Updated: May 14, 2023
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 gave it priority to learn how to start.
But recently, I saw ads of used vending machines for sale in a local newspaper, and I thought of finally doing some research on how to start a vending machine business.
Today, I’m sharing all the things I 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 success
Location is the most important factor for success of a vending machine business.
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.
Philippine vending machine suppliers
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
NCR: 54 E. Rodriguez Jr., Ave. Bagong Ilog, Pasig City.
Cebu: WH B23 J King Warehouse, Opao, Mandaue City, Cebu.
Tri-East Philippines, Inc.
NCR: 3/F Rodeo Building #802 km. 18, West Service Road, South Super Highway, Paranaque City
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[…] Ready to be Rich: Tips On How To Start A Vending Machine Business: Another interesting and very helpful article from Fitz. I was actually thinking to myself how to […]
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.
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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???
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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
[…] of what other people say as an passive income opportunity is in fact, semi-passive. For example, a vending machine business is often referred to as a passive income business; but it’s actually semi-passive because […]
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.
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…=)
my mom has a coffe franchise near seattle and she earns a lot from it-*’
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!
Mini Coffee and Hot Choco Vending Machine
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
pls indicate this ff. info
email add: Q_bhoyet@yahoo.com
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
where and how to buy wholesale coca cola products for my store?
and also c2?
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
hi, which is better, own a vending machine or franchise one..please site points for this..thanks
hi I want to talk to one of your representative to inquire a customize vendo machine, pls reach me @ 09177525488
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
I scheduled to open a Minimart by first days of January 2013 and I am interested for Coffee vending machine. How much?
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?
where can i get the vending machine and how can i contact one of your representative?
Hi i’m ricky i want to know where can we acquire for uload vending machine and how much its price…
Thanks for posting this very helpful article. I am thinking over franchising here in the Philippines, but after reading your article, I can consider vending machines as an additional option. I do not know how the whole process works, but I think one of the biggest consideration aside from the actual vending machine, would be the leasing space and if it has inclusive electrical fees associated with it.
Regardless, I am researching my way into a decision. Currently, I am browsing some business franchising opportunities through this classified ads site: https://www.mybenta.com/index.php?a=19&b%5Bsubcategories_also%5D=1&b%5Bsearch_text%5D=food%20cart&page=1
Anything in particular should I be interested in?
I am very pleased to find this article and seeing all your comments i think i can be a little help to all of you who are interested in these kind of business. i have been doing vending machines here in Kuwait for more than 20 years. i came from 7-up bottling co, nestle, Telecommunications co., now Red bull & Rauch. it is also my plan to continue these in the Philippines for long term as it really benefits me here.
My suppliers for my equipment are from US, Italy & Germany. because they are really durable and i am always after the after sales support that they can give me.
Hi Sir Fitz, do you have any recommendation for healthy vendo machine for our office?
good day! im working in a hospital, i already have coffee/choco vendo machine. i want to put a candy vendo machine. pls call,me if u have one. tnx 09193917138 malou
Hi…i am really interestedb with this.. help me out..
[…] Location is a big factor in the success of a vending machine business according to Ready To Be Rich. Start by creating a list of potential locations for your vending business and determine the most […]
Hi. I am interested in getting a softdrink or snack vendo in my restaurant. Can anybody provide me who to contact re this? thank you
hello does anyone know of a hot food supplier suitable for a vending machine?
