Running an ice vending company has become an increasingly popular way to make a living. Many savvy entrepreneurs have also used it as a side hustle. That’s because well-placed ice vending machines can generate more money than many people expect.
Since they don’t require much maintenance, they’re also low-cost, making them a decent profit driver. But, how much money do you make on ice vending machines? As simple as that question is, there are a few things you’ll need to keep in mind.
How Much Do You Make On Ice Vending Machines?
Running An Ice Vending Business: The Financials
As with any other business, running an ice vending company will take a certain amount of capital. Luckily, this isn’t as large as you might expect elsewhere, and there are always lending options to meet your needs.
The highest cost will be the ice vending machine itself, which can easily cost upwards of $20,000. There are rental options available, however, although payments will eat into your long-term profits.
There are also several maintenance costs that you’ll have to consider. These include:
- Credit card costs, and;
Then you’ll need to consider location, which is an important factor in determining your machine’s success. You’ll need to pay to have your machine there, which can easily cost you thousands every year. As such, you should keep these in mind when budgeting.
So, How Much Do You Make Ice Vending?
All of that might make it seem like running an ice vending company isn’t worth it. The potential profits may make you think otherwise. But, how much do you make on ice vending machines?
Multiple factors affect this, with the largest being location. You’ll need to ensure that you pick an area with lots of foot traffic to provide visibility and sales. If you do, then you can easily make $25,000 a year on the low end. Depending on the success of the location, that can double or even triple.
The figures shouldn’t be that surprising. Your costs associated with selling one bag of ice could be as low as $0.25, although your selling price could be $2.50. With a few dozen sales per day, you could generate a significant amount of passive income.
Since ice vending machines can last anywhere between 10 and 30 years without being replaced, that money builds up.
What To Remember
Running an ice vending business can be a fruitful endeavor that’s relatively low-cost. That doesn’t mean that you can sit back and relax while the money flows in, however. There are multiple things that you’ll need to keep in mind to become – and stay – successful.
As highlighted above, picking the right area to place your machine is essential, as it has a drastic impact on sales. You should also keep costs in mind, as there may be several that you’re not aware of, such as potential vandalism.
By keeping these in check and putting in the effort, starting and maintaining an ice vending empire won’t be as difficult as you would think. It’ll also give you the time to oversee a few other money-making strategies at the same time.