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59: Making Money With Water Vending Machines, with Dan Doromal
Manage episode 407149745 series 3558257
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The product dispensed out of these vending machines is something we all need – water!
Today’s guest is Dan Doromal, co-founder of Everest Ice & Water.
He goes beyond the rosy TikTok narrative of the vending machine business to discuss the reality, including;
- when you can expect sales to really ramp up, and it’s not necessarily in the first year.
- what to look for when choosing a location,
- how to gain market penetration,
- who pays for what expenses,
- the cost of the vending machines,
- your capital recovery time, and
- what you need to do to get any vending machine business off to a great start.
Be sure to check out my Pro Tip at the end which you can apply to fast track your success in any new side hustle you decide to dive into.
What You’ll Hear:
05:21 The reality of running a vending machine business
05:58 Working the side hustle business with dad
07:46 The importance of location
09:30 Components of an Everest Ice & Water machine
10:50 Much improved from bags of ice sitting in a merchandiser
12:43 Ways to place a machine, the profit margins, choosing to split profits or monthly fee
14:29 Tracking sales
15:57 Sitting back and waiting for the money to roll in, isn’t a recipe for success
17:10 Is vandalism an issue?
17:46 Provide education to deal with objections from property owners
18:30 Looking at a 3–5-year lease with repeat customers in year 2
19:50 To gain market penetration as fast as possible, consider giving the product away as a promotion
21:45 Initial costs of vending machine
23:07 Check out local laws, need concrete foundation, water, drain line and possibly heat depending on the location’s climate
25:33 Capital recovery time 1 - 3 years, small towns can do really well
29:22 If the location doesn’t work out, it’s small enough you can move it to a new location
30:30 Identify your “why!”
31:20 Mistakes made by newcomers to the business
32:10 “Plug and play” doesn’t tell the whole story, there’s work to be done
33:44 “The Art of The Start” book - how you pre-plan and setup is key
35:20 Dan bases his success on the number of his repeat buyers
36:38 Dan’s best tip for success
Pro Tip
37:56 Find out who the top earners are, and interview them
39:25 Don’t just ask anyone, “What do you think?”
Connect with Dan:
https://www.linkedin.com/in/dandoromal/
https://everesticeandwater.com/
Connect with Joan:
https://www.instagram.com/joanposivy/
https://www.facebook.com/posivy/
https://www.sidehustlehero.com/about/
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