@@tomcobb1829 so that’s more of a legal q which I’m not an attorney what I will say is all my businesses are incorporated in some way and insured. It’s a good point!
Did you learn about or spec out seasonality for the business at all? What percentage of the annual revenue is during the summer, holiday season, and off seasons? The few areas I’m familiar with that might work for this area definitely seasonal destinations so if you did have any thoughts I’d love ‘em. Thank you for the research and video!
@@Lucas94clay so we have a blog post on this too that’s more in depth at contrarianthinking but it just varies so much by location so I’d do my own dd on ur area
Codie, should we be looking for a piece of land that has electrical & plumbing to it already and what's the best way to find or just simply look at location and factor in costs to run electric & plumbing to it? Thanks!
I have so much I could say on this. I’ve owned 6 machines at one time. Down to 3 at the moment. You CAN make money. It’s NOT passive. Maintenance & repairs are insane on these things. Warranty means nothing if your machine is broke and you have to wait weeks for a tech to come out. Ask me how I know. If you want to work nights and weekends all summer and are able to learn refrigeration, you can make some money. It’s NOT as simple as you think.
I owned a Twice the Ice distributorship... I launched 200 of these machines in two states. Was the number 3 distributor for the company and experienced all the ins and outs of this business. I owned these machines as well in some very good locations. Some of them do make money and some do not... location is key along with rent and code variables. This video doesn't cover all that goes into this business.
As others have said, owning an ice vending machine is absolutely NOT passive (unless you pay someone else to service it). They require being on-call 24-7, and some of the components are not cheap to replace. It's definitely possible to make money with them, but you can also lose your butt with them.
What would you say is a fair salary to pay someone to service one of these machines I would like to make this as passive as possible even if it cuts away at my profit?
@@samferrell7757 It would be hard to justify having one full-time employee just to work on one machine. The routine machine maintenance isn't the issue, as there isn't much of it. The problem is that when you are dealing with an automated machine that makes and handles large amounts of ice, things simply break. You could have everything absolutely perfect today, and tonight at 3am you could get an alert that the machine is down. You go to it to find out one of the ice augers broke off the gearbox because ice built up and jammed it. That then becomes a whole ordeal to repair even if you have another auger in-hand. Dealing with automated ice machines is basically like having a new-born baby. You have to be ready to drop everything at a moments notice.
Oh and also her father is in prison for insider trading at JP morgan. She was never poor and started off with wealthy parents so people should be cautious taking advice from someone who is selling advice
Well said. It’s a business. Not a passive income. but it’s interesting niche, and amazing that one can make good money on the business of ice! I always thought it’s hard to compete with Walmart when you can just walk in and buy bags of ice (just an example, it could also be Costco or Stop&Shop etc).
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Yeah investment is the key to sustaining your financial longevity but venturing into any legitimate Investment without a proper guidance of an expert can lead to a great loss too
If you go with IHA I would suggest using the large or original icehouse. Other models have serious issues. Coming from a 4 unit owner. Great content!!!
Site acquisition, zoning, permits. Those are huge hurdles. You'll be working with a myriad of contractors and government offices. Then comes the site prep and installation. The machine that Codie is in front of would cost at least 20k-30k on top of the machine purchase to complete. Do your research with this. There is a lot to it.
Nothing mentioned about the monthly electric bill expense (in Texas during summer that can run between $600-900.00 per month). Also don’t forget annual insurance (unless you’re wealthy enough to self insure - if that’s the case you probably don’t need this extra income) which costs between about $550-1,400.00 per machine if you pay annually and depending on which region you’re in within the US. Been doing it for about 6 years now and it’s a great business to be in AS LONG as you have a good location. Cody is right - location, location, location is key and will make the difference between just barely breaking even, doing so-so or doing well.
I am in Texas as well and am interested in hearing from someone around the area about the real details of this business. I am considering getting into the biz but would like some pretty concrete facts about expenses, machine choices and maintenance/rerpair costs.
