How Do Ice Vending Machine Businesses Work? - Ice House America (2024)

Posted on: May 18, 2020 | Investing

Vending machines have gained popularity as retirement investments and passive income. With a small upfront investment compared to most businesses and few demands once the machines are running, ice vending machine businesses are ideal for many entrepreneurs looking for a hands-off approach. If you’re considering starting an ice vending machine business, we’ll take you through the basics. Here’s how an ice vending machine business works, from the initial start-up to everyday activity.

How Do Ice Vending Machine Businesses Work? - Ice House America (1)

How Do Ice Vending Machine Businesses Work? Everything You Need to Know

Location Assessment

As with most businesses, location plays an important part in how an ice vending machine business works. Maybe you already have a location in mind, and you want to know if it is viable. Or, maybe you have a city or general area in mind, but you’re not sure about the specifics. Taking a closer look at the best places to start a vending machine business can help you get a better idea. This will not only show you whether or not the location is viable, but it will also show the ideal size of the vending machine you should put there. You’ll want to consider a few important factors as you choose your location:

  • Do you own the property, or will you pay rent?
  • Is electricity and water available?
  • Would your ice or water vending machine be visible from the nearest road?
  • How much traffic does the area get?
  • How close would the nearest competitor be?

Ice House America can help you assess the location that you’re considering, and provide other options if you prefer. Contact us to learn more about location vetting for your first ice vending machine.

Business Plan

Once you have decided on a location, you’ll want to create a business plan. This will outline how your ice vending machine business works, so you can secure financing for your upfront investment and keep your business on track. Some parts of your business plan, like your market analysis, will already be completed in the previous location assessment phase. Use the information you gathered to create a formal analysis and in-depth description. At this stage, it will also be helpful to determine and describe anyone else who will join you in your venture, such as a business partner or employee. Though you can easily manage your ice vending machine by yourself, you may wish to work with someone else if you plan to be out of the area frequently. Your business plan will also include any marketing activities that will help to get your customers’ attention.

Upfront Investment

Now that you know where your ice vending machine will be located, the right size, and how you will market and manage it, it’s time to invest. There are many ways to invest in your ice vending machine, and how you do it will depend on the type of machine that you want and your current financial situation. The price of each machine varies based on installation costs and special features. Generally, the smallest machine, the Ice Merchant, costs about $43,000 and the largest model, the Ice House, costs about $150,000. There are many ways you might make this investment, including a bank loan, personal loan, savings, or selling other investments. If you apply for a bank loan, your business plan will be particularly important.

Installation and Maintenance

Ice House America will install your new ice vending machine at your location. After this, your ice vending machine business will be up and running. Unlike other vending machines, there’s no need to refill the inventory on your ice vending machine, so this business requires much less maintenance and monitoring. To keep your machine in top shape, set time aside for a maintenance schedule like the following one. You can do this yourself or, if you’re on vacation or you don’t have time, you can ask a friend or pay an employee to help. That’s one of the benefits of Ice House America’s machines; our maintenance tasks don’t require any special experience, and anyone can do them.

  • Weekly-monthly: clean coin mechanisms and bill acceptors.
  • Quarterly: change sediment filter.
  • Biannually: check all filters and clean ice maker.
  • Annually: replace bulbs and lubricate components.

If you use the SmartIce cloud-based software, you can monitor your machine remotely. This gives you the freedom to check in from anywhere, and make sure that your machine is in full working order. You can also schedule discounts, check sales, and monitor the machine itself using SmartIce. This is part of what makes the ice vending machine business preferable to many other investments. Now that you know how the ice vending machine business works, contact us to get started on a location assessment.

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How Do Ice Vending Machine Businesses Work? - Ice House America (2024)

FAQs

How does the ice vending machine work? ›

One or more ice makers manufactures ice and drops the cubes directly below into an ice storage bin. Agitators or beater bars are then used to help the ice lay evenly across the ice storage bin. When a purchase is made, an auger, which looks like giant screw, rotates to deliver the ice to a bag.

