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Dec. 02, 2024

How to Start a Vending Machine Business - 14 Steps to Get ...

The vending machine industry is one that has evolved and steadily grown over the last decade. As consumers&#; lives get busier and people seek convenience and time-saving options while on the go, vending machine operators have many opportunities.

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According to Research and Markets, the global vending machine market size was estimated at $21.3 billion in and it is expected to reach $31 billion by . That is a growth rate of 5.5%. The U.S. vending machine market is estimated at $5.8 billion with a growth rate of 8.9%.  Those numbers are impressive and they are fueling Americans&#; desire to start a vending machine business.

Have you been thinking about how to start a vending machine business? In this article, we&#;ll review some of the key areas needed to help get you started.

Advantages of Operating a Vending Machine

Is starting a vending machine company right for you? Some of the characteristics that attract entrepreneurs to this type of business include:

  • Low startup costs &#; Usually, vending machines can be financed. Aside from a computer, printer, and to manage your business and a vehicle for servicing your route, you likely won&#;t need other equipment.
  • Flexibility to set your own schedule &#; Generally, you&#;ll have the freedom to restock vending machines and collect money whenever it suits you.
  • Ability to easily change your product selection &#; For example, let&#;s say you have a snack machine and a certain flavor of Doritos isn&#;t selling well. You can quickly decide to replace that product with a different flavor or an entirely different snack.
  • Controlled growth &#; You can set the pace for how quickly you want your business to grow. Some business owners maintain their day job as they gradually ramp up their vending machine business. You can choose to, as time and finances allow, add machines to your route when you&#;re ready to expand.
  • Simplicity &#; After you have secured contracts with business locations and you have placed your machines, running a vending business is not overly complicated. You must maintain your machines to keep them in good working condition, restock machines as needed, and collect money from your machines. You&#;ll also have administrative duties, of course, such as recording your financial transactions, reporting and paying taxes, and handling any customer-related issues.

Three Startup Options

Regardless of which method you choose, you will want to discuss legal matters with an attorney and financial and tax matters with an accountant or tax advisor. Costs can vary widely when starting a vending machine business. The method of getting into the industry, the types (and number of) vending machines that you use, and the products that you choose to sell will impact how much you spend upfront and on an ongoing basis.

1. Buy an existing vending machine business

Buying an existing vending machine business or route can be a fast track into the industry. It gives aspiring vending entrepreneurs instant customer accounts and a secured revenue stream. It&#;s critical to thoroughly research opportunities like these before diving in. Find out why the current owner wishes to sell and examine all aspects of the business to discover any deal-breaking issues. For example, inspect the machines to make sure they function correctly, review existing contracts with clients and vendors, and scrutinize the financial reports.

2. Buy a vending machine franchise

Franchise opportunities provide an established business model for starting a successful vending machine business. Buying a vending machine franchise allows entrepreneurs to start a business with much of the administrative and operational infrastructure in place.

Top vending machine franchise opportunities include:

  • Clothing Bin
  • Fresh Healthy Vending
  • Healthy Cravings
  • IceBorn
  • Naturals2Go
  • Pharmabox
  • Power Drop Shop
  • Reis & Irvy&#;s
  • Xpresso Delight

Keep in mind that franchise costs and levels of support vary from one to the next. Generally, there&#;s an up-front franchise fee to buy into the opportunity, and then the franchisor takes a percentage of the franchisee&#;s profits or charges the franchisee a monthly fee. Read the franchise agreement carefully to determine if there are any unreasonable restrictions (such as on where you get your machines and products). Also, make sure you understand your responsibilities for operating your franchise unit according to the franchisor&#;s rules (for example, does the franchisor require you to form a legal business entity, such as an LLC or corporation).

3. Start your own vending machine business

Naturally, this option involves the most work. However, it also provides the most freedom to start a vending machine business that matches your vision. Starting from scratch means sourcing machines and locations to place them yourself. Because option 3 involves the most work and considerations, let&#;s take a look at the general steps to make it happen successfully.

