Transcription
One of my vending machines generates me $20,000 a month in revenue, and I owe most of it to choosing the right products. There are 10 main items that make this micro market the most successful. You're about to get the full list of these best sellers so I can show you what's making me money right now and why they sell so well.
And if you stick around until the end, I'm going to share with you a simple addition I just made to this micro market to boost sales by almost 20% in just a few months. So, let's first talk about premium water and why Smartwater outsells most regular water.
So, the first reason that Smartwater sells better than regular water is because of the profitability. This water here cost us a dollar from Vendhub, and we're able to sell it for $3.75 per bottle. The target demographic that buys these Smartwaters is always focused on what's in their body. And this is why the purity and the ability to have such a refreshing water like Smartwater is going to cater to that demographic. Our strategy with Smartwater, because of the profitability and the margins, is we want to have multiple rows of Smartwater because at the end of the day, we never want these to sell out. The reason Smartwater outperforms all the other brands is because people don't just want to buy the simple Kirkland brand from Costco. They want a pure water experience, or they're just going to keep drinking out of their own water bottle.
And number two might be something you wouldn't think of, but it's actually Sprite. The reason Sprite is so great and a top seller for us is because it's the perfect companion product. Think about it. When was the last time you had a Sprite? My guess is you probably had a Sprite and you had something else with it, like salted nuts. One of the things I love to have a Sprite with is pistachios. So, every time people get a Sprite, they often buy something else to be a companion with it. So, with a Sprite, it usually costs us about 90 cents a bottle. And guess how much we can make it make off of it? So, when someone scans a Sprite to pay for it, they're paying $4. That is a 300% over 300% markup and profitability for us. The best places that Sprite sells tend to be apartment complexes because people love to have snacks in a companion like Sprite, but also warehouses where people love that refreshing soda during the afternoon break or at the end of their shift. When you think of Sprite and as it relates to the sales volumes compared to other sodas, Sprite is right below Coke, but definitely above all the others. For example, we've sold over 140 Cokes in the first 20 days of this month; 87 Sprites in all the other sodas or 70 or less.
That leads us to number three, which is Coke. Coke, the office worker's favorite. The reason Coke sells so well is because everyone has old habits that are hard to break, and most people were born and raised with Coke. The other thing with Coke is that people that aren't coffee drinkers love to drink Coke in the morning. Unlike Sprite, which is more afternoon or when it's hot out, people love a good Coke in the morning if they don't drink coffee. The reason Coke sells better in certain locations often is about the demographics. Think about it. A lot of people that might be Hispanics or from Mexico love a good Coke, but also all those people from the South were born and raised where Coke is headquartered. The thing with Coke that we tend to see is usually there's a 2:1 ratio in sales of afternoon Cokes selling 2x more than morning Cokes. The locations that do the best with Cokes tend to be those warehouses that have a lot of workers that come from the South and work long hours and want that refreshing Coke. But secondly, just like this place, apartment complexes also tend to do really well.
And number four of our top sellers is Hogenas. And the reason why is because it's a premium and impulse buy. The reason people will pay $5 plus for a little Hogen ice cream is because it's all about impulse. Think about it. At the end of the night when you have those sugar cravings, where do you want to go? You want to get ice cream. So, are you going to pay $15 to DoorDash it from a local store or you just going to go down to your micromarket and get it for five? Let's check it out and see what the markup percentage is of this Hogen Doss that cost us little to [Music] nothing. So, as you'll see with this little cup of Hogen Doss, it's $3 and it costs us less than 75. The only drawback with Hogen Doaws is obviously your machine or your micro market needs to have a freezer option because these will not handle well in a refrigerator. These thrive in locations where people live there. Think of your senior citizen home or your apartment complex where you're going to have sugar cravings late at night while you're watching your Netflix show. This apartment building with these Hogen sells over 200 of these little cups a month.
