this is me collecting money from a vending machine and again and again all to answer one question how much money can you actually make with a vending machine so I'm doing it I've got two weeks to see how much money I can make starting now so here's the plan step one get the machines step two make them pop step three find a location step four load them up step five collect the [Music] cash I want to make as much as possible so I three to figure out which one makes the most Hi man by the
way I'm Cody good to meet you nice to meet you too how do you decide what to put in it the best sellers will probably be like peanut M&M's I mean Doritos what sells terribly raisinets that tracks those are gross who's need a raisinette so how much did these cost me 2,200 2200 and finally Wild Card 850 so I'm all in for about 5,250 bucks let's hope we make some money the two most important things if you want to make money with a vending machine are one location you need a lot of foot traffic two
product what you put in here right product right place strategy one we are going to have a healthy vending machine now this is not that normal but we're going to fill this bad boy up with actually really expensive product kind of Premium stuff for like the fitness Bros and people who are in the gym and want to have really healthy stuff maybe a bunch of cool energy drinks from my buddies strategy two we're going to go standard this is an unhealthy vending machine we're going to put in here everything that we know nor noral vending
machines have and see if we make more money with that and then we got kids toys which I don't think we have to explain because this thing is like Vegas for small toddlers And I think they're going to be into it this one looks great no need to do anything kids are going to be super attracted this one boring doll ugly we're not going to make any money so I got to do something to make it pop I'm thinking murals motivational quotes and a lot of color but hold on a second first we got to
change like my onesie okay I'm going to paint these bad boys but I'm not very good a painting so I called my friend Bridget artist muralist and we are going to take these things and make them pop let's talk about this one first I'm thinking like Jiu-Jitsu Jim dudes sweaty some kind of cool slogan masculine Vibes like it okay second one I'm thinking healthy gym something kind of funny little quote on it love it amazing should we get to painting let's do it all right let's see if I can do [Music] this that's perfect really
yeah all right Bridget I'm going to let you finish the rest of this I got to go buy the product to actually fill this bad boy so I need to go buy some product but before I can buy product to put in the vending machines I got to figure out how much I can pay for each individual item or each unit which is called Unit economics what do I want to do I want to be able to buy things for less and sell them for more in order to have a profit margin AKA money in
my pocket at the end of the day I know that on average the industry in vending machines they have a 15 to 30% profit margin net profit margin which means at the end of the day if they make $100 in total revenue they only take home 15 to 30 bucks per 100 bucks made so in order to hit this I got to at least have a 50% gross margin or how much I make on every single product that I sell because there are these other costs associated we'll get more to those later what am I
going to do well in my healthy vending machine I think I can charge a little bit more per unit so my price per unit is going to be $2 plus which means that my cost can be a do or below in order for me to make a now my unhealthy vending machine I don't think I'm going to be able to sell things for as much in there so I think each unit I might be able to get like $150 for them maybe a little bit more which means that I can only spend 75 cents on
them which means if I do that I'm going to have 75 cents that I get to take home instead now I have to charge 2x the price that I pay in order for me to have a profit margin that I think makes me industry average if any of this seems too oversimplified or you're confused click this link there is a profit lost statement which break this all down in a little spreadsheet exactly for you guys so you can go deeper now I know my budget let's go [Music] shopping two for four great that's what we
[Music] need this is so sick we are going to make so much money with these talk to me why' we do this what's with the color color is so important cuz it stands out I feel like a lot of people like to play it safe and keep it basic and that's just not what we do around here something you do with all your designs is basically like how do we make this super targeted to the user so like I see myself in this this is our plan with the Ving machine yeah you killed it dude
I can't wait to see if we make a ton of money back you better I think these are going to crush but I need these to go start making money for us right now so let's see if we can find some locations for my new babies let's see if these guys let us play something I think thank you it's an O time is running out I need to find somewhere absolutely not that was an opt out they said yes all right we got one down that took forever now we're ready calling the head of my
gym Cody hi thanks for taking my call Jeremy I have kind of a weird request as a member I um am getting these vending machines I was wondering if we could try a little experiment for like 2 weeks you said two weeks yeah let's try it for two weeks and then we'll see how it goes let's do it let's try it out let's do it you're the man this will be amazing all right thanks JY I kind of thought he'd say no that it'd be embarrassing that I'd have to see him at the gym but
we're fine on our way to a gym to drop this bad boy off they haven't seen the vending machine yet this place is like super classy and we're about to put a giant smiley face in it we'll see how this goes hello okay I'm stoked about this we're going to place a vending machine you want to kind of think about let's look at some places we definitely don't want to do it here probably too much going on right so we're think we're going to put it over here in this location yeah I think this would
