How to Start A Vending Machine Business Step by Step

In this post, I’m going to cover some tips on starting a profitable vending machine business. I’m Dave, small business expert. Owning a vending machine is the ultimate side hustle. A well-placed machine can generate over $400 to $600 monthly in extra income. There are also some challenges to owning a vending machine, so it helps to have some strategies in place before you get into this type of business.

How to get a vending machine and choose your business wisely.

1 - Purchase the vending machine on your own
2 - Buy an existing vending machine business
3 - Enroll in a vending machine franchise

Each options above has pros and cons. Option #1, buying a vending machine on your own, gives you total control, need to have location. Most of the time machine sellers provide list of locations to choose.

Buying an existing one can reduce the upfront investment of time, do your research to make sure that you’re purchasing a vending machine with solid income potential.

Lastly, buying a vending machine from franchisers like Sweets And Treats and Coffee Business reduces decision making, like which snacks to stock your machines with. But, you also get less independence from this type of vending machine business.

Tip #2: Buy the right type of vending machine If you choose the first option, which is to buy your own vending machine, you’ll need to figure out what size and type of machine you need.

There are three main types of vending machines, each designed for different types of products:

Bulk machines cost $50 to $200 - Usually, customers put in a quarter in exchange for a handful of candy. These don’t generate much profit for the owner.

Mechanical machines $2,000 to $3,000 - These are the typical vending machines that most people think of. They dispense candy bars, soda bottles, chip packets, and other larger snack and beverage items, usually in exchange for a $1 or more, profit for the owner.

Electronic machines $3,000 to $5,000 - These machines have touch screen, and accept credit payments. These machine very expensive. You can buy these units directly from sellers and places like Amazon & eBay.

If you buy used, make sure you thoroughly investigate the machine’s condition and age, and any existing warranties, because vending machine repairs can reduce the profitability.

Tip #3: Location is key. You’ve probably seen vending machines in several areas, including gyms, airports, malls, and other public places. If you buy an existing vending machine business or buy into a franchise, then the location isn’t up to you. But if you purchase a machine of your own, you’ll have to do some research location scouting. You can contact property owners and ask to speak to their staff members that handle business and vendor partnerships. Most property owners will require a 10% to 20% commission from your gross sales, to account for your usage of their space and electricity. When choosing a place find out customers who they are and their product needs. For example, placing a vending machine full of junk food and candy right next to a gym probably isn’t a good choice.

Keep in mind that vending machines come with a wide range of products, not just food. It’s not uncommon to see vending machines in airports that are stuffed with baby products or apparel.

Tip #4: Choose the right products. The products that you stock your vending machine with will play the biggest role in your success. As we mentioned earlier, different products play well to different customers and in different locations.

1 - Candy and toy machines are a good choice in amusement parks, malls, and places frequented by families.
2 - Healthy food choices, like nuts and granola bars, are a good choice for schools and gyms.
3 - Sodas, Red Bull, and other caffeinated beverage items are a good choice for universities.
4 - Personal items, like toothpaste and over-the-counter medications, are a good choice for airports and public restrooms.
5 - Standard snack and beverage items, like chips and soda, tend to do well in business offices, shopping centers, and other environments.

Tip #5: Keep your machines well stocked and well maintained. You definitely don’t want to have a situation where customers can’t buy their favorite products from your vending machine because you were out of stock. The companies, offer inventory tracking for vending machines.

These units can break down, lose money & vending machines can also be vandalized or stolen unfortunately. You should schedule regular trips to check that all your machines are in good working order.

You should also develop a good rapport with the property owner where your vending machines are located. They can clue you into recurring problems and positive and negative feedback from customers.

Lastly, we suggest installing security cameras near your vending machines to prevent vandalism and theft. Those are five tips for starting a successful vending machine business. The average vending machine generates $70 in weekly revenue for the owner, but a well-placed machine can earn much more, even $110 per week.

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