Vending machines have become much more popular than ever in recent years. Maybe this is because of their non-contact nature or their immense popularity abroad. For example, in Japan, per every 23 individuals, there is one vending machine.
However, how much does a vending machine cost? And is this business still profitable in 2022? Or how do you begin vending machine business?
The Global Vending Machines Markets has to Reach $146.6 Billion by 2027. Impressive, right.
The US vending machine market is valued at $36.5 billion. It’s not as spectacular as Japan’s $60 billion, but it’s still an impressive market with plenty of potentials to grow.
So, keep reading to learn about starting this vending machine business.
We’ll cover the costs, locations, and revenues and consider some innovative concepts to ensure that your machine stands out among the rest of the crowd.
TABLE OF CONTENTS:
What is the Average Cost of A Vending Machine? How Much Does a Vending Machine Cost?Are Vending Machines Profitable in 2022?How to Start a Vending Machine Business in 6 StepsHow to Start a Vending Machine Business: Guide Pros and Cons of Starting a Vending Machine Business
What is the Average Cost of A Vending Machine?
Although this is a simple question, the answer is not as easy as you think. Many variables go into the vending machine business. Many factors determine the average vending machine cost.
You can purchase a used snack machine from decades ago for as little as $100 on the secondary market or spend more for a high-end machine that can dispense hot food and beverages.
The average price of a vending machine will vary depending on what type of machine you choose, what products you sell, and how advanced the technology is used to accept payments, vend, and store the items.
The average vending machine cost is below $10,000, but it’s above $1,500.
How Much Does a Vending Machine Cost?
Soda and Drinks Vending Machines
The staple of the industry is soda vending machines. These machines are among the oldest types of automats. Because of their convenience, they are very popular. This type of vending machine is a great investment for a start-up entrepreneur.
A soda and drinks vending machine typically costs between $3000 and $6000. Because they need refrigeration, they are usually more expensive than other vending machines.
Snack Vending Machine
Snack vending machines are extremely profitable, in addition to soda machines. They are a great choice for busy professionals because of their easy-to-use, grab-and-go functionality.
The lowest price for most units is $2,500, but they can cost as much as $8,000 depending upon their technology.
Combination Vending Machine
Many business owners desire practical options that offer both snacks and drinks. These vending machines with glass fronts can be used to dispense chocolates, chips, beverages, and healthier options for snacks and drinks.
What’s more? You can customize the dual-zone refrigerated cabinets to suit different snack and drink combinations.
A combination vending machine will cost you between $7,000 and $10,000.
Coffee Vending Machine
You may need to spend a lot to buy a coffee vending machine. These machines are the most expensive to purchase and operate.
They require more than just the standard mechanism to heat water and cups. They all need to be cleaned both from the inside and outside. It requires more maintenance than other vending machines.
A used coffee vending machine can cost as much as $5000.
You can also get a newer model for as low as $10,000.
It would be best to consider the cost of operating a coffee vending machine.
Are Vending Machines Profitable in 2022?
There are approximately 5 million vending machines currently operating in the US, generating over $7 billion annually in sales. Vending machine operators make $64 million annually from the snack market.
This doesn’t necessarily mean that every vending machine makes profits. The profitability of vending machines is affected by their product mix and location. Machines in busy airports will likely generate significant revenue, while machines in apartments or laundry rooms will generate significantly less.
Products must be priced strategically to generate profit. If you price your products too low, you will not make any money. Potential customers will opt for another option if you price them too high in a highly competitive market.
The average machine’s revenue is over $75 per week and more than $300 per month in the vending business. Vending machines can generate less revenue than others, but some generate more.
In conclusion, the more well-placed and well-stocked machines an owner has, the higher their income and the more profitable.
How to Start a Vending Machine Business in 6 Steps
Step 1: Research all vending machines options
Step 2: Evaluate the Investment
Step 3: Choose your vending machine
Step 4: Find the best place to put your vending machines
Step 5: Check out all the regulations, laws, and requirements
Step 6: Prepare inventory for your vending machine
How to Start a Vending Machine Business: Guide
Any knowledge about this industry is an advantage and can be an excellent opportunity to join this business niche.
For instance, if you’ve identified the need for a snack machine near your home, contact homeowners you know to determine if they are interested in putting vending machines at their establishments.
However, it’s possible to start vending machine-related business and make money from it even without personal connections. Learn how to begin vending machine businesses in just several steps.
