Tips On How To Start A Vending Machine Business

Posted by Fitz Villafuerte under Business, Income Opps on May 22, 2009

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. Questions like, ‘Will I need equipment leasing, should I buy the machines, how do I get a loan if needed?’ are all important for this enterprise.

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.

antares vending machine 1 Tips On How To Start A Vending Machine Business

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.

antares vending machine 2 Tips On How To Start A Vending Machine Business

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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27 Responses to “Tips On How To Start A Vending Machine Business”


  1. Nice article Fitz! Linked to it as a value-adding post in my weekly round-up. Cheers bro!

  2. SanDiegoVending says:

    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.

  3. Jay Castillo says:

    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.

  4. 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!

  5. Ed says:

    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

  6. I am also interested as to how much is the vending machine? and how long is the projected ROI for this business.

  7. kimsan23 says:

    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.

  8. Fitz says:

    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.

  9. 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???

  10. Kelly says:

    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?

  11. thea says:

    any info about gum ball/candy machine?

    thank you & God bless

  12. Derek says:

    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.

  13. sheryll says:

    i need some information for this vending machine we have a canteen business.

  14. sonia says:

    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.

  15. jude andrino says:

    hi there, im also new here and i want to start vending machine business and dont know where to start getting one and how much i need to start getting a vendo….hope you could hellp with this….thanks and more power…=)

  16. my mom has a coffe franchise near seattle and she earns a lot from it-*’

  17. Tess De Jesus says:

    Hi! Got so interested in starting a business, had tried calling several in food business like getting into franchise but the problem with me is how to dedicate time into it..just thought of these vendo machines and it was helpful getting some pointers from your write up. Really wants to start up with any business before the year ends and I think vending machine would be a good choice because this will not demand much time specially for working people like us. Great! Have a Blessed Sunday!

  18. 5hadow says:

    Mini Coffee and Hot Choco Vending Machine

    PRICE: 25,000php

    No franchise fee, No royalty fee, Free set-up and training, Easy to manage and operate, Low initial investment, Your machine is working 24 hrs a day 7 days a week all year round, Its a business that can be part-time and still keep your regular job, paycheck and benefits, No personal selling so no experience required, Low overhead cost, No office or warehouse cost, Locations are unlimited and best of all your business can easily be.

    For Orders and Reservations

    Boyet Chua Quinco

    +639184688580(smart)

    +639069255511(globe)

    Q_bhoyet@yahoo.com

    pls indicate this ff. info
    sample:
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    website: ????
    nick: 5hadow
    email add: Q_bhoyet@yahoo.com

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  19. tsinita says:

    you’ve got me interested in this venture. i’ll be going back to the philippines for good and been researching about possible business ventures.

    btw, my husband is in pharceuticals distribution, area sales manager of an independent distributor. He’s been telling me to go home and set up our own distribution company for he’s got a very stable client base. Could anybody please give me some help with regards to supplier sourcing and other factors/ insights regarding this business. thanks

  20. asker says:

    where and how to buy wholesale coca cola products for my store?
    and also c2?
    thanks!

  21. bernard vargas says:

    hi ms kelly….

    I just read your your comment regarding the article about the vending machine business…

    if you are still interested… i can offer you a business coffee and choco vending business opportunity.

    if Nestle can offer only 10% pay off we can offer you 100% revenue….

    for more infos:
    Contact bernard at 09162029133/09292765583

    thank you…

  22. shane says:

    hi, which is better, own a vending machine or franchise one..please site points for this..thanks

  23. jay dulay says:

    hi I want to talk to one of your representative to inquire a customize vendo machine, pls reach me @ 09177525488

  24. Monet Palad says:

    Hi. I am selling my foodcart siopao and siomai bec ill be leaving for new zealand for good. It includes the foodcart itself, electric steamer, paper cups, paper trays, juice jar (if you want to sell also juices or sago’t gulaman), tarpoulin. For only P5,000 bagsak presyo na yan the orig price is P21k but I need to dispose it bec ill be leaving soon. for pick up address: Iris St. West Fairview, Q.C. Pls. call/text for inquiries 09064871434

  25. TBM Minimart says:

    I scheduled to open a Minimart by first days of January 2013 and I am interested for Coffee vending machine. How much?

  26. Carlos says:

    Nice! I’ve been thinking about getting a vending machine myself.

    But I was thinking of putting one up in the common area of a condo compound/community. Is that a good or bad idea?

  27. Roxan Damole says:

    where can i get the vending machine and how can i contact one of your representative?

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