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00:00He made $71,000 a year passively selling ice. You're watching Ice Vending. How one former
00:13tradesman made $71,000 in passive income on ice machines. And how I'm looking at investing so
00:18we all can make money off of, who would have thought, selling ice. Boring businesses. Let's
00:24do this. Today we're going to talk about money. Okay. So today, in the next 10 minutes, we're
00:38going to dive into Ice Vending. $25,000 to $71,000 a year profit. A play-by-play guide on how to
00:45profit off of them, told by this guy. His name's Brett. Wait till I meet him. And then how we're
00:50playing this market today. I think you're going to like this segment. All right. I'm
00:55going to call it like Ice Vending. Selling ice to Eskimos. I think that's what we're going
01:00to call it. Maybe you've seen one of these bad boys before. If you live in the South,
01:17they're more common than a Dairy Queen, I guess. It's an ice machine. And these things
01:22don't just crank out ice. They crank out cash. I'm talking $25,000 to $75,000 a year. And that's
01:29not the best part. One of the things I love about this business is, do you see any employees?
01:33I don't. These are the guys that own all of these Ice Vending. I mean, don't I look like
01:40I just belong on this best of list? I'm just missing the jean shorts, I guess. But I want
01:47to get to Brett. This is Brett. And this is his doggo. And I saw this online and I just
01:52wanted to know this man's story. And it turns out one man's retirement is another man's opportunity.
01:57And so Brett Gentry is his name, Brett Gentry, is from Mina, Arkansas. It's a little town. I didn't
02:03even know where it was. And his company is called G4 Ice Vending. He actually started it as a means
02:08of extra income. He'd been a, what do you call that, like a lineman on electric utility
02:14companies for 25 years. And then he got married, you know, got a couple kids, got a dog. He
02:21says everybody loves his dog. Everybody seems to love him. You know if I get it. Likes to
02:26deer hunt, loves guns, just a good old country boy, right? And he was riding his Harley around
02:31and bringing his wife with her and just didn't want to do the nine to five anymore. He wanted
02:37to retire, but he still needed some money, right? And I just like watching all this. I was like,
02:41I love Brett already. Like I bet his dog is lovely too. I totally get it. And so he was looking for
02:47his way to get out of retirement. And he was thinking about a feed store, which for you city
02:51slickers, that's a store where you go for food and supplies for animals like horses and cows,
02:55et cetera. And the thing is, those take a lot of time. So he found ice vending instead. Let me tell
03:02you what happened. In a town of, I don't know, 500 people with a local state park 10 miles
03:08away or so, he sells 900 bags a month on average. That equates to about $1,350 a month in revenue
03:16at $1.50 a bag. So he profits about $1,000 to $1,150 a month. Cool machine. Now he's got
03:23four or five of these bad boys. And we're talking about $5 to $6K a month and dang close to purely
03:28passive income. And then I was like, I want to be like Brett. So off I go in search of
03:34the same opportunity. And here's the simplified business model, at least as far as I can see it.
03:40You need a piece of land for it at least somebody else's. You need at least 10,000 car count,
03:45aka people driving by. You need a water hookup, electric access. You need a water machine,
03:50place on it, that's pretty key. And then number five is you can be cash flow. I've told you all
03:55how long the boring businesses pay. Show me something more boring than frozen effing water.
04:01In fact, when you have this kind of business, you got what I call high margin, low people
04:07businesses. Let's see if I can figure this thing out. Please make a selection or present.
04:12Or press coin return for change. Haga, por favor, otra seleccion. And they tell me it in two languages.
04:26I kind of thought, how much money could I really make with these? And what's it going to cost me?
04:49So let's break that down. So a good machine, they say, will sell 75, 10 pound bags per day.
04:55It'll cost you 25 cents or so per gallon on the high end for water. And that means you make about
05:01$195 a day or a monthly profit of, let's call it $5,800. That's a yearly profit of $71,000.
05:08How do I know this? Well, I used this calculator. You can use it too. There's a link below in the
05:14video. So if you're feeling like you want to make, let's be conservative, 30 to 71k a year,
05:19then we got to find the exact machine and the models to use. That's the profit. But what are
05:27your cost of goods? What are we talking about on a net level? So I talked to a slew of owners,
05:31and here's what I found out. First, crazy, but it doesn't cost that much to make a bag of ice.