And number six, Fairlife High Protein. And let me show you why these perform so well. [Music] If you couldn't guess already, the reason these perform so well is after everyone gets their workout done across the hallway, they want their protein shake. Protein shakes have exploded in popularity because more and more people understand the importance of their health. And there's no better way to stay hydrated while also keeping your muscles refreshed than a protein shake. Our little gym over here does over $1,200 a month just with protein shakes alone. Now, let's talk about the markup on these Fairlife protein shakes. So, as you can see, when we scan it, someone is paying $5 and these things cost us a little over $2. So, we're getting 70% margins. The reason people love Fairlife is because it's not ultra-processed and it tastes literally like chocolate milk or a refreshing drink. So people love to pay for quality like Fairlife than they do some knockoff like a Muscle Milk.
And number seven is Gatorade. Gatorade is number seven this month, but it'll tend to go up the list during the warmer months when people are all focused about hydrating and staying active outside when it's a lot hotter than it is today. Locations that do very well with Gatorade tend to be our most active locations. Think of fitness centers, but also people that love to be healthy. So, surprisingly, urgent cares do very well with Gatorades because they're choosing the healthier option. Now, let's talk about markup percentages. So, we're going to go scan it and see what our percentages are. These Gatorades are $3.50, and so we have over 125% markup than what it costs us. Our target demographic for Gatorade are all those people that are focused on health; those that want to hydrate like in a fitness center or those that want to avoid the sugars of soda when they're at the urgent care. Our placement strategy with Gatorade is all about trying all kinds of flavors and then doubling down on the flavors that sell the most, which is why we have two rows of clear Gatorade and only one row of orange Gatorade.
Item number eight, Shin Noodle. Surprisingly, a bestseller. Premium ramen outsells the cheaper options like cup noodles because at the end of the day, people want flavor and quality over cheaper options. These Shin Noodles crush it in office locations where people have a break room and access to a microwave or anywhere where people live at nighttime like an apartment or a senior center. Now, let's go check out the market percentage of the Shinu. As you can see, with this Shin Noodle, we're able to charge $3.50, which is a 150% markup than what it costs us.
Number nine is Reese's Cups. The undisputed king of candy sales. The first reason that Reese's does so well is because the combination of chocolate and peanut butter has so much appeal to everyone out there that it increases its popularity. It also has an impulse buy psychology. Think about it. When you get a Reese's, you want that quick sugar craving and you're also not going to feel bloated or overcommitted after you had some. Now, let's actually talk about the markup percentage of this. So, in the in the market here, we charge the Reese's $2.50, 50. But candy is actually very expensive to us and so we only get about a 100% markup on it. Our placement strategy with Reese's, cuz it's our top-selling candy, is we want it to be visible in every type of location. Whether that's our urgent care, whether it's this micro market here in an apartment complex or even our warehouses where people just want that candy at the end of their long day. Our locations average about three Reese's sales per day because of its popularity.
Now, let's dive into number 10, which it might be the last one, but it's actually my favorite, and that is Uncrustables. Who doesn't like a good PB&J? Like an Uncrustable. This is one of the best sellers, but the least expected. These sell out constantly because it fits multiple demographics. Think about it. People love a good PB&J for breakfast. They love it for a snack, or they'll even get full and use it as a meal replacement for lunch or dinner. This is an office worker favorite because they can go get this out of the break room at any point. Now, let's go look at the markup percentage of this Uncrustable and see what we make off of it. So, when we sell our Uncrustables, as you can see here, we sell it for $3, but these things literally cost us only around a dollar. So, we're getting nearly a 200% markup just on a PB&J. The thing with Uncrustables is they do have a shelf life if you don't keep them frozen. So, what we like to do is keep them in our freezers in our markets because then the shelf life is way longer than in a refrigerator.
To end this out, let's talk about an honorable mention feature, which is the freezer we added. This micromarket location was plateaued out at around $17,000 a month. Since we've introduced this micromarket freezer, we've now increased that to over $20,000 a month. A 20% increase by just adding a freezer. Finding the right products is just one piece of building a successful vending machine business. Because if you don't know where and how to get these items in front of people, you don't really have a business. That's why I just made a video on how to find the best, most profitable locations. You can watch that by clicking a link somewhere around here. And if you'd like to learn more about being coached by myself and my team, you can check out vendingreneurs with the link in the description. Thanks for watching, Mr.