Vending Machine Business is one of best way to make passive income. But is it really suitable for you? I just found an interesting article about vending machine from Small Business Idea. Let’s read it together
What It Takes To Start A Vending Machine Business
Have you ever thought about what it takes to start a vending machine business? You are certainly not alone and many ads have and even commercials have made it seem like the perfect get rich plan.
However, what most people do not realize is a vending machines business requires planning and hard work. To start a business machine business does not mean that you install a machine, let it do it’s job, and then sit back and collect lots of money.
But for those who actual start a vending machine business, they quickly learn that it simply doesn’t work that way…no matter how the commercials may make it sound. However, a vending machines business can be very lucrative if you take your time planning, know you have some stiff competition, and stick to it.
1. Why People Start A Vending Machine Business
Many people want to own their own business but do not have a lot of money to invest in startup costs, which is possibly your situation.
In such cases, vending machines makes a great choice because you do not need a lot of money to invest upfront, which makes it possible for many people to own their own business.
A vending machines business can give you the freedom you have always wanted to own your own business and work for yourself, but it takes dedication and it is not as easy as some of the commercials or ads would have you believe. As with any startup business, it takes dedication and planning to make a vending machines business successful.
2. The True Income Reality Of Starting A Vending Machine Business
Most people have heard the claims that a vending machines business will earn you $100 per hour, you start doing the math and think, “Jackpot!” However, in reality, this is not possible and most people in the vending machine business will quickly tell you that these figures are way off.
First, starting a vending machine business typically means you buy one machine and strategically place it in a high-traffic area.
- To start a vending machine business with success, you have to speak to the owner of the business you are targeting and work out some kind of deal for them.
- Otherwise, they will not let you place you vending machine on their premises out of the goodness of their heart.
3. How Much You Can Expect To Make When You Start a Vending Machine Business
On average, many entrepreneurs who start a vending machine business report that one vending machine in a prime location may bring in $50 to $100 per month.
- In theory, if you have 100 vending machines – all in prime locations – you may be able to hit around $1000 per day, but that may not be every day.
- This is because maintaining 100 machines is a lot of work, usually much more than one person can do, which means you will need to hire someone to help you maintain and stock them.
4. How Much It Typically Costs To Start a Vending Machine Business
The average cost of one vending machine is $1000 to $2500, which means that two would cost you as much as $5000.
The key to making a lot of money starting a vending machine business is to continue to buy more machines and make sure they are in the best locations with lots of traffic.
Be especially careful for people that want to sell you several vending machines all at once, after all, their goal is to sell you the machines, they don’t care if you sink or swim after you have purchased them and are in debt with the bank.
5. How Long It Takes For The First Machine To Produce Income
Producing income in any vending machines business depends on many factors such as
- Your location, how much traffic your location gets,
- Whether your vending machine is place in a location where people actually notice it, and
- Whether or not your product offering actually appeals to the people who come into contact with your vending machine.
But for the purposes of this example, let’s say you were able to put a vending machine in the hospitals cafeteria, which by the way, is a great location.
- You decide to put in a cappuccino machine, which makes sense since people are always looking for something a little tastier than just a regular cup of coffee.
- If the product is good, fully stocked, and inviting, your machine may begin to earn income in the first month.
- Of course, you have to realize the money you initially invested, if you are not counting any profits until your machine is paid off, you may not realize income for six months.
The Traffic Your Vending Machine Gets And If It Is Fully Stocked And Working Correctly Directly Affects Your Income Potential
Therefore, if you have prime location with tons of traffic, it is easy to make $200 per day with one soft drink machine, but this is not the norm for most.
Keep in mind that the prime locations are tough to come by and you have to offer the owner something in return, such as a cut of the profit instead of paying rent for the space.
6. How Many Machines To Start Off With When You Start Your Vending Machine Business
The worst thing you can do when you are just getting started in the vending machines business is run out and buy 200 machines.
Why? Because you have zero experience on location and now have indebted yourself with all these machines that may or may not make you any money.
Therefore, be cautious when you start your vending machines business and buy one or two, get prime location and work hard to keep these running smoothly.
Remember – Start Small
Once you begin to see a profit, then you can expand and buy more machines.
Starting a vending machine business is exciting, but start small, that way you do not find yourself in debt and you can test the waters to see if you like the industry.
7. Starting A Vending Machines Business And Why You Shouldn’t Be Lured Into Becoming An Overnight Millionaire – The Bottom-Line
There are so many factors that influence whether or not your vending machines business will actually be a success. The key is to avoid the traps that so many new vending machine business owners fall into.
Do you research and follow the recommendations of the vending machine veterans in the industry.
The advice we got from vending machine business owners is simple – find a prime location, build solid business relationships, maintain a realistic expectation, start small, and go out of your way to ensure that your vending machines are giving customers and business owners something they really want.
Okay, the cost written is different from other countries.. I’ve a quotation on my country but don’t think to share. I don’t think I will join this business this year. Maybe next year I’ll buy the vending machine and try it.