Fourteen Steps to Start Your New Business

1. Decide what you want to sell

You&#;ll want to confirm there&#;s a viable opportunity to succeed before jumping into running a vending machine business. Do plenty of market and industry research to assess the potential and decide what you want to sell in your vending machines.

Some products can do well almost everywhere, whereas others may be appealing to people with particular interests or preferences. For example, coffee, water, soda, and snacks may sell well nearly anywhere. Salads, sandwiches, and microwaveable meals might be most attractive to people in offices or colleges. Keep in mind that food and drink items have expiration dates. And if you&#;re selling perishable items, you&#;ll need to be especially conscious of matching your order volume with what you can sell.

You might also consider non-food items, like over-the-counter pain medications, which could attract customers in restrooms at office buildings, malls, shopping centers, and transportation hubs.

Below is a list of other non-food items that are sold in vending machines. As you can see, the possibilities are extensive!

  • Laundry supplies (detergent, fabric softener, dryer sheets)
  • Electronic accessories ( chargers, earbuds, headphones)
  • Skincare products
  • Hair products (shampoo, conditioner, styling products)
  • Toiletries and hygiene products (toothbrushes, toothpaste, soap, feminine hygiene products)
  • T-shirts
  • CBD products (oils and lotions)
  • Fitness merchandise (supplements, towels, gloves, hair ties, earbuds)
  • Dog treats
  • Beach supplies (sunscreen, goggles, toys)
  • Nail polish
  • Pens and pencils

When looking for a reliable source of products, consider their price per-unit for the items you want to stock in your machines. Depending on the inventory you plan to maintain, you may be able to negotiate some sizable bulk discounts.

As you analyze your options, realize that it&#;s not always higher-priced vending items that yield the best returns. They usually have more overhead costs associated with them (per-unit cost, dispensed from machines with advanced features, etc.). You may be remiss in not considering lower priced items dispensed from simple vending machines.

For example, a $75 refurbished bulk vending machine selling stickers for 50 cents at a busy grocery store may deliver a better profit than a higher-end item from a computerized machine. The sticker machine surely won&#;t make anyone rich overnight, but it may prove to be a viable way to earn a reliable stream of passive income.

2. Determine the vending machine features you want

After you&#;ve decided what you want to sell, decide what features you&#;ll need and want in your vending machines. Some of the special features and capabilities available include:

  • Functionality to accept credit and debit card payments
  • Interactive touch or voice-activated screens
  • LED lighting
  • Graphic and branded wraps that go around the machine to make it more visually interesting and attractive
  • Combination food and drink dispensing
  • Software for remotely monitoring stock levels in the machine

3. Determine from where you&#;ll buy or lease your vending machines

Some sources of vending machines include:

  • Manufacturers
  • Wholesalers
  • Specialty retailers and online sellers
  • Craigslist
  • Amazon
  • eBay

To reduce your capital investment costs, you might consider buying used vending machines or leasing machines.

4. Determine locations for your machines

Just like any retail business endeavor, the location of a vending machine will affect its sales success. Areas with a lot of foot traffic provide the best opportunities. And, of course, locations should be a good match for the type of products your machines sell.

Places where vending machines often do well include:

  • Airports
  • Apartment complexes
  • Bus stations
  • Car dealerships
  • Grocery stores
  • Gyms
  • Hospitals
  • Hotels and motels
  • Laundromats
  • Malls
  • Manufacturing facilities
  • Nursing homes
  • Office buildings
  • Schools
  • Shopping centers
  • Train stations
  • Universities

Realize that there may be ADA compliance standards to adhere to when placing vending machines in certain locations. Also, consider how safe your machines and products will be. Locations prone to theft or vandalism will cost you time and money if you have to repair or replace machines.

5. Choose a business name

Carefully consider what you want to name your business. Your business name will be one of the brand assets to set your company apart from its competition.

After deciding on the business name you would like to use, make sure it&#;s not already taken by another vending machine company (or similar type of business) in your state by conducting a corporate name search.

