How to Start an Ice Vending Machine Business Plan

ice vending machine business plan
ice vending machine business plan

Dermaskin solution – Starting an ice vending machine business can be a great way to generate passive income and improve your financial future.

All you have to do is buy the proper ice cream dispensers, place them in high-traffic places, and enjoy the passive income stream these machines will generate.

Vending machines, in general, can be excellent passive income businesses (and I wrote an article on how to start a passive vending machine business). Still, the ice vending machine business plans have the added benefit of having only one item in stock that doesn’t need to be restocked.

It’s excellent and as passive as it gets. If you’re interested, check out our guide on how to start an ice vending machine business.

What is an ice vending company?

An ice vending company is a business that owns one or more ice vending machines at various locations and makes money from the sales generated by these machines.

How much do ice vending machines earn?

Based on typical prices and average sales volume, you can expect to earn around $3,664 per month in net profit with your ice cream dispenser. Using these same assumptions, the expected gross revenue for the month would be $3,900, and the estimated costs would be $236.

This figure is based on assumptions and data I used in a profit calculator offered by Everest Ice and Water Systems (a leading supplier of water and ice vending machines). It is a useful tool. You can, of course, customize the entries based on the price you plan to charge, your expected sales volume, local utility costs, etc., to get a more accurate estimate of profits.

How much does it cost to buy an ice cube vending machine?

According to Ice House America, one of the nation’s leading ice vending machine suppliers, purchasing one of its machines ranges between $43,000 and $150,000.

These machines usually have a one-year manufacturer’s warranty and should last 20 years.

But the initial costs are just some of the ones to consider.

Read more What Is a financial controller responsibilities?

On average, the cost of making ice is $0.50 per 100 pounds, and plastic bags cost about $0.15 each. So each kilo of ice would cost the owner $0.25 if a backpack is used. If the customer chooses to put the ice directly into their cooler (an option available on some ice vending machines), the cost could be reduced to $0.10. Other prices include maintenance and repair costs that may arise (such as the replacement of filters, etc.) as well as the rent you will have to pay to the location’s owner.

Do ice cream vending machines provide passive income?

Vending ice cream businesses can generate passive income if adequately structured. To keep your ice vending machine business plan as passive as possible, you should take the following steps:

  • Buy high-quality machines that do not require constant repairs.
  • Buy machines that accept payment methods other than cash
  • Use remote management software to monitor your machines
  • Outsource periodic maintenance and rounds
  • Have a repair service to repair your appliances.

Most of the items listed above are self-explanatory, but I would like to discuss remote management software that monitors your ice cream vending machines. This software can be a huge factor in making your ice cream vending business more passive. For example, you can monitor sales, receive maintenance reminders, view machinery inside and out through live video, and reset, monitor, and fix critical issues from your phone or computer. Portable.

Also, you can see how much cash has been withdrawn from your machine (which is enormous if you want to prevent theft from the people you hire to do rounds for you).

How to Start an Ice Vending Machine Business?

Step 1: Create your ice cube vending machine business.

The first thing you need to do is set up your ice cream vending machine business.

Name and logo

This includes choosing a name and logo you like and creating a website (if you want your business to have an online presence).

Are you having trouble finding a name? Try Shopify’s business name generator. It’s free.

As for the logo, I have no artistic ability and limited technical skills, so I prefer a simple, easy-to-use option.

Looks will provide you with a professional-looking logo at reasonable prices. You can choose from hundreds of logo designs (depending on the settings and preferences you select) before choosing one you like. You can also customize it to your liking. Check them out here.

Note: You must ensure your name and logo are original and won’t infringe on someone else’s intellectual property. If unsure, consult the USPTO Trademark Search Tool as a starting point.

Build your business website for free

Your website can be casual and inexpensive to set up. There are many resources available to help you.

Google lets you create your first professional website for free.

It is also essential to list your new ice vending machine business plan on Google. You can do this by listing it on Google My Business. That way, people looking for vending machine services in your area can find you (imagine what would be great if a local store owner called you to provide a vending machine in their location instead of the other way around).

If you want to learn more about how to do this, check out this tutorial from Google.

Create your business entity

If your business is going to be a corporation, LLC, or other business entity, you must also create that. You can hire a lawyer to help you or use the many online resources to help set up your business entity.

I like incorporating them because they can get you started quickly and easily. They also have great resources to educate you on the type of entity and state to choose for your new entity. If you want to know more, check them out below.

Before taking this step, you should consult your accountant and lawyer to understand the tax and legal implications of setting up this type of organization for your business.

Step 2: Create a business plan

A business plan is a roadmap for your business.

It organizes your business ideas into a workable plan. Some things to include in your ice cream business plan include budgeting, target market and competition identification, pricing strategy, marketing strategy, operational plans (how you plan to run your ice cream business), and growth projections.

Don’t worry too much about perfection. I would instead use it as an organizational tool.

Another advantage of the business plan is that it can help you obtain funds from banks and investors. These people will want to see a professional-looking business plan as part of their loan or investment process.

Do you need to learn how to do it? The Small Business Administration has a great tool to help you write your business plan.

Step 3: find the correct location.

Finding an ideal location for your vending machine is essential.

If you choose the wrong location, you won’t get enough customers for your ice maker, which would be disastrous for your bottom line. Good places for ice makers are where people need ice right away or where people go when they need ice for their coolers for a trip.

Here are some of the best locations for your ice cream vending machines:

  • service stations
  • Strip malls
  • Convenience stores
  • Supermarkets
  • Beaches
  • Marinas
  • National and State Parks
  • Rest stations along highways
  • Other recreation areas

Finding and securing a good location for your automatic ice maker is the most challenging but crucial part of getting started.

The quality of your location will be the main factor in your profitability.

What are some concrete ways to start an ice vending machine business plan in the best locations?

Explore the most promising locations in your area. Go to the places listed above. See what they say. Even though many of these places already have ice cream vending machines (or sell ice cream directly). You will get an idea of ​​what your competition is doing (i.e., what types of appliances there are if there are possibilities to offer a better product, etc.)

Make compelling offers to business owners to persuade them to follow you. Persistence is the key.

Step 4: Buy your ice cube vending machines

Once you’ve established your business and found a great location, the next thing to do is buy an ice maker. It’s obvious.

We’ve already discussed the high price of buying an ice cream maker, but the good news is that financing is available in many cases. For example, Ice House America offers an SBA financing option.

If you’re strapped for cash and want the best financing possible, Everest offers a 100% financing option with its equipment rental partner, VLC.

Fundera is another option for small business loans. It is a trusted name in the small business lending space, and NerdWallet offers it. Check them out below if you’re interested.

Where can you buy ice cream vending machines? Here are some of the top companies that offer them for sale:

  • Ice House America
  • Everest Ice and Water Systems

When deciding on the best machine to buy, think about what would suit the location you are aiming for. Is this an indoor or outdoor machine? Are there size limits?

Learn as much as you can about the machines on offer. You can then determine the types of devices you want to purchase based on your budget and goals.

Step 5: Map out your routes

Once you’ve placed your ice vending machines in the perfect location, you’re set. The advantage of ice cream dispensers is that they do not require regular stock replenishment (unlike standard dispensers). But you will need to perform periodic maintenance and occasional repairs on your ice maker.

So you have to be prepared to do it yourself or hire someone. This is not a big deal, but you should be aware of it when the ice vending machine business plan in this activity.