Scaling & Optimization Without Overhead

This lesson covers how Mike scales his vending business only after the core route can run independently, ensuring sustainable growth and high margins.

System Requirements & Baseline Profitability

Mike scales only once the route runs without him. Cashless and telemetry are mandatory.

Cash-only sites made 70% less until card readers were added.

Yellow alert triggers at ~50%, red at ~20% — top off before empty.

Target metrics: COGS at 30–35%, fees at ~10%, profit goal = 50–60%.

Smart Machine Strategy & Site Economics

Drinks earn most — extra rows go to water, protein, hydration, and energy.

A few A+ sites earn more than many average ones. Seasonal products add value: hand warmers, cold/flu (winter), sunscreen and electrolytes (summer).

Upgrades double revenue: switching from traditional to smart machines or adding a freezer gives ~20% lift.

Hiring, Merch Flow & Revenue Targets

Mike recruits via Craigslist — 40 applicants in 48 hrs. Full-time operators manage ~14 machines at $20–$25/hr, with profit share and equity options.

Daily order rhythm: order Friday, receive Monday. Vistar/Vendhub singles prevent dead stock. Auto-reorder top 20% SKUs for 80% of sales.

Merch layout: drinks on right, snacks on left, more rows for top sellers. Daily goal: $90/machine = $32.8K/year, ~55% margin = $18K profit/machine.