6. Decide on your business entity type

The business structure you select for your company will have legal and tax implications. Your decision will also affect the time and costs involved in keeping your company in compliance and good standing with the state.

Popular small business structures include:

I think it&#;s important to note that with sole proprietorships and partnerships, a business and its owner(s) are considered the same tax-paying and legal entity. Therefore, if the company gets sued or runs into financial issues, the business owner is held personally responsible. That means the entrepreneur&#;s personal assets may be at risk of being taken to satisfy the legal claims and debts of the business.

With the other structures, however, the business owner and the business are considered separate entities, thus providing a degree of personal liability protection.

It&#;s wise for entrepreneurs to consult an attorney and accountant or tax advisor for guidance on which business entity type will be most advantageous for their situation.

7. Designate a registered agent

Companies that will operate as an LLC, S Corporation, or C Corporation must appoint a registered agent in the state where they&#;re formed. A registered agent is an authorized party that will accept &#;service of process&#; (legal and government notices) on behalf of the business.

To be a registered agent, an individual or company must have a physical street address in the state where the vending machine business is registered. For your convenience, CorpNet provides registered agent services in all 50 states.

8. Register your new vending machine business with the state

Registration paperwork must be filed with the state to form an LLC or incorporate a vending machine business. An LLC must file Articles of Organization, and a corporation must file Articles of Incorporation.  There might be other filings, too (such as the S Corporation election).

States don&#;t usually require sole proprietorships and partnerships to submit formation paperwork. However, if a vending machine business will use a business name other than one that includes the owner&#;s legal first and last names, it will need to file a DBA (Doing Business As). You may have also heard of DBA referred to as a &#;fictitious name.&#; The purpose of a DBA is to inform the public of who is operating a business.

The costs to register a business vary by state. States&#; government websites provide details, and most states make their forms available online. It&#;s critical to prepare business formation paperwork correctly to avoid processing delays. Consider asking CorpNet to assist you in preparing and submitting business registration, S Corp, and DBA paperwork. Our filing experts have expertise in handling business formation forms in all 50 states.

9. Obtain an EIN

Any business that will have employees or that is registered as an LLC or corporation in the U.S. or U.S. Territories must obtain an Employer Identification Number (EIN). You may hear an EIN referred to as a Federal Tax ID Number. The IRS issues EINs for free to individuals that are the responsible party for a business and that have a valid Taxpayer Identification Number (SSN, ITIN, EIN). To ensure your application form is accurate and processed quickly, ask CorpNet to handle the EIN paperwork for you.

10. Open a business bank account

Having a dedicated bank account for business activities not only makes accounting and tax time easier, but it is also essential for maintaining the &#;corporate veil&#; between business owners and their companies. As I mentioned earlier, LLCs and corporations are considered separate legal entities from their owners. But when business and personal finances are commingled, a court of law might determine that the corporate veil has been pierced. When that happens, entrepreneurs may lose their liability protection and put their personal assets at risk. There are other strong reasons, as well, for having a dedicated business bank account.

11. Obtain any necessary business licenses and permits

It&#;s important to research any federal, state, and local laws and regulations that your vending machine business must comply with. I encourage entrepreneurs to talk with their attorney. Also, CorpNet&#;s business license services can identify all applicable requirements and even prepare and submit the required forms to obtain vending machine licenses and permits.

12. Sign contracts with business or property owners and managers at vending sites

Businesses and property owners will likely expect you to compensate them for allowing you to install your vending machines on their premises and for the electricity your machine uses. Typically, compensation is paid in the form of a commission that&#;s a percentage of a machine&#;s gross sales. It&#;s critical to spell out commission rates, terms, and conditions in an agreement.

What is a reasonable commission percentage? Some vending industry experts say seven percent is the norm, while others say as much as 25 percent is appropriate. Ultimately, a commission rate should satisfy the party providing your location while providing you with an acceptable profit margin. So, run the math before sealing your deals!

