There are so many different, unique ways of generating income. If you are someone who reads a lot about outside employment and passive income opportunities, it may feel like you have already thought of all of your options. However, there is always something else out there that could be the next right opportunity for you. For example, have you ever thought about how much money you can make from an ice cream machine? It’s not as obvious as “starting a blog and generating income from affiliate advertising,” is it? But for certain people, it’s a great way to increase their income.
How does an ice cream machine shop work?
It’s actually quite easy to make money from an ice cream machine. First you buy the machine. Then install it, preferably in a high-traffic location. For example, set up the device in a visitor center or gas station. Of course, you’ll need to work with the owners or the government that operates the site to get approval to install it. But if you do things right, business pretty much runs by itself afterwards. The machine makes ice cream. People will buy the ice cream. You just need to check in regularly to make sure the machines are working properly. Once you are set up, this type of business is really easy to run.
Are you sure there is nothing more to it than that?
Obviously, the actual details of starting a business can get complex. You’ll need to think about your company name, logo, marketing if you choose to, etc. You will also need to register your business (e.g. as an LLC). Then you need to draw up contracts with the places where you will set up your ice machines. So, yes, of course you need to handle these details as you would if you were setting up a business. Overall, however, this is a pretty straightforward business.
The main thing to think about before starting this type of business is how much it will cost to get started. You have the initial startup costs that any business could have, as mentioned earlier. Hence, you will likely have some minimal (but important) cost to register your business, set up a website, etc.
Buying an ice machine
The biggest cost will, of course, be your ice cream machine purchase. There are several companies that sell these types of machines. (Just for the sake of clarity, we’re talking about big machines that make ice. People drive up to them and fill their cool boxes directly from the ice dispenser. Alternatively, the machines also have bags that they can fill.) Bag of ice and ice house America are just two examples of companies you can buy your machines from.
Every company does its sales a little differently. For example, some consider your vending machine to be a franchise of their business. Hence, you have to pay them a franchise fee or a percentage of the profit. Of course, you need to find out what is right for your business. But in general, you will be better off buying your machine direct from a company. You do not want to have any further running costs with this company after the purchase. They want everything to be profit from then on.
What does an ice machine cost?
After extensive research, we can say that this question is difficult to answer. Some ice machines cost as little as $ 20,000. Others cost well into the six-figure range. It looks like you should consider the $ 45,000 to $ 100,000 per machine range. Machines that cost less are often just not durable. In other words, they take a lot of maintenance and don’t last long. On the other hand, more than $ 100,000 is a huge investment that could really gobble up your long-term profits.
Does the machine cost money to install?
You must set up the machine in a heavily frequented area. Sometimes a company allows you to do this for free. If you want to place it on a beach or state park, you might pay an initial permit fee. On the other hand, some companies charge monthly fees for renting the space. You have to negotiate that. Evaluate your competition and find out what is fair in your chosen area.
Make sure you choose a machine that only accepts remote payments, not cash. This simplifies your business. Due to the fees charged by the credit card companies, you incur low running costs. However, this is negligible and saves you frequent visits to your device.
Your biggest running cost will be maintenance. Sometimes the machines break down. Hence, you want to make sure you have a maintenance company on hand. There are people who specialize in this work. Of course, you never want your machine to be out of action for too long. Therefore, you should check the machines regularly. You should also make sure that your phone number is there so people can call if something is wrong. As soon as you find out about a breakdown, call your service technician.
Of course, the maintenance and repair costs vary. As with your car, the cost depends on what’s wrong. An oil change is much cheaper than changing the gearbox, for example. So be aware that there are occasional costs for maintenance and repairs.
How Much Can You Make From an Ice Cream Machine?
Okay, so now you know all about the cost. But that’s not what you want to know about a passive income business, is it? They want to know how much you can make from an ice cream machine. Unusual investment provides a solid breakdown of costs and revenue. They make an average profit of around $ 1700 per month per machine. Road Less Traveled Finance (linked earlier in this article) suggests that you can benefit about twice as much.
A great way to find out where your own profits might be is to use the Everest Ice and Water Systems ROI calculator. Set prices and volumes with this cool calculator. If you set it for low prices and low volume, the estimate will be slightly below that of Unusual Investments. Adjust it to the typical price and volume and it will move towards the price of Road Less Traveled. So, a good guess is that your company can make at least $ 1500 a month and potentially significantly more. That’s pretty good residual income if you can afford that initial investment.
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