How much does an Ice House America ice Merchant cost? ›

How much does an IHA ice + water vending machine cost? Ice House America and Twice the Ice offer four models that vary in footprint, production and storage capabilities. Our models range from $60,000 to $135,000+. Prices do vary depending on optional equipment upgrades and installation costs.

How much does it cost to start an Ice House America? ›

Ice House America franchisees can monitor their businesses remotely, and the ice machines require little upkeep aside from regular maintenance. To start an Ice House America franchise, interested parties need to pay a $7,000 franchise fee and provide a cash investment ranging from $25,000 to $75,000.

Do ice houses make money? ›

Average Sales

The Ice House, which is the company's largest ice vending machine, can serve up to 50,000 customer visits per year. The beauty of ice is that it's a high profit product – it costs about $0.25 – $0.35 in raw material to produce an ice bag that might sell for $1.50 and $3.

How much do you make off ice machines? ›

You make passive income — an average of $20,000 to $40,000 per year from just one machine — while you're doing other things. That's why this 20-year-old industry is growing rapidly, by approximately 35% each year. Here are some other reasons why ice vending is a good business decision. High-profit margins.

How much do ice vending machines make a month? ›

If you're looking into buying a high-quality machine, you can expect that machine to sell around 75 ten-pound bags of ice each day. You'll probably end up spending about 25 cents per gallon on water, meaning you'll be making $195 a day (or $5.8k per month) or $71,000 a year per machine.

Who owns Icehouse America? ›

Ray Yusuf started with Ice House America with a background in convenience store ownership. Yusuf saw an opportunity to improve his stores and his bottom line when he got started with ice vending.

Is Ice House America a franchise? ›

Ice House America is a franchise concept in the Other Businesses industry. It is also considered a Machine Services franchise. They were founded in 2003. You can also visit their franchise website to know more about the business.

How do I get into the ice vending machine business? ›

Checklist for Starting an Ice Vending Business
  1. Step 1: Write a Business Plan. ...
  2. Step 2: Name the Business. ...
  3. Step 3: Form a Business Entity. ...
  4. Step 4: Select A Location. ...
  5. Step 5: Apply for Business Licenses and Permits. ...
  6. Step 6: Find Financing. ...
  7. Step 7: Open a Business Bank Account. ...
  8. Step 8: Get your Marketing Plan in Place.
Nov 22, 2022

Is it cheaper to buy ice or make ice? ›

Conclusion. When it comes to making vs buying, purchasing quality ice from your favorite retailer (like Walmart, Kroger, or CVS), wins hands down. On the surface it might appear that homemade ice production is inexpensive and user-friendly but it falls short on quality, taste, as well as scale.

How long do ice houses last? ›

One of the many things I learned that night is that ice stored in a properly insulated building (an ice house) will last over a year with no electricity whatsoever.

How did they make ice for ice houses? ›

Many tons of ice were cut from a nearby river in winter, transported by wagon to the icehouse, and deposited into the ice pit. The blocks of ice fused into one giant mass. Gravel at the bottom of the pit drained water from melting, and thick stone walls and straw insulation minimized heat-loss from the icehouse above.

How much do vending machines make a month? ›

The typical vending machine generates over $75 of revenue each week and over $300 per month. Some vending machines generate much less than this, while some vending machines generate much, much more. The more well-placed, well-stocked machines an owner operates, the greater their profits and revenue.

Do people still use ice houses? ›

Today many Texas ice houses work as open-air bars. Iceboxes appeared in English and American homes with the ice trade in the nineteenth century.

What is the best investment for passive income? ›

Dividend stocks are one of the simplest ways for investors to create passive income. As public companies generate profits, a portion of those earnings are siphoned off and funneled back to investors in the form of dividends. Investors can decide to pocket the cash or reinvest the money in additional shares.

