Codie Sanchez explains how vending machines selling fresh cake slices in Canada can generate millions without the overhead of a traditional bakery. The model uses technology to scale a simple product across multiple locations.
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$10,000 to $50,000
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Remember this show Cake Box? Well, he turned his entire business into an automated vending machine business and making him millions. Cake boss. Vending machines have been popping up dispensing fresh cake slices all over Canada recently. The business model makes sense. In this economy. It's a gamble right now to invest a million dollars in a full service bakery storefront. So why not spend 10 to $50,000 on a vending machine and if it doesn't work, unplug it and put it somewhere else. This way Buddy finds product market fit faster and can expand the reach of his family bakery. The idea of introducing 21st century technology into traditional businesses is a strategy I use in my businesses and how I find businesses to buy. It's why at the airport you have all of these different types of vending machines. Where can you take your big huge idea that you have, skinny it down so that you're not betting the entire farm on it, and add technology that allows you to do it in a way that is scalable and also doesn't make you bankruptible?