Speaker 1: I'm very bullish right now on micro markets in this
kind of modern vending space, you know, traditional vending machines
and entering the codes and watching the motors spit down.
The Snickers is now going to a massive revolution. So
I think there's a prime opportunity right now for people
to grab market share with these newer micro market concepts.
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Speaker 3: Ed. Welcome you are listening to and watching the Financial
Survival Network. I'm your host, Carrie Letz. Well, everybody's looking
for passive income, real estate, seeing property, all sorts of
different things, but this is a different take on it.
We've got mister passive dot Com on with us, Michael Hoffman.
If you've got a question for him or myself, shoot
me an email k L at Carrie Let's dot com. Michael,
great to have you on the show. So everybody's looking
for passive income. What's your take on the on the
on the space.
Speaker 1: Yeah, Carrie, thanks for having me. Sorry it up to
be here. I think from my side, you know, everything
is as passive as or not passive as you allow
it to be. So I'm a huge believer and systems,
whether that's real estate or vending machines or what a
bitcoin minding, all the different kind of investments I have.
But my take is trying to build something and then
remove myself from the business as quick as possible.
Speaker 3: So what's your favorite passive income stream. Oh, that's a
tough one.
Speaker 1: I'm very bullish right now on micro markets in this
kind of modern vending space, you know, traditional vending machine
and entering the codes and watching the motors spit down
a Snickers is now going through a massive revolution. So
I think there's a prime opportunity right now for people
to grab market share with these newer micro market concepts.
Speaker 3: Okay, And so how much does it take to get
into that business?
Speaker 1: That's the beauty of it. And that's actually why I
got into it, as I couldn't for my real estate investments.
I keep couldn't, right, I couldn't keep putting twenty percent down.
So I went down this path, and all these machine
manufacturers allow you to finance them just like a real
estate investment. And so for me a lot easier to
put ten percent down on a six grand venue machine
than it is ten percent down on an investment in
real estate.
Speaker 3: So what about locations, Like, how do you get somebody
to accept your machine instead of somebody else's.
Speaker 1: Yeah, so that's a really good question right now. We
like to target places that either have traditional machines and
now want to do salads and subs, or dayquill and
niquill and phone chargers that traditional machines wouldn't allow. So
a lot of our business, honestly, is we're replacing old
school machines with the newer concept.
Speaker 3: So what kind of things are you selling there? You
said phone chargers? I heard probably cables? What else?
Speaker 1: Yeah, so we just installed an urgent care, for example,
and we'll probably do a lot of the items that
you know, a lot of the times when you leave
the urgent care and they're like, oh, just let the
cold play out, go to the pharmacy and get cough
drops in day quill and niquill. Those are options we
could put in our machines.
Speaker 3: They see, okay, and how much can you make of
off these.
Speaker 1: Things depend on the location. We have one location that
does did over seventeen grand last month, and then our
standard locations are around fifteen hundred to three grand.
Speaker 3: A month fifteen hundred, so how many machines could you
reasonably expect to get out there?
Speaker 1: As many as you want? Most people will try to
get to ten to twenty grand a month in cash flow,
so they're trying to get to that five to ten
machine mark. But we've bought and routes now remotely. We
own a route in Chicago, for example, that we bought.
Even though we live in Oregon. We have our route
here in Oregon, so it's kind of a scale. As
quickly as you'd like, you can buy baby Boom boom
or routes things.
Speaker 3: Like that, so you basically have to go and restock
these things, right, I don't.
Speaker 1: I mean, that's what we usually teach people how to
hire operators that would do that type of stuff. But
in theory, I always recommend do it initially yourself, so
you know what you're delegating.
Speaker 3: And so I sen with the location there's a profit split,
and then with your route manager. There's also a profit split, right,
that's correct? Yep, yeah, So how much do you wind
up with at the end of the day.
Speaker 1: You usually want fifty percent margins, So like I seventeen
grand locate, you're probably bringing on eighty five one hundred
to nine grand.