be a great spot okay sick so this will be VI amazing Larry We Ready Bor ready it's where my gym membership pays for itself down in the middle Larry we're going to put it right in the middle so it's centered yeah great you ready for this okay well now we're just showing off actually ready taada all right so now I need to get some help to fill these bad boys cuz it takes about 15 20 minutes to load the whole thing here's what I'm a little worried about this stuff is expensive we're putting high quality
premium healthy stuff in here the way that we figured out pricing though is we just made everything 30% more expensive we're like we need to have 30% margin in order for us to make some real profit here we got newtonic which sells for 33 bucks we're selling it for 50 we've got Quest protein chips those retail at $2.47 each we're selling them for five bucks legendary Pop-Tarts $250 for we're going to check these we're going to let these sit for a few days we're going to see how many sell and if nobody's buying them because
they're too expensive we're going to sub them out we also only bought about onethird of the inventory because we were like we don't want to have to buy the whole amount and have all this excess inventory I've tried to find products that were hard to get you can't just easily order them on Amazon like you had to go to their website and so maybe the idea is that some of these products are unique and they're going to be like I want to try that this bad boy is live you want to see it yeah take
look look what we got here we got so we have to set it up so the LED will be lit and they'll see all the stuff we'll see what happens yeah I like it we'll see what sounds great do you want something yeah I'll give it a try our first dollar no big deal thanks dude appreciate you yeah excited okay so we put in a vending machine we got it all set up we got our first customer we put our camera up so that we can see people using it again and again and we filled
it with the best healthy products we could find now we're on to the next vending machine hey hi how's it going I'm Cody hi I'm Danny what's up man nice to meet you you're running this joint right I am so some options this way so everybody who comes into the gym walks through here yep absolutely come in the front straight through here into our mat space so our math space over here we have really big kids classes parents are all lined up against the walls um so another option is right here this is sick we
got a plug up there we'll put it right here everybody's got to walk by we'll have our cool signage on the side they'll be like ah look at that then they'll walk in they put their kids stuff away they'll kind of have to look at this while I think that's awesome yeah excellent all right we found the location let's do this heavy foot traffic number one spot tons of parents absolutely so basically in this one we've got the unhealthy vending machine which is the natural vending machine these are way cheaper so the most expensive thing
we have in here is three bucks that's jerky Feasta bles Pocky sticks our cheapest thing in here is a buck so we have like Teddy Graham Crackers the idea is this is a volume game if we're having four to five classes a day 30 kids or 30 people on uh the mat then another 30 people watching we're talking about hundreds of people coming in into this place every day and sitting and hanging out watching their kids for an hour that's perfect the idea is we can make up for the amount of cash that we need
to make uh by having a lot of people buy Larry is it working looks that way we're in business baby so we found the gym we put it in the right spot the machine actually works thank God and so now we are going to see how much money we can make and I ordered my first piece and I got to say pretty damn good I think this is going to work now for the Plush Bus hello hey how's it going good how are you I'm Cody Josh nice to meet you welcome to jug Moon Academy
thank you this is your spot I'm guessing this is it let's Hammer through where we're thinking okay so this is the front entryway yeah how many people you got coming through a day you think probably like 2 300 at least wow okay so we have a ton of people coming through lots of kids right so we got spot one here kind of like it don't love it because I bet they don't hang out here right right they definitely be in the gym more after you holy this is cool this is crazier than I thought it
was going to be yeah there's a lot going on for sure okay no wonder you have 200 kids coming through here this is mad n there I think this be a perfect spot right here yeah parents hang out hi parents hi she's like I want to be on YouTube I want to be on YouTube you are now as long as it's okay with Mom can I ask you a question yeah do you like toys yes do you do you like stuffed animals yeah okay we got a game for you later I'm going to hook you
up Larry this thing looks ready should we rip it open and show it to him got a knife oh finally rip nothing open I'm kind of into this there's a little violence for our YouTube channel all right let's open this bad boy this is called the Plush Bus nice and we need to plug it in we need to make sure it works and we need to get to work let's do it huh let's do it I can see these little kids eyeballs are you watching them watch this right now because I am are these one
of those scam machines scam machines uh wow it's like too hard to get yeah they're like too hard to get okay so we have to see if it actually works hey w yeah nice I think you go first and then I saw your hand second huh okay now it around what's your going [Music] for ooh ooh go for the chicken did the what do you mean go for the chicken go for the chicken's butt so clol all right what are we doing with these hoard of kids we're hoping that they buy a bunch of plushies
