If you've always dreamt of being a successful small business owner, then you should consider owning a vending machine business.
For some, a vending machine business only started as a side hustle which eventually turned into a full blown business that makes a thousand dollars per month.
But before we plunge right into how to start a vending machine business, it is best to first look at reasons why you should pour the effort in the first place.
For starters, starting a vending machine business is relatively easy. Special training is not required. All you need is a business license, the right insurance coverage, and a routine inspection, and you are all set to start.
Vending machines can work 24/7. These are fully automated devices designed to keep working unless defects or vandalism happens. That said, vending machine businesses aren't limited by any hours of the day and can generate steady revenue.
Running a vending machine business requires little to no investment in employee payroll.
A starting vending machine business doesn’t require a lot of people. You only need the vending machines to sell products and collect money. Stocking the vending machines is easy and you can do this on your own as long as there aren’t too many. And so, what you’ll only need are technicians.
The thing is, vending machines don’t get broken easily and so you’ll hire technicians as independent contractors only. Heck, there’s even no need for them if you know how to maintain and fix the vending machines yourself.
Popularity is another reason why you should learn how to run a vending machine business. Vending machines aren’t only numerous in cities. You will also see them in the convenience stores in the countryside. That said, this venture has potential regardless of the location.
So how to get into vendine machine business? You can start by investing in a franchise, buying a vending machine company, or starting from scratch. Let’s quickly discuss each option.
A vending machine franchise is a great way of staring without stressing yourself. You only need to have enough money for the investment and pass financial evaluations. The franchising company will then give you the equipment to use and products to sell.
Take a look at the table below to see which vending machine franchise to work with and how much you need to invest.
|What You’ll Need To Pay For
|$36,000 franchise fee
$195,000-$216,800 initial investment fee
|$350,000 net worth requirement
$100,000 cash requirement
|Fresh Healthy Vending
|$70,000 liquid capital
|Healthy YOU Vending
|$158,995-$199,815 initial investment fee
$40,000 franchise fee
|$55,000-$225,000 liquid capital
|$71,495-$108,995 initial investment fee
$39,900 franchise fee
|$50,000 liquid capital
|$50,000-$250,000 initial investment fee
$26,000 franchise fee
|$50,0000 liquid capital
Buying a vending machine business is a good option if you want to start by already having the business structure, equipment, and workforce in place. The catch is no person would sell a vending machine business unless there’s no problem. And so, you have to scrutinize financial records, legal liabilities, overall picture of operations, and the resources available.
What to remember is that if you can solve the issues that the original owner of the vending machine business can’t, then go for it. However, if you don’t have the solution, it’s best to start your own.
So how much does it cost to buy a vending machine business? Existing vending machine business will cost $50,000-$130,000.
The final option is to start your own vending machine business from scratch. This doesn’t require a lot of money as compared to buying a franchise or buying an existing vending machine business. The catch is, you’ll need to invest a lot of time. So how do I start a vending machine business from scratch? The next section will answer this question of yours.
Get all the best quotes from leading providers in a click of a button!
Below are the practical steps you’ll take to start a vending machine business.
Where do I put my vending machine and what products should I sell there? Don’t even think of proceeding to buy your vending machines without having a clear and definite answer to this question.
The idea is if you know where and what to sell, then you’ll know how much money to make and how to run a vending machine business.
Here’s a quick list of products to sell in a vending machine and where they’ll make the most money:
Coffee and other hot beverages-Coworking spaces, multi-story commercial buildings, subways, malls, nature parks, ski and snowboarding parks, and libraries
Candies, chocolates, and other sweet treats-Schools, malls, amusement parks, and children’s play centers
Ice cream vending machines-Camping parks, lake parks, beaches, universities, libraries, and multi-story commercial buildings
Healthy snacks-Gyms, fitness centers, and beaches
Toys-Schools, malls, amusement parks, and arcades
In connection, these products might be great but we don’t recommend them for some reasons:
Burgers and sandwiches-Burger and sandwich vending machines are expensive. Also, a lot of burger joints are around and people prefer them
T-shirts-T-shirt vending machines don't make money in all locations. Most likely, these will only generate revenues if placed in nightclubs or venues of festivals and other special events
Buy your vending machines after knowing what products to capitalize on and where to sell. The thing is how to own a vending machine without spending much anyway?
Before we answer, let’s first take a look at the different types of vending machine you can purchase:
Drink only-Drink only vending machines use a snake-shaped dispensing mechanism. Ideal for selling canned drinks. Expensive but has a long life-span and low dispensing failure rate
Spiral vending machines-Spiral vending machines can sell almost anything such as drinks, snacks, clothing, etc. They’re cheap too. However, spiral vending machines are known to malfunction from time to time. And so, they require a lot of investment on maintenance
Conveyor belt vending machines-Conveyor belt vending machines use a series of belts and gears. A software is also used to control the interaction of the belts, gears, and products in the vending machine. Ideal for selling fragile items, raw goods, and groceries
Smart vending machines-Smart vending machines utilize a touch screen interface where customers can select the products available. Advanced features for cooking and assembling food might be added. Most use these to sell sandwiches or burgers
Refrigerated vending machines-Refrigerated vending machines are either conveyor or spiral vending machines added with a fridge system. Might be costly to maintain. Ideal for selling drinks, chocolates, candies, and other products that must be chilled
Now going back to your question earlier, you can own a vending machine without spending much by buying second-hand ones.