How much ice does an ice maker make in 24 hours? ›

The ice maker should produce 2 to 3 pounds of ice per 24 hours, depending on usage. The ice bin should hold about 4 pounds of ice. If this is not happening, the water filter may be clogged or overdue for replacement.

Are ice machines expensive to run? ›

Ice maker energy use is around 350 kilowatt hours (kWh) in a month—at a typical rate of $0.06 per kWh, that would cost around $21 a month. The best commercial ice makers will handle a much larger volume than one meant for the home. It's not unusual for a commercial ice maker to make 500 pounds of ice in a single day.

Are vending machines actually profitable? ›

Yes, vending machines can be profitable. The average vending machine earns $35 a week, but vending machines that are well-stocked and placed in safe, high-traffic locations can generate over $400 a month.

What type of vending machines make the most money? ›

Most Profitable Vending Machines 2022
  • Bulk Vending Machines. These are one of the most profitable vending machines in 2022. ...
  • Ice Vending Machines. Location is vital when it comes to erecting an ice vending machine. ...
  • Cold Food Vending Machine. ...
  • Snacks and Beverage Vending Machine.
May 30, 2022

How much can you make a day with a vending machine? ›

Most vending machines earn less than $5 per week. However, a well-placed vending machine can earn far more than that, potentially exceeding $100 per week or even hundreds of dollars per day. Vending machine earnings vary widely based on many different variables.

How much do commercial ice machines cost? ›

Ice machines costs anywhere from $1500 for smaller machines &up to $13,000 for the biggest ice machines. Like any commercial purchase, there is no one size fits all approach.

What is Icehouse America? ›

Ice House America General Information

Manufacturer of ice vending machines based in Moultrie, Georgia. The company manufactures ice vending machines that automatically dispense cubed and chipped ice, enabling clients to receive convenience and affordable access to safe ice and water. www.icehouseamerica.com.

Why is Icehouse called icehouse? ›

The name "Icehouse", adopted in 1981, comes from an old, cold flat Davies lived in and the strange building across the road populated by itinerant people.

How does twice the ice work? ›

With our conveniently placed 24/7 vending machines, you can drive up, dispense as much or as little ice and water as you need into your own container or the ice bags provided, and then be on your way!

What is the biggest ice company? ›

Reddy Ice is the largest manufacturer and distributor of packaged ice products in the United States – offering a scope of service ranging from packaged ice to block ice and cold storage.

How long has ice house of America been in business? ›

Ice House America is headquartered in Jacksonville, FL and founded in 2003. With over 3,500 independently owned bagged ice and bulk water vending machines across 33 states, Ice House America represents the largest network of convenience ice producers.

Who are Ice House America competitors? ›

Ice House America top competitors include: The Wittern Group Inc, Technik Mfg. Inc, Intelligent Dispensing Solutions LLC, A&A Global Industries Inc What companies has Ice House America acquired? Ice House America has acquired the companies: Ice Cube Enterprises What technology does Ice House America use?

What do I need to start ice cubes business? ›

Water is the basic raw material for starting this business. So, a good source of water is necessary As ice cubes will be used mostly for consumption, so it is necessary to use the pure form of water like sterilized or distilled. Ice making machine: –You will need to buy the ice machine.

Who are Twice the Ice competitors? ›

Alternatives and possible competitors to Twice the Ice may include You Coffee , Niagara Bottling , and Bedford Regional Water Authority .

Will ice become obsolete? ›

Entire fleet of government-owned vehicles with ICE engines will be phased-out and will be replaced with 100% all-electric vehicles by 2035-2040. All privately-owned light-duty vehicles with ICE engines will be phased-out and will be replaced with 100% electric vehicles by 2050.

Do colder ice cubes last longer? ›

When you take the ice out into a warm environment, the whole process reverses. If the freezer was colder, then the ice has a little more warming to do before it reaches the melting point, so it will take longer before it melts.

