LLC and obtaining an EIN number through services like Incfile, Taylor Brands, or LegalZoom is a foundational step for the business.
• 📍 Finding a good vending machine location is critical, looking for seclusion (minimal competition), high foot traffic, and long operating hours.
• 🗣️ When pitching to place a vending machine, offer the machine for free, handle service and repairs, and negotiate without paying commission initially.
• 🔍 Utilize 'driving for dollars', social media, and online marketplaces like Facebook Marketplace for finding and securing vending machine locations.

Q & A

What is the recommended business structure for starting a vending machine business?

The recommended business structure is to form an LLC (Limited Liability Company) to provide legal protection and potentially allow for easier funding in the future.

Why is it important to have a business phone number, email, address, domain, and bank account for a vending machine business?

These elements are crucial for establishing a professional image and separating personal from business operations, which can be beneficial for tax purposes, credibility, and securing funding.

What are some platforms to get a business phone number?

Ring Central, Google Voice, and Freedom Voice are platforms where you can obtain a business phone number.

How does the speaker suggest obtaining a professional business email?

The speaker suggests using Google Workspace to obtain a professional email that does not end with a generic service like 'gmail.com'.

What are some sources for obtaining a business address?

Sources for a business address include iPostal, Alliance, and Anytime Mailbox. It's important to get a virtual office, not just a mailbox.

Why is it advised to have a business bank account separate from personal accounts?

A separate business bank account helps in managing business finances, building a financial history for the business, and is a requirement for many banking services.

What are the key factors to consider when looking for a vending machine location?

The key factors are seclusion (minimal competition), customer loyalty, foot traffic, and long operating hours of the location.

What is the strategy suggested for pitching a vending machine to a potential location?

The strategy involves offering a free vending machine with the promise of filling up, servicing, and repairing it, and using a trial period if necessary to demonstrate its value.

What is 'Driving for Dollars' and how does it help in finding vending machine locations?

'Driving for Dollars' is a method where you physically visit different locations to assess if they meet the criteria for a good vending machine location, such as seclusion, foot traffic, and operating hours.

How can social media platforms be utilized to find vending machine locations?

Social media can be used to advertise the vending machine business, offering incentives for leads or referrals, which can result in people suggesting or providing locations.

What is the importance of word of mouth in finding vending machine locations?

Word of mouth is crucial as it can open doors to locations that may not be accessible through traditional methods, leveraging personal networks and community connections.

What should be the approach when buying a vending machine from a location?

When buying a vending machine from a location, ensure the machine is already operational, evaluate why the seller is parting with a potentially profitable asset, and negotiate a smart deal based on the machine's performance and cost.

How does the speaker recommend testing vending machines before purchase?

The speaker recommends testing every coil and function of the vending machine with actual coins to ensure it works properly before making a purchase.

What are the recommended types of vending machines to buy and which to avoid?

The speaker recommends Automatic Products (AP) and USI vending machines for snacks, and Dixie Narco Royal for drinks. Sega machines and combo machines with two doors are advised against.

What is the importance of ensuring a vending machine is MDB compatible?

MDB compatibility is crucial as it allows for the use of credit card readers, which can increase sales by accommodating customers who prefer cashless transactions.

What are the roles and benefits of using a card reader in vending machines?

Card readers track sales and inventory, enabling precise restocking (preting or pre-kitting) and potentially increasing sales due to cashless transactions.

How should maintenance costs for vending machines be handled?

Maintenance costs are typically minimal and involve replacing parts like coin mechs or bill validators, which are usually straightforward and affordable.

What is the advice given for dealing with location commission requests?

If a location requests commission, the advice is to position yourself as a service provider and negotiate to absorb the commission cost by adjusting the product prices accordingly.

How can one verify the profitability of a vending machine location?

One can use card reader statements to verify the profitability, but it's also advised to do due diligence to ensure the trustworthiness of the owner and the accuracy of the statements.

What is the general advice on taxes for vending machine businesses?

The advice given is to consult with a Tax Advisor, as the speaker is not a tax expert, and to treat it as a regular business, deducting all relevant costs from the annual income.

Outlines

00:00

🚀 Starting a Vending Machine Business

Don Lama introduces his successful vending machine business, which earns over five figures annually. He outlines the step-by-step process for starting a vending machine business in 2024, emphasizing the importance of structuring your business with an LLC, business phone number, email, address, domain, and bank account. He also advises on finding a business address through services like iPostal and Alliance Time Box, and registering the LLC through platforms like InCorp, Taylor Brands, or Legal Zoom. Lama stresses the significance of an early business structure for securing future funding.