Some of the points that most vending machine agreements cover include:

  • The parties entering into the agreement
  • The length of the agreement
  • The type of machine(s) and products sold
  • Location(s) of the machine(s)
  • Compensation
  • Responsibilities of parties related to machine damage, maintenance, and service
  • Notification about machine failure
  • Exclusivity provision (if applicable)
  • Rights to add, remove, or replace machines
  • A termination clause (for voiding the contract if there&#;s a breach of contract or the location proves to be unprofitable)

This is just a sampling of what a vending machine contract might include. As with any legal document, it is helpful to have an attorney either create the contract or, at the very least, review it to ensure it is fair and serves your needs.

13. Purchase business insurance

There are also risks associated with starting a vending machine business. From consumer equipment injuries and spoiled food to vandalism, you&#;ll want to make sure your equipment and business are protected. As a vending machine operator, you have a number of insurance policies to choose from and these include general liability insurance, commercial auto insurance, and workers&#; compensation insurance.

14. Keep track of your business compliance responsibilities

Just like any kind of business, a vending machine company must remain up to date on all of its tax filings, reports, licenses, and other compliance requirements to stay in good standing with the state, local municipalities, and the IRS. Failing to take care of compliance obligations can result in fines, penalties, loss of liability protection&#;and even administrative dissolution of the business. Attorneys and tax professionals can advise on what the responsibilities are and the due dates. An easy way for you to stay on top of your upcoming filings is by using our free Compliance Portal. Not only do we give you a simple way to track your deadlines, but we can also prepare and submit the filings and reports for you.

CorpNet&#;s Can Help

After you&#;ve discussed all the legal, financial, and tax considerations with licensed professionals, CorpNet is here to assist you with completing your business registration forms and applications. Our team of document filing experts has experience helping entrepreneurs in all 50 states to start their companies and keep them compliant. Contact us today to start fulfilling your entrepreneurial dreams!

How to Start a Vending Machine Business: Cost, Tips, Pros ...

Vending machines are not a novel business idea &#; they&#;re basically everywhere. However, if you&#;re looking to start your own business, there is a lot to like about the vending industry. Consider that there are millions of machines in the U.S. alone &#; and the vending machine industry in the U.S. generated over $8.6 billion in annual revenue in View all sources

IBISWorld . Vending Machine Operators in the US - Market Size (&#;) . Accessed Feb 21, .

The vending machine industry is an attractive option for both new and experienced entrepreneurs because of its versatility. It can be a great weekend side hustle, a low startup-cost business or an interesting new way to expand your portfolio.

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Vending machine costs

The majority of the cost to start a vending machine business comes from the vending machines and the stock items, and can be financed through a small-business loan or personal savings. With as little as a $2,000 investment, you can generally get a basic vending machine business up and running.

Many vending machine operators recommend buying used or refurbished machines, which you can find between $1,200 and $3,000. A new vending machine will cost anywhere from $3,000 to $10,000, depending on its size and features.

Besides the machine itself, you'll also want to consider the cost of inventory to stock your machines. Depending on how many machines you plan to own and what kind of inventory you'll stock, this could span a few hundred to thousands of dollars.

How much do you need?

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We&#;ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

How to start a vending machine business: A step-by-step guide

Though helpful, previous experience and connections in the industry aren&#;t necessary to get a vending machine business off the ground &#; and make money doing it. Here's how to start a vending machine business in six steps.

1. Consider your vending machine options

There are a wide range of vending machines available today. In general, there are four different categories of vending machines (which we'll outline below). Consider all four types when choosing the machine whose products are best suited to the target market you&#;ve defined in your business plan.

Whichever type of vending machine you choose, start out with one or two machines with a specific market focus. That way, you can gradually learn about popular stock- and site-specific patterns, and add new machines accordingly.

Food and beverage vending

According to a report from Vending Market Watch released in , food and beverage vending machines with snacks, soda and candy make up the majority of the vending market share in the U.S., with beverages alone accounting for 23% of vending sales.