or at least they try so we put this Plush Bus in it appears to be working my money might be on this one actually winning or us driving the parents absolutely crazy let's see so placing vending machines isn't just about convenience it's about smart asset placement a lot like real estate actually but successful operators kind of like Savvy Real Estate Investors they understand that calculated risks can lead to Big rewards there is a way to dip your toes into real estate investing that's as easy as starting with a single vending machine it's called the fundrise
flagship ship fund so with the fundrise flagship fund you don't need to put up your life savings you can start small like $10 small and still get access to the kind of real estate deals that you know used to be off limits to regular people this isn't about swinging for the fences and hoping you don't strike out it's about making moves towards smart and steady growth so check out the flagship fund so that you can be a player in this game if that's interesting to you link below bad news I was excited to see the
sales coming in but literally not a dollar has come through at first I was like oh wow these are going to make all the money but after looking at the cameras we set up look at what I found the card reader is broken and the cash doesn't work multiple times people come up and attempt to pay but they walk away with nothing the entire machine not functioning we've got to call Larry and get him to go there and fix this I don't know about you but I never carry cash with me anymore particularly at the
gym so we are missing out on nearly all customers right now all right we've had zero buyers at the one at the Jiu-Jitsu gym so let's see what's happening here oh she likes my design they're pointing it out he likes it too I told you this is going to be instagrammable oh they're talking about how they don't have any cash all right so basically we're having a lot of problems and the card readers aren't working and one of them can't even take change or cash the truth of the matter is it always takes longer than
you think to start a business and you're crazy to think that you're not going to have some issue when you first open up you're going to have issues we're having them I kind of expect them it's just going to be can we handle them and fix it yes mother we both want to know heyo look what we got here Larry just replaced the motherboard which means that we have let's verify this is he putting in cash does it work the answer is yes we're in business baby all right so we got all three machines semi
operable we've got the Gym machine now available to take cash and the Jiu-Jitsu machine available to take cash but the credit cards that's when the money is going to start to flow okay I had to show you guys this because this is ridiculous the Plush Bus is a totally different story look at this right now we have no plushies in there and she looks upset about it there's one lonely Spider-Man that these kids are frantically trying to get this is actually hysterical because this little rascal she told me that this was a scam machine are
these one of those scam machines listen lady looks like I was the one getting scammed this is the state of the machine right now not good we can't have the machine sat there empty wasting valuable hours turns out the quickest I can get any plushies there online is 24 hours I also do have a couple teddies at home for being a kid no Albert is way too important we got to go fix a few things we got a bunch of noname toys and then we also got stuff that kids love Sonic Minecraft Pokémon I think
these are going to be hot so basically we're trying to hide the really really good ones because they might be way too easy to win we're going to put some of the littles on top make it not hard but reasonable now let's see if these kids are winning and check if we're actually making any money here looks like we're making money so that's good but they're winning a bit too much for my likings still so it is time to be the bad guy we got to break some kids hearts and change the claw the manual
is in here somewhere this is a way to determine how much money you're going to make ah okay we got it so to lower the winning percentage you you have to change it so the claws appropriate for the size of animals that you have right now it's on 60 goes all the way to 100 100 being the hardest or 99 being the hardest 60 being kind of right in the middle and then all the way down to the easiest you get one every single time and you change the claw so that you make sure you
understand what your profit percentage could be all right this is more like it okay I'm going to leave the Plush Bus now to do its thing we're a few days in and have made not enough cash let's see what we can do here so first up I've convinced the owner of the gym to send an email to the members to let them know about the vending machine and what's in it I'm not sure it will do much but we'll see next idea crazy idea the thing to understand about this audience is they are all about
exclusivity and scarcity so I think we might sell more if we make it clear these are cool products and this is the only place in Austin to buy them so we printed this I'm hoping this here will help get some interest okay here's the thought it's ridiculous one people might take pictures of it two are going to be like why would something in there make me look like Chris three anything to get attention remember most of advertising is called awareness advertising which means top of funnel it's just to let us know that something is there
so when we have a desire the first thing we think about is the thing that we just saw recency bias I've also decided to drop the price slightly to try and push those interested over the edge into buying see that's a great ad we're going to make so much money I mean who wouldn't want to look like this guy huh let's see if I can get some excitement going myself hey you look like you just did a super hard workout I did exhausted can I interest you in a snack absolutely I'm starving actually amazing well
