Making passive income is the best side hustle if you know what to do. Find out how to start a vending machine business and increase your profits
Vending machines allow people to choose a drink or snack without visiting a store.
The machine takes the money and distributes the product, so there's no need to hire an employee to provide the service.
With this concept in mind, it's easy to see how this can be considered an “unusual business” to generate passive income.
But if you want to know how to start a vending machine business, read on to ensure you understand what goes into the process.
You should know the startup costs, maintenance needs, and steps to run the business efficiently.
People who take the time to do their homework and learn how to start a vending machine business can make a decent profit—even beginners.
Vending machines have low operating costs compared to other ventures and don't require much time or financial investment from the owner.
If you stock them with products at reasonable prices and have them located in a high-traffic area, you can increase your profits exponentially.
Vending machines provide recurring revenue because clients continue to buy your products.
For example, stocking a vending machine in a shopping center ensures constant traffic, while owning one in an office lobby provides repeat customers.
You'll pull in an impressive passive income if you can own a vending machine business with multiple locations.
Starting a vending machine business seems straightforward, but you need more than the machine itself.
Read on to find out what to consider as you start your side hustle.
Vending Machines
You can buy or rent vending machines. Contact manufacturers for leasing options or check online marketplaces to buy them.
Features
You want an eye-catching vending machine that functions properly and accepts credit cards. Extra features like unique inventory dispensing and remote access software can simplify your operations.
Inventory
Most people think of vending machines for drinks and snacks, but you can sell books, electronics, beauty products, t-shirts, office supplies, or laundry powder. Prices vary depending on your merchandise.
Locations
Before you start your business, you need sites to install the machines. The costs involved with this feature include licenses from your local government. You might also need to rent space from corporations.
Business Insurance
Business insurance is necessary because vending machines can injure people, and you want to protect yourself from theft. The cost varies depending on the policies you choose and your provider.
Maintenance
Vending machines require little oversight, but regularly checking your machine guarantees you'll catch issues before they cost you too much money.
Most states require a business to have a vending machine license before installing the machine.
If you sell drinks, you need a beverage license. If you sell snacks or food, you need a food service license.
For vending machines that sell laundry detergent, books, or other dry goods, you only need your federal employer ID number, sales tax number, and plan for the machine.
The government entity will come to inspect the location to ensure it matches your application before approval.
If you want to make some money without investing much time, vending machines are the ideal industry.
Starting a vending machine business seems simple, but there are potential pitfalls, like in other industries.
Follow these six steps to ensure you know the basics of starting a business.
Some of the most popular vending machines sell drinks and snacks, but other options exist.
You can sell electronics, charging cords, beauty supplies, books, and toys.
Think about possible locations and what other machines are available so you can offer something unique.
Before setting out as a sole proprietor, research the competition in your area.
In some cases, consider buying an existing vending machine business to lower your startup costs and prevent competition.
Otherwise, ensure you're selling a product no other machines offer.
You need inventory for your vending machine.
Finding the right supplier who sells the merchandise at an affordable cost can make the difference between turning a profit or drowning in debt.
You can also look into getting a loan to have extra stock on hand, which will prevent losing sales due to a lack of product.
High-traffic areas are best for vending machine profits, but you want to meet your audience where they are.
Providing necessary goods where someone will need them most guarantees a sale.
Look for the right area to sell your inventory and ensure you can plug the machine into an outlet.
You want to visit your machines regularly to ensure they're working correctly and have enough products.
You can monitor each location for a few weeks to notice patterns and set your maintenance schedule around that information.
Owning a vending machine is a legitimate business, so you need to keep track of your finances for tax season.
Save inventory and maintenance receipts and document your profits to ensure things run smoothly at tax time.
You've learned a lot about how to start a vending machine business.
Before you jump in, consider these significant factors.
You want to sell a product that's in demand.
The food and beverage vending market had a value of over $51 billion in 2021, so you know you can make sales in that industry.
Location is as important as your merchandise.
If you want to install a sandwich machine near the mall food court, you might make less than you would selling candy or earbuds.
You also need to consider traffic in that location.
For example, an airport has considerable traffic, so think of items travelers might forget.
You can sell travel-size toiletries or charging cables in your vending machine.
Yes, you can run a vending machine business by yourself, depending on how many locations you manage.
If you have a few machines in a central area, you can restock inventory once a week.
However, if you have dozens of machines across the city, you might want employees to help you.
Also, if you can't carry the inventory yourself, you'll want someone who can lift the weight.
Some business owners need help brainstorming merchandise they can sell in a vending machine.
These concepts will give you inspiration for your income stream.
Book Vending Machine
The potential of a book vending machine is endless. Install them in an airport for people who forgot reading material.
Put them outside gyms and community centers so patrons can keep their children occupied while they work out.
Toy Vending Machines
You can install toy vending machines in big box store lobbies to ensure kids see them and ask their parents for money. You can also use claw vending machines in this location to increase the fun factor.
Travel Size Vending Machine
Many travelers get to the airport and realize they forgot to pack lotion or a toothbrush.
They might have a bottle of shampoo that's too large for security. Selling travel-size goods in an airport can maximize your profits.
Beauty Supply Vending Machine
Selling beauty supplies from a machine gives you tons of potential. You can sell makeup brushes, fake eyelashes, accessories, or makeup in malls, airports, or shopping centers.
Can I put a vending machine anywhere?
Yes, you can install vending machines in any location if you have permission from the property owner.
Some states also require vending machine licenses.
However, you can only install a vending machine in a place with electricity.
What type of vending machine makes the most money?
Food and beverage vending machines are the most popular and make a significant profit, but you can make a lot of money depending on your location and target audience.
Selling charging cords and travel-size items in an airport is a great way to make passive income.
What is the best place to put a vending machine?
Depending on what you sell, highly-trafficked areas like airports and malls can be great vending machine locations.
If you want to stick with food and drinks, consider office buildings, hospitals, and school campuses.
People spend a lot of time here and often need to purchase snacks from machines.
If the ease of vending machine passive income appeals to you, consider these similar businesses.
Owning a vending machine business is a great way to make passive income without putting too much time and effort into the work.
Leave a comment if you own a vending machine so others can learn from your experience.
Share this article with anyone who wants to feel empowered and work for themselves.
Some resources that we suggest checking out to help you along your journey.