05:01

🏪 Finding the Ideal Vending Machine Location

The second paragraph focuses on identifying optimal vending machine locations. Lama discusses the three key factors for a good location: seclusion (minimal competition), customer loyalty (convenience over nearby stores), and high foot traffic. He also highlights the importance of the location being open for long hours, preferably 24/7, to maximize usage. Lama shares his sales pitch strategy for convincing potential hosts to adopt a vending machine, including offering a trial period and emphasizing the benefits over traditional stores. He also introduces 'driving for dollars', a method of scouting locations by visiting various places and evaluating them based on the set criteria.

10:01

🗣️ Negotiation and Purchasing Vending Machines

In this section, Lama discusses the art of negotiation when purchasing vending machines, especially when buying machines that are already on location. He advises to be cautious and question why someone would sell a profitable machine. He suggests calculating the expected monthly income based on the selling price and ensuring the machine's performance aligns with this estimate. Lama also recommends buying from those leaving the area and shares his experience of purchasing multiple locations. Additionally, he touches on the importance of word-of-mouth marketing and leveraging social media to attract potential leads and locations.

15:03

🛒 Purchasing and Testing Vending Machines

Lama provides guidance on where to purchase vending machines, such as Facebook Marketplace, Offer Up, Craigslist, and warehouse outlets. He details the process of testing vending machines for functionality, including checking coin mechanisms, bill acceptors, and ensuring all product coils work. He warns against scams and emphasizes the importance of testing in person before making a purchase. Lama also advises on the types of vending machines to buy, recommending specific brands like AP, USI, and avoiding others like Sega. He stresses the importance of buying a machine only after securing a location to avoid idle, unprofitable machines.

20:04

📊 Utilizing Technology for Business Management

The fifth paragraph discusses the use of technology in vending machine management, particularly cashless payment systems like NAX. Lama explains the costs associated with installing card readers and how they facilitate inventory management and sales tracking. He introduces the concept of pre-kitting, which allows for precise restocking based on sales data. Lama also advises on ensuring that vending machines are MDB compatible for future upgrades and shares his decision to switch providers due to dissatisfaction with NAX's service.

📝 Business Operations and Frequently Asked Questions

In the final paragraph, Lama addresses common questions about vending machine businesses. He dispels myths about high maintenance costs, explaining that most issues are easily fixable and often self-inflicted. Lama also covers topics like dealing with commissions, ensuring locations are profitable, and the importance of due diligence when purchasing machines or locations. He advises on using contracts for legal protection and refers to a tax advisor for tax-related questions, emphasizing that this information is for entertainment purposes only and not financial advice.

Keywords

💡Vending Machine Business

A vending machine business involves operating automated retail machines that dispense items such as snacks and beverages to customers. In the video, the theme revolves around starting and structuring such a business to generate additional income, with the speaker sharing personal experience and advice on how to succeed in this venture.

💡LLC (Limited Liability Company)

An LLC is a type of business structure that provides liability protection to its owners, known as members, against the company's debts and liabilities. In the context of the video, the speaker recommends setting up an LLC for the vending machine business to facilitate future funding and to provide a professional structure.

💡Business Phone Number

A business phone number is a dedicated line used for business purposes, separate from personal phone lines. The video mentions services like RingCentral, Google Voice, and FreedomVoice as options for obtaining a business phone number, which is essential for professional communication in the vending machine business.

💡Business Email

A business email is a professional email address that uses the company's domain name rather than a generic service provider domain. In the video, the speaker suggests using Google Workspace for a professional email setup, which adds credibility and formality to business interactions.

💡Business Address

A business address is a physical or virtual location where a company's mail can be sent and from where it operates. The video emphasizes the importance of having a business address for privacy and professional perception, with services like iPostal and Alliance Time being mentioned as options to obtain such an address.

💡Business Bank Account

A business bank account is a financial account designated for the operations of a business, separate from personal accounts. The video recommends opening a business bank account with an existing bank for convenience and to manage the vending machine business's finances effectively.

💡Business Domain

A business domain refers to the web address of a company's website, which is crucial for online presence and marketing. In the video, the speaker suggests using domain registrars like Wix, Squarespace, or GoDaddy to create a professional website, which is essential for establishing an online identity for the vending machine business.

💡EIN Number

An EIN (Employer Identification Number) is a unique identification number assigned by the IRS to businesses for tax purposes. The video mentions registering for an LLC and obtaining an EIN number through services like Incfile, Taylor Brands, or LegalZoom, which is necessary for legal and financial operations.

