Make money with the honor system box
This is another great way of earning easy money for a very low investment. It has quite a few names like the honor system, honor box, snack box and other names. I call it the honor system, basically you get the point by just looking at the picture here. You buy a product by leaving $1 in the box or jar (if using a jar make sure no one can see the money inside, gets rid of temptation).
You are probably thinking that people may steal or better yet simply not pay for the item and this may happen once in a while. For the most part, people are honest and will put up that dollar to purchase your snack. So what is one or two freebies when your making money.
The honor system box can be located on a counter near the front desk. Usually there is a secretary and what better way for monitoring your mini store. Secretary can be responsible for collecting the money and calling you when the products are sold out.
If they still take or steal too many items then its best to change location or put in a coin operated snack machine if you think it is worth the expense. (will have a post on this subject very soon). Remember this is a necessity for the location, you are offering a service to the employer so that employees don’t go out and take half an hour to get them selves some thing to eat or drink.( Click here to find out how you can get a rent free soft drink machine).
You can make your own honor system box provided that you have some skill to make a professional look. There is also the option to purchase one professionally made in your local area.
Buying snack products like chips, chocolates, cookies, pop tarts and even healthy snacks can be purchased locally in large surface stores that sell in bulk.Go where the small convenient stores buy whole sale products. Places like Costco are in the USA, Canada and the UK. (their website is Costco.com, Costco.ca and Costco.co.uk)
I know that with one honor system box won’t get you rich but think of it as being a start and expand at the pace you want. Start with one, once you have experienced and are more relaxed, simply add more for your growing business.
This system was the origin of a company called Snackon in Canada that now sold for more than one million of dollars. They started with the honor system and graduated to vending machines like snack, soft drinks, coffee and even peanut dispensers.
Getting locations is not that hard, start asking friend’s or family members to have an insider information of the company they work for. There are plenty of bad services going on around this industry so if you have heads up by your informers then there is a great opportunity.
One day just by calling different places, i was able to bag two locations with the honor box and that was with no interview or meeting. However i did have to call two dozen different places.
I used the local phone book to find companies in the industrial district to make cold calls. Most of the time when there is an interest to my product, you need to meet and explain how the system works, what the price will be and so on.
Talk to the owner or manager in getting the location. Try to use tactics like giving freebies to show what kind of specialty products you have. I got quite a few places just by giving out a few plantain chips because i was the only operator that had the product. For those who have no idea what a plantain chip is, it’s a banana look alike sliced like chips and fried in a kettle.
Another product i used to rake in locations is with Omeg 3 cookies, that enticed the costumer to choose my honor box for their employees.It doesn’t matter if you waste a couple of dollars to give out freebies, the results usually are beneficial to you. So it is not a waste, it’s more like publicity money.
In several cases i sold out my products or came close to on the very first day. That means $50 for 50 products and so i had to buy a coin operated snack machine. That is an expensive investment but well worth it because of the income you make. You see that kind of money in that one place, now is another opportunity to expand and add a soft drink and coffee machine.
However not many people have that kind of money to purchase one. I bought a used coin operated snack for $2200, a new one goes for $3000 to $4000. I am lucky for having great parents that lent me money to expand the business.
One important note is never start with coin operated snack machine, the reason is they are expensive and the profit margin when selling snack products is between 40% and 90%. This is why it is best to start with the honor system box. The other reason is the expired dates on cookies for example is just a few weeks from the date of purchase.
The most profitable margin in the coin operated business is the coffee machine. To make a cup of coffee costs the operator less than 20 cents for a 10 to 12 ounce cup. This includes the cup, coffee, sugar, powdered milk and stick. Add a nickel for the real 2% milk.
The second most profitable margin is the soft drink machine. For a can of coke you will make more than 100% profit and the beauty of it is the coke expiration date will give you plenty of time to sell it.
You can convince any locations by telling them the advantages of having this service (remember employee stay at work). You can also say part of the proceeds will go to charity (usually 3% to 5% of the net profits for charity, the owner may even ask to personally give him that kind of commission).
It is great to have business cards printed out, it will look professional. For under $10 you get up to five hundred cards in most printer shops. Make sure to your full name and phone number and kind of business your in is printed on the card ( Snack foods, drinks,coffee and peanut dispensers).
Remember you can install Coke or Pepsi machines for free as long as you buy soft drink products from Coke or Pepsi to their respective machines. You will have to buy coffee and snack coin operated machines, the possibility of renting them is low but not impossible.
You can contract it out to another vending operator and make money this way. Since you are giving them a lead, charge any where from $50 to $1500 for location you found. There are locations out there with 300 workers, that means big dollars.
There are exceptions for example a few hundred workers being paid at minimum wage and bless their hearts they are providing for the family then your chances of getting them to buy from you would be reduced. You may have to lower the prices to see if it resolves the problem.
Hope this helps.
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