Averagely, a vending machine costs between $1,000 and $6,000 for those who are looking to buy just one machine. If you are just starting the business, it will be best for you to buy one or just a few especially if you haven’t found so many established routes to put the vending machines.

It is however important to note that the more vending machines you have, the more revenue you are likely to generate and the more problems you are also likely to encounter. Also, even though this might be the amount you will need to buy the vending machines, you will also need more capital to stock the machine and handle other logistics.

When looking to buy a vending machine, it is important that you are very careful as deals that sound too good to be true may end up costing you a lot. Even though there are many benefits to buying a vending machine; it is important that you do a thorough research before you pay for a new or used machine. If you are going to be buying a used vending machine, ensure that you cultivate a professional or personal relationship with the owner.

This relationship will enable the owner of the machine to be more honest about the state of the vending machine that is being sold to you. It might not be possible however to cultivate any sort of relationship with the person or company that is looking to sell the vending machine, so in this instance, you need to take certain factors into consideration.

While this might look like an easy enough business to start, it requires dedicated planning and hard work, because it is more than simply installing a machine in a location and hoping to generate lots of revenue. Most people that usually buy a vending machine are those looking to own a business but do not have enough capital to rent a facility and bear other overhead and running costs.

7 Factors to Consider When Buying a Vending Machine in 2022

Even though vending machines are beneficial in places where there is enough foot traffic, it is however vital that you consider other factors when looking to buy one so that you do not end up making the wrong investment. Some of the factors you should take into consideration are:

1. The need for the machine

Even though getting a vending machine is a good investment, it is important that you are sure of your decision in wanting to buy one. You shouldn’t buy a vending machine because others are doing so or because someone told you to; the decision should come out of the conviction that you need a vending machine in order to be able to achieve your purpose.

2. Should you buy an existing vending machine?

If you buy an existing vending machine business, you are likely to have leverage over one who is starting from scratch. However before buying any exiting vending machine, ensure that you know why the owner is looking to sell. The important thing is to ensure that the machine you are looking to buy meets your needs.

3. Ease of use

The ease at which the machine can be used is a very important factor to consider especially if you are looking to have little children operating the machine. This means that even though you might be tempted to buy vending machines that come with a lot of gadgets and knobs, if most of your customers cannot operate it, it will lead to a loss of revenue for your vending machine business.

4. What packages are being offered by your supplier?

Some of the machine suppliers usually provide the buyer with a contract of where they are going to refill, carry out maintenance and also take care of other matters regarding the machine.

5. What locations are best?

In looking for where to locate your vending machine, you should consider schools because not only will you have high and consistent traffic for at least 5 times a week, you will find that there are a lot of students who don’t take snacks with them from home and so will need to buy from your vending machines. Other locations that you should take into consideration as they can yield good revenue are office buildings, hospitals, recreation centers and YMCAs.

Ensure that the location you intend to choose does not have a high crime rate or incidences of vandalism and theft as these factors are likely to quickly deplete your profits. Ensure that whatever location you choose have high visibility and are in view of security cameras.

6. What commission rates to consider

The fact that a vending machine business is averagely considered as successful doesn’t mean that it could turn out to be a failed investment if you do take your time to carefully plan the business. Thought you will not be renting a physical location to run your vending machine business.

But majority of the locations where you intend to install the vending machines will expect to receive commission of between 15 percent and 30 percent in exchange for space. Whatever commission you negotiate on should be one that takes location and amount of traffic into consideration. You can also offer a higher commission in exchange for exclusivity within a location.

7. The profitability of the business

The profitability of your business will be largely dependent on the location you have installed your vending machines. A successful vending machine business is one that is in an area that has a lot of foot traffic with little or no competition from those selling food or drinks. Also, ensuring that you competitively price your product will ensure that you have better margins and therefore make more profits from your business.

In Conclusion

You should note that the cost of a vending machine might however vary depending on where the entrepreneur is looking to buy the machine from and the cost of transportation to the required location. Also, the fact that you are starting a vending machine business does not mean that you should quit your regular job as a vending machine business can be run alongside a day job.

Frequently Asked Questions

1. How Much Profit Can A Vending Machine Business Make?

A vending machine business can make over $75 in a week, or more than $300 in a month

2. What Are The Ongoing Expenses of A Vending Machine Business?

The Ongoing expenses for vending machine business are the following;

  • Inventory and supply costs
  • Maintenance expenses
  • Vehicle (costs) charges
  • Vending machine repair
  • Equipment purchases
3. How Much Can You Potentially Make Owning A Vending Machine Business?

A vending machine owner may earn about $8,000 or more per year.

4. Do You Need An Llc To Own A Vending Machine Business?

It is not really necessary to describe your vending machine business as an LLC, but it can be recommended.

5. What Should I Look For When Buying A Vending Machine?

The following are to be considered when purchasing a vending machine business;

  • The location is important
  • Safety
  • The size
  • The flexibility
6. What Happens During A Typical Day At A Vending Machine Business?

A typical day at a vending machine business includes these primary activities;

  • Ordering supplies
  • Receiving supplies
  • Loading the machines with supplies
  • Maintaining and servicing broken down machines
7. What Is The Growth Potential For A Vending Machine Business?

The vending machine business was valued at $18.28 billion in 2019, anticipating to get up to $25.25 billion by 2027.

8. How Much Does It Cost To Start A Vending Machine Company?

To start a vending machine company will cost about $2,000 to $3,000 on a mechanical machine and $3,000 or more on an electronic type. Many vending machine operators recommend buying used or refurbished machines, which you can be gotten form the range of $1,200 to $3,000.

9. Will The Seller Of The Vending Machine Deliver And Install It For You?

No! The seller doesn’t deliver nor install for vending machine for you.

10. What Are Some Insider Tips For Jump Starting A Vending Machine Business?

Consider the following tips before starting a vending business;

  • Select the best startup option
  • Establish a good customer service
  • Make a right decision, if vending is right for you
  • Choose the right equipment for your business
  • Look out for a well secured vending machine locations
  • Select the best products to put in your vending machines
11.  What Are Most Vending Machines Selling Right Now?
  • Clif Bars
  • Sun Chips
  • Pop-Tarts
  • Granola Bars
  • Snicker Bars
  • Granola Bars
  • Planters Trail Mix
  • Reese’s Peanut Butter Cups
12. How Many Potential Customers Might Purchase An Item From a Vending Machine?

About 4.64% of potential customers.

13. What Are Some Skills And Experiences That Will Help You Build A Successful Vending Machine Business?

Some basic skills are;

  • Accounting skills
  • Knowledge and understanding of business practices
  • How to fix and repair vending machines
  • Good knowledge of books on starting a vending machine business
14. What Is A Successful Vending Venture Really Built On?

Any successful vending venture is built on the limited liability company (LLC) because it is usually the best option for a vending machine business. It is informal and flexible. Always assures sufficient legal and tax protections for the owner, partners and employees. It also secures personal property and finances against civil suit.

Ajaero Tony Martins