I need to figure out how to get into all of these business you talk about. Laundromat with food/drink vending inside and an ice vending machine outside... and add your friend's independent shipping/mailbox business next door...
Location is the key with this setup. If you live near a place that has a lot of ice needs it works, remember location, location, location. Great add on to this would be a water fill Station and purified water, vending, and if you have to put in a sewer system a dump Station. people who are looking for ice are campers, van lifers, etc.
WoW , she one of best people I have listen to in many years . Boring business can make a lot money . Great advice. Looking forward to listen to every video.
Codie, here in SO. Florida I could see this making a killing near the fishing docks, landing, etc. There are so many waterways with small private landings, beaches. The only slow time may be in the winter, November to February. Love your videos and your tactics for Passive Income! Thank you.
My top 2 votes for boring business right now are laundromats and ice machines! Are you looking solely in southern markets to place yours? Are you going to hire someone out to do the cleaning/maintenance of the machine ? Or will you live close enough that you do it yourself?
$35K? The smallest machines on the IHA site are $60K up to $135K+. Figure more like $1000-1500 month minimum plus land, electric, water, maint, etc. Easily 3x what she says here.
Just found your channel! Where have you been all my life!!!!! We would be besties in real life! I wish I knew more women in person who love this stuff! Your channel is a delight to watch! Thank you for all these awesome videos!
I love this idea but one thing not mentioned is you need to live in a warm weather state. This business model would not work in Northeast US. The machine would sit with no cash flow from October - April.
I own 2 Twice the Ice machines in Lower Alabama, AKA "LA" One is on an Island and the other is on a major highway. My background was in refrigeration so I have the knowledge to not get cranked on repairs! Profits are very good but for the upfront cost, more is better. Do not buy the low cost machines that pop up in ads. Also don't rely on warranties. Expect to handle the cost of repairs on your own. This sounds silly but this is a low cost market with only one "Real" manufacturer in it. It seems to me that all the other machine brands that I have dealt with are over / under engineered and ask for trouble in the way they produce / dispense product. Feel free to ask any questions you may have.
Technicians cost 100 hr plus so if you only save 100 a month And the second month in your machine breaks down and you gotta pay someone to come out plus parts, I'd say you're in at least 1k or more. Nothing is as simple as RU-vidrs claim they are to be.
The guy you used as your example at the beginning sells 30 bags per day... And being from a big city, that sounds like a heck of a lot. To sell 75 per day you'd need to be the only I've vendor in a tourist town.
One thing I've learned with any machine based business, buy an extra unit as a spare and order the most common parts that need to be replaced and learn some mechanical skills to work on them. Luckily I'm good at this stuff and repair my own stuff without waiting for techs.
Love the videos, so full of energy! Been binge watching for few days. This has really helped me get up and move to get out of the 9-5 where I feel totally stuck. BTW, bought my first site from flippa today, hopefully can gain traction to start increasing my wealth and replace day job with my own job. Thanks!
I’m super excited about this business. I’m looking into Kooler Ice. Thank you for the break down, loved the video. I’m looking forward to the new content on your channel. A Car Wash video would be awesome.
Seems like in many cases there is already a big box, store, restaurant, gas station already at the best locations. How do you approach a land owner to see if they'll lease you space on their parking lot?
OMG I'm looking at this now! Great video. I feel I'm a bit late to the game...(over 50), but I feel like I can put a solid retirement plan together with smart + hard work and your help...thanks Codie. Glad I found you on Twitter. Everyone should follow her.
Awsome content Codie and love that you are leveraging youtube, you make boring businesses super exciting! This year I will set up my first water and ice vending station.
@@CodieSanchezCT Could you do a video on how to get into boring businesses while out of state? Something on how to navigate finding an operator or a business that has an operator in place? I'm currently OCONUS and getting into remote ownership is complicated and I'm looking for a strong foundation of experience to learn from.
My son works in that field. I asked him where I could set machines. He told me all the good spots are taken. The property owners also charge rent for your machine.
