This beautifully told story is based on an interview with Zach Downey, owner and general director of w A characteristic machinewhich operates cotton candy machines in high-traffic locations similar to resorts and amusement parks.
As a college student at James Madison University, Downey received permission to place a pizza vending machine on campus when financial problems thwarted his plans. It was then that he “discovered the world of cotton candy machines.” Downey entered the industry and now Distinctive Vending is on track to achieve $500,000 in revenue in 2024.
Photo credit: Courtesy of Distinctive Vending. Zach Downey.
Read on to learn the best way to build a successful cotton candy vending machine business and how you need to use it to earn passive income.
I didn’t know how many people were interested in starting any such side business. I still get calls from people asking for details.
There are three predominant things that go into running a cotton candy vending machine business.
Decide on the location of the machine before purchasing it
First, I talked to individuals who had not found a location for their machines before starting their business. They just buy machines, and that is not the smartest way. Purchasing the machine first increases the risk. Therefore, deciding on the location of the machine must be the first step. In my experience, the best strategy to find a location is to go to the location in person and attempt to seek advice from the person in charge – this has the best probability of success. If you don’t need to do this, you may call and email; Paid ads don’t work thoroughly.
Once you know your location, it is time to buy a machine – and this is the number one thing people often ask about.
How to purchase a cotton candy machine and avoid unexpected fees
I made a serious mistake when I bought my first machine. There was something improper with it Incotermswhich determines how your parcel will likely be shipped. If you order something from Amazon, it is going to be shipped straight to your door. But if you are ordering something from China, there are many ways to ship; The predominant difference is that you just take responsibility for the parcel. When we first shipped it, it was Free Carrier (FCA), which implies we took control of the package once it arrived at our port. So we were responsible for paying the import tax and getting it from the port to the destination, and that was an extra $3,000 that we had no idea we might pay. Therefore, it is necessary to send your parcel duty paid (DDP).
If you look for a machine on the Internet, even if you do a quick Google search, you’ll get 20 different web sites. If you visit Alibaba, the predominant source of data about Chinese manufacturers, and search for cotton candy vending machines, one can find essentially 50 different suppliers, all of which list cotton candy vending machines. The thing is, there aren’t really people making 50 several types of slot machines.
There are principally five real cotton candy vending machine manufacturers on the market, and everyone else just takes the machines, charges more for them, and flips the cotton candy vending machines. Of these five real producers, there are actually two good ones. So if you do not know who the five are and who the two good guys are, you are screwed. It’s like a game of probability where you select randomly.
Of the five manufacturers, I recommend purchasing a machine from Red Rabbit or Sunzee Intelligent.
How to wash and refill the cotton candy machine and the importance of additional parts
The work doesn’t end once the machine is in place: it should be maintained diligently.
The machine gets dirty in a short time. In my opinion, you are proving negligent if you do not clean up after 100 servings or less. Technically, the machine does not have to be refilled until about 150 servings, and then the waste bucket must be emptied. You should persist with a regular cleansing schedule; clean the within your cabinet to forestall sugar build-up and ensure your cotton candy stays fresh and particle-free. Also wipe down your device’s windows to take care of visual appeal. Thorough cleansing, including cleansing the burner cover and furnace cover head, does not have to be done every time the machine is cleaned, but must be done bi-weekly or weekly.
Be sure to fill up on additional supplies similar to sugar and cotton candy to refill the machine as needed, often after about 300 servings.
You must also have extra parts for the machine on hand. Inevitably, the machine will fail, and it’s easier to organize extra parts than to attend a week or two to receive them from China. Some basic recommendations include replacing the furnace, water pump and sugar motors.
What does the investment of time and money seem like?
If you do it right, you may get the machine delivered to your door for $7,500. What’s more, you’ll likely even be ordering bulk materials, which can cost around $500. But you may undoubtedly start it for lower than $10,000. And when it involves ongoing monthly expenses, depending on your location, most will want you to have liability insurance. It depends on your policy, but expect it to cost between $100 and $150 per 30 days.
This business may be completely passive if you are not the one cleansing and refilling the machines. We employ people to wash machines and most locations are cleaned one to three times a week. We pay about $50 per visit. So $50, if you restock every 100 units, is $1,000 in revenue for $50 in cleansing expenses, which is about 5% of the revenue just for cleansing the machine. That’s okay – it’s a surprisingly large margin. Your cost of products is 30 cents. You can sell it for as little as $15. There is principally no other business where you may buy something for 30 cents and sell it for $10. Hardly any other business. It’s crazy. So, if you outsource the cleansing part, you may make it completely passive.
This business is for individuals who don’t mind working with machines because sooner or later some of them will get damaged. That’s what machines are like. And if you do not feel comfortable walking as much as the machine and repairing it yourself, I don’t think it is best to do it. If you do not feel comfortable at least learning the best way to do it, you mustn’t start at all. When I began, I thought I could just plug the machine in, let it go, visit it once a month and every thing could be superb. But that is not even near what it’s like.