OPTION 1: VENDO OPERATES
(VENDING MACHINES WILL BE OPERATED BY VENDO FOR FREE AS AN EXTRA SERVICE TO YOUR ORGANIZATION) *Population 800above*
OPTION 2: SELF FILL OPTION BY CLIENT
(VENDING MACHINES ARE LEASED/RENTED FOR FREE TO CLIENT BUT CLIENT MUST ORDER MINUMUM ITEM REQUIREMENTS PER MACHINE EVERY YEAR)
VendoCorp will lend machines for FREE to client, you do the replenishments, and collect all sales. All consumables have to be purchased exclusively from VendoCorp at Php3.75/piece making you a profit of Php1.25 per piece. a MINIMUM purchase order of consumables is required for each machine PER YEAR
Minimum purchase requirement per machine per year is as follows: VAT INCLUSIVE
Vendocaster 1100 (1 – Column Machine)
1,000 Pieces of Tissue or Sanitary Napkin (Choose one)
TOTAL: P3, 750.00
Vendocaster 1200 (2 – Column Machine)
1200 Pieces of Tissue
480 Pieces of Sanitary Napkin or Panty Liner or Baby Wipes (Choose one)
TOTAL: P6, 300.00
Vendocaster 1500 (3 – Column Machine)
1,200 Pieces of Tissue
960 pieces of Sanitary Napkin
300pcs of Baby Wipes/Panty Liners
OPTION 3: OUTRIGHT PURCHASE
(VENDING MACHINES ARE PURCHASED BY CLIENT)
Vendocaster 1100(1-Column or 1 Item) Php 12, 622.40
Vendocaster 1200(2-Columns or 2 Items) Php 19, 809.44
Vendocaster 1500 (3-Columns or 3 Items) Php 28,336.00
Vendocaster 1600(4-Columns or 4 Items) Php 33,264.00
Vendocaster 2000(6-Columns or6 Items) Php 48,160.00
Alcoblazt 1100 (Alcogel Spray) Php 10,120.00
ALL ITEMS OR CONSUMABLES IN VENDING MACHINES MUST BE EXCLUSIVELY PURCHASED FROM VENDO CORP.
Consumables: ( Php3.75/piece)
Tissues (800 pieces / 1 box) = 37 to 40 pcs. per layer
Sanitary Napkin (480 pieces / 1 box) = 27 to 31 pcs. per layer
Panty Liners (720 pieces / 1 box) = 40 to 48 pcs. per layer
Wipes (360 pieces /1 box)) = 40 to 48 pcs. per layer
We hope to hear some positive feedback from you in building this partnership. Please don’t hesitate to contact me if you are interested at 09333679796 or 09154046299 email: email@example.com
Stephanie J. Quiatchon
SOME OF OUR MALL PARTNERS:
SM MALLS, ROBINSONS MALLS, AYALA MALLS, ARANETA MALLS, GAISANO MALLS, STARMALLS, ORTIGAS MALLS, FILINVEST MALLS,GREENFIELD MALLS, VICTORY MALLS, WALTERMART MALLS, STA LUCIA MALLS, SHANGRILA MALLS and moreâ€¦
SOME OF OUR CORPORATE PARTNERS:
PLDT, HSBC, ALPHALAND, SAMSUNG, HONDA, NIDEC, PHILIPPS, FUJITSU, CANON, SHOPWISE, RUSTANS, CONVERGYS, TELETECH, SAN MIGUEL CORP, TELEPERFORMANCE, PETRON CORP, SHELL CORP, CALTEX CORP and moreâ€¦
Hi do u have the no. Of coca cola company that is in charge of their vending machines?
hi i was thinking of putting up a vendo machine offering healthier snacks particularly in offices – offering sandwhiches plus hot coffee (similar in Japan where it can be served hot).. would you know any suppliers ? please contact me.
hi Im interested in putting a vendo machine in my place in roro port.May I know if you have staggard payment for Vendo machine like for softdrinks and some snacks and coffee.tnx
Hi, iam interested to put up a snacks/combo vending machine to our office in pampanga. Pls call me at 09561439746.. pls call me asap
For all those who are interested to purchase Vending Machines, please contact Vendilink Technology Inc. for your vending purchase solution.
We offer different varieties of vending machines from Economy Vending Machine (Low cost) up to Smart Vending Machines (Digital).
Kindly contact me at:
0929 295 7161 (Smart)
0966 679 4614 (Globe)
Vendilink Technology Inc.
Hello to all! Im interested to put a vending machine when i come back to Philippines for good. I wanted to ask anyone knows how much capital to start the business. Thank you and God bless.
im indeed so interested with this business concept. hopefully, soon i can avail and start the business
Hi for those looking for a vending machine distributor, kindly email me at firstname.lastname@example.org
[…] example, a vending machine business is often referred to as a passive income business. But it’s actually semi-passive because you […]
[…] Apart from building your own, you can get a franchise or buy an existing business. One lucrative passive income strategy is to pursue a vending machine business. […]