What makes ice last longer? ›

  1. Prepare Your Icebox. Spread a layer of crushed ice around your icebox the day or night before you use it. ...
  2. Use Block Ice. ...
  3. Add Salt to Your Ice. ...
  4. Cool Your Food and Drinks First. ...
  5. Add the Beers! ...
  6. Keep Out of the Sun. ...
  7. Avoid Opening Too Often. ...
  8. Fill Your Icebox as Much Possible.
Dec 8, 2011

How did ice houses keep ice from melting? ›

An ice house is a building designed to store blocks of ice. Before electricity, the only way to access ice was to cut it from ponds and lakes during the winter, and to store it in ice houses to keep the ice frozen through the spring and summer. An ice house's system of vents, drains, and insulation kept ice cold.

How thick should ice be for ice house? ›

Ice thickness guidelines for new, clear ice only.
UNDER 4"Stay off
5" - 7"Snowmobile or small ATV
7” – 8”Side-by-side ATV
9” – 10”Small car or SUV
11” -12”Medium SUV or small truck
4 more rows

Can you store meat in an ice house? ›

In modern times, icehouses can be used to provide backup or bulk storage for meat and other items, just for the novelty, or it can be a step towards living life off the grid.

How do Amish make ice? ›

Millersburg Ice is capable of producing up to 10 tons of ice per day in 300-pound blocks. To start the process, large containers called “cans” are filled with water and then placed in a massive vat of brine that is chilled to -32 degrees. Inside the cans are rods that shoot air into the water to keep it circulating.

How did they keep ice from melting in the old days? ›

The ice was kept cold by insulating it with straw and sawdust and stored in warehouses until it was time to be used. People cut ice from lakes using hand saws. Eventually they started using horse drawn machinery to cut ice, but it was still hard and dangerous work.

How did they freeze ice before electricity? ›

People would take this ice, pack it together as densely as possible to insulate it from the heat, then store it in ice houses: subterranean structures that kept it dark and cool.

How long does it take for a vending machine to pay for itself? ›

While payback times could be even less than the claimed 6 months, so many factors and potential problems go into this outcome that it is hard to predict. In reality, most vending machines earn back their costs through concession sales in 12 to 14 months.

How much does it cost to refill a vending machine? ›

how much does it cost to fill a vending machine. The cost to fill a vending machine is usually free if you use a vending machine company to refill your vending machine. However, it will cost around $200 if you were to pay for all the items inside the vending machine.

Is vending machines a good investment? ›

Do vending machines make good money? Vending machines can be very profitable. If you can get products to stock machines at good prices, and your vending machine is in a place that a lot of people go to, you can make a decent amount of money with little investment and time.

How much does an ice house America cost? ›

Our models range from $60,000 to $135,000+. Prices do vary depending on optional equipment upgrades and installation costs. We have great success working with our clients to secure financing when necessary, and support you every step of the way. Talk to a location specialist to learn more.

Can you sleep in a portable ice house? ›

Re: Staying in a portable overnight

As long as you can keep it 40-45 inside all night and have a good sleeping bag, it should not be an issue. If you have a cot, no need for a floor really either.

When was the last ice house? ›

The glacial and interglacial periods tend to alternate in accordance with solar and climatic oscillation until Earth eventually returns to a greenhouse state. Earth's current icehouse state is known as the Quaternary Ice Age and began approximately 2.58 million years ago.