actually do you want an energy drink first I would love that oh yeah pretty good delicious this is our vending machine so if you need protein or any healthy snacks so it's like a legit vending machine not full of artificial junk it's like the Ferrari of vending machines right exactly did I nail that I think I did I think it's working so now we got to go and see how much we've sold what our inventory is and what we need to replace so we've sold 44 things so far in here which is pretty good you
can see we've sold a few legendary they like these blueberry ones I'm shocked not more cookies I love those cookies oh wow check this out these are selling well the RX bars no dice these guys look like they're selling pretty good actually I do love the cookie ones so maybe that's why and we've sold nothing from this bottom one we really need to sell one one of these $50 products at least once a month that would really make our month each time so we'll see if we can set ourselves up for Success there now let's
go to the Jiu-Jitsu gym okay this one is doing worse I've got a similar game plan to the collective it's important to remember this stuff isn't going on my social media and I'm not doing anything you guys couldn't I want to make it as clear as possible how much you can really make with these machines and there is only so much you can do so we're coming to our vending machine at the Jiu-Jitsu gym because the unhealthy snacks they're not selling very well we're going to replace with healthy snacks and see if that helps us
also better for everybody let's first check out if we got any quarters nice we got a few I like that we think the dollar machine's been broken oh no we got dang we got some cash in there nice it's only been a few days actually working so this should be good we're going to fill with these this is a healthy gummy snacks you won't feel guilty about before we had a lot of unhealth healthy snacks now we've substituted with protein snacks with uh natural snacks with things that don't have red 40 in it and we're
going to see if that's what they really want all right one more thing we got to let the parents know we heard them and we say parents we hear you new and improved now with healthy snacks all right Hooligans time is nearly up I have 1 hour to see how much money we made with these vending machines and I got to be honest I'm obsessed with these things and it turns out everybody else is too look at these people they're on them like white on rice so today's the day we get the questions that we've
been waiting for answered how much money do we make which machine made the most actually I'm looking at it right here will this be the business that we dreamed it's going to be I think we should reset the bar first though the average vending machine makes $75 to $300 in a month so that's the bar we have to beat okay Moment of Truth did my Shenanigans increase sales all do we have one of the best performing vending machines around how many of these do you need to make 100K a year that's what we're going to
figure out right now machine one the jiujitsu gym where the guys are tough but is the business tougher let's see how this shakes out so it looks like we made $87 in 2 weeks let's extrapolate that out to the month that means $174 so with my 30% margin I'm making $52 a month profit a couple ways to think about this I need 47 machines to make 100K a year that's not nothing that's a lot of machines but the way to to think about it is I think one machine takes you about 2 hours a month
to manage so I make $26 an hour salary or $ 54,8 a year based on my hourly salary or rate which is actually like a really cool way to think about it okay machine two the fancy gy with the people who are hot although I wouldn't notice because I'm a saint OB obviously so it shakes out at $313 we made in 2 weeks so that's $626 a month so with my 30% margin I'm making $187.8 a month in profit couple ways to think about this way one I need 13 machines to make 100K a year
that's not that many that's actually kind of cool uh weigh two one machine takes you 2 hours a month remember so I make $93.99 $5,000 a year which is cool machine three our wild card I'm so curious on this one this is the Plush Bus we made $295 in the first two weeks 590 bucks a month then so with my 30% margins I'm making $177 a month profit are two ways to think about it I need 14 machines still to make 100K a year and then way two since it takes me 2 hours a month
to manage I make about $88 an hour or a Sal if I'm getting crazy with my extrapolations of $183,000 a year so total $695 in 2 weeks which is actually kind of crazy because that is 1,391 bucks a month with three machines which means I earn 16,680 bucks per year with these things if I replicate even just this amount with these three I need about 16 of these to make 100K a year and that would have me working like 32 hours a month if for kind of being Loosey Goosey here you just call me Tim
Ferris with my 4-Hour Work Week okay our upfront costs were about 6,000 bucks it's going to take us 5 months for us to make that back by the end of the year though we think we could recoup our investment and we're profitable starting month one or two which is pretty sweet but I am actually really thrilled about our little money-making robots however we're not lazy pieces of here so I think we should build a real business off of this we're officially at a place where we could consider making six figures a year off of vending
machines and certainly where we could be making mid five figures a year off of it but the point of this video isn't for us to be lazy passive income entrepreneurs the point of this video is that we took a boring business we made it a little bit more beautiful and because of that we get rewarded with more cash than the average vending machine how much more cash well we're making somewhere between 2 to 5 times the best performing vending machine out there you see what happens when you do good you do well