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How to Start a Vending-Machine Business, Easier Types to Start

 1 year ago
source link: https://www.businessinsider.com/how-to-start-a-vending-machine-business-easiest-businesses-2023-1
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The 5 easiest vending-machine businesses to start that can earn entrepreneurs 6 figures or more

Feb 1, 2023, 11:00 AM
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Jaime Ibanez poses in front of food and beverages that he will use to stock his vending machines.
Jaime Ibanez's vending-machine business was a launching-off point for his YouTube career. Jaime Ibanez.
  • Vending-machine businesses are gaining popularity because they require minimal overhead.
  • The success of your business can depend on the products you sell and where you place the machine.
  • Here are five vending-machine businesses that are relatively easy to start.
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Starting a business isn't easy — it takes a lot of hard work and can be a huge time commitment — but some ventures don't require as much funding, resources, or employees as others.

Vending-machine businesses are gaining popularity because they require minimal investment to get started, are low maintenance, and can eventually generate passive income if you outsource the daily upkeep. 

Some vending-machine entrepreneurs have started businesses for between $1,500 and $3,000.

What you sell in the vending machine can also determine how lucrative your business is. For example, snack-and-beverage machines can yield high profit margins, according to founders who post about their businesses on Instagram and TikTok

Insider gathered insight from past interviews and successful founders who post about their vending machines on social media so that we could research the best products to sell in vending machines that are relatively easy for entrepreneurs to handle.

1. Snacks

Ibanez in one his YouTube videos. Jaime Ibanez/YouTube

A snack vending machine is versatile and can generate sales in many types of locations, from office buildings and warehouses to repair shops and schools. The inventory is easy to buy at wholesale stores, and since most snacks are light, they don't require heavy equipment to transport or load. The machines typically need to be restocked on a weekly basis, and you'll need to throw out any inventory that doesn't sell once it expires.

Jaime Ibanez operated 40 vending machines from July 2021 to June 2022 and made $135,000 in revenue in that time, Insider previously reported.

2. Water and ice

Steve Slagle and one of his two ice vending machines. Steve Slagle

Water and ice are simple, low-cost products to stock in a vending machine. There's also the advantage that water and ice are often essential products, especially for rest stops and hotels. They do require refrigeration, so that's one more function of the machine you'll need to make sure is always working properly.

Steve Slagle made more than $30,000 in revenue in one year with two ice-and-water vending machines, Insider previously reported.

3. Beverage and combo

Marcus Gram hired his sister to maintain most of his vending machines. Marcus Gram

Selling soda, energy drinks, and other beverages capitalizes on people's desire for choices based on their tastes and moods. If you get a combo machine, you can sell both snacks and drinks for even more options. Since you're offering so many choices, you'll want to closely monitor which items sell and which don't, then base your restocks on that data. 

Marcus Gram, who owns Joyner Vending, operated 18 vending machines in 2021 and generated more than $307,000 in revenue that year, Insider previously reported.

3. Toys

A Harry Potter toy from a vending machine. Marielle Descalsota/Insider

Claw machines can perform well in public areas with heavy foot traffic, like malls and movie theaters. Since the machine operates as a game, it doesn't guarantee the buyer will receive an item from the machine, thus generating more sales per item. Plus, toys don't expire like food and drinks, so you don't have to refill inventory as often as with other machines.

One YouTuber made $292 in a month of sales from his claw machine.

5. Candy

A gumball machine inside a mall. Ann Matica/Insider

The classic candy machine is a fixture at grocery stores, restaurants, and car washes. While these generate much less profit than other types of machines, they are good for a beginner with minimal startup capital. 

One YouTuber made $450 in one month from a gumball machine he placed in an ice-cream shop. He also said he would relocate any machine that didn't make at least $15 a month.

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