It’s easy to find second-hand vending machines. Great deals are on Amequipmentsales.com, Globalvendinggroup.com, Usedvending.com, Vendingworld.com, and eBay. Most of these are refurbished so they work like brand-new pieces.
You can always go for brand-new vending machines if you don’t like used and refurbished ones. What makes brand-new vending machines is that they certainly won’t require a lot of maintenance and won’t be hot to the eyes of health inspectors.
Places, where you can get brand-new vending machines at great prices, are DiscountVending, Vending.com, and Southern Equipment Sales.
Investing in technology is an important consideration in starting a vending machine business. Technology can help you automate important processes such as document signing, payroll management, and tax filing. .
Consider using OnPay for payroll management. This software helps you quickly process employee payroll and file taxes. Additional HR features are also included. It only costs $40/month and the best of all is that by clicking here you can try it out for free for one month!
Bloom is another tool that helps your startup vending machine business automate processes. This enables you to manage leads, send invoices, sign legal contracts, and deliver assets. You enjoy these features for only $29 per month. And by clicking here and signing up, you're also able to start a free trial and then have 15% off your first 12 months!
All states require vending machine operators to secure a license or permit. You need to submit these application requirements:
Federal employer identification number
Sales tax number
Supporting documents that prove you have the location to install the vending machines
Liquor license but only if you sell alcoholic beverages in your vending machine
You need to talk with the owner or the property custodian of the location where you desire to place your vending machines. You can email, call, or schedule a meeting. If they’re okay with your offer, then what comes next is the signing of contract agreements. After this, you’ll only need to install the vending machines and start making money.
Vending machine insurance is a specialty product that will take care of costs if your vending machine zaps customers, crushes them, or causes any other accidents. You can also use this to cover the repair or replacement of the vending machine itself. Vending machine insurance can also help cover legal expenses if your vending machine is used for credit card fraud, unauthorized use of third-party personal information, and so on.
The required capital for starting a vending machine business differs from one individual to another. Some only start with two vending machines while others start with several units. Also, there are those who like to sell coffee while others sell candies in their vending machines.
That said, in order to answer your question about how much to start a vending machine business, we’ll assume that you’re starting with 4 vending machines and selling snacks only. Here are the figures:
A new vending machine will cost $3,000-$7,000. Starting with four will require $12,000-28,000
A second hand vending machine costS $1,500-$1,750. Four will require $6,000-$7,000
Stocking a vending machine with food snacks will cost $500-$1,500. If you need to stock four vending machines, then the capital will be $2,000-$6,000
Repairing and maintaining a vending machine will cost $20 per hour. Technicians require 6 hours of work. And so, the repair or maintenance budget for four vending machines will be $480
Get all the best quotes from leading providers in a click of a button!
The question of how to start a vending machine business for free has no definite answer. It’s because you have to make some investments. Instead, we’ll teach you how to start it even if you don’t have adequate funds.
Angel investors are a great way to get funds for your startup vending machine business. You’ll get an investment if your business profile has an annual gross profit of $5,000-$150,000 and has clean financial and legal obligations. Angel investors are free in a way that they’ll only get paid once your company establishes itself in the market.
You can try crowdfunding too. In essence, crowdfunding is where you’ll ask numerous people to contribute money for your vending machine business venture. For example, if you ask for a $5 investment and 1,000 individuals decide to take their chance on you, you’ll raise $5,000 which is enough to buy one brand new or secondhand vending machine.
So where can you crowdfund? You may try EquityNet, which helps entrepreneurs raise anywhere from $10,000 to $10,000,000 to start their new businesses!
A business loan certainly provides the large capital you need to cover all expenditures for starting a vending machine business. This works best if your credit score is good. You can approach banks but it’s best to approach online lending institutions if you’re in a hurry. Uplyft can help you get up to $5 million dollars of funding extremely fast (as little as 4 hours!!!): Apply for loan now.
Approach the Small Business Association to get started with your capital. This organization provides different kinds of loans that fit the needs of their client’s business plan. One advantage of working with the SBA is that you avoid committing to funding options with unreasonable interests. We recommend you try SBA 7 (a) loans that provide $350,000-$5 million capital.
Buying a vending machine might not be as straightforward as you think. Sure, you can just purchase one anytime and have it delivered. But here are some questions you need to answer about how to buy a vending machine the smart way.
Vending machines aren’t cheap. And so, you don’t want them breaking down and needing replacement every 1-3 years. And so, it’s important to think about the length of use when buying a vending machine.
And so, look at the build of the vending machines when buying. Can they withstand impact when hit by a vandal? Is the wiring durable? If your answer to these questions is positive, then proceed with the purchase.
A vending machine business will pour a lot of investments into maintaining its vending machines.