Speaker 3: Yeah, that's not bad, all right. So it sounds pretty
easy to get into this. Probably the credit is pretty simple, yeah, yeah.
Speaker 1: Yeah, not like you're taking out a three hundred thousand
dollars mortgage.
Speaker 3: Sure, all right, So what other things besides mini marts?
Speaker 1: These smart machines now with these AI cameras, they track
what you grab out of the machine. So there's no
honor systems. You know, you think you go to the
Marriotte and they have the open market that you grab
something and you got to go up to the front
desk and throw the bottle of water on your your
room charge. Nowadays, the smart machines, you have the kiosk
to unlock the door, and the AI cameras will charge
you based on whatever you grab out of that machine,
because you have to use your credit card to unlock
that door. So we have people and with our routes
that we've helped build that'll put in there, like thirty
five dollars shampoo they'll put and eggs, olive oil. Basically
the mini convenience store at these apartment complexes. So truly
it's kind of you know, you can put it's just
shelf space, so you can do whatever you want on
these machines.
Speaker 3: It's interesting like the Bright Line railroad here in Florida,
their stations have got totally unattended convenience stores and like
you say, you scan your card to get in and
then it automatically charges you on the way out.
Speaker 1: Yeah, yeah, I mean the same thing when you come
down the escalator and it says welcome to Las Vegas
and the Las Vegas Airport. They have an entire seven
eleven that is unattended. You scan it or to get
in the seven eleven. Yeah, that's where all these huts
and bookstores are going to be going too.
Speaker 3: It's a brave new world here.
Speaker 1: Huh AI's crazy Carrie crazy.
Speaker 3: Amazing, amazing, says somebody's starting out today, Say with twenty
five thirty thousand dollars, what would you tell them to do?
Speaker 1: Either tap in your connection and try to if you
know someone a place that might have high foot traffic,
like somewhere someone lives, like an apartment complex, or like
an urgent care or pet hospital. If you want to,
if you want some help and get accelerated help, you
can always go to our website entrepreneurs dot com and
book a free call with our coaches as well.
Speaker 3: So, so from what you're saying, it's pretty easy to
actually get these locations.
Speaker 1: If you know the right things to say. Absolutely.
Speaker 3: Yeah. So what do you tell somebody when you're trying
to get into their location.
Speaker 1: Well, depending on the type of location. If it's a business,
every business owner loves to keep their employees at work
during their break, so they want to bring food to
the employees. If it's an apartment complex, the number one
complaint residents have is having a door dash or get
in their car to go get something from the seven eleven.
So the mini convenience store in the lobby is always
gonna have value for them as well.
Speaker 3: Interesting, so we could be seeing a lot of these
mini convenience smarts, unattended pop up in apartment buildings and
condos around the nation.
Speaker 1: Anywhere, urgent cares, peed hospitals, I mean, think about where
there's a there's people congregating and just hanging out with
foot chofolate.
Speaker 3: Interesting. All right, Hey, so tell us how do we
connect with you on the web. How do we find
out more?
Speaker 1: Yeah, you can go to go to our website than
entrepreneurs dot com and watch some videos on how you
could do it yourself, or if you want to schedule
a free call to see if you need some help
or not.
Speaker 3: All right, excellent. I appreciate you coming on here, Michael.
If you've got any questions or comments for Michael myself,
shoot me an email kl at Carrie LUTs dot com
and hey to find a link in the show notes
of this interview on Financial Survival Network dot com. All
we ask is if you go there, just sign up
for a free newsletter like over seventy five thousand and
FSA members have done already. Michael, we'll talk to you, sir.
Speaker 1: Thanks for stopping by, Harry, thanks for having me, really
appreciate it.
Speaker 2: Thanks for listening to carry Lenz's Financial Survival Network, your
solution to today's trying times. For the latest, go to
Financial Survivalnetwork dot com. Financial Survival Network now more than
ever