How to Start a Vending Machines Business

A vending machines business can be an excellent way to go into business for yourself. It requires a small investment to get started, and once you have a machine in place, the time investment on most days will be rather small: collecting cash and restocking the machine. You can start with just a single machine, and maintain your day job until you can afford to expand. If this sounds like an excellent business opportunity, that’s because it is. A vending machine business can have extremely high profit margins. In times of recession, people continue to buy from them. However, vending is a difficult business to get a foothold in, because many locations are either being serviced by a vendor already, or don’t think that they want vending machines. To be successful as a vendor, you must be prepared to be creative, and persistent.

The first thing to do when you are getting started in the vending machine industry is find a machine. Machines of all types exist, from simple U-Turn candy machines, to full-service food and drink machines, to elaborate machines incorporating gadgets or games of chance. The more elaborate the machine, the more it will cost. Also, the first machine that you buy will largely determine what you will be selling, at least when you are first getting started. Put plenty of thought into your purchase. Think about what openings might exist for vending machines around your home town. A location with heavy foot traffic might be a good one for a soda machine, for example. Games of chance do well at arcades, gumball machines are successful at markets, and so on. Also, before purchasing a machine, look into its reliability record. Confirm that the machine has adequate theft prevention, and research how difficult it is to fix. Eventually, the machine will fail or be tampered with. Being able to repair it yourself when you are just getting started can be a major financial benefit.

Once you have selected the machine that’s right for you, you should have a general idea of what products you will be selling at first. After you apply for the appropriate business license for your jurisdiction, you will be at the most difficult stage in starting a vending machines business: scouting the perfect location and getting your machine placed there. The machine that you have purchased will determine the types of locations that you will be looking at. At this point, a little salesmanship is required, because you will not only need to convince the business owner that they want a vending machine because it will increase traffic to their business, but will also need to negotiate a contract with them. Many businesses may demand a small portion, up to around 10%, of your earnings. However, they may reconsider if you can prove that a vending machine will bring more people in to their establishment. You may also consider negotiating an agreement in which a small portion of your earnings are donated to charity.

To be successful as a vending machine owner, you will need to innovate. Consider what you can sell that isn’t on the market already. Redbox has grown into an enormous empire by offering customers something that didn’t exist previously in a vending machine: movie rentals. With a little creativity, you could do something similar. Also, use creativity in your locations. For example, vending machines can be extremely successful at large businesses, where hundreds of employees may be indoors all day with little available in the way of snacks and drinks. Also, remember that persistence is the key. It can be difficult to find quality locations that are not already being serviced by a vendor, and when you do, one machine will not make you rich overnight. However, a vending machine business is easy to start, and can quickly grow into a multiple-machine operation once you have found a successful formula.