💡Vending Machine Location

The location of a vending machine is a critical factor for the success of a vending machine business. The video discusses strategies for finding suitable locations with high foot traffic, long operating hours, and minimal competition, which are essential for maximizing sales and profitability.

💡Seclusion

In the context of vending machine placement, seclusion refers to the absence of nearby competition, such as other stores or vending machines. The video emphasizes finding secluded locations to increase the likelihood of customers using the vending machine due to limited alternatives.

💡Foot Traffic

Foot traffic refers to the number of people walking or moving through a particular area. The video highlights the importance of choosing locations with high foot traffic for vending machines, as this increases the potential customer base and, consequently, sales.

💡Commission

Commission in the vending machine business context refers to a percentage of sales paid to the location owner or manager for hosting the vending machine. The video discusses strategies for negotiating or avoiding commission payments, which can impact the profitability of the vending machine business.

💡Driving for Dollars

Driving for dollars is a strategy mentioned in the video where one physically drives to different locations to scout for potential vending machine placements. This method involves visiting various sites to assess their suitability based on factors like seclusion, foot traffic, and operating hours.

💡Car Readers

Car readers, also known as cashless payment systems, allow vending machines to accept credit and debit card payments. The video discusses using services like NAX or ORT for car readers, which can increase sales by catering to customers who prefer cashless transactions.

💡MDB Compatibility

MDB stands for Money Business Database, and in the context of vending machines, it refers to the compatibility of the machine with cashless payment systems. The video advises ensuring that vending machines are MDB compatible to facilitate the installation of car readers and to expand the business's customer base.

💡Pre-kitting

Pre-kitting is a restocking strategy mentioned in the video where a vending machine is restocked with the exact amount of items needed based on sales data. This method optimizes inventory management and ensures that the vending machine is always stocked with popular items.

Highlights

Starting a vending machine business can provide an additional income stream of $1,000 to $55,000 per month.

Don Lama shares his experience of running a successful vending machine business with annual revenue over five figures.

To structure a vending machine business, it's recommended to establish an LLC for potential future funding.

Essential business elements include a business phone number, email, address, domain, and bank account.

Freedom Voice is Don's choice for a business phone number, and Google Workspace for a professional email.

A virtual office address from iPostal or Alliance TimeMailbox is advised to maintain privacy and professionalism.

Opening a business bank account with a familiar bank simplifies financial management.

Registering a business domain through platforms like Wix, Squarespace, or GoDaddy is crucial for a professional online presence.

Inkile, Taylor Brands, or Legal Zoom are services to register an LLC and obtain an EIN number.

Finding a good vending machine location requires seclusion, high foot traffic, and long operational hours.

A strategic pitch can secure vending machine locations without paying commission by offering a trial period.

Driving for dollars involves visiting various locations to assess their suitability for a vending machine.

Utilizing social media and word of mouth can generate leads for potential vending machine locations.

Purchasing a vending machine already on location can save time and effort on relocation.

When buying vending machines, ensure they are from reputable manufacturers and MDB compatible.

Testing vending machines thoroughly before purchase is essential to avoid scams and ensure functionality.

NAX and ort are options for card reader systems in vending machines, providing sales and inventory tracking.

Maintaining a vending machine business involves minimal effort with most issues being easily fixable.

Commissions from locations can be managed by adjusting the cost of goods to maintain profit margins.

Due diligence is necessary when evaluating the purchase of vending machine locations and contracts.

Vending machine business taxes should be handled by a tax professional, with proper deductions for business expenses.