You can get a machine that just offers drinks, snacks or snack-and-drink combinations. Some vending machine entrepreneurs choose to purchase different types of machines for one location or place one kind of machine in multiple locations. If you&#;re a new vending operator, consider starting with a specialty &#; healthy snacks, beverages or fresh food &#; until you learn more about the industry.

To make the most sales, cater your offerings to a specific, location-driven market. For instance, you might stock healthy alternatives such as protein bars and shakes at a gym location or juice and granola bars in a school vending machine.

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Bulk vending

Starting a vending machine business with machines that stock gum balls, stickers or rubber balls &#; also known as bulk vending &#; requires very little capital and low maintenance costs.

These typically low-maintenance vending machines might not be glamorous, but the quarters do add up. A refurbished vending machine could cost you less than $50 and bring in $30 per month with only a few sales a day. The products you&#;re offering have incredibly low overhead. In the right market &#; like a school or amusement park &#; this modest investment offers the potential for a reliable, passive income source.

Most bulk vending machines are mechanical devices and don&#;t require electricity or battery power to operate, which means the cost of operation is low to nonexistent. That said, many candy and toy vending machines are older, so a used device might require minor repairs before it&#;s functional.

Specialty vending

You're not just limited to food and drinks when starting a vending machine business. Large public places like arenas, airports and malls often have machines offering goods like tech accessories, beauty products or other specialty items. Some of these vending machines use the same technology as standard vending equipment, and some with advanced features like touch screens and contactless payment are differentiated as Automated Retail Machines.

Some specialty vending items include:

  • Hot beverages: Coffee or hot beverage vending can be successful in offices, universities and conference centers. Manufacturers often produce both specialty beverage equipment and traditional machines, so you may be able to combine your purchases.

  • Retail merchandise: Essential travel items like chargers, headphones and neck pillows can be lucrative vending products if you&#;re able to negotiate a contract with a local transit station or airport. Upscale vending machines in malls and airports often contain luxury skin care products or electronics.

  • Laundry products: Individually packaged detergent, fabric softener and dryer sheets make great vending products if you identify the right market for it &#; like laundromats, apartment complexes or dormitories.

  • Tobacco: Tobacco vending is legal in many states and can be lucrative, depending on the state taxes. Even cannabis vending machines are becoming available, but with a much more limited market.

Franchising options

If you don&#;t want to build your business from scratch, you may want to consider buying a franchise to start your vending machine business. As a franchisee, you will be able to work within a proven business framework and receive extra support and training to get your vending business set up. You&#;ll also be able to decide how many or how few machines you want to invest in. However, keep in mind that as a franchisee, you will be responsible for paying a portion of your profits to the franchisor.

2. Find the right location for your vending machine

The location of your vending machine is a crucial factor in earning a profit. For instance, an upscale food and beverage vending machine might fail in a strip mall full of restaurants, but that same machine might flourish in an office park.

When starting a vending machine business, think about the locations where you have personally purchased something from a vending machine, as well as the times when people are most likely to purchase beverages, snacks or other items.

Some location ideas for your vending machine include:

  • Schools, colleges and university campuses.

  • Hospitals, medical centers and care facilities.

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  • Grocery and retail stores.

  • Airports, train and bus stations.

  • Shopping malls.

  • Laundromats.

  • Gyms and other exercise facilities.

  • Business offices and complexes.

  • Apartment buildings.

  • Manufacturing plants, distribution centers and industrial parks.

  • Car dealerships.

Secure your location

If you already have locations in mind, reach out to proprietors or work on getting contact information for the relevant manager. Talking to prospective proprietors about location needs can help you get a better understanding of local demand and inform your vending machine and product selection.

Researching online or contacting your local Chamber of Commerce for information about major businesses in your area can help you identify potential locations. Ideally, try to place your vending machine at companies with at least 100 employees or considerable foot traffic, like a multi-business office park.