Great video as always. 🔥🔥 Also, can you please use a microphone for the RU-vid videos. Your voice echoes and that makes the video sound quality down. Anyway thanks for the ideas and keep posting more. ❤️😘
Codie is so dope. My ex is looking for something to get into...I sent the link and told her just watch whichever of these call to you and start your journey!
Thanks, I’m absolutely doing this. I have a guy that has manufacturing in Asia and import to US. Maybe we can grab a bulk of these machines for a fraction of the cost. Also, we could add solar to cut down on some of these costs.
Love the new content specifically formatted for RU-vid...very direct, to the point, entertaining and educational. Any boring business ideas you have to share we LOVE to hear about! Also, any thoughts you have on finding a local "mentor" around investing in these businesses would be awesome!
Oh well hey there! Join the cashflow group at contrarianthinking.co facebook group of 2k people all looking to invest in this space. Or take the unconventionalacquisitions.com course!
Ok, couple of questions. For the $35k machine what was the term for financing? Is this a lease? The electrical costs should be fixed and not based on the bag. You will have additional Cost to run the plumbing and electrical out to the location, as well a separate electrical tie in. I am a big fan of the model, however I believe above is important in order to properly conduct due diligence.
Hey there ok couple of items go to contrarianthinking.co to see the model breakdown. These are asset purchases on owned or leased land. So in Texas we have variable pricing on utilities often but it depends on ur state.
If you think that is cool check out Everest Ice & Water vending. It takes up only 20 sq. Ft. of real estate and it produces more ice per day than those big ice & water buildings. Not to mention it takes only 30 amps of power and you can move it anywhere!!!!! With only one moving part in the machine it's the passive opportunity!
Codie!!! That was a cool segment 😎 Thanks for breaking the ice down to n-ice, easy chunks to consume. After chilling and thinking about this. I'm going to have to see what I can do to get into this business. See if I can get some liquid-faction out this and get me some cold, hard cash. Well, that was fun. But joking aside. Cody your Fucking aswome. Thanks for your time, hard work and reasch.
Love the break down you do on these boring businesses. Very educational and I like the format. What are your thoughts on small oil change locations as a cash flow biz? 🤔
You’re going to spend all your money on oil. Dealerships usually undercut prices and do oil changes at a loss because they want them groomed to bring servicing to them. When big one’s hit or other things happen they make the money back. Small oil change locations just won’t pull the passive income because of overhead and employing one person. Much better investments out there
Hey Codie! I am looking for passive ways to make income. Have questions after reading the comments. Do you do 1 on 1 calls for coaching this particular project? It def would be my first investment. Not really sure how to acquire everything.😊🤦😏
Codie, I have to say, you have real good content, learning a lot from your channel. Please keep going with the good work, your audience appreciates it. I see you at 10M followers in no time. Great job. PS: get a wireless Lavalier microphone 🙂
As an IHA owner, your numbers are way off. $35k won't buy any machine that can manufacture enough ice to make serious money. It's now 150k min to get a serious IHA machine new. Wanna know who the maintenance guy is...the owner! Better know mechanics and HVAC. They are great income in good locations, but margins NOWHERE near your estimates.
THANKYOU CODIE! I WANT TO SAY THAT FISHERMAN ALSO LOVE LOVE THEIR ICE WHEN THEY GO OUT THEY NEED COLD BEER AND COLD FISH..I WONDER IF THESE MACHINES CAN MAKE SALTED ICE CUZ THATS WHAT MY AREA WOULD KILL FOR. THIS IS A HOME RUN
Codie. Where have you been all my life. If I wasn't working so hard I would consume all of your content in the next 20 hours. But I have 2 going on 7 of my own companies to run so I will have to take the next couple weeks. I love the ice and know where to put it. So maybe I will make that 8 companies. You rock!!!!
I am highly anticipating that I will jump into this as a side hustle! I was wondering if you ever pulled the trigger on this business and how it is going?
I spent solid 20 hours a week in RU-vid watching tons of videos and I have never commented until today. I love your videos! Thank you so much for your time and the golden nuggets!