Transcripts

so you want to start a vending machine

business you want to make thousands of

dollars a month you want to have another

stream of income that's giving you an

extra $1,000 up to $55,000 extra every

single month with vending machines my

name is Don Lama and I have a vending

machine business that does over five

figures a year and I've been helping

people get their vending machine

locations as well in this video I'm

going to tell you step by step on how

you can get your first vending machine

location how to secure vending machines

how to go through the whole entire

process of starting your vending machine

business in

2024 the first thing when starting your

vending machine business is you need to

structure your business how do you

structure your business people ask me in

the comments should I get an LLC should

I not get an LLC and the answer is you

need to get yourselves an LLC because

you want to register your business right

cuz if you want to get funding down the

line you want to get $50,000 $100,000 in

funding you want to make sure that you

have a structured LLC this is what you

need you need a business phone number a

business email a business address a a

business domain a business bank account

for the business phone number you're

going to go to ring central Google Voice

and freedom voice those are the three

websites that you can get a business

phone number I personally use Freedom

voice for your business email you're

going to get Google workspace you can't

just have a regular email that says ABC

vending gmail.com no go get yourself a

professional email next you know you get

a business address why do you want a

business address because if you don't

have a business address you're going to

use your address so when people type in

your business people are going to see

your house and I don't want anybody

pulling up to my house and when you guys

get big I don't want people to pulling

up to your house right that's my house

so you want to make sure that you have a

business address where do you get this

business address from I postal reges

Alliance anytime mailbox those are some

good places where you could go get a

business address I get my business

address from I postal remember this is

not a mailbox make sure that this is a

virtual address a virtual office for

example if you're using ipostal you

don't want to get a mailbox like a $9.99

it delivery and mail no you want to make

sure that you have a business address

cuz when you're trying trying to get

funding in the future these banks are

going to look up where your business is

right they're going like where's your

vending machine where's your where's

your vending machine business located

right and they're going to type it in

and you want to make sure that it's an

office that you're running your

operations from with these business

address you can have your mail delivered

to these places and you could go pick up

your mail you also you want to have a

business bank account the business bank

account just go with the bank that

you're already associated with right so

if you're associated with Chase if

you're associated with Wells Fargo with

Bank of America currently right now I

have three business bank accounts I have

one with Lily with Wells Fargo and I

have one with PayPal at first I got an

online bank account but I realized I do

a lot of cash deposits cuz I have a v

machine business so that's why I went

over to Wells Fargo Wells Fargo has a

bunch of different locations where I'm

able to drop off money you want to make

sure that you have a business domain you

get the business domain from Wix

Squarespace or GoDaddy I personally use

GoDaddy go make yourself a website you

want to look professional when you type

in dsk vending.com my business website

comes up it's now it's time to get your

LLC after you have all this you want to

go to inkile Taylor Brands Legal Zoom to

go register for your LLC and get your

EIN number I use ink file I think it's

very simple and that's the one I use so

now when you have all this you have a

structured business right you could do

this today this is not something that

you have to wait to do like you can get

your LLC today right even if you don't

even have a vending machine business

startup even if you don't have your

first location even if you don't have

your first vending machine you're going

to do this because the longer that you

have your business structured for the

longer it looks like you're in business

and usually when you're trying to get

business funding you're trying to get

funding for your business they want you

to have a minimum of like a year or two

years so the earlier you start the

better that you have it right the

hardest thing in vending machines right

when it comes to starting a vending

machine business is finding a vending

machine location how do you find a

vending machine location but before I

even talk about finding a vending

machine location what makes a good

vending machine location these are the

three things that you're looking for

when you're trying to find your vending

machine location you're looking for

seclusion seclusion means that there's

no other stores around my place this is

the only vending machine in this area I

try to find places that there's not a

lot of competition less competition that

means I'm in Monopoly I control the

prices if I want to sell my honey buns

for $3 I can because there's no other

stores in the vicinity you don't want to

give people too many options that's when

I see vending machines at the mall I

look at them like why would you put a

vending machine in the mall a snack and

drink vending machine right cuz

understand there's different types of

vending machines there's hair vending

machines there's nail vending machines

there's medical vending machines there's

electronic vending machines but if

you're going to put a food and drink

vending machine in a mall that has food

and drinks there's so many options of

stuff that people could pick from right

so to me it doesn't make sense right and

also with seclusion your vending machine

is easier to notice right also Customer

Loyalty oh imagine there it's snowing

outside it's raining outside oh I don't

want to go outside to go drive and go to

this store to buy my food I have a

vending machine so I might as well use

the vending machine next what you're

