In my younger years, I owned a vending machine business. While I sold it along with my catering company years later, I appreciated the easy income it provided. If you’re looking for a business with low overhead and little investment, a vending machine business could be the right fit for you.
In the United States, vending machine operators are projected to make about 7.477 million dollars in revenue by 2024. This industry is still growing and has a lot of potential. If you’re thinking about starting your own vending machine business, here are a few tips to get you started.
The Vending Machine Business: Low Overhead, Easy Income
When polled, responders stated that 20% of their snack purchases came from vending machines.
Vending machines are an ideal business for those looking to make money with low overhead and little investment. All you need to get started is a little space for the machines and some initial capital to buy and stock them with goods. Once you have those things in place, you can start making money immediately.
Of course, there are a few things you’ll need to keep in mind as you get started to be successful.
1. Location is key. Your vending machines must be placed in high-traffic areas to attract customers. Office buildings, malls, schools, and other public places are all good options.
2. Offer a variety of products. People will only use your machines if they can find what they’re looking for. Be sure to offer a variety of snacks, drinks, and other items to appeal to as many people as possible.
3. Keep your machines well-stocked. Nothing is more frustrating to a customer than an empty vending machine. Be sure to check your machines regularly and restock them as needed to keep customers coming back.
4. Offer competitive prices. If your prices are too high, people will go to the store instead. But if they’re too low, you won’t make enough profit to make the business worthwhile. Find a happy medium that keeps customers returning without wasting your profits too much.
5. Promote your business. Build a brand for your vending machines by creating catchy names and logos. Spread the word about your business through advertising and word-of-mouth. The more people know about your machines, the more likely they will use them.
The Pros and Cons of Owning a Vending Machine Business
When you think of owning your own business, you might dream of a brick-and-mortar storefront where you can interact with your customers daily. But what if owning a physical location isn’t feasible for you?
That’s where a vending machine business comes in. Vending machine businesses have low overhead costs and can provide a steady income with minimal effort on your part.
But you should know some drawbacks to this type of business before diving in headfirst. Let’s take a closer look at the pros and cons of owning a vending machine business.
The Pros of Owning a Vending Machine Business
1. Low startup costs
One of the main attractions of owning a vending machine business is that the startup costs are very low. You don’t need to lease or purchase commercial space, and you don’t need to hire any employees.
You can even run your business from home if you’d like. All you need to do is purchase the vending machines themselves and stock them with the products of your choice. The type of vending machines you buy could make a difference in your initial investment.
2. Little ongoing maintenance
Once you’ve got your vending machines up and running, there’s very little maintenance that needs to be done on an ongoing basis. You’ll need to periodically check on your machines to make sure they’re stocked and in good working order, but other than that; there’s not much else to do. This hands-off approach makes owning a vending machine business an attractive option for busy people who don’t want to be tied down to one location.
3. Passive income potential
A vending machine business can provide a passive income stream, so you won’t have to work constantly to make money. As long as your machines are placed in high-traffic areas, you should be able to generate sales even while sleeping or doing other things.
4. Flexible Hours
Since a vending machine business is mostly passive, you can choose to work as little or as much as you want. This flexibility is perfect for people who want to earn some extra money on the side without making a huge time commitment. You can also use this flexibility to your advantage by placing machines in multiple locations and working during the times when each location
The Cons of Owning a Vending Machine Business
1. High initial investment
Although the ongoing costs of owning a vending machine business are quite low, the initial investment can be significant depending on how many machines you purchase. If you don’t have thousands of dollars, you may need to take out a loan to get started, which can put additional strain on your finances.
When I bought my machines, someone was selling their business, and I got a great deal.
2. Location is key
For your vending machines to generate consistent sales, they need to be placed in high-traffic areas where people will see them and want to use them. This cannot be easy to find if you’re not familiar with the area where you plan on placing your machines. You may waste time and money placing machines in locations that don’t get enough foot traffic to sustain them long-term.
I found a call center that was open 24/7, and they had employees that were always looking for a quick snack or drink. That was a great location for my vending machines.