Step 1: Research all vending machines options
Many people believe that vending machines are only available in the typical snack and soda variety. But you will know that there are other possibilities, especially considering starting your own vending machine business.
There are generally four different types of vending machines. Consider all four categories when deciding on the vending machine that most likely appeals to your market.
Writer`s Advice:
Whichever type of vending machine you choose, start with just one or two machines for the selected market. Do this to study the region`s needs more carefully. Then, if the business is well verified enough, you will be able to invest more capital in purchasing more vending machines easily. By doing so, you reduce the risk of losing a significant investment and provide a solid foundation for business growth.
Food and Drink Vending Machines
Soft Drink Vending MachinesSnack Vending MachinesCoffee Vending MachinesCooked and Frozen Vending MachinesCombo Vending Machines
If you’re thinking of how to begin a vending company, you won’t be wrong with this classic – soda, snacks, and candy.
There are variations to the same basic concept. For instance, you can buy an appliance that offers snacks, drinks, or snack-and-drink combinations.
A few vending machine operators decide to buy various machines in one area or even place the same type of machine in several places.
Whatever you decide to do, new vending companies should start with a specific product – healthy drinks, healthy snacks, or even fresh food, until you are more knowledgeable about the business.
It would be best to tailor your offerings to a certain, specific, location-based market for the best profits.
For instance, you can provide your food and drink machine in a gym with shakes and protein drinks or provide vending machines at schools with granola bars and juice.
You might imagine chips and soda when you think of vending machines. Still, there’s plenty of an opportunity to earn money by providing healthy and convenient alternatives that people would like and are willing to pay for.
Specialty vending
There’s more than food and beverages when you start vending machine business. Public spaces with large crowds such as airports, arenas, and malls usually have vending machines selling products for beauty, tech, and other items that are considered to be special.
A few of the specialty vending items are:
Hot drinks: coffee or hot beverage vending is usually most effective at offices, but conference centers and universities are also great places to start. Manufacturers typically produce both traditional and specialty beverage equipment. Thus, you could be able to mix your purchases.Retail: Essential travel accessories such as phone chargers, headphones, and neck pillows can be profitable vending items when you can bargain a contract with a local transit facility or an airport. The most expensive vending machines in airports and malls usually have electronic products and luxury skincare items.Laundry products: They include individually packaged fabric softener, detergent, and dryer sheets which are excellent vending items if you can identify the right market for them. For instance, the best places for these products are laundromats, apartment complexes, or dormitories.Tobacco: Vending Machines with Tabacco products are permitted in many states and are profitable depending on the state’s taxes. Cannabis vending machines are now being made available, though with a smaller market.
Franchising options
If you’re not looking to create your own company from scratch, you might want to think about buying an existing franchise to begin your vending machine company.
If you are a franchisee, you can operate in a standardized business model and get additional support and education to help you get your vending machine business established. It is also possible to choose the number of machines you’d like to purchase. But, remember, you’re a franchisee. You’ll be accountable for paying a share of your earnings to the franchisee.
Bulk vending
Beginning a vending machine company that has machines that sell gumballs, stickers, or rubber balls, also called bulk vending, requires small capital and minimal maintenance expenses.
These machines, usually with low-maintenance, may not be the most glamorous, but the money they earn adds to it. A well-maintained vending machine may cost less than $50 and earn the equivalent of $30 per month.
If you’re in the right market, such as amusement parks or a school, this tiny investment could be the perfect opportunity for a stable passive source of income.
The majority of vending machines are mechanical and do not require batteries or electricity for operation, which means their operating costs are minimal to almost non-existent. However, many toys and candy vending machines have been in use for a while, which means that a used machine may require minor repairs before being functional.
According to a user poll made by Automatic Merchandiser for the last two years, the most popular vending machine products are:
MOST POPULAR VENDING MACHINES PRODUCTS20222021Salted SnackDeep River Snacks’ Zesty LimeMiss Vickie’s Jalapeño HealthyMusselman’sFieldstone Bakery Grains 2 Go BarsProtein & Meat SnackBaja Jerky’s Street TacoJack Link’s Cold Crafted LinkwichCold BeverageRISE Brewing Co.’sInternational Delight’s Iced Coffee Caramel MacchiatoEquipmentAPI Tech’s Smart Pizza Machine PicoCooler from 365 Retail MarketsCookie & PastryPrairie City Bakery’s Sara Lee’s individually wrapped Mini CheesecakesCandyAWAKE Caffeinated Bits Trident VIBES 12-ct. from Mondel?z InternationalFoodJ&J Snack Foods’ Pretzel FillersKing’s Hawaiian Sliders by E.A. SweenTechnologyCantaloupe’s Gimme Key Pro by Gimme VendingOCS ProductSmile Beverage WerksKitu Life Super Coffee CaramelOCS Equipment & SystemsElkay SmartwellStarbucks Serenade with VirtualTOUCH by Nestlé Coffee
You can find most of these smaller and essential consumer items with prices between $1 and $5. However, the higher-end items provide a higher profit for sellers. The cons are that they require more cost inventory, and if they’re food-related, there will be more rigorous legal requirements. It’s always a good idea to invest in a sector that you’re comfortable with, interested in, or passionate about. The sky’s the limit, so long as there’s a demand.
