Every Fall, Summer, and Winter “Billion Dollar Startup Ideas” hires interns to build ideas from the blog as MVPs, conduct industry research, and write their own blog posts. This blog post is an excerpt from that series.
Problem: The huge amount of energy is used by typical outdoor vending machines, not to mention their environmental impact and unavailability in remote locations.
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Solution: Solar-powered vending machines. Addition of solar panels and speakers reduces the energy usage and carbon footprint substantially, as well as being pivotal in improving mood and giving suburb-like locations the access to implement vending machines without electricity. This business would primarily focus on sports facilities, where there is a high demand for convenient access to water. Instead of offering typical vending machine products, our machines would prioritize healthier and more reliable options for athletes, coaches, and spectators. Focusing on products that athletes and coaches would prefer after sports and strenuous training, this business could be effective and productive with careful consideration of location. For example, instead of offering chips and candy, our machines would provide Trail Mix, Fruits & veggies, smoothies, and other healthy snacks for athletes and coaches.
What makes our vending machines unique?
Firstly, our vending machines are solar-powered, which is by no means an effective way to reduce electricity consumption considerably. This approach not only reduces electricity usage but also gives operators an opportunity to use those machines in suburb-like locations without electricity, Fact. Additionally, with the addition of special speakers, our machines are designed to provide relaxing music and improve the mood of customers, leaving them with an improved customer satisfaction after all. Clearly, our machines are both unique and effective in their own way!
Several things attract new operators to vending:
Relatively low startup costs: An operator can find a decent machine and buy inventory for <$2k.
Scalability: Early revenue can be reinvested in expansion to leverage economies of scale.
A largely passive routine: Restocking and cash collection can be reduced to a few times per month.
A flexible schedule: Like the gig economy, vending allows operators to set their own hours.
High success rate: 80%. It's impossible to say for certain just how much you can earn from a vending business, or even if you will be successful at all. However, historical data shows that vending machines do have a success rate of more than 80%
EXPENSE :
We're investing $36,373 in 15 vending machines. Each machine costs $1,750, with an additional $300 to fill each, totaling $4,500. We're also adding solar panels and speakers for $375, bringing the total investment to $36,373.
MARKET SIZE:
Each vending machine is expected to generate a net income of $7,500
Annually, totaling $112,500 for all 15 machines. We aim to surpass $1 million in revenue within nine years through strategic market expansion and a broader product range.
Monetization: The business model is based on a passive income strategy, with minimal staffing requirements. Initially, the founder can handle machine restocking, maintenance, and cash collection. As the business grows, part-time staff may be hired for these tasks. Revenue comes from product sales, with potential for location partnerships and advertising on machine exteriors. The low overhead and high success rate of vending machines contribute to profitability, allowing for reinvestment in expansion.
Contributed by: Diyorbek Urozboev