3. Competition is tough
In recent years, the vending machine industry has become increasingly competitive. This is due to the rise of technology, which has allowed new companies to enter the market with
4. Vandalism is always a risk
Unfortunately, vandalism is always a risk when you own any property, whether a home, a business or even just a piece of machinery like a vending machine. If one of your machines does get vandalized, it could put you out of business until you have the money to repair or replace it. And in some cases, the damage caused by vandals may be irreversible, so repairing or replacing the machine may not even be an option.
5. Limited control over product selection
As the owner of a vending machine business, you won’t have complete control over what products are available for sale through your machines. This is because you’ll likely be working with third-party vendors who supply the products for your machines ( unless you choose to stock them yourself).
If one of those vendors goes out of business or stops carrying the product that’s been selling well in your machine, there’s not much you can do about it except find another vendor who carries something similar.
While times have certainly changed, I completely controlled what was in my vending machines. I watched for good sales on the items I wanted to stock and bought them in bulk to get a discount.
6. You may need a license
Depending on the products you plan on selling through your vending machines and the regulations in your area, you may need to obtain a license before starting your business. I had a business license, but I also had a food handler’s license because I was selling food items.
You’ll need to research to find out if you need a license and, if so, how to obtain one.
Getting a Business License for your Vending Machine Company
Before starting your vending machine business, you will most likely need a business license. Depending on the type of vending machine business you want to run, the process for getting a license can vary. In this section, we’ll outline the steps you need to take to get a business license for your vending machine business.
There are two types of vending machine businesses: those that sell pre-packaged goods and those that dispense perishable items. If you want to run a vending machine business that sells pre-packaged goods, you’ll need to obtain a retail license from your state’s department of revenue.
You’ll need a food service license from your county’s health department to run a vending machine business that dispenses perishable items. Since I owned a catering company simultaneously, I already have both licenses.
The process for obtaining a retail license is as follows:
1. Contact your state’s department of revenue and inquire about the requirements for obtaining a retail license.
2. Fill out the application for a retail license and submit it to the department of revenue, along with any required supporting documentation.
3. Pay the applicable fees.
4. Once your application has been processed, you will be issued a retail license.
5. Hang your retail license in a conspicuous place in your place of business.
6. Renew your retail license every year.
The process for obtaining a food service license is as follows:
1. Contact your county’s health department and inquire about the requirements for obtaining a food service license.
2. Fill out the application for a food service license and submit it to the health department, along with any required supporting documentation.
3. Pay the applicable fees.
4. Once your application has been processed, you will be issued
5. Hang your food service license in a conspicuous place in your place of business.
6. Renew your food service license every year.
Types of Vending Machines
While iKrave Vending can help you start a vending machine business, you’ll still need the machines. Vending machines are a great way to generate passive income for your business. But where do you buy them? Here are ten places to buy vending machines for your business:
1. Amazon.com (on occasion, and sometimes resale)
2. Sam’s Club
3. Costco Wholesale
5. Global Vending Group
Vending machines are a common sight in our everyday lives, but we seldom stop to think about the different types that exist. There are several different types of vending machines, each of which serves a unique purpose. Here is a list of the most common types of vending machines:
Snack Machines: Snack machines are the most common type of vending machine. They can be found almost anywhere, including office buildings, shopping malls, and gas stations. Snack machines sell various items, including chips, candy, and snacks.
Drink Machines: Drink machines are also very common. They sell a variety of beverages, including soda, water, and coffee. Drink machines are often located in office buildings and public places.
Food Machines: Food machines are less common than snack or drink machines but can be found in some locations. Food machines typically sell prepared food, such as sandwiches and pizza.
Vending machines are a ubiquitous part of our lives, but we seldom stop to think about the different types that exist. There are several different types of vending machines, each of which serves a unique purpose. By understanding the different types of vending machines, you can choose the right one for your needs.
Finding the right vending machine for your business is essential to generating passive income and keeping your customers happy. With so many options on the market, it can be tough to know where to start. Luckily, plenty of reputable vendors can help you find the perfect machine for your business needs and budget. So, search for the perfect vending machine for your business today!