going to look for you're going to look

for foot traffic how many people are

walking in front of my vending machine

how many people are coming into this

building you want a minimum of 30 to 40

people in a building when you have a

vending machine business you don't want

to find locations that have five people

that have 10 people cuz there not a lot

of foot traffic and the last thing you

want to make sure that that vending

machine location is open for long hours

24 hours amazing right because that

means the vending machine could be used

constantly you don't want to put a

vending machine in a place that's

seasonal right I only make money in the

summer then I then I'm loseing money in

the winter then I can make money back

you don't want that you want the place

to have long hours like it's open from 9

to 9 900 to 500 9 to 7 like whatever it

is you want it to have long hours the

longer the better right that makes sense

the longer I'm at a location the more I

would want to use a vending machine I

have a vending machine location at a

church sometimes they in the church from

9:00 to all the way to 9:00 at night

they have a more likely chance of using

the vending machine cuz they're there

for a longer time they're more likely to

get hungry they're more likely to get

thirsty they're more likely wanting to

get a snack because it is long hours

okay so now that we have all that out

the way let's talk about your pitch what

are you saying to these people when

you're trying to put a vending machine

in their location right especially if

you're trying to put it for free a lot

of people in my comments are like Donald

do you pay commission no I pay no

Commission because the the pitch that

you're going to say is very important so

what am I telling these people say hello

my name is Donald Lama I work for dsk

vending and I was wondering if you would

like a free vending machine for your

location I would fill up service and

repair any problems of the vending

machine cuz that's something you'll be

interested in and let me give you a

little sales trick if somebody says no I

don't leave after the first note you

know what I mean I'm from around the way

I'm leaving with something I leave after

the second third note if they if I say

hell I want put a free vending machine

location in your business and they say

no I'm going to be like but I realize

that there's no stores around the area

so your C customers and your employees

are not going to have any placees to get

food no we're still not interested let

me put the vending machine here for 60

days let's see how you like the vending

machine if you don't like it I could

remove the vending machine no okay

that's not a problem here's my card if

you would like a free vending machine

just you know who to reach you know what

to call right so there I'm not leaving

after the first no right people get

discouraged all the time and then they

leave and then they're like oh man it

didn't work I'm waiting for two three

NOS you feel me if the place asked for

commission all I tell that place is hey

I'm a service provider I'm providing a

service for you and your customers and

your your employees and if they do want

to add commission that's a conversation

that we can add for later I'm going to

tell you what to do later in this video

now you have the pitch right you're

going to go to all these different

locations how do you find them so you

could do this thing called driving for

dollars driving for dollars is simply

you just going to different locations

you're driving for dollars basically

going to this location this this app

called around me and around me you can

see all the different places around you

so like your your Banks your

supermarkets your gyms your office

buildings your churches your dayc carees

you see all those locations around you

and you're basically going to drive

around and you're going to walk inside

the location you're going to see is this

location secluded does it have long

hours does it have a lot of flip traffic

you're going to make sure all these

parameters are met that's driving for

dollars and if all these criterias are

met you're going to try to find the

person to give your pitch to and

remember volume beats luck I understand

that you might get 10 NOS you might need

to get 100 noes before you get your

first yes so volume beats luck every

single time so you want to make sure

that the more people that you could talk

to the better right people talk to 10

people and they be like oh I got no and

it didn't work no go talk to 100 people

you might have to talk to a th000 people

you might have to talk to 10,000 people

in order to get your first yes but once

you get your foot in the door guys the

sky is the limit after that so driving

for dollars you have to understand when

finding locations word of mouth is very

important I'm trying to make sure that

everybody knows they have a vending

machine business that's why I tell

people you need to post now I don't even

have to drive for dollars now I don't

even have to go knocking for doors

because I have a social media platform

and I post on my social media platform

that hey I have vending machines I have

a vending machine business so guess what

happen leads are coming to me people are

trying to sell me locations people are

telling me I should put vending machines

in locations people are hooking me up

with their manager because they know

that I have a vending machine business a

lot of you people they have a vending

machine business but they don't use the

platforms that they already have

established you have 5,000 followers on

Instagram put out a message saying that

you have a vending machine business put

out a post saying you're looking for

vending machines right hey I P someone

$100 if they can find me a vending

machine location hey I'll pay someone

$200 if they can find me a vending

machine location a good vending machine

location I I'll give you a referral

bonus so you want to make sure that

you're utilizing everything in your

power to find yourselves a location the

next way that you can find a vending

machine location is actually going to

Facebook Marketplace offer up and cigs

and buying them on location buying a

vending machine on location just simply

means you're buying a vending machine

where it's already at so if I'm buying a

vending machine at a location at a gym I

just bought vending machines at a gym

