Is This the Death of Traditional Vending?! ($117 Startup)

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Meet Michael Hoffman, a former athletic coach who transformed his life through the vending machine business. Starting with just $14,000 in savings and a sharp eye for opportunity, Michael built his vending company, Modern Amenities, into a nationwide operation generating $75,000 monthly in revenue.

Growing up on a farm, Michael learned early lessons about entrepreneurship from his father. After college, he became a traveling athletic coach, making just $1,200 per month. During his countless hours in airports, Michael noticed something: vending machines were everywhere, but they offered overpriced, unhealthy options. This observation sparked an idea that would forever change his life.

Despite having no prior experience with vending machines, Michael taught himself the industry from the ground up. Today, his company stands at the forefront of vending machine innovation, with smart machines that use AI to track inventory, prevent theft, and even recognize customer preferences. His machines can be found in prime locations across the country, serving quality products that break the mold of traditional vending machine offerings.

In this episode, Michael shares his journey to becoming a successful vending machine business owner. Learn how he identified untapped market opportunities, negotiated prime locations, and leveraged AI technology to build a thriving automated retail empire – all while starting from zero industry experience.

Resources:

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👉 Check out Mike’s channel –

👉 Mike’s choice for vending machines –

Timestamps:
00:00 – Start
00:48 – From airport idea to vending empire
01:23 – Scale of operations
02:06 – The team
02:40 – “Traditional machines are dead!”
03:41 – Startup costs and funding
04:08 – Going all in… with nothing
04:37 – Thank God for YouTube!
05:18 – Smart machine demo
06:37 – Picking the right products
07:32 – Revenue breakdown
09:09 – What you (really) need to start
09:55 – Fan blitz
11:52 – The Micromart
12:15 – Location is everything
13:22 – Secure locations (the smart way!)
14:29 – A foolproof hack
15:17 – No traffic, no traction
15:59 – Cheap isn’t always better
16:54 – Basement setup
17:24 – Pricing dynamics
18:01 – Working one hour a week?!
18:40 – Overhead and margins
20:10 – Micro market vending
21:11 – AI tech is the future
22:08 – Setup costs
22:39 – Benefits of mentorship
23:10 – All about AI tech
24:55 – Insights and analytics
25:41 – Making the full-time leap
26:37 – Don’t buy a machine yet!
27:11 – Vending improves the experience
28:13 – Old vs. New
28:36 – Humans buy from humans
29:23 – Sneaky fees to prep for
30:00 – Leverage “incidentals”
31:08 – Fast-track your way up
32:16 – Vending routes aren’t for everyone
34:07 – Outro

#vendingmachinebusiness #vendingmachine #vendingmachines

97 thoughts on “Is This the Death of Traditional Vending?! ($117 Startup)

    1. @@chefdoedel The mini markets with the cameras and Wi-Fi hook ups are in the thousands not the basic vending machines.

    2. You know what’s mad.. your interviewing these entrepreneurs… but realise some of your audience dreams are to be YouTube creators… may not do the best views , but for the ones who need.. you could lay down foundations to become successful on YouTube… as a viewer, I’d say yous are successful.. got well connected. Have engaging content. And most importantly have a purpose.. regardless of this little bit of feedback. I love every video.. honestly gain so much business knowledge throughout every episode.

    3. LEGALWITHANDLEGALSHIP KNOW: BECOMESHIP COMPONENTFULSHIP GOODSHIP INNOCENCESHIP HARMLESSNESSSHIP IDEALSHIP UTOPIASHIP NEVERMORESHIP ALWAYSMORESHIP ALWAYSMORESHIP

    4. i ran a vending business for 10 years and ultimately left because of the COST to really scale I mean into the millions per month not 50-100k and switched to ATMS (Higher output per location vs. time invested) and selling drinks/snacks online only (Ability to sell worldwide not just in vending locations). Also as a small operator you are at the mercy of the large Vending Management companies that have THOUSANDS of locations. For this target market for a micro market you need to be in LARGE HIGH TRAFFIC locations the same ones the Vending Management Companies target and they can wipe you out just by signing a deal with corporate, sending them a large check and taking all the locations nationwide and giving you the boot. You cannot match them as a small operator. The best way to get in the vending business is to go get the Free coca-cola machines and buy your product from coke and hit up small blue collar businesses such as warehouses etc with no A/C and 50 employees. Stick to drink machines only unless a snack is requested. (less of a headache) They will do just as good or better than the white collar locations and you can actually get into those easier and not much competition. You can scale fast because you cut out the cost of the equipment and if you want to quit just call coke and tell them to go pick up the machines and walk away. All you need to start is to buy $50 of product and a $2 machine lock and go find a location.

