579: Ice Vending: $2500/Month in (almost) Passive Profits
Sep 14, 2023
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Learn about the world of ice vending machine business, including negotiation, financing, and customer promotion. Discover the benefits of leveraging time and making money without being present. Explore the management and maintenance required for a passive income business, and the surprise growth in the ice vending industry. Find out the importance of building relationships and finding consistent demand for your side hustle.
Creating leverage is key to a successful side hustle, allowing for multiple streams of income and passive profits.
Targeting locations with high demand and limited access to ice vending machines is crucial for rapid growth and expansion.
Effective marketing and exceptional customer service are essential for building a successful ice vending business.
Deep dives
Leverage in Side Hustles
One key aspect of a successful side hustle is leverage, which can be achieved by creating products or services that provide multiple streams of income or by finding ways to make money without actively being present. For example, the guest in this episode runs a vending machine business as a side hustle, specifically focusing on ice vending machines. By selling these machines, he is able to earn money from the sales of ice without needing to be physically present at each location.
Choosing Locations and Growing the Business
When deciding where to place the ice vending machines, the guest focused on areas where people would need ice but did not have convenient access to it. This included places like condo complexes, marinas, parks, and outdoor recreation areas. By targeting these destinations, he was able to provide a convenient solution for customers to purchase ice without having to leave the location. This approach led to rapid growth and expansion of the business, as more property owners started approaching him to place machines at their locations.
Financials and Benefits of Ice Vending
The guest discussed the financial aspects of ice vending, highlighting the low cost of production and high profit margins. Compared to traditional vending machines that sell beverages or snacks, the cost per unit of ice production is significantly lower. By selling bags of ice at a competitive price, the guest was able to achieve a consistent flow of revenue. Additionally, investing in ice vending machines provides the benefit of self-sustainability, as the machines constantly produce ice without the need for restocking or manual labor.
Marketing and Customer Service
The guest emphasized the importance of effective marketing and customer service in the ice vending business. In addition to traditional advertising methods like flyers and signs, the guest utilized digital marketing platforms and Google's listing service to reach potential customers. By providing excellent customer service, such as promptly answering phone calls and even remotely assisting customers in using the machines, the guest was able to build a reputation and generate positive word-of-mouth referrals.
Future Plans and Opportunities
The guest expressed his intention to continue growing the ice vending business, capitalizing on areas where there is high demand and limited competition. He also mentioned exploring opportunities to collaborate with construction companies and targeting blue-collar workers who frequently purchase ice. The guest believes that by maintaining a strong focus on customer satisfaction and seeking out underserved markets, the business can continue to thrive and expand.
Making extra money on the side often requires finding ways to create leverage.
Leverage means getting paid multiple times for work you only have to do once, and making money without having to actively do the work yourself.
One side hustler who has cracked the code on leveraged profits is Steve Slagle. By day, Steve works construction jobs. But outside of his 9 to 5, he now earns over $2500 a month from Beachside Ice, his ice vending machine business.
In this episode, Steve takes us through the world of vending machine location negotiations, landowner compensation, and the importance of maintaining positive relations. We explore the finer details of partnering with manufacturers, securing permits, and overseeing installation and delivery.
Tune into Episode 579 of The Side Hustle Show to learn:
Ideal locations for steady demand with ice vending machines
Financing options for starting an ice vending operation
Local customer promotion with grassroots marketing