I'm buying a vending machine location at

a church so I basically just bought a

vending machines at churches right so

you're just basically buying the vending

machine where it's at and the reason why

this is amazing is because you don't

have to move vending machines vending

machines are very heavy people might see

vending machines where oh like this is

easy to move no like sometimes it it

take five or six people just to move one

vending machine you have to find how

you're going to move it right before I

was using my truck and I was getting all

my friends to help me move the vending

machines I have to buy pallet jack it's

just the whole process so buying it at

the vending machine location it's easy

because the vending machines are already

there also when you buy it at the

vending machine location um usually the

vending machines are working right cuz

why would you have a vending machine at

a location that's like not working that

means the person that's selling it to

you is is losing money but the problem

with buying it at vending machine

locations is you have to ask yourself

why in the world is somebody going to

sell me a cash cow got them why is

somebody going to sell me something

that's making a lot of money right the

only times where I want to buy a vending

machine on location is if somebody's

selling a vending machine on location

and they're leaving the state city or

country that they're selling you the

vending machine right if you're leaving

the country oh you can't take this

vending machine with you if you're

leaving the state you can't take the

vending machine with you I'm trying to

find people that's like oh um I've been

in the vending machine business for 50

years and I'm tired of it and I'm done

and I can't do it anymore those are the

people I'm looking for I'm not looking

for those average people that probably

put a vending machine in a bad place

that's not making money and now they're

trying to sell it for triple the price

that they bought it for you feel me I'm

not looking for those type of people I

recently I think like a year ago a year

and a half ago at this point I found a

guy selling like 4050 vending machine

locations and I was able to buy three

vending machine locations from him for

$3,500 right he sold it to me for so

cheap because he was trying to get out

the business in my opinion the best ways

to find ven machine location is just

Word of Mouth tell telling people that

you have vending machines telling your

family and friends because they're going

to get you into doors that you probably

thought you could never get into because

they had the access cuz the problem is

when you're driving for dollars and

you're trying to find locations you

might go talk to someone and you realize

that yo this person is not even in

charge why am I talking to you right

you're not my dad there's been times I'm

trying to put a vending machine at a

spot and I'm talking to someone and

that's not the owner that's not the

manager that person has no power but

they're trying to act like they had the

power so in turns I'm really wasting

time so when you're trying to find these

locations make sure you're talking to

the right people right I just go in

there and say hey can I talk to a

manager can I talk to corporate give me

the corporate number give me the manager

like I don't want to talk to someone

that's not in charge usually that's what

happens when you call so when you're

buying a Venom sh on location I want you

to negotiate smartly and understand how

do you make sure you're getting the

right deal so what I usually do is I

take the sales price I divided by 10 and

that's the number of money it should be

making every single month so if you're

selling me a vending machine location so

that means you're selling me the

location with the vending machines if

you're selling it to me for $5,000 I

want to make sure that that vending

machine location is making at least $500

a month by by 12 months by like a year I

should be getting all my money back that

is what I'm looking for also what people

usually do if they're selling like

bigger locations people usually take

onee gross of how much the location

makes plus the price of the vending

machine that's what I realize that

bigger vendors are starting to do right

for example if your vending machine

let's say makes $2,000 a month gross of

that vending machine a year will be

$24,000 and let's say both the vending

machines together cost $3,000 and they

was try to sell you that vending machine

location for

$227,000 make sure those numbers line up

make sure those numbers are right when

I'm going into these negotiations I'm

lowballing because I know a lot of times

these people just want to get out the

business don't be in a rush to buy these

locations don't be so like quick like I

made that mistake a lot of times like

I'm so quick to buy this I'm so quick to

buy that and then in turns I'm losing

money the last way to find locations you

could put posts that basically say oh

free vending machine for your business

and then you could just Market it like a

service so now when people are looking

they're like oh free vending machine for

my business and then you can tell them

like hey I'm a vending machine service

and you can get vending machines in the

door through that right so now now let's

talk about how to purchase vending

machines where you going to purchase

these vending machines there's different

ways that you could buy vending machines

so you could buy them on Facebook

Marketplace offer up in Craiglist or you

can go to the warehouse if I'm buying a

used vending machine on Facebook

Marketplace offer up in klist I'm

looking to spend $300 to $700 $11,000 at

the max and the type of snack vending

machines I'm looking for is Automatic

Products so AP vending machines I'm

looking for USI vending machines I'm

staying away from Sega vending machines

I'm staying away from vending machines

that are made in like different

countries right kind of staying away

from a bunch of combo vending machines

as well the problem with combo vending

machines is that combo vending machines

they have so many parts involved in the

vending machine that it's easily to

break right but if you need to buy a

combo vending machine for like a smaller

location I would try to get a combo

vending machine that has like one door