Step: 2 Evaluate the Investment
Start your own business
A startup vending business is the best option for you if you can manage it and build it. This approach offers flexibility, allowing you to start small and build a reputation and brand while growing. Although it requires the lowest investment, starting a vending machine company from scratch will require the most time and effort. Although features and capacities vary, purchasing one new vending machine is anywhere from $1,500 to $10,000.
In addition to the machine’s cost, the self-start method requires:
inventory brandingmarketing sales activity inventory managementaccounting and legal compliance and other.
This allows you to start small and then grow at your own pace.
Different machines are made to fit different products. The starting prices for some of them are:
Soda Machines start at $3,000 and $5,000Snack Machines start at $3,000Candy Machines start at $1500
In total, your investment will from $3,000 to $10,000
Buy an existing vending business
You’re likely to be open to creative control and take on less risk when buying an existing business. Although it is more expensive than starting small with a few vending machines, purchasing an existing business reduces the risk of building a new business. It also offers many benefits, such as a track record of clients, products, branding, reputation, and branding. Although the former owner has taken care of all the formalities, left-brained tasks, infrastructure, and formalities, there is still plenty of room for growth and change.
In total, your investment will be above $15,000
Invest in a Franchise vending machine business
If you decide to purchase vending franchises, the franchisee will pay from as little as $20,000 to $300,000 or above. The amount you pay will depend on the product you are looking to sell, the characteristics and capabilities of your machines, and the credibility and potential for growth of the franchisee.
If you purchase a franchise, you’re buying everything you need to run the business. This includes – the branding, inventory, partners and suppliers, the type of machine, and the procedures.
In total, your investment will be above $20,000
Step 3: Choose your vending machine
A vending machine is essential to starting a business. It is easy to find your vending machine online. You can search from both local and national suppliers to get an idea about the various vending machine options and prices. When comparing vending machine prices, you should also consider the cost of inventory.
These three types of sellers can help you find the vending machine you want.
Wholesale vending suppliers and manufacturers have the largest selection of vending machines available and the latest technology and end-to-end support for repair, delivery, and training. Although this is the most costly option, it can be expensive. Vending franchises may require a minimum order or additional fees to cover machine servicing and entrepreneur training.You can browse different vending machine brands and models from specialty online sellers. They often offer helpful resources to business owners.Craigslist and eBay both have thousands of vending machine listings. You can save time filtering by the owner or merchant location so that you don’t need to worry about shipping charges. This is a great option for you, especially if you don’t have the budget to buy a brand new machine or recondition it.
You’ll quickly discover that vending machines have a variety of capabilities and features, each at a different price point.
Some of these special features include:
Combination snack/drink machinesLarge bill and credit card functionalityAccessibility via touch or voiceLow stock alerts and remote monitoring softwareFor the front of your machine, brand “wraps.”Interactive screens
These extras can be costly, so don’t get too excited about them. It would be best to choose the vending machine that is most compatible with the products you sell and the price you can afford.
Step 4: Find the best place to put your vending machines
Don’t choose a place just because it’s close to you or it is your favorite spot. Your goal is to have as many sales as possible with each vending machine you buy.
The location where you put your machine is the primary aspect in generating a profit for your new business. For example, vending machines for food or beverages could fail in a strip mall brimming with restaurants. However, the same machine could be a hit in an office space.
So, when you’re thinking about starting vending machine businesses, take note of the places where you’ve personally bought something from vending machines and the times when customers are likely to buy snacks, drinks, or any other item.
There are great locations that you can choose from for your vending machines business:
AirportsSchoolsHospitals and medical centersGrocery storesShopping malls and airportsLaundromatsApartment complexesManufacturing plants
Try visiting or contacting your regional Chamber of Commerce. They’ll be able to give you details on major companies within your region, and could give you some suggestions of possible places. The ideal is to locate your vending machine within businesses that have at minimum 100 employees or significant foot traffic, such as the multi-business office park.
