Most financial experts say that the best way to get rich, or at least become financially stable, is to find ways to make money while you sleep. And one of the best ways to do that is to make a passive income from a business.
You can make a passive income from real estate or a laundromat, but one of the most affordable start-up costs for a passive income business is vending machines.
Why Start a Vending Machine Business?
The amount of profit that your vending machine business generates depends on how many you have, where you place them, and understanding who would buy items from them.
You could start out with a few vending machines for as much as a few thousand or as much as $10,000. Some vending machine owners have hundreds or thousands of vending machines in a city or region that they maintain with a staff. So, such start-up costs could be hundreds of thousands or more.
Here is a website where you can find used but quality vending machines for sale.
You must make a contractual arrangement with a property owner to place your vending machine on a property. You have to rent the spot where you place a vending machine. Then, you have to give 5% to 20% of your earnings to the property owner, although that percentage could be high.
Vending machines are not a completely passive endeavor. You, or your employees, must check up on the machines regularly and collect money.
Additionally. You must research the locations of the machines, the kind of people who will be around them, and what they would want to eat as snacks. Additionally, since you have to pay for the products you put in your machines, you must increase purchase costs according to your budget and subtract such costs from your profit margin.
Relatively speaking, inspecting your vending machines regularly, taking inventory, and taking money out of them is not a bad hustle. Although, your active workload increases the more vending machines you loan.
Your most important decision to consider is where you place your vending machines. They must be in areas with reliable foot traffic.
Here are five areas where you need to place your vending machines.
Gyms
Even the most health-conscious gym members need a quick boost of energy or indulge in cheating on their diets. You may want to stock the vending machine with calorie-conscious sports drinks and snacks.
Academic Institutions
Students live on junk food, and snacks, and are mostly financially illiterate. Vending machines are social gathering places for students.
Take competition into consideration as well. Find an academic institution that doesn’t have that many vending machines. Or strategically consider which areas on campus are better for real estate for foot traffic.
Warehouses and Factories
People who work laborious jobs burn a lot of calories, are also active, and are usually stressed. And since we live in a post-pandemic world where jobs are opening up, more people are flocking to work in places like factories and warehouses.
People in stressful jobs love getting coffee, potato chips, or candy bars from vending machines as a stress reliever.
Police Stations
Cops are human beings, but they work very stressful jobs where they could lose their lives at any moment. What people don’t realize is that a large part of their jobs is sitting in an office to write reports and do paperwork. Police officers are also bureaucrats in many ways.
Their jobs are very dangerous and boringly monotonous as well. And like any human being, they enjoy the stress relief of choosing a snack from a vending machine like anyone else.
And consider your options – contact several police stations to see which ones are in more need of a vending machine than others.
Doctor’s Offices and Medical Clinics
Along with police work, the hospital industry is a recession-proof job. People will always need to go to the hospital, medical clinic, or private doctor’s offices.
Network with every medical facility in your area and see who wants to work with you. And don’t forget to reach out to smaller medical offices and clinics.
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Allen Francis was an academic advisor, librarian, and college adjunct for many years with no money, no financial literacy, and no responsibility when he had money. To him, the phrase “personal finance,” contains the power that anyone has to grow their own wealth. Allen is an advocate of best personal financial practices including focusing on your needs instead of your wants, asking for help when you need it, saving and investing in your own small business.