In today’s world, new and innovative business ideas are coming up every now and then. This is mainly due to the various technological advancements. If you are thinking of starting a unique kind of business, you can indeed give the vending machine business a try. This is one of the great business options, especially if you are not ready to give up your day job or don’t have the expertise.
Moreover, in vending machine business, you won’t have to travel anywhere; it is a home-based business. As you can guess from the name, it is a great way to enter into the entrepreneur’s world without quitting your job or making a big investment. In fact, you can also take the help of your family members and involve them in this business. This is because it is pretty much easy to manage. It will also be great for the teenagers of your family as they can manage activities in their free time.
So would you like to know more about how to start a vending machine business? Stay with us till the end to know some of the significant aspects of this business. Let’s get started!
Table of Contents
- How to begin the Vending Machine Business?
- Check out the Vending Machine Business Opportunities
- Benefits of starting a Vending Machine Business
- Some of the Innovative Vending Machine Business Ideas
- What are the Factors you need to Consider while Venturing into Vending Machine Business?
- How can you get a Vending Machine License?
- Ending Note
As you can understand, this vending machine business idea is a bit different than the traditional business models. It also involves fewer risks and does not require a big investment. It is a great way to step into the business platform if you are new in this field and do not want to take many risks.
Well, you will get to keep your day job, and along with that, you can earn some extra money in this business. Moreover, you can also involve your friends and family members to help you out since there is no particular time to follow.
Are you still doubtful and asking yourself, why should you start a vending machine business? Let us share with you some of the details that will help you understand why this business is gaining prominence in the present society. In fact, this industry is booming and constantly expanding. So why not start this business?
You might be surprised to know that first-world countries like the United States have nearly 5 million vending machines in their country. Yes, this business is pretty much common there. In fact, these vending machines take in over $7 billion a year in sales. In addition, the snack vending niche itself generates around $64 million a year in profit. Even though it is actually a cash-based business, you can now use credit cards and e-wallets.
As technology advances, companies find new ways to deliver products more conveniently. Needless to say, vending machine business is a booming business model. In fact, the opportunities for new businessmen are also endless in this field.
Benefits of starting a Vending Machine Business
There are ample benefits to starting a vending machine business. In fact, you can begin noticing those aspects as soon as you venture into this business. By now, you must have understood that this business is unlike the brick-and-mortar business, right? This business does not need you to make big investments, so anyone can start it if they have spare time.
With the advancement of technology, customers can pay with their credit cards, debit cards, and electronic wallets. Therefore, these vending machines cater to the needs of everyone. Let us look over some of the benefits of this business:
1. Cash Flow
If you are thinking about whether any credit or customer is involved in; vending machine business or not, let us assure you there isn’t any. It is pretty simple. Customers just put the money in the machine or swipe their card, and you instantly collect your fees.
You do not have to worry about any bad checks or late payments; vending machines, if placed in the right locations, can collect money 24/7. So why not try it out?
2. Low Overhead Costs
If you start this business, you must be worried about how much is a vending machine, right? As we mentioned earlier, the overhead costs are pretty low. In fact, when you are starting this business, you can manage your route yourself, which means there won’t be any payroll, benefits, or call-offs. Moreover, if you start the business at your home, you can eliminate the cost of renting a place.
3. Easy To Scale
Once you become stable in this vending machine business, you can start earning a smooth, steady, and predictable income from the previous sales. So you can easily scale up. In fact, with an excellent track record, it will be easier for you to convince your new customer to take you on. Moreover, if you feel like taking this up seriously, you can also purchase new machines. Do not worry; they are not that expensive.
If you are not sure about diving into this vending machine business on a full-time basis, you can handle both your day job and this business side-by-side. Finally, consider making it full-time if you feel like your business is soaring high. However, you will always have an option in your hand. So decide accordingly. You can either make your vending machine business a nine-to-five business or only as a weekend refreshment from your tedious job. Since you will be your own boss, you won’t need to worry about the timings.
So whether you are taking this vending machine business as a full-time job or keeping it as a part-time thing, it will be an exciting opportunity to explore and earn some profits.
