How to Make Money With Vending Machines (15 Easy Ways/Tips)

If you want to know how to make money with Vending machines, this article is a must-read.

It reveals a lot of helpful tips and best ways for really earning money with a Vending machine.

 

Importance

The only thing separating the satisfaction of your craving for a chocolate bar or bag of chips is a thick layer of plastic and some loose change or a couple of dollar bills.

You rustle through your pockets and find the amount of money needed, insert the coin or bills in the bill taker, make your selection, and voila your craving is dispensed.

No muss no fuss, your craving is satisfied! Welcome to the world of vending machines.

Vending machines have been around a long time and they are a simple method of vending or dispensing a variety of products without having to go into a store and stand in line to get your snack.

Vending machines can be conveniently found in Laundromats and dispense laundry detergent or fabric softener, in sporting arenas to dispense tobacco products, in hospitals to dispense hot or cold beverages, and so forth.

Some unique products that are now vended include the distribution of a battery pack to recharge your cell phone and vending machines that will dispense T-shirts, suits, socks, and slippers.

All the comforts of home are found through a vending machine.

Let us take a closer look at vending machines and vend or dispense ways and tips to help if looking into this line of business.

 

15 Easy Ways and/or Tips to Help You Make Money With Vending Machines

 

1. Know about the Vending Machine Business 

A vending machine business is an investment opportunity for an individual to earn passive income that doesn’t require a significant amount of overhead or the employment of staff.

On the surface, it would appear that starting a vending machine business would be fairly straightforward.

Purchase a vending machine(s), find a high traffic area, place the machine there, stock it with a variety of items that you think people will purchase, and then just let the sale process work out.

It seems like an ideal situation in that there are no employees to pay, no employee benefits, a “storefront” that is open 24 hours, and customers buying your product.

If only that were true. There is more involved.

 

2. Franchise

If deciding to start a vending machine business, the first order of business is to decide whether you want to buy into a franchise.

Examples of a franchise vending business could include Pharmabox which is an automated pharmacy dispensing machine that carries all types of products that you would normally find in a drugstore.

Another example would be the dispensing of natural products such as healthy drinks and snacks.

There would be an associated cost to buy the franchise, and the range of investment could be anywhere from $20,000 to $100,000.

The franchise will supply the machine, product, and reach out to business owners for placement of the machine.

If entering into a business agreement with a franchise vending machine operation, it is important to read the contract to be aware of any startup fees, ongoing fees that may be required, etc.

Some franchise opportunities can be viewed here.

 

3. Independent

The other route to go in starting a vending machine business is to work independently.

This would mean that you would purchase the vending machines and stock the machine with the products that you wish to sell.

Products could range from dispensing handfuls of candy to packaged snacks and treats or providing your product line.

Vending machines can be found online through such sites as eBay or https://vending.com/.

Also, if choosing to purchase your machine there are other retailers.

Some of those retailers could include home improvement stores as well as Amazon.

Also, a lot of the products that you can vend in a machine can be purchased in warehouse businesses.

Specifically, Sam’s Club and Costco have a great selection of vending machine products.

 

4. Rules & Regulations

As it is with most businesses, some rules and regulations need to be followed and may differ from state to state.

Often, the regulations required are in relationship to the product that is being vended.

Whether you as the owner of the business will be vending soda, snacks, milk, candy, etc. there may be different associated regulations with each of these products.

A prime example would be a vending machine placed in a school and there is a restriction of certain types of products that can be placed in the machines to curb childhood obesity.

Often, when one permit is acquired for a vending machine then that one permit covers as many machines as the business is utilizing.

On the other hand, in some states, each vending machine requires a license.

 

5. Business Plan

Before pulling the lever of that vending machine, it is important to formulate a business plan.

A business plan is simply a blueprint that outlines the successful operation of your business.

It delineates your goals and objectives.

Important factors to addressing your business plan are what vending machine product you will dispense, what are your goals and how will they be achieved, conduct an analysis of your market to check out competitors, and how you as the business owner will market and strategize to be successful.

Also, an important part of your business plan is to formulate a budget.

The budget should include on the income side anticipated sales and revenue, and the expense side should be the cost of the machines, maintenance, purchasing of product, etc.

 

6. Location, Location 

As with anything related to sales, it is all about location.

As a preliminary step before you begin your franchise opportunity, it would be a good idea to travel about in the community and get a general idea to determine where would be good locations for your vending machine(s).

Depending upon what product your vending machine will dispense has a great deal to do with where you will be placing those machines.

For example, if placing a vending machine in a bowling alley, you may want to dispense salty snacks or candy.

Or if wishing to grab a small toy utilizing a crane-like apparatus, you may want to approach family restaurants to place that machine.

 

7. Business Agreement 

You could set up an appointment to talk with the management and start the dialogue as it relates to getting permission to place the vending machine and addressing any questions they might have.

Part of the preliminary agreement would be the payment of rent or working on a commission off of the products that are sold.

 

8. Repair Person 

As with all mechanical items, the possibility of there being repair work is always a possibility.