Understand state-specific vending laws, regulations and compliance

Different rules apply to various types of vending machines, and vending regulations vary by state. Before starting a vending machine business and reaching out to prospective location proprietors, find out how your state governs vendors by looking up your state and local small business regulations online.

Also, any vending machine you put in a public place may be subject to certain ADA compliance standards, and it&#;s a good idea to keep accessibility in mind when considering vending machine options.

Know commission requirements and prepare a proprietor contract

You&#;ll need to pay commission to the proprietor who provides the location and the electricity required to operate your machine. Generally, you can expect to pay the property owner 5% to 25% of the revenue from your vending machine.

Draw up a contract with the proprietor stating your agreed compensation rate, contract length and terms. Include provisions for breach of contract, too. It&#;s also smart to include expectations and obligations regarding servicing and restocking your vending machines, vandalism or theft, and the possibility of unprofitability. As always, have a lawyer look over the contract before signing.

3. Find your vending machine

Finding your vending machine can be as simple as an online search. To get an idea of the different vending machines offered and price points, search both local and national suppliers. You&#;ll also want to consider the cost of inventory when looking at vending machine prices.

You can start your search with these three types of sellers:

  1. Manufacturers or wholesale vending suppliers have the widest selection of vending machines for sale, new technology and end-to-end services for delivery, repairs and training. This is likely the most expensive option.

  2. Secondary market sellers or specialty online retailers allow you to browse multiple brands and models of vending machines and often have helpful resources for business owners.

  3. Consumer-to-consumer platforms like Craigslist and eBay have vending machines for sale. Save time by filtering by merchant or owner location, so you don&#;t have to worry about major shipping costs. This may be the best option for first-time vending entrepreneurs who don&#;t want to spend thousands on a new or refurbished machine.

Vending machines come with a range of features and capabilities, all at different price points.

Some of those special features include:

  • Snack/drink combination machines.

  • Credit card and large bill functionality.

  • Touch or voice accessibility.

  • Remote monitoring software and low-stock alerts.

  • Branded &#;wraps&#; for the front of your machine.

  • Interactive screens.

These special features can be tempting, but they will often add to the overall cost of the machine. Choose the vending machine that best fits the products you want to offer and what you can afford.

4. Explore your financing options

Starting a vending machine business doesn&#;t typically require as much startup capital as some other small businesses, which can cost hundreds of thousands of dollars to start.

However, depending on the type and number of machines you want and the stock you plan to carry, you may want to explore financing. Here are some options to consider:

Short-term loan

If you&#;re already a business owner and have the business financial history to prove it, securing a short-term loan to finance your vending machine might be your best course.

Short-term lenders deposit a lump sum of cash directly to your business bank account, and you&#;ll repay your loan, plus interest, over a predetermined amount of time. Repayment terms for short-term loans are usually 12 months or less, although you may find terms up to 24 months. Interest rates are a bit higher than longer-term loans.

Short-term loans can be easier to qualify for than other forms of financing because lenders are often more flexible when it comes to credit score and time in business.

Equipment financing

An equipment financing loan is another option to consider. The terms of these loans depend on the value of your equipment, which also acts as collateral in case you default on your loan payments.

In addition to your financial information and business plan, you will need equipment quotes for the machine(s) you plan to purchase when you apply for an equipment loan. And, if you need capital to purchase inventory, you may want to consider inventory financing.

5. Stock your vending machine with inventory

Once you&#;ve settled on a vending machine, you have to stock it with inventory.

Rather than choosing to stock items based on wider food and beverage trends, pay attention to local, site-specific needs. To stay on the safe side, don&#;t over-order stock in the beginning, and adjust your offerings based on demand.

If you choose to provide combined food and beverage services in your vending machine business, drinks will make up most of your sales. As the growing refreshments market expands to flavored water and healthier beverages like coconut water, consider what your location can support in terms of pricier specialty foods and drinks.

Drink size and shapes will affect your range of machine choices, so if you feel strongly about selling cartons or irregularly shaped products, try to find a machine with adjustable product sizing.

