Should you invest in a vending machine? Read this guide before making a decision.
Starting a vending machine business is an attractive investment that has great potential.
Buying a vending machine can be a good investment, provided that you install the machine in a busy location where there’s demand for the particular items the vending machine sells.
In this guide, we’ll help you figure out whether a vending machine would be a good investment for you.
So let’s get started right away!
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Is It a Good Idea to Invest in a Vending Machine?
Yes, Investing in a vending machine can be a good idea, but it’s not as straightforward as simply buying a machine and expecting it to become your gold cow.
There are many factors that come into play, which is why it’s necessary for you to know the ins and outs of the industry before trying to break into it.
Basically, you’ll need to buy the vending machine and the items that you’ll sell, as well as rent a spot at a facility like a shopping mall or school. Because of these initial costs, it’ll take a while for you to turn the business into a profit.
However, once you get things going, you’ll be able to turn your vending machine business into a source of passive income.
Moreover, vending machine businesses are flexible and scalable. You can make it a full-time business, a source of second income, or a retirement business.
In addition, once you start generating profit from your vending machine, you can gradually scale your business by buying more vending machines to serve more locations.
How Much Does It Cost to Start a Vending Machine Business?
Getting into the vending machine industry doesn’t require a massive capital investment. You can get started as a vending machine business owner with as low as $200.
However, this is only the case if you’re creating your own vending machine startup from scratch. If you decide to buy a franchise, the initial investment will be much bigger.
The good news is you’ll benefit from the franchise’s brand name, reputation, and marketing investment, allowing you to make a profit much more quickly.
Vending Machine Business Financing
Financing a vending machine business can be tricky if you don’t have basic capital to start with. Luckily, there are various financing options that you can opt for to cover the initial investment.
These include unsecured personal loans, secured personal loans, short-term business loans, 401(k) rollovers, a home equity line of credit (HELOC), or SBA (Small Business Administration) loans.
Is a Vending Machine Business Profitable?
There’s no doubt that any vending machine business has strong potential for success and profitability.
People like to snack on the go or even drink a delicious cup of hot coffee or refreshing juice. So, as long as consumer habits remain like that, vending machine businesses will continue to be profitable.
You still need to play your cards right by developing robust business strategies, getting strong support, and implementing a reasonable pricing structure.
After all, placing a vending machine in a rarely visited location and filling it with low-quality items will get you nowhere. On the other hand, putting your vending machine in a busy shopping mall will bring you tons of money.
There are millions of vending machines in the world, which make over $30 billion worth of sales every year. These numbers should be encouraging enough for anyone to start a vending machine business.
Which Type of Vending Machine Is Most Profitable?
The most profitable vending machines are those that accept all forms of payment. Vending machines that only take cash or coins present a missed business opportunity, especially since some people almost never walk around with cash.
What Items Sell the Most in Vending Machines?
While vending machines that sell healthy foods are spreading faster than ever, statistics have shown that the demand for unhealthy snacks is still much higher.
Healthy vending machine sales contribute to just 10%-15% of the total sales.
Based on consumer habits data, these are the top-selling vending machine items:
- Soft drinks
- Bottled water
- Energy Drinks
However, healthy items do have their place, particularly in locations like health clubs and schools. These include tuna, cereals, oatmeal products, whole fruits, and protein bars.
To recap, a vending machine can definitely be profitable.
It may take a while for you to understand everything in the industry, but you should definitely see your numbers going up when you do everything right.