  1. 1. What happens when people block the cameras to take more items?
    2. What’s a good profit sharing evaluation ?
    3. Where are you getting your inventory?
    4. Can a customer take an item and put it back right away if they change their mind?

    1. I think it has sensors too. Just like those Amazon store with no attendant. When an item pass the door it counts as sold.

    2. If a customer “cabbages” their mind, they have more problems than returning an item ;D (Sorry. I Couldn’t resist. Good questions)

  2. Love how they are talking about putting the food that causes heart disease in the lobby for people visiting the cardiologist.

    1. Tells you what kind of cardiologist is in the office. If the cardiologist doesn’t have a say then that’s not something I would allow in my office.

    2. You can load it with anything you want. Load it with fresh fruit. Someone will still buy it. It’s about convenience, not about the individual products. If I’m in a hospital waiting room with my kids and the vending machine has apples or chips, I’d probably pick the apples for my kids.

    3. That is not what causes heart disease unless you are hooked on fast food thus prefer to live in denial.

    1. Could be Cantaloupe. Card reader is $300 plus monthly fees starting at $9.95 per month plus 9.95% of each sale! Analytics are tiered much higher, with more hardware to buy.

    2. @@chalooter wtf square is significantly cheaper than that and I thought they were a bit pricey.

    3. They have open source alternatives that you can fork into your own, that’s what I did.

  3. If you place a vending machine in an office or residential building, you’re counting on steady monthly revenue. That means you need regular customers who keep coming back to waste their money.
    I use these kinds of machines once in a blue moon, sometimes with years between visits.

    So, who’s really making the money? The vending machines themselves, or the people running courses, teaching future competitors how to build a “successful vending business”?
    To me, it makes more sense to keep quiet and quietly expand my own vending empire.

    1. who makes money ? the land owner, who charges you a rent, the same rent regardless of how many packets of chips you sold in the month. the marketing guy on the Internet, who sells you trainings about how to get rich effortlessly with a vending machine. the machine owner owns bills, debts, and maintenance costs.

    2. @@johnsmith-ro2tw yep the course seller makes absolutely the same income whether his advice helps you make money or not. you really don’t need the course lol I bet he is the same guy or is getting some money for the sale of the machines too.

    3. Vending machines have been viable business for decades. The tech and user experience is changing with the times.

    4. While your not wrong on courses culture. You’re not thinking from a sales point of view.

      Sure YOU may only buy every now and then just like me and everyone else, but that’s why Foot Traffic is so important if your getting a chance at 100s – 1000s of people randomly buying snacks every now and then , then it becomes consistent.
      No different than media like music & TV and movies. Most people only consume the media once, but it’s the fact that millions of people consume it at different times which makes it scale and consistent.

    5. It’s still low overhead. Good entrepreneurs could probably find easy mild success. And some not so much. Shelf life of those products is eternity…

  4. This works in a high trust community. Low-trust communities, as seen in the comments, immediately start discussing how they can scam the business.

    1. @@abrahamlincoln8913communities that have statistically high crime obviously….. stop reaching

    2. That’s true of any and every business everywhere. Some businesses are just less secure

  5. “we dont even use the word vending”

    Stands in front of his machine with s sign that says”vending machine instructions”

    1. He doesn’t, but others do, and you have to speak people in ways they would understand lol.

  6. The guy is very conservative. I like that. I run a vending machine business myself in Germany, and I think it’s good that he’s so down-to-earth and only plans $1,000 per machine. It’s exactly the same for me. Nice video and greetings from Germany.

    1. I married a German girl, a German citizen born and raised in Nuremberg. Germany is probably the greatest country on earth. The only problem for me personally is how grey and cloudy it is. If there was more sun I would move there.

