Case Study: How I Grew My Vending Business Part-Time While Working a Full-Time Job

(From 0 to Turning Down Business in 2 Months)

One of the great things about a vending business is the flexibility you’ll get in this industry. While you can quickly grow a vending company into a full-time business, it can also easily be run as a side-hustle to earn extra income. 

That was Steven’s plan when he started his vending business. He’s taken a slow and steady approach to launching his company and it’s already paying off. Within two months of taking the UpFlip Vending Bootcamp, he’s not only landed his most desirable account, but is actually turning down locations. 

The vending business is Steven’s retirement plan, so he’s in no rush to scale it. As he says: 

“I’m just taking it one machine at a time, one account at a time. I’m going slow with it because I don’t want to dump a lot of money into this yet.”

Since he still works his full-time job at nights, taking this more measured approach to growth is a smart move. He’s also bootstrapping his business, investing only his own money rather than taking out loans or financing, to make sure he’s staying accountable to himself about what he spends. 

Let’s take a closer look at how Steven launched his business and the steps he’s taking to set himself up for long-term success. 

Steven’s Slow-and-Steady Startup Strategy

Steven knew he wanted to start a vending business before enrolling in the Vending Bootcamp. In fact, he’d already set up his LLC, so he was ready to hit the ground running with what he learned. 

The reason he took the course was to get some direction on what to do next. Primarily, he was looking for advice on:

• Where to find leads
• How to choose the right locations using the 30-30 rule and Prospect Pyramid
• How to approach businesses that already have vending machines

He took that knowledge from the course and built it into his own personal 5-step plan for success: 

1. Buy new, high-quality machines
2. Identify your differentiating factor
3. Create professional marketing materials to give potential accounts
4. Make in-person sales calls
5. Know when to say no

Let’s take a deeper dive into each of these steps and how Steven took them. 

How Steven Landed His First Account Step-By-Step

Step 1: Buy high-quality machines. 

Steven knew he wanted to pay out-of-pocket for his equipment instead of taking a financing option. His reasoning:

“When you pay out-of-pocket, you take more caution with how you spend your money. When you finance something, you’re not really seeing the dollar amount that you spend.”

Since he also knew he didn’t plan to scale right away, he decided to invest in two new machines that he knew he could count on. 

Why did he buy new vending machines instead of  used or refurbished machines? 

“I went brand new because I didn’t want to inherit somebody else’s problems.”

He bought a new Vendo 821 soda machine with some cosmetic damage at an auction for $800. Even after making the needed repairs, his total investment was only $1,500, nearly $3,000 off the price of a new machine without cosmetic damage. 

For the snack machine, he went with a brand-new SEAGA Envision 4. That had a slightly higher price tag, but the investment is paying off. Both machines are already in his first location and bringing in revenue for his business. 

Step 2: Identify your differentiator. 

In Steven’s area, there are a lot of warehouses, retirement homes, and other potentially profitable vending locations. Many of them already have vending through a large, national company, but he knew from taking Adam’s course that this wasn’t a deal-breaker:

“A lot of places already have machines but also, they’re not happy with their vendors. These big companies only show up maybe twice a month and they don’t give their clients what they want. They want somebody that they can contact right away, and somebody that’s willing to be flexible with them.”

That was where Steven knew his company could win the day. The account he landed wanted someone who could fill their machines weekly and would respond quickly if they ever had a problem. Steven secured the account because he was able to meet those needs. 

His advice for using customer service as your differentiator: 

“Just show consideration for them, that’s what they like. They like somebody that’s sincere and dedicated.”

Step 3: Leave professional marketing materials with desirable accounts.

Once Steven purchased his machines, he was ready to land his first account. Steven designed and printed flyers to leave with business locations. He also gave accounts free branded pens and notebooks. 

The total cost of all of the marketing materials was around $175, which is very reasonable. The expense almost immediately paid for itself after placing his first machines. 

Steven knew he only had two machines, and wasn’t trying to get a ton of people to respond right away. He distributed flyers slowly: 

“Every two weeks, I pass out at least 10 flyers. If I didn’t hear anything back, I would go and pass out another 15.”

Every time he handed out the flyers, he also left the freebie pen and notebook. This approach saved time and money.

Step 4: Make in-person sales calls to potential locations.

Steven had his eye on one particular location that he thought would be perfect for his machines, a newly constructed warehouse with 24-hour shifts for its employees. 

He looked up the director’s contact information online and reached out via email, but got a reply that they weren’t interested in new vending at the moment. 

But Steven wasn’t ready to give up that easily: 

“I didn’t want to be a pain in the butt and keep trying to email them, so I went a different direction by going in and actually handing out my flyer. I just didn’t give up because I really wanted it and knew it was ideal.”

The in-person approach proved the better way to go: 

“After I dropped it off, they called me probably within the next two hours.”

Steven took some advice from Adam’s course when he made these sales calls, too. 

He put on a suit and tie to make sure he looked professional. His attire, informational flyer, and branded marketing materials showed that he was someone the warehouse staff was comfortable doing business with.

Step 5: Know when to say no.

Along with the warehouse where he has his machines currently, a few other locations have reached out to Steven and shown interest in his vending services. 

One of these interested accounts only wanted a snack machine, and only had a team of about 50 people that would be using it. They also wanted him to lower his prices and sign a contract. All of these were red flags that he probably wouldn’t make very much money if he moved into that location. 

Another potential location is more promising. They’re a carpet cleaning company with a team of over 100 employees who had a contract with a large vending service that they’re not happy with. Even so, Steven turned them down:

“I just don’t have the money to get other machines and I don’t want to get myself in a hole.”

He plans to get another machine in January, though. When that happens, he has an account already lined up that he can reach out to and start generating revenue right away. 

This is Steven’s main advice for people who are just getting started with a part-time vending business:

“It’s going to be there, so just take your time. You don’t want to rush into something then find out that it’s not what you want, or find yourself financially in a hole buying machines or a location that aren’t going to make you any money. Make sure the location that you get is going to be worth it.”

Taking Your First Step to Success

Steven’s slow-and-steady approach is working well for him. He’s only been in his first location for a few weeks and is already earning a revenue of around $150 a week from it. He’s also still putting aside personal funds to purchase new machines. His plan moving forward:

“In January I’ll probably get another SEAGA machine and a refurbished soda machine, and that would be my next account. That’s how I’m building: get new machines every year. It’s going to be a slow process for me. For some people, they can probably buy 20 or 50 machines at a time, but I can’t.”

And the truth is—you don’t need to! Laying this solid foundation will allow Steven to grow his business over time so that it’s generating real revenue when he needs it after his retirement. 

The bottom line is that there are many ways to start a vending business, and success will look different for everyone. Knowing what you want from your business is the first step to starting it the right way. 

Are you ready to take the first step to launch your business?

 The Vending Bootcamp can give you the knowledge and tools you need to build it the right way—even if, like Steven, you plan to take things one account at a time. 

Steven C.
UpFlip Academy Member