At the Krusty Krab, a fish dressed in a suit comes to the door. Mr. Krabs believes him to be a tax collector and panics and jumps in SpongeBob with his cash register 'Cashie' until the man shows his business card, which identifies him as an employee of "R.A. Pennypincher Vending Supplies." Mr. Krabs is overjoyed as the delivery men bring the claw vending machine that he ordered for the Krusty Krab. Mr. Krabs explains that it will "pay for itself in no time" and insists that SpongeBob and Squidward try it, giving them each a free quarter.
Squidward plays the machine and almost picks up a stuffed snake and loses. He excitedly exclaims to SpongeBob that he almost got a toy on his first try. When SpongeBob tries the machine, Squidward expects him to lose, but SpongeBob effortlessly wins two times, winning a stuffed animal with each try.
Later on, SpongeBob continues to win several more stuffed animals from the machine effortlessly. Squidward desperately tries to win, even using his money from payday, but he still does not win.
When Squidward goes home, he finds he cannot pick up anything because of the crane, and he caves in, convinced he must win. He puts back on his normal clothes, gets his piggy bank and runs to the Krusty Krab and tries the crane again until the next morning, but to no avail. Mr. Krabs then empties the machine and finds an enormous amount of Squidward's money, along with the deed to his house. Squidward now suffering from depression and insanity from not winning from the claw machine, ran away from the Krusty Krab and kill himself by jump off the cliff.