How can I make $10000 a month in passive income? ›

Here are 11 ways to make 10k a month.
  1. Start Dropshipping with Shopify. ...
  2. Offer Freelance Writing Services. ...
  3. Start a Bookkeeping Business. ...
  4. Open a Custom Pins Shop Online. ...
  5. Start Affiliate Marketing with Clickbank. ...
  6. Start a Blog. ...
  7. Sell T-Shirts through Tee Spring. ...
  8. Start a Web Development Business.
Jan 1, 2023

How can I make $3000 a month a passive income? ›

  1. 6 Ideas to Make $3000–5000 Per Month in Passive Income. ...
  2. Run a blog and use ad revenue. ...
  3. Outsourcing. ...
  4. Create an ebook or course. ...
  5. Write and publish an ebook. ...
  6. Create a software product. ...
  7. Residual Income With Review Sites.
Aug 20, 2022

How can I make $200 a day passive income? ›

Here are a variety of things you can do to bring in $200 or more a day:
  1. Take Online Surveys.
  2. Invest.
  3. Deliver food.
  4. Freelance on Fiverr or Upwork.
  5. Pet Sit.
  6. Babysit.
  7. Be an Airbnb Host.
  8. Take Jobs on TaskRabbit.
Jan 14, 2023

How do you start an ice vending machine? ›

Checklist for Starting an Ice Vending Business
  1. Step 1: Write a Business Plan. ...
  2. Step 2: Name the Business. ...
  3. Step 3: Form a Business Entity. ...
  4. Step 4: Select A Location. ...
  5. Step 5: Apply for Business Licenses and Permits. ...
  6. Step 6: Find Financing. ...
  7. Step 7: Open a Business Bank Account. ...
  8. Step 8: Get your Marketing Plan in Place.
Nov 22, 2022

How does Twice the Ice work? ›

With our conveniently placed 24/7 vending machines, you can drive up, dispense as much or as little ice and water as you need into your own container or the ice bags provided, and then be on your way!

Does the ice machine take cards? ›

What different kinds of payment can you take? Your ice machine will readily accept cash, coins, credit cards and vend coupons.

Is it expensive to start a vending machine business? ›

With as little as a $2,000 investment, you can generally get a basic vending machine business up and running. Many vending machine operators recommend buying used or refurbished machines, which you can find between $1,200 and $3,000.

Who owns Ice House America? ›

Ray Yusuf started with Ice House America with a background in convenience store ownership. Yusuf saw an opportunity to improve his stores and his bottom line when he got started with ice vending.

How much does a public ice machine cost? ›

Self-contained vs. Modular
Modular machines (including bin)Self-contained machines
~ $3,000-$8,000 Depending on size~ $1,500-$5,000 Depending on size

How much does it cost to start an ice machine business? ›

Generally, the smallest machine, the Ice Merchant, costs about $43,000 and the largest model, the Ice House, costs about $150,000. There are many ways you might make this investment, including a bank loan, personal loan, savings, or selling other investments.

How does the ice Challenge work? ›

The salt and ice challenge is an Internet challenge where participants pour salt on their bodies, usually on the arm, and ice is then placed on the salt. This causes a "burning" sensation similar to frost bite, and participants vie to withstand the pain for the longest time.

How does a small ice machine work? ›

Here's how a portable ice maker works. Water gets pumped from a reservoir to a container, where freezing-cold metal prongs turn the water to solid ice. The prongs are full of refrigerant, which is the same substance refrigerators and air conditioners use to cool the air.

How do sonic ice makers work? ›

Sonic ice makers use an auger system, rather than an evaporator plate, to form the ice. This system consists of a large metal cylinder with an auger inside (imagine a large drill head). As the machine runs, the walls of the cylinder become ice-cold.

How long do ice machines take? ›

After you have installed your refrigerator it will take 6 to 12 hours for the fridge-freezer's ice maker to produce ice. You should throw away the first three batches of ice cubes that the ice maker dispenses (approximately 30 cubes) to ensure that all the ice cubes you use are made from clean water.

Do ice makers store the ice? ›

No, most portable ice makers are not designed to keep ice cold and frozen. They do not have the insulation to keep the ice from melting. Any unused or remaining ice cubes will slowly melt over time and replenish water back into the bottom water reservoir.

Can I use my card at a vending machine? ›

Dipping your card in vending machines works the same as it would at a checkout counter in a shop. The screen will prompt you to insert your card, it will communicate with your bank, authenticate your purchase and ask you to remove your card.

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