Vending machines are everywhere. You’d walk past one without thinking too much but did you know that to some people, those vending machines are their livelihood?
Yes, you can actually make some good money off of vending machines.
In this article, we’ll discuss how you can start your own vending machine business.
We’ll cover the exact steps to take, how much you can earn, start-up costs, and anything else you need to know.
Table of Contents
How much can you make with a vending machine business?
An average vending machine can make its owner roughly $35 — $75 per week or $140 — $ 300 per month.
Well-stocked machines in high foot traffic areas can make $400–500 per month.
It’s also not unheard of to make thousands per month from a vending machine.
How much does it cost to start a vending machine business?
Prepare $1000–1200 to start your vending machine business.
A used vending machine can cost you $500–800 depending on the type of the machine and how old it is.
The supplies can cost you another $100 — $300 if you are selling snacks or drinks.
You will also need to pay $100–$300 to get your vending machine permit. Each state has its own rules and its own price for getting your permit.
You can split the cost with a business partner.
It may be wise to get a business partner if you want to start a vending machine business since the vending machine is bulky and can be difficult to move.
You may need some help with transporting and placing the machine as well as restocking.
Why should you start a vending machine business?
- It can be passive income
Here’s the thing, vending machine business isn’t entirely passive.
You may need to clean the machine regularly (wiping for instance), fix jammed openings, restock supplies, etc.
Expect a lot of physical labor.
However, it can also be passive income if you outsource the work to someone else.
You can hire someone to do all the restocking, purchasing supplies, transporting supplies, cleaning, fixing, and coin collecting for you if you wish.
Your only job then would be to buy the vending machines and find places to store them.
If done right, you can rack in a lot of money without much work at all but you do need to invest a lot of upfront physical labor if you do start a vending machine business.
- Diversify income
Having a vending machine business is a great way to diversify your income.
The cool thing about vending machines is that the money is physical unlike other types of income streams where the money gets delivered to your bank
(although you can install a card reader which means your money will get delivered electronically to you).
This means, that if something were to happen to the banking system (in very rare cases), you may be safe financially for some time.
- It’s a proven business model
Making money off vending machines is a proven business model. Lots of people are doing it.
There are more than a million functioning vending machines in the US today which bring in 23 billion in annual revenue each year.
Step 1: Research places to store your vending machine
You want to research the places where you can store a vending machine before you purchase one.
Do all your homework first so you understand what hurdles you may encounter.
For instance, you may realize that there aren’t good places to place a vending machine where you live so you may have to venture further out.
Here are some of the most common places to store a vending machine:
- Gym
- Grocery store
- Mall
- Residential complexes
- Colleges
- Manufacturing complexes
- Parks
- Gas stations
- Rest stops
- Hotels
- Motels
When you consider where to store your vending machine, you want to take into account the amount of foot traffic nearby.
Study its surroundings and count how many people pass by in a one-minute period at different hours of the day.
For instance, you could calculate foot traffic at the following times:
- 8 am — 9 am (This is the time that people get to work)
- 9 am — 11 am (May have less traffic but still worth studying how much)
- 11 am — 1 pm(People may be out getting lunch so should expect a peak in foot traffic)
- 1 pm — 5 pm (People are back in the office. Analyze traffic at this time)
- 5 pm — 6 pm (People are getting off work should expect more foot traffic)
- 7 pm — 10 pm (People are out and about or at home. Analyze foot traffic)
- 11 pm — midnight (Should not have too much traffic)
Another thing you should take into consideration is the amount of crime nearby. You don’t want your machines to get broken into. It’s best to stay away from sketchy neighborhoods.
Here are some factors that make a vending machine location great:
- Lots of foot traffic
- Highly visible
- In view of the CCTV camera
- Patrolled by security guards or police and other authority figures
Step 2: Think about what kind of things you want your vending machine to sell
There are many things you can sell through a vending machine. Here are some things you can sell:
- Drinks
- Snacks
- Earphone
- Ready-made meals
- Socks
- Phone cases
- Sanitary supplies
If you decide to sell food, you’ll need to comply with your state laws to make sure you get the necessary permit.
