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$71,000 From This Vending Machine That Runs Itself

Seventy one thousand dollars from just one vending machine

Who would have thought that one could generate $71,000 every year selling bags of ice from an ice vending machine that runs itself?

If I wasn’t on the lookout for business opportunities, I would never have come across this amazing opportunity of getting into ice vending machines.

Today, I am going to delve into the ice vending machine business and how this may be an easy business for you to consider getting into as your way to start generating an alternate source of income so that you too can earn income from multiple sources.

Ice vending machines, especially prevalent in hot regions, are not just dispensers of frozen water; they are potential gold mines. With the right location and minimal maintenance, these machines can churn out profits ranging from $25k to $75k annually.

1. The Story of Brett Gentry

Brett, a former lineman from Mena, Arkansas, sought a passive income source post-retirement. Initially considering a feed store, he stumbled upon the ice vending business. In a town with a modest population, Brett's machine sells an average of 900 bags monthly, translating to roughly $1,350 in revenue.

2. Business Model Breakdown

The essentials for this venture include a piece of land (owned or leased), a daily car, water and electricity hookups, and of course, the ice vending machine. The profit margins are impressive due to the low production cost of ice. For instance, a 20-pound bag of ice might only cost around 15 cents to produce but can be sold for $1.75, yielding a profit of about $1.60 per bag.

3. Initial Investment and Returns

The machines' cost varies, ranging from $20k to $100k. However, financing options are available, making the investment more manageable. With additional costs considered, the break-even point is around 14-15 bags daily. Given the machine's potential to sell up to 75 bags a day, the ROI is significant, with the machine paying for itself in approximately two years.

4. Location is Key

Much like real estate, the success of an ice vending machine is heavily dependent on its location. Ideal spots are high-traffic areas like gas stations, convenience stores, and dollar stores. The site should be visible from the street, have parking, and allow easy access for customers.

5. Maintenance and Cleanliness

Regular maintenance is crucial. Dirty machines can deter customers, so ensuring the machine is clean and in good working condition is essential.

Codie provides a good beak-down, video linked below.

In Australia, there are various suppliers of Ice Vending Machines, I did some research on machines provided by KoolerIce. You need to do your own research and ensure they are right for you.

They have many machines to choose from based on your location and estimated traffic, population, and competition.

Many petrol stations, convenience stores, and bottle shops sell ice bags, so you need to do your own research to identify competition in your area of choice.

In NSW, Australia, 5 kg ice Bags sell anywhere from around $3 to $5. Here is the machine I was looking at for my ice vending machine business.

I am not affiliated in any way with this company nor do I endorse their products or services, you must do your own due diligence

Make sure you do some competitive analysis of the competition in the area you are considering investing in and talk with the vending machine suppliers, they are often very helpful.

Also, have discussions with the property managing agent who manages the location at which you are potentially looking to deploy the ice vending machine.

You need to talk to them about hooking up water & electricity supply and discuss the rental cost for the space you will be acquiring.

Make sure to get legal and financial advice to ensure this business is right for your personal circumstance and always do your own due diligence before investing in anything.

❝

"Speak what you want, make it your truth, and it will come true."

Stay awesome

BigK