The vending machine business is one of the most attractive businesses you can consider starting. It offers a unique blend of convenience and innovation, and opening a vending machine business is an easy way to get into entrepreneurship or start a side hustle. According to statistics, the average sale for vending machines in the U.S. is more than $7 billion, with approximately 56% of products sold from the machine being cold drinks.
However, like any other business, running a vending machine business comes with pros and cons, that we’ll discuss in this article.
Are Vending Machines a Good Business To Own?
According to experts at Healthy YOU, owning vending machines is a good business. These machines provide one of the best ways to make a passive income and require a relatively low start-up cost.
Another incredible thing about a vending business is that you have total control over your business growth. However, this total control depends on the number of machines you invest in and the amount of time you dedicate per machine.
Is Owning a Vending Machine Business Profitable?
Yes, a vending machine business can be very profitable. A single vending machine earns over $75 a week and over $300 per month. Depending on the number of vending machines you plan to own and the kind of inventory you will stock, you can make a great amount of money with little investment and time.
What Are the Pros and Cons of Owning a Vending Machine Business?
As stated above, the vending business is like any other venture, so it comes with its own set of advantages and disadvantages. Here, we’ll expound more on the pros and cons of the vending machine business.
Pros of the Vending Machine Business
Easy to operate
The vending machine experts at Healthy YOU establish that vending machines are incredibly easy to run. You only need to place the machine in a busy area, such as in a school, hospital or next to an office building, and then stock it with popular products.
In addition, you will only need to visit the machine’s location when it’s time to replenish your stock or maintain the machine. Therefore, you can run this business from anywhere.
A vending machine business is a low-risk investment, especially if you start small. Starting small ensures that you reduce financial risk. By starting with only one machine, you learn how much you can make with one vending machine. If your selected location earns significantly, you can invest more by adding other vending machines to your portfolio.
Operate 24/7 sales
A vending machine operates 24/7, meaning it’s always available and ready to do business as long as there are willing customers. This round-the-clock operation ensures you can make money irrespective of the time of the day, enhancing the profitability of the vending machine business. It also boosts customer satisfaction and offers a competitive advantage.
Unlike most ventures that need to run for a while before they start making a profit, a vending machine business can start earning a considerable amount of profit in several months. You can generate a steady income every week, provided you have a lucrative location with a lot of foot traffic.
Cons of the Vending Machine Business
Vandalism and theft
If unattended or not properly monitored, vending machines are usually prone to vandalism and theft. This can result in financial losses and possible damage to the machine. Ensure you place your machine in a location that is secure and within the sight of staff.
Required leasing agreements
You must have a leasing agreement to place your vending machine on any property. These agreements can be a monthly flat fee or any other financial agreement. You should also note that these lease agreements will take up a portion of your business sales.
Take a hands-on approach to business operations
Even though the vending machine business allows flexibility to operate, you will still need to take a hands-on approach toward its successful operation. Your vending machine will require your attention and time. As an example, you will need to monitor, restock and maintain it regularly.
Since customers expect your machine to be ready to dispense products at all times, you might lose your location if it is not properly stocked. It may also require more attention depending on the types of products your machine dispenses.
The vending machine business is a good business to own. It is easy to run, flexible, profitable, promises a low-risk investment and allows 24/7 sales. However, its profitability depends on the scale and location of your business. Therefore, always choose a high foot-traffic location for your vending business.