You may wish to start searching for a repair person to provide ongoing maintenance or take some courses on your own to provide this regular preventive maintenance schedule for your machines.

 

9. Rent 

As it relates to machines, you may wish just to rent the machines and pay the monthly fee associated with the rental.

The advantages of renting a machine are that you don’t have the out-of-pocket expense required to purchase the machine outright.

Also, there may be a service contract that can be entered into.

Situations in which a rental option is indicated is that the machine is just needed for a short time or perhaps the venture is “just a wait and see” how things proceed.

 

10. Buy 

If you buy anything, then of course you take ownership.

The cost of a new machine can be fairly pricey, but this means that there will be no monthly payments.

The downside of owning a machine is not only the upfront costs to purchase the machine but also shipping costs can be fairly high due to the weight of the vending machine.

However, you may be able to work with the seller in offering delivery at no charge.

You can also consider buying a used vending machine that has been refurbished.

Although it may be a little risky buying a used machine, you may be able to negotiate a limited warranty on the machine.

 

11. Types of Machines 

There is a wide array of machines that can be purchased.

A candy machine dispenses candies such as gumballs, chocolate bars, gummy’s, etc.

Also, there are vending machines that dispense small plastic capsules and in these capsules are little toys or stickers that have a certain appeal to children.

Also, some machines dispense large gumballs.

Another type of machine would be a refrigerated vending machine that offers a variety of foods, drinks, sandwiches, etc.

Finally, there is the soda machine that dispenses either an aluminum can of soda or a plastic bottle of soda.

 

12. Vending Management System (VMS)

With the advent of technology, perhaps a good investment in a vending machine is equipped with a vending management system.

This is a software program that will help your operations as far as recording inventory and tracking your revenue.

This would be especially helpful if your business has expanded to 10 or more machines.

This will minimize your time involvement and help provide data that is available at your fingertips through the software.

Related: How to Start and Make Money With an ATM Business.

 

13. Miscellaneous Considerations 

When it comes to having the machine placed in the arranged area, there are several ways that the machine can be delivered.

It can be accomplished yourself by renting a delivery truck and placing the machine or you could hire a delivery service to do that for you.

It is also critical to obtain needed insurance to cover your liability as it relates to the vending machine.

It would be a good idea to organize your company legally under a variety of business organization options.

One way would be a sole proprietorship in which there is no distinction between the business and the owner.

Another option would be an LLC which is legally structured to limit your liability separate from your assets.

It would be important to determine what structure would be best for you as it relates to taxes, liability, and other critical factors.

 

14. Analyze 

It is good business sense to analyze regularly your income and expenses to make sure that you are coming out on the right side of profitability.

Therefore, the income and expenses should be compared to your working budget to make sure that everything is on track as far as what was anticipated with the income and spending.

Your analysis should include your income and profitability as well as expenses which would include the rental of machines, repairs, inventory, transportation costs, etc.

 

15. Schedule 

A critical component of operating a successful vending machine is to make sure that the area around the machine is clean, orderly, and in good working condition.

A machine that is not working will not dispense the product and is counterproductive to buying and selling.

Also, if there are problems with the machine and the machine is located in a retail business, an unsatisfied customer will most likely approach the staff or owner of that retail business.

If any complaints are received, it may jeopardize the contract arrangement that you have made with that place of business.

Speaking of, it may be an important consideration to place on the machine in an obvious place a number that someone can contact as it relates to any unsatisfied customers or employees issued.

Which brings up another point in what will be your policy of any potential refunds for individuals in which the money was received but no product was dispensed?

Most likely, a good plan of action would do be to observe the locations of your vending machines on almost a daily basis or every other day to ensure that everything is running satisfactorily.

This will allow you to note the usage of the products being vended in the machine as well as give you an idea of what inventory schedule may be required and replenishment.

 

Personal Story

One of my negative experiences with a vending machine occurred when a couple of friends and I decided to go to a party that was being held in a public place.

Trying to be cool I thought that a cigarette dangling from my mouth would do the trick.

So I headed on over to the cigarette vending machine.

I searched for my two dollars to buy a pack of cigarettes, and with no lecture from the vending machine, I lit a cigarette to be something that I was not.

That was the worst two dollars I ever spent, and it just happened to be in conjunction with using a vending machine.

 

FAQs

 

Do Vending Machine Owners Pay Rent?

Correct.

The location of the vending machine is usually located on someone else’s property.

Rent or arrangements to pay a commission based on sales can be negotiated.

 

Are Vending Machines Taxed?

Yes, there is the payment of sales tax usually required by the state or community in which you live.

Check with the local department of revenue at both state and local levels.

 

You Can Do It

Vending machines have always been a popular way for customers to get their cravings satisfied conveniently and rapidly.

On the business side, it can be a great opportunity to earn passive income which simply means that your involvement is fairly limited other than the time involved with initially setting up the operation and then managing the inventory and restocking.

 

Conclusion

If an individual is looking for a business opportunity that doesn’t require the storage of too much inventory, minimal costs, no employees, and is fairly easy to manage, then operating a vending machine business may be the perfect opportunity.