6. Make the right investments

After you&#;ve purchased your machine and placed it at a selected location, you&#;ll want to focus on making the business profitable.

Invest in a vending management system (VMS)

Depending on the technology in your machine, your vending equipment may come pre-programmed with management software, which you can use to streamline operations, record inventory and track revenue.

If you have machines that require you to manually manage your inventory, it might be possible if you own just a couple of vending machines. Once you have five to 10 vending machines, though, it&#;s probably a good idea to invest in a vending management system to help you stay on top of your inventory remotely. VMS software allows you to remotely manage your vending machines from an internet-enabled device. Most VMS systems provide real-time inventory updates and reporting tools.

Invest in customer service

Even if you only have one or two vending machines, it&#;s worthwhile to emphasize customer service from the beginning of this (or any) venture.

Most importantly, ensure that your vending machines are stocked and functioning on a weekly or biweekly basis. You can also consider providing an 800-number for service requests and comments, which is a great way to get useful feedback.

Like many location-based businesses, vending operators are often dependent on word-of-mouth referrals and in-person connections. Foster relationships with business owners, look up your state&#;s vending association or join local networking groups for entrepreneurs.

Invest your time

Starting a vending machine business requires more than just capital investment &#; you&#;ll have to invest some time and attention to your vending machine business, too.

A full-size vending machine might require you to collect money weekly, which is important to keep in mind when determining how much time you can realistically spend traveling to locations. In addition to the time it takes to purchase inventory, visit locations and restock, operating a vending machine business requires you to spend time researching trends in sales, new products or locations, and talking to peers.

If you can&#;t get away from your full-time commitments often, bulk vending &#; with non-perishable candy or stickers &#; might be a good way for you to break into the vending machine business without sacrificing too much of your time.

Pros and cons of starting a vending machine business

Like any new venture, starting a vending machine business has advantages and disadvantages to consider.

Pros

  • Easy to scale: Scaling your vending machine business is relatively easy. You can start off with a few vending machines, and as you become more successful, expand locations.

  • Variety of choices: There are all types of vending machines. Vending machines now serve healthy foods, gourmet options and items completely unrelated to food.

  • Little to no overhead costs: There are little to no overhead costs of running a vending machine business, especially if you don&#;t have employees or require office space.

Cons

  • Time commitment: Operating a vending machine business will require you to commit some time and energy into stocking, servicing and collecting money from your machines on a regular basis.

  • Theft and vandalism: Vending machines can be an easy target when it comes to theft and vandalism. Ensure that your machines are in secure and safe areas to avoid a loss in profits.

Frequently asked questions

Are vending machines profitable?

Yes, vending machines can be profitable. The average vending machine generates $75 a week or around $300 a month. However, vending machines that are well-stocked and placed in safe, high-traffic locations can generate more than double that.

Do vending machine owners pay rent?

Yes, vending machine owners pay rent or commission to the owner of the property. Vending machine owners generally pay between 5% to 25% of their vending machine sales.

Are vending machines taxed?

Yes, vending machines are charged sales tax on the revenue they generate. The amount of sales tax varies depending on your state.

Where can you place vending machines?

You can place vending machines in most commercial spaces such as offices, retail shops, bowling alleys and more. But you'll need to sign a contract with the property owner first.

Are vending machines profitable?

Yes, vending machines can be profitable. The average vending machine generates $75 a week or around $300 a month. However, vending machines that are well-stocked and placed in safe, high-traffic locations can generate more than double that.

Do vending machine owners pay rent?

Yes, vending machine owners pay rent or commission to the owner of the property. Vending machine owners generally pay between 5% to 25% of their vending machine sales.

Are vending machines taxed?

Yes, vending machines are charged sales tax on the revenue they generate. The amount of sales tax varies depending on your state.

Where can you place vending machines?

You can place vending machines in most commercial spaces such as offices, retail shops, bowling alleys and more. But you'll need to sign a contract with the property owner first.

A version of this article originally appeared on JustBusiness, a subsidiary of NerdWallet.

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