05:37Thus, your margins are pretty wild. Utilities vary, but water and electricity typically costs
05:42about 25 cents per 100 pounds of ice. So a 20 pound bag of ice might only cost you 5 cents.
05:50Not everyone takes a bag. Some have coolers, but for customers that use bags, each costs about 10
05:56cents. So the cost of a 20 pound bag of ice is 15 cents. 20 pounds, 50 cents, 20 pounds, 50 cents.
06:02If you charge 175 for a 20 pound bag, your profit is about $1.60 per 20 pound bag.
06:10Look at what a 20 pound bag would cost you to get delivered in Austin. Yikes. Or hell,
06:16even Sam's Club charges $2.28 a bag. So then I thought, okay, profit looks real. Cost of goods
06:23is pretty low. I got some margin to work with. The problem is, do I got to be a millionaire to
06:28afford this machine? This thing looks pretty serious. Well, it turns out they vary. They're
06:32like 20K to 100K. Then on top of that, there's going to be some onsite work and placing the
06:37machine. You're going to have parking blocks or barriers installed around it. So the cool
06:42part though is you can finance these bad boys and you finance them with something called an
06:47equipment purchase. And you can do it with the actual vendor, like IHA, Ice House America,
06:51which is the largest ice vendor machine. The interesting part is if you finance that a $35,000
06:58machine that has a life of 10 years ends up costing around $300 per month. So you can buy
07:04some Lululemon pants. You could buy maybe three pairs of them, maybe two and a half, which is
07:07expensive. Or you could buy an ice vending machine that cash flows. Let's add the additional costs.
07:13Okay. 300 bucks per month in capital costs, 300 a month in rent. Let's say you don't own the land.
07:20You don't have like a ton of corners just waiting for ice mending machines to go on them. Maybe
07:24a hundred per month in other permits and sites that you have to have. Maintenance repairs and
07:31other costs, it's called another a hundred bucks a month. So the profit of 160 after COGS,
07:36your break-even point comes after about 14 to 15 bags per day. It can do 75, you break even at 14 bags.
07:45Even more interesting is at that number, the machine pays for itself in about two years,
07:50which is kind of wild. Okay. But we got to make sure that we find the right site because it's kind
07:55of like real estate overall. The most important part is where you locate it because you need those
07:5910,000 cars per day. That's a good starting point. You also need ingress and egress, meaning
08:05street level visibility. You can see the spot and parking so they can come in.
08:10Grab ice bale. Come in. Grab ice bale. Come in. Grab ice bale. Come in. Grab ice bale. Come in. Grab ice bale. Come in. Grab ice bale.
08:17So they're like usually next to like this one, for instance, high traffic locations, gas station, convenience store, dollar store.
08:25They also need to be freestanding and allow someone to drive up and fill up a lot of coolers because that's what you want.
08:32I would also read reviews and testimonials of various machines. I like these IHA guys. I think
08:37I'm going to go with them, but talk to salespeople at each company and then go and talk to people who've
08:42actually used the equipment. Maybe try to find somebody from like Jersey because I think people
08:46on the East Coast will be pretty honest with you. And that make sure also that that ice machine company
08:51you buy from helps with maintenance. You want, you got to keep these things clean. Otherwise gross.
08:56Look at this. Look at what these looks like if you don't clean them out. We don't want that.
09:00Now, there's never such thing as a free lunch, but this is just another boring business that
09:07doesn't take a rocket scientist to create, but just might make you more money than the
09:12average rocket scientist makes. Look at this. The average rocket scientist works 40, 50 hours
09:17a week and makes 66 to 172k a year. My ice vending machine could make me 71k a year and I work 10
09:25hours a week on it. How about them apples? By the way, this is a joke. Take it easy. Rocket
09:29scientist. I see you. This stuff over there. You're more important. I get it. You're going
09:33to the moon. You're going to Mars. I'm just giving you ice. But I thought this would be
09:37another fun way for you to cash flow the unconventional way. Until next week.
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