Because they are so prevalent, vending machines are not at all a unique business concept. However, the vending industry has a lot to thrill those of you who are considering starting your own business. Consider that the vending machine sector generates more than $23 billion in yearly income and that there are millions of devices in the United States alone. That’s enough reason to discover how to start your own vending machine business.
Benefits of Operating a Vending Machine
- The ability to easily change your product selection – For example, let’s say you have a snack vending machine and a certain flavored Doritos isn’t selling well. You may quickly decide to replace that product with a different flavor or a completely different snack.
- Simple – Once you have secured contracts with business locations and you have your machines set up, running a vending business shouldn’t be too complicated. You must maintain your machines to keep them in good working order, replenish machines as needed, and collect money from your machines.
- Low Start-up Costs– Compared to most other business models, starting a vending machine firm takes less starting money. You simply need a place to put it and enough cash to purchase a vending machine and stock it with goods. A vending machine location can be rented on a monthly basis or by paying the property owner a commission on sales.
- Generate Passive Income– While maintaining your machines and conducting business transactions with suppliers takes time and effort, owning your own vending machine can bring passive income as you streamline your process.
Types of Vending achines
Food and drink vending machines
- Soft drink vending machine: The first thing people think of when they hear the word vending machine is soft drinks. Some machines offer alternatives to soft drinks, such as bottled water.
- Coffee vending machines: Coffee and tea are as popular as ever, so they are becoming more common in self-service workplaces like offices and conference rooms.
- Snack vending machines: Snacks are great for takeout at locations. Chocolates, chips, and candy bars are common munchies.
Combo Vending Machines
These are a popular all-in-one solution for any job on a tight budget, as they allow for a wide range of items in one machine. They’re great if you want to offer a variety of snacks or drinks but don’t want to spend too much money buying them separately. These vending machines are great for high-traffic areas.
Claw machines can work well in high-traffic public areas, like malls and movie theaters. Since the machine works like a game, there is no guarantee that the buyer will receive an item from the machine, thus generating more revenue for each item. Plus, toys don’t expire like food and drinks, so you don’t need to replenish your inventory as often as with other machines.
Steps to start a Vending Machine Business
– Step 1: Find the Right Market
Your vending machine should be in an optimal place for the types of customers you want to serve. With some market research, you can get an idea of how much time you’ll have to spend on your company, how much you’ll likely need to invest, and how long you’ll have to work before you get paid.
– Step 2: Vending machine costs
Most of the cost of starting a vending machine business comes from the vending machine and the items in stock. With an investment of as little as $2,000, you can generally set up and operate a basic vending machine business. Many vending machine operators recommend buying used or refurbished machines for between $1,200 and $3,000. Depending on size and features, a new vending machine might cost anywhere from $3,000 to $10,000.
– Step 3: Buy a vending machine
In general, there are four different types of vending machines. No matter which vending machine you choose, start with one or two that are market-focused.
– Step 4: Find the Right Location
The type of vending machine you choose is very important, but where you decide to place it is the most important factor in making a profit from your vending machine business. When starting a vending machine business, think about places where you’ve personally purchased something from a vending machine, as well as times when people are more likely to buy drinks, food, and beverages snacks or most other items.
How to be Successful in the Vending Business?
Repairs and Maintenance
Vending machines are frequently vandalized and stolen because they are placed in public areas. Vending machines still need regular spot checks to make sure, even if you purchase brand-new ones as opposed to used ones. You will lose money if your vending machine is down for any length of time. Additionally, performing routine equipment inspections on your timetable helps increase total earnings.
Invest in customer service
Offers a wide selection of products
Marketing and advertising
The vending machine business brings in billions of dollars globally each year. You can penetrate this lucrative market for less than $1,000, do the right market research, and make informed decisions. With the right strategy, vending machine businesses can generate a steady stream of revenue and expand into new locations and markets. However, like any business, success in the vending machine industry requires careful planning, attention to detail, and a commitment to customer service.