Vending Machine is a business with high growth possibilities in the future. It is very simple to set up a profitable vending machine business. The First vending machine was invented in 1888 and since then it has grown into an $18 billion industry. You can start a small-scale vending business with low investment. In this article, we are going to explain How to Start a Vending Machine Business in 2023 in 9 simple steps.
How Much Does a Vending Machine Business Make?
A Vending Machine Business started with the correct strategy keeping all factors in mind can make over $1,00,000. A single vending machine placed at a profitable location can earn you $2000 per month on average. You need to have a weekly or monthly check of your vending machines. Apart from earnings you also have around $250 monthly expenses on products and maintenance of your vending machines.
Steps to Start a Vending Machine Business
- How Much Does a Vending Machine Business Make?
- 1. Find a Perfect Location First
- 2. Choose your Products Smartly
- 3. Get the Necessary Licenses for Vending
- 4. Acquire the Right Vending Machine
- 5. Moving the Vending Machine to Another Place
- 6. Choose Your Wholesale Suppliers Smartly
- 7. Find Profitable Locations
- 8. Maintenance and Repair costs
- 9. FAQs about Vending Machine Business
- Final Thoughts
1. Find a Perfect Location First
The initial challenge is securing a prime location for your vending machine. Focus on places with consistent foot traffic. The best locations for vending machines are Private Schools, Parking Areas, Metro Stations, Bus Stands, Stationery, Airports, Cinema Halls, Office Spaces, and many more. You can find vending machine locations on Facebook and Instagram that are already on sale or available for rent.
You can put your vending in areas with high foot traffic. These areas are Private Schools, Cinema Halls, Bus Stops, and Office spaces. Choose locations with long working hours, seclusion from the market, and low competition.
2. Choose your Products Smartly
Best Product selection is necessary for a successful vending machine business. Vending Machines offers a variety of products like Pizza, Snacks, Coffee, Soda, Drinks, and Books, You will need to choose the right combination of products as per the place’s requirements. For example, you have to place snacks and cold drinks vending machines together. You will place coffee vending machines near office areas.
3. Get the Necessary Licenses for Vending
TO start a vending machine business, there are some general licenses and permits that you need to obtain from respective authorities. You will need a business license, Sales and Tax Permit, and Food business establishment permit. Apart from these regular licenses, you will also need some additional licenses and permits which are a Beverage Licence, a Vending Machine Permit, and a location permit. A business that sells a product for less than 15 cents per product doesn’t require any permit.
| License | Fees |
|---|---|
| Business License | $200 |
| Sales and Tax Permit | N/A |
| Food business establishment permit | $100 |
| Beverage Licence | $150( Non Alchohalic) |
| Vending Machine Permit | $1000-$2000 |
| Location Permit | $150( Non Alcoholic) |
The fees of vending machines may vary by location. But on average a vending machine costs you around $3000. For the exact price of the vending machine permit at your location, you have to contact the local Small Business Administration Office.
4. Acquire the Right Vending Machine
You have to consider whether you need a new or a used vending machine for a particular place. Used vending machines are a better investment. When buying a vending machine, explore personal sellers on platforms like Facebook and Instagram Marketplace. Ensure all components work—coins, bills, buttons, and coils. Verify that the screen functions properly for snack machines and the condenser is cold for drink machines.
Consider MDB compatibility for future card reader installations. Be cautious with card readers; they can eat into your profits with transaction fees.
A vending machine costs between $500 to $1000. The price of a vending machine depends upon its size and functions.
5. Moving the Vending Machine to Another Place
Moving a vending machine is not a task. If you require to move a vending machine from one place to another you have to keep certain things in your mind. Make sure your vending machine is vacant, and choose a stable vehicle for transporting your Machine. Match your machine dimensions with the dimensions of the vehicle.
6. Choose Your Wholesale Suppliers Smartly
After securing a location and setting up your vending machine, it’s time to stock up on inventory. Purchase snacks and drinks from wholesalers like Costco, BJ’s, or Sam’s Club. You can also explore Walmart for unique offerings.
Consider your target audience when selecting items and keep in mind that you might need to adjust your product offerings based on the location.
7. Find Profitable Locations
The vending machine business requires the installation of vending machines as per the needs of locations. Location plays the biggest role in the profits of a vending machine business. For example, you can place your book vending machine near private schools.
| Location | Best Vending Machine |
|---|---|
| Private Schools | Snacks, Books |
| Parks | Snacks, Beverages |
| Office Areas | Coffee, Soda |
| Bus Shops | Snacks |
| Cinema Halls | Pizza, Burger |
8. Maintenance and Repair costs
It costs around $250 to maintain and refill your vending machine with new products. This cost includes the cost of snacks, drinks, and cost of minor repairs. The vending machine also requires around $30 annually for repairment of different parts of the vending machine.
9. FAQs about Vending Machine Business
A new vending machine can cost anywhere between $500 to $1000 depending on its products and sizes. On the other hand, a used Vending machine will cost you around $400 to $600.
You can buy a new Vending Machine directly from the seller. Used vending machines are available on different marketplaces. You can choose the vending machine as per your requirements.
Depending upon the location and the product they vend, new vending machines can make anywhere between $500 to $5,000 per month.
You can buy a new vending machine from e-commerce stores. For used machines, you can use marketplace platforms like Facebook, vending, Instagram, and many more.
Chewing Gum was the first item that was dispensed by a vending machine in 1888, by Adam Thomas. The Chewing gum name was Tuti-fruti which was sold on United States railway stations.
Read More: 12 Unique Startup Ideas That Haven’t been done
Final Thoughts
Starting a vending machine business requires dedication, strategic location choices, and efficient operation. As we are going to move into 2024, it requires to provide a structure to your business plans. Business journey always filled with challenges and successes, and we look forward to seeing your vending business thrive.