Vending Machine Business the ideal side hustle. Entrepreneurs seek simple, hassle-free ways to supplement their primary income. But does such a thing exist?
While there are no perfect side hustles, this one is a solid alternative for those looking for consistent income and flexible hours.
Continue reading to find out how to become a vending machine business!
What is the vending machine business?
A vending machine business operates machines that dispense products, typically food and beverages. Vending machine owners decide where to position their machines, what to sell, and collect customer deposits.
Vending machine firms sell a variety of things, including food items like candy, chips, and snacks.
- Beverages (including soda, water, and hot drinks)
- Tech items (such as chargers, tablets, and earphones)
- Cigarettes
- Lotto tickets
Many universities and companies include vending machines with commonly used items like keyboards and mice. Traditional vending machines, such as gumball and food machines, provide customers instant access to treats. Start a vending machine business with any item that fits inside a rectangular box, even live crabs and caviar.
Start a vending machine business.
Let’s get down to business! Here is a step-by-step tutorial for starting a vending machine business in the US.
Step 1: Determine What Type of Vending Machine You Want
Vending machines have evolved from old, rusted devices that only accepted dollar bills and appeared to be expired. There are several possibilities available nowadays.
Food and Beverage Vending:
Most vending machines sell sodas and snacks. If you want to acquire and install many machines in different places, consider stocking different things based on traffic patterns.
Bulk Vending:
Small machines are found at the front of eateries and grocery stores. Bulk vending machines business offer toys, rubber balls, gumballs, and other things. These items are typically the least expensive and have the lowest overhead due to manual operation. When used correctly, these machines can generate significant passive revenue and are ideal for aspiring entrepreneurs.
Specialty Vending:
These machines provide premium products that differ from standard offerings. You can distribute nearly anything, including electronics, hot beverages, and ice cream. Offering unique products in these machines can result in significantly higher earnings than ordinary food and beverage items. However, a greater markup may lead to fewer individuals using your equipment.
When selecting a vending machine, it’s important to focus on catering to your target audience.
Step 2: Identify suitable locations for your machines.
The location of vending machines is equally significant as the things they sell. Successful vending machine businesses require strategic location.
Conduct research and think critically about the folks you’re targeting.
What are their criteria, and who frequents the location?
If you locate a food and beverage vending machine near a gym, consider offering protein bars, electrolyte-infused drinks, pre-mixed shakes, and other value-added items.
If a laundromat has a specialized vending machine, offering fabric softener and individual detergent packs may be more practical.
Here is a list of possible places for your vending machines:
- Bus stations
- Manufacturing facilities.
- Apartment complexes –
- Grocery stores –
- Shopping malls
- Railway stations
- Accommodation options include hotels, motels, schools, universities, hospitals, and health centers.
- Laundromat
- Airport
You cannot simply place a vending machine anywhere. Engage in interactions with property owners or managers. They may refuse to share floor space or vending machines to avoid competition.
After identifying potential venues, contact them to confirm their willingness to host your machine on their property.
Please remember that you may need to pay a commission to use a location controlled by someone else. Before signing a contract, you can negotiate a percentage of your total revenue, which ranges from 10% to 25%.
Step 3: Name Your Business
Your company name is one of your most important brand assets. This is how customers distinguish your business from competitors. Here are some guidelines to help you choose a business name.
Keep it basic and catchy.
- Be creative
- Be distinctive and unique
- Make it memorable
Furthermore, no existing firm should have the same name as your future business. To ensure this, search with the US Patent and Trademark Office.
Advantages of Running a Vending Machine Business
Some of the numerous benefits of running a vending machine business include
Scalability:
Begin with a few machines and grow your business as time and finances allow.
Low beginning expenses:
Aside from financing the devices, capital requirements are minimal. You don’t need a structure or office space; a garage, utility room, or basement can suffice. Other than a car to service your route, no more equipment or machinery is needed.
Simple:
After installing the machines, all you need to do is maintain them, replenish them as needed, and collect money.
All transactions are cash-based, with no accounts receivable as in conventional businesses. You are either collecting cash from machines or credit card firms.
Flexibility:
The vending machine business is great for families. Train your husband and children to assist with purchasing, stocking, bank deposits, and bookkeeping.
The only prerequisite for machine service is a basic level of physical fitness, as walking and moving heavy materials are required.
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FAQ’s
What types of vending machines are available?
Vending machines typically offer snacks, sodas, and coffee/hot beverages. Other alternatives include laundry co-op vending machines, gumball machines, toy vending machines, video games, drink vending machines, crane game machines, family fun centers, DVD vending machines, and coin-op vehicle washes.
Are vending machines profitable?
Vending machines can be profitable. Vending machines produce approximately $300 per month or $75 per week. Well-stocked vending machines in safe, high-traffic locations can earn more than twice the revenue.
Where can you buy a vending machine?
There are several options for purchasing vending machines. Below are some ideas to consider.
Manufacturers: For cutting-edge machines, buying straight from the manufacturer may be the best option. This will provide a wide range of equipment from renowned brands.
Wholesale Suppliers providers typically offer a diverse selection of new, used, and refurbished machines. These are typically competitively priced and might help you create a relationship with a supplier that can provide inventory and replacement parts.
If you want to start your business with used machines, buying from a secondhand seller may offer the most value for money. You can check with other vending companies that want to close and get rid of it.
Of their assets, or those who sell online. Before closing your transaction, thoroughly inspect the equipment to ensure it works properly.