Some vending machines are easy to fix while others are difficult. For example, a smart vending machine will need hefty maintenance expenses as its software can get defective aside from its mechanism.
On the other hand, a spiral vending machine doesn’t require a lot of service charge for repairs as it works straightforwardly.
How prone are the products to get stuck in the vending machines? This is a very important consideration. Vending machines that get stuck frequently will chase customers away and don’t serve your money making goals. A spiral vending machine is known to get stuck from time to time and make customers stressed. On the other hand, conveyor belt vending machines work like a breeze.
So how much do vending machines make? There are a lot of factors to consider. Like for example, do you mean the monthly revenue or annual revenue? Are you inquiring about income based on products sold? And so on.
A vending machine makes $400-$1,700 per month on average. How much does vending machines make a month will depend on the location and types of goods sold. The condition of the vending machines is also a significant factor because frequent repairs result in downtime that contributes to lost income.
Some earn a $50,000-$100,000 annual income from their vending machines. However, successful operators generate an annual revenue of $1 million or more.
If you have four vending machines, then expect that they’ll make $980 per month. This assumes that each makes $35 of sales everyday.
Here’s a run-through of how much money can you make from a vending machine depending on the products sold:
Vending machines that sell candy, chocolate, and other sweet treats in subways, amusement centers, and parks make $250-$500 per month.
Healthy snack vending machines placed in gyms, fitness centers, and recreation centers make $200 per month.
Coffee and hot beverages vending machines can make $2,500-$3,000 per month, provided that they’re placed on high traffic areas
Vending machines that sell drinks and food make $900-$1,500 per month
Unless it’s placed in tourist spots, a vending machine in the countryside will make 30%-50% lesser revenue than those found in cities. Because of this, many say that a vending machine business is best done in urban locations.
Lonnie Bell Insuranker
Policy Type: Business Insurance
Company name: Employers Insurance
Use anyone except Employers. Period. They are non-transparent and shameful. After I complained long enough to warrant a call from a supervisor, the supervisor called back from a PRIVATE NUMBER (no caller ID), left a message that they are not reversing their decision (without any communication with me), and failed to leave a phone number for me to call back. She was hiding! They also fact find via email and phone calls, which is terrific for speed and communication. However, after setting a precedence of email or phone calls, they send time sensitive information via email, without any heads up... they are hoping you miss it and forfeit via expiration. Evil policies. Go elsewhere.
This place is an absolute joke of a company and should be ashamed of the way they conduct business. I was hurt on the job at the end of July and it took them just shy of 7 weeks to issue out a paycheck to me. Yes the amount was back dated but still. Not many have the luxury of not receiving a paycheck for almost 2 months. To top it all off, the original adjuster marked me down for the wrong state which caused a problem from the get go, I've had 3 different adjusters now since each one can't seem to figure out the simplicity of my claim. All my paperwork which includes, my job, house, and drs visits all are from the same state and city but yet some how I have been filed under a completely different state 1500 miles away. They do not answer your phone calls or emails no matter how many you leave. I've had to escalate my frustrations to the supervisors of each of these individuals in order to even get some kind of response. I've had more communication and information given to me about my claim from the customer service representatives then the actual adjusters.......... please tell me how that works?! A serious overhaul needs to happen here in order to serve your clients the way they deserve to be taken care of. 10/10 do not recommend this company to a single soul on earth
I have never had the displeasure of working with a more incompetent and disrespectful person in my life. I’m an injured worker and the adjuster that was assigned to my case was named Carrie Furgeson. In the past 6 weeks that I’ve been injured and out of work I have only been able to get ahold of her twice, not for lack of trying. I have left countless voicemails, countless emails, and she ignores them all. When I am finally able to get ahold of her I’m greeted with terrible customer service. She is rude, she talks over me and I’m hardly able to get a word in edgewise. She spelled my name wrong on my documents even after I spelled it for her properly countless times, this caused a whole new issue with my bank. I have bill collectors from the hospital calling me demanding payment and Carrie Furgeson won’t do a single thing to help, or to get them paid. All of my documentation is in Colorado, my job is in Colorado, my address is in Colorado, all my Dr offices and appointments have been in Colorado and Carrie still managed to hold my claim because she wasn’t sure what state she needed to file it under. It’s been 6 weeks since my Injury and my company still hasn’t received the wage paperwork to fill out so they can get me my correct wages. When she’s not ignoring me she’s answering my questions with “I don’t know” well I don’t know how she got this job, because apparently she doesn’t know anything about it. She is a disgusting morose individual inside and out and I genuinely wish her the worst in all of her future endeavors. I highly recommend you don’t use this company. Please if you are a business owner and your looking into this company please don’t use them. I’m sure they have the cheapest payment and that’s why companies use them in the first place, but you will be doing your employees a grave disservice by forcing them to venture into this absolute dumpster fire of a company. I would rate 0/5 if possible but 1 was the lowest I was allowed.
Their general liability insurance purchase process is simply the best online experience I've ever had in my life!
As long as they cover your line of business, you're literally covered! best rates, best coverage, best online experience, best professionals, can't be happier that I chose them!