The vending machine industry has shown steady growth over the last decade. Therefore, if you are seeking a business idea, this can be a perfect side hustle. However, you should realize that there is something more to the business than simply buying a vending machine and putting it up anywhere. There are some basic preparations to undertake as you seek answers to the question of how to start a vending machine business.
There could be plenty to do from scouting for vending products & locations and to arranging for investment. You also need to understand profit margins and you can see that there is planning to do. These are the issues to consider as you seek answers to the question of how to start a vending machine business. Let us discuss more on these lines.
Understand the profit margins
Before seeking answers to the question of how to start a vending machine business, it is important to understand the profit margins. The business concept is about selling snacks, & beverages, and sandwiches through a vending machine. The concept appeals to a large section of the population because everyone will feel hungry at some time or another. The profit margins are also higher here and snacks or sodas could give you over $1 more in profits per sale. You might not become a millionaire overnight, but there is certainly the scope to scale up the business.
Beyond the earnings scope, it is the flexibility in operations that makes the business lucrative. You are your boss and can set your working hours. There can be nothing better than this.
The investments that you will need for the business
This is another key criterion to assess as you seek answers to the question of how to start a vending machine business. Most of your investment will go into buying the machines and the stocks. There is a scope to start with something as little as $2000. This is the cost of a basic vending machine. However, a vending machine with a bit more features could cost anywhere in the range of $3000 to $10,000.
You will also have to allocate a budget for the snacks and soda machine. The quote for the machine could range from $1500 to $8500. If you are working on a tight budget there is always the scope to seek a refurbished machine. If you can gain some knowledge on repairing these machines, there is no need to worry about warranties.
There could be a need to pay a nominal fee to start the business and this could vary from state to state. This is the basic capital expenditure that you will have to incur. Hope you have been briefed on the second section of the answer to your question about how to start a vending machine business.
What kind of vending machine do you want?
This is the next stage of the answer to your question about how to start a vending machine business. You will love to hear that there is a diverse range of options to select from as you are buying these machines. Here are the details for readers in brief.
- The food & beverages vending machine is the most common. These can be used to serve sodas & snacks. You can stock varied items and that will depend upon the general traffic in the area.
- A bulk vending machine is the smaller variation and this is the specific variety that you come across at restaurants & grocery stores. These are manually operated and can fit in toys, rubber balls & gumballs.
- A specialty vending machine is a new-age product. This can dispense virtually anything from electronics, & hot beverages to ice creams.
Here you have been briefed on the third section of the answer to the question about how to start a vending machine business.
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A good location for your business
Let us come to the fourth stage of the answer to your question about how to start a vending machine business. It is important that you scout for a good location for your business. The strategic placement of the machine is critical for the success of your business. You need to research a bit and understand the crowd that may frequent a location. The product, which you offer will have to be based on these factors.
Let us say that you are placing a food & beverage vending machine close to a local gym. The product that you should be offering could range from protein bars to electrolyte-infused drinks, or even pre-mixed shakes.
On the contrary, if you have a specialty vending machine close to a local laundromat, the product range should be entirely different. You should be offering fabric softeners or individual detergent packs. If you are thinking of how to start a vending machine business, you need to have a good location and product to cater to the local clients.
Here is a list of strategic locations for vending machine business.
- Bus stop
- Manufacturing facilities
- Apartment complex
- Grocery stores.
- Stations
- Hotels & Malls
- Schools & universities
These are some locations to set up the business and you can negotiate for floor space with property owners & managers. Here you have been briefed on the location aspect of your question about how to start a vending machine business.
A brand name for your business
This is another important aspect to consider as you are thinking of how to start a vending machine business. You must have a brand asset and only this way the customers can identify you easily. The name must be simple but catchy & creative. Only this way your business will be able to stand out in the crowd.
We now come to the last part of your question about how to start a vending machine business. You will have to register the business with the authorities and there will be paperwork to do. You can seek professional help on these matters.
Conclusion
This is a complete guide to your question on how to start a vending machine business. It is the basic thing that you will have to understand the profitability & identify a location and start operations.
FAQ
1: How can I start a vending business with little money?
You can explore the probability of leasing the equipment from an equipment leasing company.
2: How many customers do I need to start operations?
As a thumb rule, if there are 50 people in an office or building, it can be sufficient to start your operations.
3: How much space will I need to start operations?
You will need very little space because the standard vending machine is only 72″H x 39″W x 33″D. You will need additional space for plugging the device and opening the door.