Some of the Innovative Vending Machine Business Ideas
If you are about to start the vending machine business, you would need some ideas that will make your business profitable. Nowadays, there are plenty of options available. You can literally sell anything and everything in vending machines. Starting from toys to chocolates and other items, you have various options in your hand. Let us now check out some of them:
1. Custom Vending Machines (Non-Food)
Vending machines are no longer a new business model. It has been prevalent over the years now. Therefore, now you can also get non-food items as well. These machines have come a long way from the gumball and soda machines of the past. So if you require items other than food, you can get them in the vending machines. Here are some of the things:
- Apple vending machines are selling iPhones and accessories.
- Vending machines in airports often sell headphones and other electronics.
- Some vending machines also sell sunglasses and hats at amusement parks and outdoor events.
- Sephora vending machines also sell beauty products.
2. Bulk Vending Machines
As a kid, you must have bought items from the sticker and gumball machines, right? These machines usually dispense an item for a quarter, and it will take some time to generate profits. However, these bulk vending machines are pretty cost-effective. You won’t have to spend much behind its maintenance.
Since they typically do not require electricity, the products that you decide to keep inside should be something that does not melt or become rotten. So buy inexpensive products. They can become a high passive income if you handle the machines well.
3. Specialty Vending Machines (Food & Beverages)
This is one of the most common types of vending machines mostly available. In fact, initially, these machines were used to sell food and beverages. The choices are limitless here as well. Let us have a look at some of the options:
- Hot drinks: Tea, coffee, hot water, etc., are available in this machine.
- Cold drinks: Water, juice, soda, etc.
- Traditional snacks: Chips, candy bars, pretzels, etc.
- Full Meals: Vending machines also offer full meal options, including healthy meals.
- Alcoholic beverages: They are more available in European countries where the laws are somewhat less strict regarding alcohol consumption.
- Ice cream: You can also get soft-serve cones at amusement parks, outdoor events, etc.
What are the Factors you need to Consider while Venturing into Vending Machine Business?
If you want to succeed in your vending machine business, you must choose the products correctly. However, there are so many options that it often becomes difficult to select the right products. So you need to consider these factors before starting your business:
1. Check if the Products Are Affordable
This is one of the essential factors you need to consider before starting your vending machine business. If you keep products that are too expensive, they won’t sell. So you need to choose only those products that you can purchase at a good rate and profit from it. If you wish, you can save your money and increase your profit margins by buying it directly from the manufacturer.
2. Choose Products that are Well-Known
Vending machines are not the right place for you to try and experiment with the sale of new products. Therefore, store items that are well-known among the people so that people can take one look and grab them.
3. Keep the Nutritional Value in Mind
Since people of different ages purchase from these vending machines, you have to keep the nutritional value of the products in mind. You might have many customers who are highly health-conscious. So they would probably not like to have a lot of high-fat, high-calorie, or sugar-packed food items. Therefore, keep some healthy alternatives available.
4. Taste Matters to a Great Extent
Taste is one of the significant factors you should keep in mind while choosing your food products. This is because if a customer does not like the way a product tastes, they won’t be back for more. Suppose your vending machines are in office complexes or locations where the same people pass by every day; you would indeed want them to repeat their purchases, right? If you wish, you can also add some sample products before you decide what to sell.
So by now, you must have got an idea as to how you should proceed in this business. You have to remember that you have to be comfortable with the items you are selling at the end. So choose only those options you feel will be within your budget, and your customers will also like them.
Like every business, vending machine business needs you to get a license to operate in the state. So if you are planning to start this business, you better read and understand the things you need to have. Firstly, you need to visit the municipality and secure an operator’s license. In fact, if you have to collect and pay taxes, you will need this seller’s permit. So make sure you apply for the license to avoid legal troubles.
If you are worried about the costs that you have to bear, let us share the details with you. The cost of acquiring this license varies from one location to another. It can be as low as $10 somewhere or can be as high as $100. This is because some states make it mandatory for the food vendors to take and pass a food preparation and handle a course before getting the license.
At times, acquiring this license can be a challenge. However, having it makes you legally safe. Also, after receiving the license, you need to abide by the rules and regulations as the authority prescribes. This will ensure that you succeed in your business and turn it into a profitable one. At the same time, having this license makes you appear as a genuine seller in front of your customers. They can safely purchase their food and other items from the machine.
So as we conclude, we can say that vending machine business is indeed a unique form of business model. Therefore, if you want to have a passive income, this is an excellent option for you. Once your business is up and running, shift your focus to optimizing its performance and boosting your income. Gradually, you will find that you can take it up as your full-time job and earn even more than your present job.
Also read: What You Should Know About Fund Management