You have probably seen vending machines everywhere you go. They are in stations, airports, restaurants, hotels, schools, movie theaters, and even some office buildings. Have you ever wondered how to start a vending machine business? It’s actually not as difficult as you may think.
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1. Learn How Vending Machines Make Money
If you want to start a new business, the first thing you need to be clear about is the model of the business and how you can make money from it.
The vending machine business is actually quite simple. You purchase or lease machines, stock them with products, and then place them in high-traffic locations. People use the machines to purchase the products, and you make a profit from the sale.
Of course, there are some other costs associated with the business, such as maintenance and repairs for the machines, but the basic model is quite simple. You buy products wholesale and sell them at a retail price through your vending machines.
2. Choose the Right Location
One of the most important aspects of a successful vending machine business is choosing the right location. You want to place your machines in areas that have a lot of foot traffic. This will ensure that you make a lot of sales and that you don’t lose money on your investment.
Some good locations to place your vending machines include:
- malls
- airports
- train stations
- office buildings
- Schools
- hotels
You can also try to get permission to place your machines in high traffic areas that are not typically associated with vending machines, such as restaurants, hospitals or museums. The key is to be creative and to think outside the box when it comes to choosing locations.
3. Choose the Right Products
Another important aspect of starting a vending machine business is choosing the right products. You want to choose products that have demand for specific customers and that will sell well in the locations where you place your machines.
Some good products to sell in vending machines include:
- candy
- soft drinks
- chips
- snacks
- cigarettes
Of course, you can also choose to sell other types of products, but these are some of the most popular items that people purchase from vending machines.
4. Get the Right Permits and Licenses
Before you can start your vending machine business, you need to make sure that you have all of the necessary permits and licenses. Each state has different requirements, so you will need to check with your local government to find out what you need.
In most cases, you will need to register your business, get a sales tax permit, and obtain a vending machine license. Once you have all of the necessary permits and licenses, you will be able to start your business.
5. Choose the Right Type of Machine for Your Business
Machines come in three varieties: mechanical, electronic, and bulk. You will also find a wide range in prices, with some models costing several hundred dollars and others costing several thousand.
The type of machine that you choose will depend on a number of factors, such as the type of products that you want to sell and the locations where you want to place your machines.
In general, electronic machines are more expensive than mechanical machines, but they offer a number of advantages, such as the ability to accept credit cards and the ability to vend a wider variety of products.
Mechanical machines are the simplest type of vending machine, and they are typically less expensive than electronic machines. These machines accept coins and dispense products when a lever is pulled.
Bulk machines are the least expensive type of machine, but they are only suitable for selling products that come in large quantities, such as candy or soft drinks.
6. Purchase or Lease Your Machines
Once you have all of the necessary permits and licenses, you need to purchase or lease your vending machines. You can find vending machines for sale online or through business equipment dealers.
If you are leasing your machines, you will need to sign a contract with the company that you are leasing from. The terms of your lease, including the length of time you may keep the equipment and the monthly payment amount, will be outlined in this contract.
7. Find Locations for Your Machines
Now that you have your vending machines, you need to find locations for them. As we mentioned earlier, you want to choose high-traffic locations that will generate a lot of sales.
You can find potential locations by driving around town and looking for businesses that may be interested in having a vending machine on their premises. You can also search online for listing of available locations.
8. Stock Your Machines
Once you have found locations for your machines, you need to stock them with products. You can buy products wholesale from a variety of different sources.
You will need to figure out how much you need to charge for each product in order to make a profit. Keep in mind that you will also need to factor in the cost of the products, as well as the cost of maintenance and repairs for the machines.
