Vending machines have grown to become a mainstay in our modern world, and they can be seen virtually everywhere. However, when it comes to starting a candy vending machine, there is a lot to think about.
You want to take into consideration the fact that there are millions of machines in the U.S. alone—and the vending machine industry generates over $23 billion in annual revenue. Aside from its very encouraging profitability, starting and running a candy vending machine business is quite common.
It has proven to be a wonderful weekend side hustle, a low startup-cost business, or a valid means to widen your portfolio. Howbeit, also note that it comes with its own pros and cons. While it might seem a great opportunity, keep in mind that it may not be for everyone.
Pros and Cons of Owning a Candy Vending Machine Business
Pros
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Quite easy business to manage
It is considered easy to start and manage a candy vending machine business. You only have to place or mount a machine somewhere that has the right audience and encourages customer footfall. Don’t forget to stock it with popular candy.
Afterward, collect your money on a regular basis and take time to ensure that your inventories are replenished on a consistent basis.
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You can get 24/7 sales
This particular business tends to encompass machines that are steadily operating. This means that you can make a sale at any time of day.
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You can sell almost anything with a candy vending machine
Aside from candies, there are other products you can also sell to boost your income. Keep in mind that it is possible to sell fresh apples or even anything you’re passionate about through a candy vending machine. This makes it very possible to have fun with your job while making available to your community a resource that they may need.
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You get to be your own boss
Note that in this line of business, you can set whatever hours you want. It is also possible to leave your vending machine unattended for a day or two so you can take a mini-vacation. This business makes it realistic to work as much or as little as you want.
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Not many regulations or licenses needed
There aren’t many licenses and authorizations needed to start and run this business. You’ll more or less be expected to obtain a license to operate a candy vending machine. In certain places in the United States, your machines will also have to be inspected from time to time.
You can easily own and manage this business as a sole proprietor if you like, as long as you have insurance protections in case something goes wrong.
Cons
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High capital costs
High-quality vending machines generally start at $3,000. If you want yours to feature a cooling unit that makes it possible to serve other chilled items, then you will have to budget around $3,600. You will also put money into obtaining the necessary inventory for the machines.
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Leasing agreements requirements
In most places, business owners will want some sort of leasing agreement before they can allow vending machines on their property. It will most often warrant you making available a portion of each sale to the business as a royalty, a monthly flat fee regardless of how much is sold, or some other financial arrangement.
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Little or no ongoing security
Despite the cameras overseeing the vending machines, there is little or no active prevention against theft. Owing to that, a good number of businesses in this field prefer to lock up their machines behind gates so that only the money slots and the choice area become accessible to customers.
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Handling heavy cash business
Most modern vending machines tend to feature credit card readers; however, you will also find cash-only machines. Since you will majorly be dealing with products that can be purchased with pocket change, you’ll have to always deal with a huge amount of coin deposits, and this form of money sometimes has a surcharge that comes with it.
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Transportation and service costs
Vending machines usually run every day, so you’ll need a good vehicle to make that happen. Aside from that, you will have to deal with everyday transportation costs and expenses for maintenance.
Conclusion
A candy vending machine is without doubt a very viable business to start. Aside from its surprising profitability, this business is known to be very versatile. However, it is essential to note that owning a candy vending machine business comes with its own pros and cons.
Even though the initial investment can be quite high, over time, it is very possible to potentially make some good money with this sort of business.