Own a Soda Machine as a Source of Passive Income

Passive income, say the money and wealth experts, is a great way to become wealthy. Rather than trading an hour of time for a certain dollar amount, or a specific product for an amount of money, passive income pays you even when you're not working, and for work you just had to do once.

Royalties on a book, or on an article, like the performance payments here at Associated Content are good examples of passive income. But there are many others, too. A soda machine is a pretty good source of passive income. There is a certain amount of work that must be done on a soda machine, so it is not as 'passive' as earning royalties, but it can still be a good source of income.

The pros of having a soda machine as a source of passive income:

Markup on soda is usually pretty good. Depending on where you buy the soda to stock the machine, a can can cost as little as a quarter. Even if you price your machine at $.75, you're still getting a decent profit on each can.

You can change the cost of your product easily, and the actual product you sell. If one type of soda isn't doing well, it can be switched for another, or a big seller can be doubled up.

Most soda machines have at least six different product options, so you can offer a variety of sodas, and have something for just about every potential customer. You can put soda, iced tea, lemonade, and whatever else you want to catch every preference.

You always have cash on hand. A good portion of it might be in change, but money's money, and you'll have lots of it.

Most people drink soda, so you'll always have customers.

The sound of a can falling through the chute of your soda machine (ka-ching!) is like music!

The Cons of having a soda machine as a source of passive income:

Start up costs, especially the cost of the machine itself, can be high. There are several places online that sell reconditioned machines, that are pretty close to new condition, that can reduce your costs, but you're still looking at a minimum of several hundred dollars. Plus there's the initial outlay of soda to stock the machine.

Soda machines need to be restocked regularly. In order for your machine to be productive, it will need to be stocked all the time. This involves, of course, buying the soda and having a supply on hand, as well as visiting the machine regularly.

Machinery needs maintenance. All machinery needs maintenance every once in a while, and maintenance costs money. If you're mechanically minded, this might not be a problem, but if you're not, you'll have to take this into consideration.

I bought a reconditioned soda machine with a friend of mine as a business venture several years ago. We placed it in a building that had a church and dentist office (they were our best customers). We were able to pay off the cost of the machine within just a few months, and then began pulling in money. After a year, we sold the machine and our remaining inventory to the church, and walked away from the whole venture with a tidy profit in our pockets.

If you're looking for a source of passive income, or an additional source of passive income, a soda machine is a way to do it. Just as passive income is good to have, so is having multiple streams of income. The old adage "don't put all your eggs in one basket" is an old adage because it makes sense.

Here are a few places you can buy soda machines (please note I am not endorsing any of these suppliers):

Vending on Demand

Used Vending

Vending Machines Unlimited