It’s best to stock up on items that customers are familiar with. People don’t use vending machines to experiment with brands they aren’t familiar. They buy things that they have bought before and trust.
Step 3: Negotiate with land owners
Now that you’ve found potential places to store your vending machines, you can start talking to different land owners to see whether you could place a vending machine there.
Many land owners would happily agree to let you place a vending machine in their space.
You are actually helping to retain traffic by offering things that passersby may need.
You may need to pay a small fee to place your vending machine and/or share 5% — 20% of your profit with the land owner.
Step 4: Get your vending machine permit
You want to comply with your state law by getting the necessary permit to start your vending machine business.
Here are some permits you should look into:
- Seller’s permit
- Health and foods permit (if you are selling food)
You can talk to other vending machine business owners for advice. They may tell you what else you should take heed of before you start your vending machine business.
All these permits may cost you a few hundred dollars so make sure to factor in this cost when you start your business.
Step 5: Buy a vending machine
And then of course you need a vending machine to start a vending machine business.
Here are some places where you can acquire a vending machine.
- Craiglist
- Alibaba
- Kijiji
You don’t have to buy a brand new vending machine. You can buy a second-hand vending machine to save you money.
Something to keep in mind is that once the vending machine arrived, you need to find a way to move it and transport it to the right spot. You may need to rent a truck.
This could be very difficult for most women or people who aren’t too tall so you may want to hire somebody to help you or enlist your friends and family’s help.
Step 6: Secure supplies
Now that you know where you can place your vending machine and you’ve got your vending machine, you’ll want to secure some supplies.
Here are some places you can buy vending machine supplies in bulk:
- Costco
- Alibaba
- Grocery store (when it’s on sale)
You’ll also want to figure out how many of each kind of supplies you need. Go smaller in the beginning. Adjust if necessary.
You can observe what sells the best to determine what you should purchase next time.
Step 7: Stock up the vending machines
Make sure to stock up on the vending machines. You don’t want your vending machine looking empty.
You’d just be wasting the space if your vending machine is empty.
You can pick a specific time in the day where there isn’t as much foot traffic to restock your vending machines so you don’t disrupt passersby.
During the first week to the first month, you’ll want to assess how fast the supplies are selling out so you can figure out when you need to restock.
For every vending machine, the restocking time may be different. Some require a restock every day while others may require a restock every week for instance.
Step 8: Collect payout
Don’t forget to collect the payout.
The money in the vending machine needs to be taken out otherwise if it’s too full, the machine won’t be able to accept any more payment.
Again, make sure to do this at a time where you don’t disrupt the passerby too much but also make sure not to do this at a time where you may put yourself in danger.
Step 9: Automize business
You can decide to automize your business if you wish. This would work best if you have multiple vending machines.
You’ll need to hire somebody to:
- Purchase the supplies
- Transport the supplies
- Restock the supplies
- Clean the machine
- Troubleshoot problems
- Collect payment
One thing to note, however, is that you need to make sure all the coins are accounted for.
You don’t want to hire somebody and have them sneak coins into their pockets as they are collecting.
Final thought
What do you think? Are you surprised by how much people are able to make off their vending machines?
Let me know in the comment below!
For me, my absolute favorite business to start is still blogging as you can reframe yourself from having to handle any physical supplies.
With a vending machine, you always have to make sure everything is restocked and accounted for but with a blog, everything is done over the internet so you aren’t tied to a specific location and there isn’t as much urgent upkeep.
You can theoretically write a whole month’s worth of blog posts and just schedule them out ahead of time so you don’t have to do any active work for a whole month.
If you want to find out how to start your own blog, click here for a quick comprehensive guide.
