How to Start a Vending Machine Business: Cost, Tips, Pros ...

Americans eat and drink about $56 billion worth of vending machine snacks and soda each year. That’s a staggering 7% of all food and beverage sales. It’s no wonder why 22% of vending machine operators make between $1 million and $5 million per year.

But if you think all you need to do is find a good location and stock your vending machines with junk food to get a piece of that $56 billion pie, think again. It takes a lot of hard work and planning to start a vending machine business that’s successful for the long haul. 

1. Do Your Homework

The first thing you need to do is research the market. Who are the other vending machine businesses in your area? What type of machines do they have? What do they sell? What are their prices? How do they market their business?

You can learn a lot by studying your competition. You can also learn a lot by talking to other business owners. Ask them about their experiences, what they wish they had known before they started, and what advice they have for new business owners. 

2. Determine What You Want to Sell

The products you choose to sell in your vending machines will determine the type of vending machines you will need. For example, if you want to sell coffee, you will need a coffee vending machine. If you want to sell snacks, you will need a snack vending machine.

The products you choose to sell will also determine where you can place your vending machine. For example, if you want to sell snacks, you can place your vending machine in a variety of locations, such as an office building, a school, or a shopping mall.

If you want to sell coffee, you will need to find a location that has a high demand for coffee, such as an office building or a hospital. 

3. Determine the Vending Machine Features You Want

Vending machines have come a long way in the past decade, and you can now find machines with features that allow you to run your business more efficiently. You can also find machines that cater to your target market. When you consider the features you want, think about the following:

• Cashless payment options: With the rise of mobile payments, many vending machines now offer cashless options. This includes credit and debit card readers, mobile payment apps, and even biometric payment options.

• Remote monitoring: If you plan to have more than one vending machine, you may want to consider a machine with remote monitoring capabilities. This allows you to check on your machine and inventory levels from your computer or mobile device.

• Customizable product displays: Some vending machines allow you to customize the product displays. This is a great option if you want to cater to a specific target market, such as kids or adults.

• Security features: Look for vending machines with security features like cameras and alarms. This will help protect your investment and deter theft. 

4. Find a Good Vending Machine Location

One of the most important aspects of your vending machine business is location, location, location. You’ll need to find a good location to set up your vending machine. After all, if you don’t have a steady stream of people walking past your machine, you won’t make any money.

Some good places to set up a vending machine include:

• Gyms

• Schools

• Office buildings

• Hospitals

• Airports

• Hotels

• Apartment complexes

• Retail stores

• Auto repair shops

• Laundromats

• College campuses

• Manufacturing facilities

When you’re looking for a location for your vending machine, you’ll want to make sure you have the right type of machine for the location. For example, a vending machine in an office building might sell snacks and drinks, while a vending machine in a gym might sell protein bars and shakes.

You’ll also want to make sure you have the right permits and permissions to set up your vending machine in a particular location. Some places may require a vending machine permit, while others may require you to get permission from the property owner. 

5. Obtain Financing

If you don’t have the capital to purchase a vending machine or two, you may need to look at alternative financing options. For example, you could get a small business loan, a line of credit, or a business credit card. You could also look for investors or partners to help you fund your business.

If you decide to apply for a loan, you’ll need to have a business plan in place. The lender will want to see that you have a clear plan for how you will use the funds and how you will repay the loan 

6. Purchase the Vending Machines

The vending machines are the most important part of your business. You’ll want to invest in high-quality machines that are durable, easy to use, and have the latest technology.

The cost of a vending machine can vary depending on the type of machine you want and the features it has. On average, vending machines can cost anywhere from $3,000 to $5,000.

When purchasing your vending machines, you’ll also want to consider what types of products you’ll be selling. Some vending machines are designed to sell a specific type of product, like snacks or drinks, while others can be used to sell a variety of products.

You’ll also want to consider the size of the vending machine and how many products it can hold. If you plan on stocking your vending machine with a lot of products, you’ll want to invest in a machine that has a large capacity. 

7. Stock and Maintain the Machines

Vending machine businesses don’t require a lot of day-to-day maintenance, but you do need to keep your machines well-stocked and in good working order. If you don’t, you could lose customers and sales.

It’s also important to keep your machines clean and to rotate your stock regularly to ensure that your products are fresh. This will help you maintain a good reputation and keep your customers coming back.

If you’re not able to maintain your machines yourself, you can hire a service to do it for you. This will cost you more money, but it can be a good option if you don’t have the time to do it yourself. 

8. Expand Your Vending Machine Business

Once you’ve established your vending machine business and you’re ready to expand, you have a few options. If you’re looking to invest more money, you can purchase more vending machines and secure new locations.

If you need to make a larger investment, you can also consider purchasing a vending machine franchise. This is a great way to expand your business without having to go through the process of finding locations and negotiating contracts.

If you’re not quite ready to make a large investment, you can also consider adding new products to your existing machines. This is a great way to test out new products and see how well they sell. If a new product is successful, you can then consider adding more machines to your business.

Conclusion

Starting a vending machine business can be a lot of fun. It’s a great way to be your own boss and operate on your own schedule. Plus, once you have your machines set up, it’s a business that operates itself. You can even scale your business and build a vending machine empire if you’re entrepreneurial.

If you’re considering starting a vending machine business, we hope you found this article helpful. Good luck!