    2. ​@@acernegundo4270 not at all after all those immigrants, not gaslighting, ask locals 😢

    3. Hey i am also from germany any advice for starting a vending machine business in 2025 ?

  7. They have two of these type vending machines at the hospital in our city and they even had 6-inch Subway subs for sale in those machines. Definitely convenient for people who can’t leave the hospital and need food after the cafeteria closed!

  8. Call me crazy but what I took from this is “Be Consistent”, “Keep Moving Forward”.

    There are a billion good business ideas but 99% of us couldn’t pull them off without becoming consistent and moving forward hard every day.

    1. Yeah because all they care about is fast results and get rich quickly which is fine but if they only stress so much on getting “fast results” then they won’t get anywhere and that’s why most businesses fail. Consistency is key to success not fast results

    2. What I didn’t took from this is why on earth would you blow up your business idea on the internet for free? WHY?

    3. @@pavelpetrov2939 He’s getting into the business of selling those machines? 🤔

    4. @@pavelpetrov2939 Because you usally don’t have the capacity to fill the whole market anyway, so more locations = more interest in general in those vendings machine -> people go to stores that purely have vending machines now.

  9. First shorter machine shown is called Stockwell by 365 Retail Markets and the second taller machine is called Micromart.

  10. “so yea i realized how i got ripped off for an 8$ water bottled and realized i could be ripping people off instead”

    1. Smells of “I got sick of blockbuster late fees so I invented Netflix” when actually that was a dvd version of Amazon for ages before streaming

    2. Try again: “I realized that people are willing to pay $8 for convenience of location instead of having to walk further for a better deal and decided to explore if this presents a viable business opportunity.”
      Water is literally free in any airport if you drink or fill your own bottle at a water fountain but so many people are still willing to pay.

  11. I don’t know how I got to this video, as I’m a complete layman in the topic, but I really enjoyed it.
    I love it when people succeed in their business, I love hardworking people, problem solvers.

  12. For all those worried:

    If your debit card only has $5 the machine actually has a STIHL MS 250 Chainsaw that cuts off the, “customer’s”, arm if you go over the amount on the card. That’s the reason for the divider in the middle.

    If you did it on purpose the machine will keep the arm and make even more profit on the black market.

    If it was an accident, your arm will be sent back to you within 3-4 business days not including holidays and weather.

    Although ChatGPT errors have led to problematic situations in which customers that had cash were still getting their arms cut off.

    1. MS 250 isn’t powerful enough to cut thru bone; I’d think the machine would at least need to incorporate the 350 for that?

  13. A lot of hidden costs and hidden operations – WiFi router , SIM card connectivity payments with backup , financing on machines , insurance , maintenance costs, labor costs to run restocking routes , inventory fine tuning

    1. how is any of this hidden? with common sense you know all of this is needed lmao

    1. Geyser (GUY-sir). Meaning water spouting up fresh from the ground. (Don’t drink bottled water anyway). Yup, the seller doesn’t even know his own products

  14. my favorite part is when he was inspired to start this business by getting scammed and then admiring the person that swindled him

    1. Yeah, l thought something similar. It’s weird. Like l guess you’d hope that people started things cause they thought they’d make life easier, or better, instead of because they saw they could get away with huge mark ups. But l’m undecided on how l feel about this.

    2. He was pretty much saying he got ripped off, and that’s when he realized he could be the one ripping people off.

    3. Something to learn from and something to be warry of. These are in official government offices now, too.

  15. I live in Thailand in my condo there’s a fridge like this but without any technology just a glass fridge with food, drinks you can just open and pick whatever you want and leave cash in the box or scan the qr code to pay.

    I’m so glad to be in a high trust society

    1. High trust neighborhood* go to a crappy party of Thailand, and you’ll get robbed like anywhere else.

    2. in asia you can do this, but not in country that have blk and other race

    3. @@pitech4446 sadly in black communities all over the world, the thinking is how to scam, fast money etc. It’s sad that they don’t create a culture of growth. No idea why.

      Same in many other parts of the world, it’s certainly not exclusive to black peoples at all.

    1. That’s why entrepreneurs do not care about or do business in third world countries. That’s why they are so crappy.

  16. I can see this being an amazing idea in a laundromat—selling detergent, dryer sheets, etc. or in a gym selling reusable water bottles, towels, goggles or swim caps if there’s a pool.

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