Sunday 24 May 2015

How Profitable Can Gumball Machines Be?

By Terrence Lee


There are a lot of upsides to starting and running a small business or private enterprise, and it allow you to reach your goals and live the life you want. Another big asset of starting a business is that you don't have the soul sucking effects of working for "the man." Because honestly, who wants to work for someone else? Starting today to make money for yourself, and better your own life, instead of making someone else rich, is an awesome change. The problem is most businesses are expensive and time consuming, so you can really own start them if you are already successful. This is okay if you do have lots of money already, but it doesn't help you at all if you're trying to become successful.

This is where gumball machines come in. Gumball machines produce a steady profit (of almost a quarter per gumball) and the only time required to run such a business is the time it takes to refill a gumball machine, which is generally under an hour. The best part is that gumball machine prices are often quite low. I dare you to find another business that can be started for under a hundred dollars and requires little effort.

The gumball machine business plan is really quite simply. You find yourself a cheap gumball machine and buy it, then stock it full of gumballs, purchased for about 4 cents each. You place the machine somewhere and sell the gumball for a quarter each (this is really just an accepted fact of life-you don't have to convince anyone that a gumball is worth a quarter). A lot of gumball machines have a 400-ball capacity, and if you refill it twice, you can sell 800 over the course of a month.

This becomes really profitable when you realize that at cost, you can make one hundred sixty dollars a month, only working one hour (this is assuming it takes you less that thirty minutes to service the machine each time you go to refill it, which is a pretty safe bet).

Another big bonus: you can always grow your business. One hundred sixty dollars a month sounds great, but how about over two thousand dollars a month? Because the profits you make from one month can easily cover the cost of the next machine, for every gumball machine you operate, you can place a new machine every month. This roughly follows the Fibonacci sequence.

If you follow the growth of your business, it roughly matches the Fibonacci sequence, etc. Those are the projected returns of new gumball machines you can purchase each month-these returns accumulate, so your potential for business profit increases exponentially. Your profit per gumball machine stays constant, but your number of gumball machines increases rapidly.

I can't make it clear enough that this plan requires work. If you know anything about business you know that business plans that promise little or no work on your part generally end in disaster, and someone is generally profiting off of your failure. The main time investment you have to make is finding somewhere to place your machines. This can be difficult, but don't give up! You will succeed.




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