I TURNED Into a Profitable Side Hustle – ryan

This as-told-tos Essay is based on a conversation with mike nay, a claw machine expert and plush reseller. IT HAS BEEN EDIted for Length and Clarity.

What Started As A Pandemic Hobby – Messing Around With A Couple of Claw Machines i Bowht Online – TURNED INTO A SIDE’S EARNED WITH Over $ 40,000 in Sales SO FAR.

I Source Exclusive Plush Toys from Arcade Claw Machines and Resell The Online Through Platforms Like Mercari, Ebay, and Poshmark.

I sell three to five plush dolls for day, ampicing $ 20 per sale. Howver, i’ve Sold More Exclusive, Collectible Plushies for as Much As $ 200.

How Got Started, and Where The Money Is

Twen i first got into claw machines, i wasn’t thinking about revenue. I JUST WANTED A FUN DISTRACTION DURING LOCKDOWN.

I BOUGHT My First Claw Machine from Alibaba for Around $ 800, filled it with plush toys i won at arcades, and started learning all the tricks.

People Assume Claw Machines are all Rigged or Based on Chance, but there’s Real Strategy Involved. I Study the Geometry of the Plush, where it is positioned, the Weight Distribution, and the Claw Type. EACH MACHINE HAS DIFFERENT SETTINGS – Operators Can Control The Claw’s Grip Strength and How Often It Actually Pays Out.

Once Lockdown restrictions lifted, I was back in the arcade, winning dosens of plushies that we were taching up a lot of my shelf Space. That’s Around the time I realized there was a lot of good resale for these.

Father first, listed a few on Mercari, which sold with hours. Once I noticed consistent Demand, especilly for japan-exclusive plusies, started to ramp up my sales.

I’ve sold over 3,000 plush toys. Most Cost with BetWeen $ 3 and $ 7 To Win at Arcades in Chains Like Round1 and Dave & Buster’s. If i sell that Item for $ 15 to $ 25, the roi is significant, especilantly when i can win several in a single session.

My Average Arcade Session Costs BetWeen $ 150 and $ 200

I UTUALLY WALK INTO AN ARCADE WITH $ 150 TO $ 200 IN ARCADE CREDITS AND COME OUT WITH A LAUNDRY LAUNDRY FULL OF TOS. If the Machines are Paying Out Well, That Haul Net with BetWene $ 300 and $ 500 in Resale Value.

On Great Days, I’ll Invest $ 400 to $ 500 in Credits and Earn Between $ 1,000 and $ 1,500 in Sales.

I’ve trained mySelf to identify machines that are lichely to pay quickly. That Way, I don’t was Waste Money on Poor Setups or High-Difficulty Wins.

I don’t typically puree Machines with a One-in-30 win ratio. I target the Ones where i can usablely scoop a priza in under five tries.

I Run Market Research Like Any Online Seller

Bepport of head to the arcade, check out lisings on eBay and mercari to see what’s trending. I Follow Other PLUSH Resellers Online and Stay Active in Reddit Communities Where Fans Post About New Arcade Drops.

Some Plushies-like Round1 Exclusive or Limited-Eiding anime Collabs-Are Highly Collectible. I ALSO Closely Track Plushies with Cultural Relevance, like any anime that has a new popular Movie coming out. Be i see those in machines, i’ll spend more aggressively to rob me, gcause of know they’ll move online.

TRAAT MY INVENTORY LIKE A RETAIL BUSINESS

At home, have a dedicated room, which i call the ar-cave, where i have About 500 plushies i’ve sorted in plastic by Category: pokémon, holiday, video game, squishmallows, etc.

I ALSO DONATE EXCESS INVENTORY TO CHARITIES, ESPECIALLY AROUND The Holidays. If I Win 10 Plushies in One session and can only sell six, i’ll donate the rest. I’ve donated over 1,000 Toys. It”s good for the community and helps Manage Space.

My Long-Term Goal is to Open a Claw Machine Arcade

The Business Has Grown Beyond What I Expective. Between selling plushies, running a tiktok channel calmed “arcadefriends,” and getting recagated at arcades, this is now a meaningful part of my life and income.

Eventually, I want to open my own arcade and stock it with curated plusies I know People love. I’ll Also Set the Machines so People Can Actually Win.

UNIL THEN, I’ll keep running my plush side hustle, one claw at a time.

Do you have a story to share about profitable side hustles? Contact the editor at jorwig@businsinsider.com.

This Story was adapted from Mike Nay’s Interview For Business Insider’s Series “Big Business.“Learn more about nay and others’ Toy Businesses in the Video Below: