What Were These “Little Boxes”?

They were cigarette-dispensing humidors — small furniture-like machines that stored and sold cigarettes, while keeping them fresh. These self-service units looked like end tables, magazine racks, or card tables, making them perfect for apartment hotels and small homes.

The Business Model: Passive Income, No Storefront

Charles Dagmar didn’t rent space, hire employees, or stock shelves. Instead, he:

• Purchased the humidors for $13.50 each in bulk
• Installed them for free in apartment buildings and homes
• Collected cash weekly from each unit’s coin box
• Restocked the cigarettes himself (service-based vending)

How Much Money Did He Make?

Dagmar earned about 4 cents per pack of cigarettes sold. Each humidor sold an average of 2 packs a day. With 104 units across three apartment hotels, he brought in nearly $375 per month in profit.

Why This Worked So Well

• No overhead costs: No rent, no payroll
• High product turnover: Cigarettes were in daily demand
• Convenience-focused: Available 24/7 inside the apartment
• Furniture-quality machines: Stylish and functional for small living spaces
• Zero commissions: Landlords let him install them for free

How He Pitched Property Owners

Dagmar convinced apartment hotel owners by focusing on tenant convenience:

“It’s a self-merchandising machine that saves your tenants time. They’ll never have to run out at midnight just to buy cigarettes.”

Because the machines doubled as furniture and cost the landlord nothing, the deal was a win-win.

Perfect for Urban Apartments & Small Communities

While he started in big-city apartment hotels, Dagmar soon expanded to:

• Private homes
• Small-town apartments
• Furnished studio rentals

The business scaled easily — just add more units and refill weekly.

Key Takeaways

• Start simple: You don’t need a store or inventory warehouse to earn consistent income
• Think convenience: Solve everyday problems for everyday people
• Pitch creatively: Use benefits, not features, to persuade landlords or partners
• Use recurring revenue: Place once, collect forever
• Leverage service: Regular restocking and maintenance makes you irreplaceable

Final Thought: The Power of a Simple Idea

Charles Dagmar didn’t have capital, staff, or a storefront. He had a unique product, a good pitch, and consistency. That was enough to generate steady, scalable income — from nothing more than “little boxes” and a handful of coins.

Want to Launch Something Similar?

Have a product idea or need help developing a vending-style business? Contact us to get a custom step-by-step plan based on your niche, location, and budget.