Published • 2 Jan 2025
Let’s first set the expectations. All vending machine businesses require attention, but the most successful vending machine businesses require attention to detail. To get your feet wet in the business, you’ll need to either plan a route and install machines or purchase a route from a previous owner. While this is exciting and exhilarating, you’ll need to stay focused and understand that it’s time to put in the work. You need to concentrate on what you want to accomplish and how you can get there.
Want to have a sustainable operation with multiple locations and routes? You might need multiple employees managing and maintaining a variety of machines.
Want an operation you can tend to yourself, like a side hustle? Get ready for a great amount of elbow grease and investing the time needed to maintain that route.
Ultimately, most vending operators will focus their attention on expanding their operation because more machines leads to more money being made.
If you’re just starting out, you’ll likely have more urgent questions - how do you purchase a vending machine? More importantly, where should you place your machines and how do you plan a route? We’ll cover that in more detail below.
Where Should I Put my Vending Machines?
Go where the people are. Simple, but true and incredibly effective when it comes to vending. We are selling convenience to people who likely do not want to be inconvenienced.
Location shopping can mean networking, getting to know business owners and setting up in their places of business. It can also mean exploring high-traffic areas and the viability of adding vending options to locations where people might constantly be on the move. Both are how you can establish profitable routes.
There is a caveat here, of course. While the locations might show potential, the importance of what you are offering and how you offer it are crucial. 365 Retail Markets has an abundance of data thanks to vending software such as our VMS and ADM tools. These tools provide critical information to operators on specifics regarding every location they serve.
Each location is different and deserves different options for potential customers. The smart store solutions we offer can provide customers with a terrific variety of options, allowing operators to better serve their base.
Think for a moment - what can be offered in an older, traditional vending machine? Soda, snacks, chips, candy? Are people likely to buy these items in a particular location? Would people be more likely to purchase something healthier at that location?
By not offering variety, you’ll never know.
With secure machines like the PicoCooler Vision or Stockwell, customers can see the items and their nutritional labels before they purchase at little risk to the operator. This means operators like you can offer a more robust selection including healthier, high-margin options.
Not only are they being offered healthier options, but they are also being offered more payment options. Remember, you are selling convenience to people who do not want to be inconvenienced. Allow them to explore a wider selection and offer incredibly simple payment options. Those two benefits combined will have any location profitable.
How Do I Stand Out from the Competition?
There are millions of vending machines located throughout the United States. For some previous data regarding the industry - the global vending machine operators market will grow from $37.99 billion in 2022 to $42.36 billion in 2023 at a compound annual growth rate (CAGR) of 11.5%. The vending machine operators market is expected to grow to $63.66 billion in 2027 at a CAGR of 10.7%. *
There’s a lot of opportunity and you want to be a part of it. However, you won’t be the only one. One way for you to cut through the noise in the market is to focus on technology.
Outdated, cash-only machines are on their way out and smart machines such as our PicoCooler Vision and Stockwell are taking their place.
Smart cabinets and smart coolers allow for an eye-catching, modern look to vending, capturing the attention of possible customers without sacrificing security. Customers can see their selection through a glass door and that selection can vary drastically depending on the operator and what goods they chose to focus on selling. Once the consumer authorizes payment, they can open those doors and explore the products and their ingredients instead of waiting for them to fall from a traditional vending machine spiral. These machines allow for larger, high-value items to be offered thanks to their open-space design.
Not only that, but they can help improve your vending sales over time.
How Can I Improve Sales for My Vending Machine Business?
Think about how you pay when you’re out and about. How often do you carry cash? More importantly, how often do you pay with cash? Nowadays, this move away from cash payments is commonplace and your vending machines should reflect that.
For example, our PayPlus Cashless Reader can be used in place of your current payment option and allows for credit card transactions. Our PayPlus Omni Reader is a versatile payment device that fits over your cash payment option and allows for cash and cashless payment options. Both payment options allow for mobile wallets such as Apple Pay and Google Pay.
Now that you know how customers are likely going to pay, consider the time it takes to restock items. After all, you can only sell the items you have stocked in your locations.
Don’t be afraid to hire help. Restocking units takes time and the more units you have, the more time it takes. If you’re interested in purchasing an already existing route like we had mentioned earlier, we would recommend you learn more about the route itself, such as how many people were working it and the time it took to service it.
How Much Does a Vending Machine Cost?
The question you’ve been looking forward to most. The answer is both straightforward and convoluted.
The adage of “You get what you pay for,” is highly appropriate for this question. Used coin/cash operated machines are out there and available for purchase starting around $1,000. There are other, cheaper, older options that are not recommended by anyone that has been around the vending business.
These machines require more care and maintenance than you can probably afford, especially if you are just getting into the vending business. If you do not know how to repair a vending machine, then you’ll spend time researching what is wrong and how to fix the problem. That’s time taken away from restocking your routes, which as we covered above, is money taken away from your business.
Higher-end machines obviously cost more but require less care and maintenance. You invest more upfront to have fewer issues later, saving you time and money in the long-run. (You can always reach out to us for more information on the pricing of our machines and services.) We know firsthand that over time the higher-end machines are the more profitable option. If they weren’t, we’d be selling decades old coin-based vending machines.
We believe that the only time you should work on a vending machine is to restock it. Downtime on a machine means lost opportunities to make a sale, which leads to downgrades on your initial investment. At 365, we have the tools and support to ensure all of your machines are up and running. Software such as ADM tracks machines for you, ensuring they are running and stocked appropriately. We also have a 24/7 customer support team located in The United States ready to help for any reason at all.
Do you Need a License to Start a Vending Machine Business?
Absolutely. You will need a business license curated by your local government. Also, you will need permits to place your machines. A licensing fee may also be determined by your local health department based on local governments. Please check with your local health department and governing offices or visit their respective websites for more information.
Ready to Start your Vending Machine Business?
We hope this article has shed some light on what it takes to get your vending machine business started. You can always reach out to us on LinkedIn, Facebook or Instagram for any more questions. If you are interested in starting your own vending business, there is no better time than right now. Gather as much information as you can and start your plan of attack. Understand your options and what it takes to make your operation a success. Good luck!
*Business Wire. Oct 11, 2023 -https://www.businesswire.com/news/home/20231011692959/en/Global-Vending-Machine-Operators-Market-Report-2023-2027-2032-Leading-Companies-are-Looking-to-Exploit-Cashless-Payments-IoT-Artificial-Intelligence-and-Big-Data-Analytics-to-Boost-Sales---ResearchAndMarkets.com