if you see the combo vending machine has

two doors stay away from it try to find

a combo vending machine that has one

door I'm telling you guys this makes a

difference understand when you go to a

vending machine Warehouse there are a a

lot more expensive right the cheapest

vending machine I ever bought was $300

and the most expensive vending machine I

ever bought was was um $3,000 if you

have a quality location and it's an

amazing location I will go to a vending

machine Warehouse because a vending

machine Warehouse they have nicer

vending machines they give you a

warranty they move the vending machine

for you and they actually show you how

to use the vending machine so I will go

to a vending machine Warehouse if I'm if

it's a quality location if I'm just

getting started out and I'm not trying

to spend a lot of money I'm trying to

spend under $1,000 to start my vending

machine business then I'm going to go to

Facebook Marketplace offer up so how do

you test these vending machines when you

get there on Facebook Marketplace you

text a seller hey I want to come see the

vending machine you're going to bring a

bunch of coins right quarters nickels

and dimes go get rolls go to your bank I

one I want two two quarter rolls two

nickel rolls two diam rolls you're going

to make sure that the coin Mech is full

the coin Mech in the vending machine is

how people get back their change and you

want to make sure the coin Mech in the

vending actually I have a coinme let me

show you what a coinme looks like you

want to make sure that you fill up the

coinme this is what you call a coinme a

coinme is how people get their change

back in their vending machine so as you

guys can see right I don't know if you

guys can see the coinme has like 25

cents 5 cents 10 cents 5 cents you want

to make sure that this is filled because

if the coin Mach is not filled it's

going to say use exact chain so you're

not going to know if the coin Mac works

if it's not filled right so you want to

make sure that you fill the coin Mech up

so after you make sure that you the coin

Mech is filled you want to start testing

everything in the vending machine right

so you want to test every single coil if

it's a snack vending machine so A1 B1 C1

D1 you're going to go through all the

roles if you can't test the vending

machine peace leave I'm not staying

right people on Facebook Marketplace be

like no we don't got it tested no we

can't test it on the back of my truck no

I better test this vending machine I'm

not leaving unless I test this vending

machine cuz we're not buying broken

vending machines in 2024 I've bought bad

vending machine and I was out of $1,500

huh understand I have other streams of

income and I make a lot of money from my

vending machine business and for

somebody that's new to the vending

machine world and they have their last

1500 if you lose that on a vending

machine you're going to be really upset

you're going to be really mad you're not

going to know what to do right so I

don't want that to happen to you so

that's why we're testing every single

vetting machine in 2024 we're not

letting people finesse us we're not

letting people get over on us no we are

testing these vending machines no matter

what it is I'm testing it so you test

every single coil if all the coils work

all the motors are working amazing this

is what you call a bill acceptor right

the bill acceptor is where the money

goes through right so you want to make

sure that it accepts $1 bills if the

vending machine can accept fives you can

put fives in it whatever right so you

want to make sure that all types of

points work so quarters nickel dimes

pennies if it takes pennies and dollar

bills okay for drink vending machine

what you're going to have to do is

you're going to tell the owner 15

minutes before you get there turn on the

vending machine you're telling him 15

minutes before you get there so by the

time you get there the vending machine

is on and you can see that it gets cold

you want to put your hand under to make

sure that the condenser gets cool and

you're going to go through the same

process you're going to make sure that

every single selection Works you're

going to make sure that the coin me this

is the coin me this is how people get

back their change you want to make sure

that this is full you want to make sure

that this is full because if this is not

full then it's going to say use exact

change right and that self-explanatory

so something's a dollar you have to put

a dollar right you can't put a $5 bill

and you want to make sure that the coin

man can give back chain you want to make

sure that all bills work so dollar bills

quarters nickels dimes this is what you

call a bill acceptor this is where the

bills go through this is where you see

me pull out all the money right the bill

acceptor if all that is good then you're

good and you could purchase the vending

machines like I said AP vending machine

USI machines for the snack vending

machines and then for the drink vending

machines you want Dixie Narco Royal

vending machines stay away from Sega

vending machines if it's a combo vending

machine make sure it has one door not

two doors also beware if scam don't

trust screenshots I don't trust screen

shots and if the vending machine is too

good to be true do not buy it like you

see like a beautiful very nice amazing

limited edition vending machine for like

$300 scam don't get don't don't get

scammed guys right so you want to make

sure that you're buying like the best

vending machine locations so you don't

want to drive all the way to realize

like it's a scam that happened to me

like once or something like I drove and

the Venom Mach ended up being like a

scam I drove all the way to New York

congratulations you played yourself Wast

the money gas toll just to get to a

place and it was a scam so beware of

scams but there's always good vending

machines like I bought a $5,000 vending

machine for only like $800 don't buy the

vending machine unless you have the

location that's like the most important

rule that's like the golden rule of

vending machine you don't want to have

10 vending machines sitting and have no

locations for them to go to so you only

want to buy the vending machine when you

find the location that's why I did the

how to find a location before how to

find a vending machine cuz you're

