Tips On How To Start A Vending Machine Business
This article is posted under Business, Income Opportunities.Are you thinking of starting a vending machine business? What are the things you need to know if you want to start a vending machine business?
Personally, I’ve always wanted to start one but never really took the time to study how.
But recently, I saw some ads on used vending machines for sale in a local newspaper and I thought I should finally do some research on how to start a vending machine business.
So far, here’s what I’ve learned:
Advantages of a Vending Machine Business
- It is an all cash business. All sales transactions are immediately paid in cash.
- It is recession proof. In fact, people tend to buy more retail when times are hard.
- Vending machines, in general, require only minimal maintenance.
- There’s no need to hire sales employees, and your business is potentially open 24 hours a day.
- Because there is minimal overhead costs, you can sell your products at very competitive prices.
The Most Important Factor For Vending Machine Business Success
The success of a vending machine business primarily relies on its location. Choose the business right location and you’ll enjoy optimum profits. So how do you know if a location is a good place to put up a vending machine?
First, the area should have constant foot traffic. Second, the area should be secure and safe from vandals. And third, your products should compliment the market profile of the area.
The third tip is actually the most important. Have you ever wondered why you see toilet paper vending machines inside restrooms, coffee vending machines near offices, soda vending machines in parking lots and candy or gumball vending machines in places where there are lots of children?
It’s because people buy from vending machines usually for two reasons – out of need and out of impulse. Thus, toilet papers exactly where we need them, coffee to awaken sleepy employees, sodas for the waiting drivers or to accompany us while driving and candies to tempt the sweet tooth of children.
Things To Consider When Starting A Vending Machine Business
- Find a suitable location and decide what products would do well in the area.
- Inquire to the establishment or building administrator and ask the requirements and terms for putting up a vending machine in the area.
- Consult the local government to know the legal process of getting business permits for your venture.
- Look for vending machine suppliers or find sellers of second hand or used vending machines.
- Depending on the supplier, vending machines can either be bought or leased. Most of the time, they are franchised.
- Monitor your inventory. Know your fast moving items to ensure that your vending machine will never run out of stock.
- Regularly visit your location. Doing so will give you more insight on the quality of foot traffic and customers that you get.
- Ensure that your vending machine is always clean, working well, attractive and readily visible. A dusty or faulty equipment will make people think that your products are old and of poor quality.
Before buying, leasing or franchising a vending machine business, always make sure that you are dealing with a reputable dealer or supplier. Ask for their terms and conditions when it comes to warranty, inventory, service and maintenance of the equipment.
In the Philippines, I’ve found two vending machine companies. I’m sure there are others, and I’ll add them below once I find more suppliers:
Philippine Vending Corporation
Manila: 54 E. Rodriguez Jr., Ave. Bagong Ilog, Pasig City. Tel: 6716230, 6710363
Cebu: WH B23 J King Warehouse,Opao, Mandaue City, Cebu. Tel: (032) 3448882 to 84
Tri-East Philippines, Inc.
Manila: 3/F Rodeo Building #802 km. 18, West Service Road, South Super Highway, Paranaque City. Tel: 8222222
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Photos courtesy of kojihachisu and salimfadhley
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Hi, my name is Fitz and this is my blog on personal finance.
Nice article Fitz! Linked to it as a value-adding post in my weekly round-up. Cheers bro!
Your article makes many good points. I would disagree with the “recession proof” statement. You are correct in that people don’t have a problem with small purchases like those from a vending machine. The problem is that companies are going out of business leaving less supply of accounts available to place machines and more competition for the remaining accounts.
Nice information Fitz, thanks! This could come in handy when I get to acquire a property in a location that is suitable for this type of investment.
Thank goodness you came up with this article! I was planning on venturing on this but forgot all about it. Now I’m scouting for sellers who are actually selling vending machines. Subukan ko ang isa tapos pag okay naman, then I may opt to make multiple purchases.
Once again, thanks!
I wonder about the initial capital needed and ROI though. Do you have an idea Fitz? I think this a good business and easy to manage as well, and i’m thinking on whether to invest in this kind of business as soon as I can. :p
I am also interested as to how much is the vending machine? and how long is the projected ROI for this business.
I’ve always thought about getting one of these but never found a good location. i think I should start looking for a location that has a lot of traffic….
Thanks for the article! It reminded me of what I’ve been wanting to do.
I believe that the capital needed to start a vending machine business varies, depending on the product, the type and the size of the machine.
It’s better to ask the vending machine suppliers themselves for the start up capital needed and the projected ROI for such investments.
However, I remember inquiring in Coca Cola a few years regarding their soda can vendo machine and they were willing to lease the machine for free as long as it dispenses at least 100 cans a day. I’m not so sure now if it’s still the same.
I’ll update you guys about this when I get more information. Thanks.
sobrang mahal po yata ng capital for vending machine and ang hirap pa magmaintain nyan..siguro much better kung store na lang itatayo mo kesa vending machine..tama po ba???
I’m interested to venture in this type of business. I inquired in Nestle and they are willing to provide the machines and supplies. The business owner has to look for location, pay for rentals and electricity. However, the owner gets only 10% of total earnings in a month.
Is that a good deal?
any info about gum ball/candy machine?
thank you & God bless
I just got started in vending a few months ago. I’ve had a lot of luck securing solid locations because the of the options that I offer. There are a few companies that specialize in healthy vending machines. It easy to walk into a business and pitch the idea that they should be offering their staff and patrons foods that are lower in sugar and fat. The clincher is pointing out what everybody knows, eating a lot of sugar leads to a sugar crash, and lower productivity.
The three companies that I looked at were YoNaturals, 1800Vending and HeathyVending. I ultimately went with http://www.HealthyVending.com as they seemed the most targetted for my sales strategy.
I haven’t looked into schools too much, but I do know that Coke and Pepsi machines are getting pulled out pretty quickly and replaced with healthier ones.
i need some information for this vending machine we have a canteen business.
hi there, I’m new here and want to start vending machine business but i dont know how much money will be need to get started am in new jersey USA and i need some good information to get started.