3 weeks ago, I made $48,000 selling one of my vending locations with 2 vending machines.
But before I tell you how I did this and how it can be a reality for you too. I need you to do something first.
Forget everything you think you know about vending and think of it like this.
Vending machines are mini stores that most of the time, live rent-free on other people’s property.
So essentially you get to profit on other people’s real estate because you provide the most consumed product on earth. They become cash-flowing as soon as they’re placed and the initial investment you make usually pays itself off usually in 6 months to a year.
Realistically, when you invest in assets it can take YEARS before you see a good ROI (return on investment). And in some industries like real estate, you usually have to put down 10x as much to get started. In September, a new location found my website through Google and requested my services.
It was a warehouse with 60-70 employees.
I placed two machines in October and by the 2nd month, they were making over $4,000 a month.
I initially paid $3,200 total for 1 drink and 1 snack machine with card readers. However, I had to pay an additional $6,000 for a brand-new drink machine because the other was cheap and was giving me issues, this is why I always recommend never being cheap when it comes to business.
Being cheap is expensive!
Anyways, in the vending machine industry, if you are seeking to sell your cash-flowing location with the machines included, the standard is that you can sell your location for 1 times the annual revenue.
So, because the machines grossed $4,000 a month, we multiplied x12 and I was able to sell it for $48,000 in April. So let’s do the math.
An initial investment of $9200, turned into a gross profit of $48,000 check in only 7 months.
Here’s the best part….
I had already made my money back with my monthly sales, so it was all profit!
It’s important for me to share my experiences with you so that you can understand the real value in the vending machine industry.
I also want you to understand that once you get a profitable location there are people out there looking to buy that location because it’s already a cash-flowing business.
My location was cash-flowing, paid itself off AND I was able to sell at a profit.
Where else can you do that?