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Somewhat related : Warren Buffett seemed to have an interest in such "low-cost" hustles[0] nearly 75 years ago and seemed to have done well with it:) [0]https

• Cthulhu_ 6y ago
  I have trouble believing this would still work; why should a barber shop get only a fraction of what people put into the machine? They see that thing all day and will know how much money goes through it, what's stopping them from kicking Buffet out and buying their own? I think the modern equivalent around here is the odd slot machines and cigarette vending machines at pubs; I'm fairly sure they aren't owned by the pub itself, because of regulations and stuff.
  • bluGill 6y ago
    Because the barber wants to go home after a long day of cutting hair not go restock the machine. Better to get a small profit on an unused corner than deal with inventory management.
    • ed25519FUUU 6y ago
      Except someone else sees the machine taking in cash, and says to the the barber “I’ll give you a 20% cut to swap out to my machine”. When the economics wake up, it’s a race to zero.
      • bluGill 6y ago
        Races to zero never reach zero. Eventually someone says it isn't worth it.
      • vmurthy 6y ago
        Given that the barber has limited resources and time, perhaps he might think twice about constantly changing his partners for a couple of hundred dollars more per change,no? Remember, there are switching costs for these sort of things. Personally ,I tend to weigh the (hard) benefits of cash and the (soft) costs of switching things before making a decision.