Summertime Sadness: 5/12/22
As college campuses empty, so does our bank account.
Welcome to this week’s edition of Our Financials & Other KPIs.
Through complete transparency, people are able to make the most informed decisions with their money. In efforts to stay transparent with you all about our vending business, we share our financials and other key performance indicators on a weekly basis.
Apologize for the skipped week — as our business slowed we spent more time reconciling our books and confirming shipment statuses.
Expected Read Time: 3 minutes
Our Vending Business — Financials
A detailed walk-through of how much money we made over the last 2 weeks.
Total Number of Machines: Eight (8)
Total Revenue Generated: $1,177.75
Total Number of Snacks Sold: 874 snacks
Canada Dry Ginger Ale
Gatorade Cool Blue
Sprite
Total Amount Spent on Buying the Snacks: ($0)
We opted to let our existing snack supply dry up as we head into the slow summer months — ensuring good inventory doesn’t expire.
How Long it Took to Fill the Machines: ~2 hours
—
Free Cash Flow Generated: $450.88
Free Cash Flow per Machine on Average: $56.36
Free Cash Flow After Factoring in Time Spent Filling Machines: $420.88
*assuming $15 / hour
Wins & Losses
Turns out running a vending machine business can be hard — these are our biggest challenges and victories from the last 2 weeks.
Wins —
We’ve tentatively closed on a new office location for our next machine — the same office location we had our eye on in our last post!
Our new machine for the apartment building is slated to arrive next week, so we’re pumped to set that up.
Losses —
Our weekly revenue is shaping up to be only about 15% of what it was prior to the students leaving campus. However, this shouldn’t last more than a few more months.
What We’re Reading & Listening To
You’re obviously reading this post because you’re entrepreneurial minded, invest, or care about generating passive income. Us too — so, here’s what we read & listened to this week that taught us a thing or two.
Reading —
This Twitter thread summarizing one of my favorite podcast episodes of all time.
This detailed walkthrough of exactly what happens when you know how to write code that “overrides” algorithms in crypto — “stealing” $800M:
This deep dive into Upstart's (UPST) Q1 earnings release.
Listening —
This detailed walkthrough of Upstart’s (UPST) Q1 earning release, courtesy of Brian Feroldi and Brad Freeman.
Jake Tran shares with us his theatrical perspective on Elon Musk acquiring Twitter:
Disclaimer: This is not financial advice or recommendation for any investment. The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.
This will be the last time I buy a book without reading the reviews. I received "How To Start A Vending Machine Business", looking for practical and specific information re: starting up. Instead, the book looks and reads like it was written by a very bad AI program. I didn't waste a lot of time with it, but I can imagine its only utility would be to prop open a door. Stuff like this just drains all my enthusiasm for a program. I've gotten way more out of your posts in the short time they've been up. Hopefully no one else makes this mistake. I feel like an idiot.
Hi Austin, as much I love your vending machines financial section, I also really enjoy your "What We’re Reading & Listening To" section. Thanks for sharing.