finding the location before you find the

vending machine cuz I bought a vending

machine thinking oh I'm going to find a

location very quickly unbeknown to me it

took me almost a year to find that

location and I had a vending machine

just sitting not making money if if a

vending machine is not making money then

what is it here for okay so let's talk

about car readers right there's

different places where you can go get

your car readers but I have all my car

readers from NAX but just a transparency

NAX has been doing a terrible job with

me a bunch of other vendors that I talk

to that say NAX is amazing since NAX is

not doing really good for me and it

works 50% of the times in my locations

I'm actually switching over to ort ort

is just another company that you can get

car readers from your vending machines

right but let's talk about NAX how much

you have to pay to install the car read

on your vending machine so you have to

pay one time fee of $3.99 right then

it's going to charge you a transaction

fee so 5.95% every transaction and then

it's going to charge you like $10 a

month with a car reader it tracks sales

and it tracks inventory people ask me

like yo do how do you know what to bring

to a vending machine right if you have a

car reader system then it basically

tells you that like hey like you have

five potato chips left you have three

sortas left and that's how people are

able to do this thing called preting pre

kitting is basically you're just putting

the exact amount of the item that you

need to go to the east location right so

if I know that this location is almost

empty I need five sodas I need five

Pepsis five hkes I need five Mountain

Dews I need five potato chips I need

five T like it tells you exactly what to

do so that's why a car reader is amazing

right and also a lot of people use cars

not a lot of people use cash and usually

when people using their car they don't

really care about the price because oh

it's on my car who cares I have the

money and I'm going to swipe I'm going

to use apple pain I'm going to get what

I need to get understand when you're

buying vending machines you want to make

sure that the vending machines you're

buying are MDB compatible cuz you might

looking be like Oh I'm going to buy this

$300 vending machine I'm going to buy

this $500 vending machine and then find

out that it's not MVB compatible right

you could ask the person that's selling

it to you or you can actually look up

the vending machine and it's going to

tell you whether it's MDB compatible or

not so usually I'm buying all my vending

machines from the vending machine

Warehouse so all my vending machines are

usually MDB compatible but you want to

make sure that you ask these questions

when you're going to buy your vending

machine from somewhere else right okay

so let me answer some FAQ some

frequently asked questions about a a

vending machine business right do

vending machines require a lot of

Maintenance vending machines really

don't require a lot of maintenance for

example everything is easy to fix on a

vending machine like there's a bunch of

videos on YouTube that you could watch

and you could do everything by yourself

if a coinme breaks on the vending

machines these cost $150 clip them in

and out pretty simple right if a bill

validator with the money goes to stops

working this is this is also $150 clip

in and out right pretty simple so I'm

not really spending a lot on maintenance

of the vending machines usually the

maintenance that was spending on vending

machines it's usually my fault I did

something that I probably shouldn't have

done let's talk about commission for

example if a location charges you

commission what I tell people to do you

need to tell them that you're a service

provider they like oh no no no we still

want commission right you're going to

take the commission and you're going to

put it right back into the cost of your

goods they want 10% commission that

means the snacks I was selling for a

dollar are now $110 I'm just adding that

back in So basically the commission is

canceling out so you're not really

paying commission and when they ask you

about oh why are you raising the prices

just tell them after raise the prices to

make sure that my service Remains the

Same how do you make sure that you're

buying the right locations make sure

that you're doing your due diligence

these locations also I tell people all

the time what if the vending machine has

a car reader you can ask for statements

and the statements will tell you how

much of vending machines making every

month how much vending machines making

um every year it's going to give you the

the whole nine yards right only thing

someone told me in the comments that

they heard a story of somebody

falsifying the statements right for

example someone could buy from their own

vending machines to make it seem like

the vending machine is making more money

you just have to do your due diligence

right you just have to do your due

diligence make sure that the owner is

trustworthy and that you can trust them

right I'm going to have contracts linked

down below if you want to buy them I

have templates for contracts that you

can use people ask me all the time about

taxes I don't really want to get into

taxes because I'm not a Tax Advisor go

to your own Tax Advisor and ask these

questions this is not like Financial

advice like this is for entertainment

purposes only you're filing taxes just

like you would do for like a regular

business I'm deducting all my cost so

like how much I spend on my product I'm

deducting cost when I buy vending

machines when I buy repairs when I buy

Services I'm just deducting it from the

the total amount of money I make every

single year right just go to your Tax

Advisor to go figure out the stuff about

tax right besides that hopefully you got

a lot of value from this video and

you're going to start your own vending

machine business in 2024 and you're

going to be sending me videos of you

pulling out thousands of dollars if you

guys got this far to the video put

success down in the comments this is

your year for success for vending

machines right this is your year when

you're going to be successful when it

comes to starting your vending machine

business and like I said my God is too

big for my goals to be too small you

feel me happy New Year hopefully

everyone has a great day

peace