What is a Vending Machine Side Business?
Are you looking for a low-risk side hustle to supplement your full-time income? Try vending machines! Sales are no longer just about snacks and drinks. In the right location, it can be hugely profitable with minimal time investment.
Investing in a vending machine
Starting a vending machine business as a side hustle is like unlocking a treasure trove of nostalgic memories, whether it’s throwing in a quarter and watching a piece of gum spin or frantically clutching a crumpled dollar bill against your jeans for comfort grabbing the snack by the pool. We’ve all had those frustratingly funny moments while selling. From furiously shaking a machine that ate your money to cheering when it finally spat out your chips, vending machines have been a part of our lives for years.
But here’s a twist: What if the same machines that once played with your patience could now become your cash cow? In the right hands and location, vending machines can be hugely profitable with minimal effort. Whether you’re looking for a side hustle or thinking about quitting your job, vending machines could be the secret weapon to your financial freedom.
Here’s a seven-step plan to get you going – without the shoulder press.
Step 1: Research the market and define your goals
First you need to explore the terrain in a vending machine style. Think back to the moments when you stood in front of the vending machine debating whether to choose the salty chips or the chocolate bar. Instead of choosing your snack, identify your target audience. Who will be standing there? Office workers? Students? Gym goer?
Ask yourself: Are you here looking for a fun side income or are you looking to replace your 9-to-5 job?
What type of products excite you? Are you passionate about selling snacks, drinks, beauty products or tech devices? (Yes, people buy high-end headphones from vending machines these days.)
It’s about more than just parking a machine in some corner – it’s about finding the optimal spot. Consider locations with high foot traffic but limited access to quick snacks or necessities. Apartment complexes, hospitals and laundromats are prime real estate.
Step 2: Choose your vending machine type and products
The days when vending machines were limited to soda cans and candy bars are long gone, my friend. We’re talking about a whole new era of sales glory. From CBD-infused snacks to tech accessories, the sky is the limit.
Here is your shopping list for the vending machine:
- Snack and drinks vending machines: The classic combination – like the PB&J of vending.
- Healthy Vending Machines: For gyms and schools where people count calories but still value comfort.
- Wholesale vending machines: You know, the ones that beg for the kids with chewing gum and little trinkets.
- Special vending machines: Think beauty products, CBD treats, or high-end technology. Have you ever seen someone buying luxury lipsticks or earbuds from a vending machine? It’s happening!
You need to adapt your products to your location. Have protein bars and energy drinks on hand if your machine is in a gym, or stock up on caffeinated sodas if you’re in an office building.
Pro tip: Never underestimate the power of sugar and caffeine during the 3pm slump.
Step 3: Secure a prime location
If sales success had a motto, it would be “Location, Location, Location!” (Okay, maybe “Snack Attack” works too.) You want your vending machine in a location where people are already making quick, impulsive purchases. Schools, offices and gyms are jackpot locations.
Some of the best places to park your machine:
- Schools and universities: Students are snack monsters, always looking for something quick between classes.
- Hospitals: Waiting rooms and staff lounges are gold mines for vending machines.
- Gyms: Protein bars and drinks containing electrolytes will disappear from the shelves.
- Offices: A caffeine-filled snack machine is a haven for tired workers who need an afternoon sugar rush.
Just make sure you negotiate a fair deal with the property owner, be it a flat fee or a percentage of sales. A great location will pay off in droves.
Step 4: Buy or lease your vending machines
Ready for the fun part? It’s shopping time. You essentially have two options: buying or leasing.
- Purchase: If you have some money saved, this route puts you in full control. New machines cost between $1,000 and $5,000. Expensive? Yes. But remember, these are the workhorses that allow you to make money while you sleep.
- Leasing: Not ready for the upfront costs? Leasing can be a more budget-friendly option. It’s like renting a machine – lower initial investment but monthly payments.
You also want to make sure your machine is ready for the 21st century. That means accepting credit cards, Apple Pay, and maybe even having a fancy screen that shows product details. After all, we live in the age of convenience.
Step 5: Store your machine and monitor inventory
Stocking up your vending machine might feel like the moment you’ve been waiting for – the anticipation of what people are going to buy. You have to act strategically, such as flattening the stubborn dollar bill to fit it into the slot. Start by stocking up in bulk at Costco, Sam’s Club, or BJ’s.
Pro tip: Track your sales and adjust them based on what’s selling on the shelves. If no one touches those granola bars but the energy drinks are selling like hotcakes, you know what to do. Swap it out and keep things fresh!
Also, never make your machine look like it’s been hit by a zombie apocalypse. Empty shelves and expired snacks are vending machine crime. Keep your inventory full and fabulous.
Step 6: Set up a maintenance routine
Remember when you wanted a bag of chips and the machine just stood there taunting you? Don’t be the owner of a vending machine. Regular maintenance is the key to keeping your machine in top shape.
- Refill regularly: Create a schedule based on how quickly your products sell. Some machines may require weekly maintenance. others can go longer.
- Clean your machine: Nobody wants to touch a dirty machine. Please keep it clean and inviting.
- Fix problems quickly: If your machine breaks down, repair it as quickly as possible. Customers don’t have time for a broken snack station and neither does your profit.
Step 7: Track and grow your finances
Running a vending machine business is like waiting for the perfect gum to come out – if you don’t keep track of your numbers, you’ll end up empty-handed. Keep an eye on the following:
- Cost of Goods Sold (COGS): What are your total storage costs?
- Maintenance costs: These factors influence the cost of repairs and cleaning.
- Revenue: Track daily, weekly and monthly sales to know which machines make the bank.
Once you’re up and running, think about expanding your empire. You don’t want to have just one lonely vending machine out there. Find more great locations and watch the cash flow.
Bonus Tips for Vending Machine Success
- Think outside the box: Vending machines aren’t just for groceries anymore. Think beauty products, CBD or personal care items. There’s even a vending machine that sells socks. Wait! Yes, really.
- Go cashless: Customers love the convenience of using credit cards or Apple Pay. Stay tuned and they will keep coming back.
- Top locations mean top profits: A vending machine in a busy school or office can make you a lot of money. Don’t be afraid to dream big.
Conclusion on Starting a Vending Machine Business
Starting a vending machine business is like watching the gumball roll toward your outstretched hand – exciting, rewarding, and full of potential. With a little effort and these seven steps – research, choosing the right products, finding the perfect location, securing your ATM, smart storage, good maintenance and monitoring your finances – you’ll be on your way to sales victory.
So go ahead, leave the metaphorical quarter behind and watch your vending business become profitable.
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