If you have areas in mind, try reaching out to the proprietors or getting the appropriate manager’s contact details. Speaking to potential partners on location requirements can assist in getting an understanding of the local market and help you decide on your vending machine and the products you choose to sell.
Do not forget that this machine will need charging and maintenance when choosing. Its location should be convenient for these activities.
Step 5: Check out all the regulations, laws, and requirements
Vending machines regulations, laws, and compliance
Different rules apply to different vending machines, and the regulations vary from state to state.
Before you start vending machine business and contact the potential owner of the premises, learn your state’s regulations for vending by contacting the nearby Chamber of Commerce or looking at the state’s small business rules on the internet.
Additionally, every vending machine located in public areas could be subject to specific ADA standards for compliance.
Some of the information you can read is:
Vending Machine Labeling RequirementsFDA requirements for vending machinesApply for a license to operate a food or beverage vending machineVirginia Law – Vending machine sales; dealers engaged in the business of placing vending machines
And many more. Just do your homework carefully.
Commission requirements
Before you can cash in the profits from your machine, you must pay commissions to the owner who has the space and electricity needed to run the machine.
In general, you’ll pay the property owner between 10% and 20% of the profits generated by the vending machine.
If you do or don’t want to create an exclusive partnership in the location, agree with the owner with your set compensation rates, contract length, and any other terms you’ve decided to with the proprietor.
Incorporate provisions for breaches of contract, too. It is also advisable to add obligations and expectations concerning servicing and replenishing vending machines, the possibility of vandalism or theft, and the risk of not making a profit. Always have an attorney review the contract before signing.
Vending Machine License
Vending machine operators need to have a business license. These licenses can be expensive. The cost of vending machine operators will vary depending on where you locate it. It is essential to understand and read all the legal requirements before starting.
You will most likely need to visit your local county or city office to obtain a license. You may need a seller’s license if you are required by law to collect and pay the state sales tax. Perishable goods may also be subjected to food and health permits.
The cost of a business license and other permits can vary from as little as ten dollars to as much as several hundred dollars. You will need your license often renewed, depending on local regulations.
Step 6: Prepare inventory for your vending machine
Once you have landed on a vending device, you are well on your way to starting your own vending machine company. The next step is to stock it with an inventory.
A great way to increase sales is product selection. Instead of stocking items based on broad food and beverage trends, you should pay more attention to your local needs. You can keep your stock safe by not ordering too many items at once. Instead, adjust your inventory based on customer demand.
You can offer both food and beverages in your vending machine.
Your machine options will be affected by the size and shape of your drink. If you are passionate about selling cartons, or products with irregular shapes, consider a machine that can adjust product sizes.
Pros and Cons of Starting a Vending Machine Business
Vending machine Pros
Scalability is easyThere are many vending machines optionsLow to no overhead costsPredictable income flowLargely recession-proofLow threat from globalization
Vending machine Cons
Time commitmentTheft and vandalismMachine breakdown equals loss of income.It may be challenging to find high-traffic areas in which to place machines.Leasing agreements are the norm. You’ll need to pay either a flat fee or a percentage of sales to have your machine placed in specific locations.High technology changeHigh competition
F.A.Q.
How do vending machines maximize profits?
The location is crucial in any business. Profits will increase if machines are well-placed. The best places to locate vending machines are manufacturing and distribution centers, apartments, hospitals, and office buildings. Stocking your machines with the right products is also crucial. In 2020, cold drinks accounted for 30%, while confections, candy, and snacks combined accounted for 40%.
How much does it cost to have a vending machine put somewhere?
Before you start planning your next business move, it is important to first ask the following questions: How much does a vending machine cost? And, is it worth making an investment? The short answer to this question is yes. Vending machines can be purchased for as low as $1,500. You’ll need to spend anywhere from $1,500 to $10,000 for a new device, depending on its type, features, size, and price. You should also add funds to purchase stock items. You should be able to start your vending business for as low as $2,000.
Can you put a vending machine anywhere?
You can not put a vending machine anywhere you want. To place a vending machine on someone’s property, you need permission or a contract. If you are looking to make a profit, it is not enough to just place your vending machine in any one spot. You’ll need to locate your vending machines in areas that are well-traveled and have people who are interested in buying the products.
