How To Start A Vending Machine Business

How To Start A Vending Machine Business - Background Info:

Did you know that a vending machine business is one of the fastest growing businesses in the country?

It's true, learning how to start a vending machine business is not hard and many people are starting a vending machine business to work on full time or part time.

Starting a vending machine business means being creative. A vending machine business is basically a business that places vending machines in businesses around them.

The vending machines can be anything from a simple gumball machine to a complex vending machine that dispenses specialty coffees.

It is wise to start off with a certain type of vending machine when you start your vending machine business before branching out into different types of machines. Once you learn one business you can quickly move to another.
Learning how to start a vending machine business may be your best decision regarding entrepreneurship. It is an easy business to break in to and if you have a little persistence and a personable nature you will do well in the business.

Of course, you will need to have the skills above to really shine in the vending machine business but with a little time and experience you will become more comfortable.

A vending machine business is fast growing and is offering people a great chance to make a nice income. Here are some skills you will need before starting a vending machine business:

Connections: It is a great thing to have some connections before starting a vending machine business. If you have connections with local businesses and stores you will be able to start quicker and get more money faster.

A working knowledge with vending machines: Vending machines have a habit of breaking or stalling so you will need to know how to fix them or have someone fix them for you quickly.

How To Start A Vending Machine Business - Tasks And Skills Needed:

Business Specific Tasks:

If you are planning to do all the business tasks or hiring or subcontracting tasks, here's a list of tasks that need to be attended to when it comes to the business side of running a vending machine business:

Bookkeeping

Accounting

General office

Industry Specific Tasks:

Same as above if you plan to do everything yourself or get help, here are some of the tasks necessary to operate a vending machine business:

Stock vending machines

Deliver and set up vending machines

Advertising and promotion

Pick up vending machines as needed/per contract

Repair vending machines as needed

How To Start A Vending Machine Business - Approximate Daily Hours Needed:

General Hours of Operation: - When your business is open - The vending machine business allows you to be your own boss, set your own hours, and schedule your day however you like.

Hours Needed to Prepare - Before Opening and After Hours Activities - Ordering vending machine stock, inventory management, delivery schedule/maintenance, website maintenance.

Number of Employees Needed To Run This Business:

Minimum Number of Employees -During the Start Up Phase: You can start this business yourself on a full-time basis.

Number of Employees - Once Your Business is Up and Running Successfully:

Website maintenance

Record/Bookkeeping

General office

Customer Service

Vending machine delivery and/or pickup

Vending machine stocking

Vending machine repair

Skill Requirements for This Business:

At the very least, you will need to have good time management skills, be self motivated, have general book keeping skills, and some limited people skills. If you have this and a dash of common sense, don't let me talk you out of anything.

Licenses:

If you go with a vending machine franchise, they will provide all licensing needed for your area as part of your package.

Approximate Minimum Start up Cost:

Bare essential: - The investment on a brand new vending machine business is in the middle because while you won't need to buy a store front, you will need to front the cost for the vending machines.

It's a business with a low barrier of entry which basically means anyone with $100 and a dream can start a vending business.

Minimal exposure - There are several ways to advertise for free but the best way is to stop into businesses and inquire and leave your business card and/or literature.

Necessary Equipment to Run this Business:

Necessary Start-Up Equipment & Supplies:

Computer

Printer

Cell phone

Website

Soda dispensers

Gum ball dispensers

Snack dispensers

Toy dispensers

Monthly Expenses To Consider:

Wages
Phone/cell phone
Internet access
Permits
Advertising/Marketing
Electricity
Water

Special Requirements and Considerations For This Business:

Find out all you can about the trends in the industry. Know your competition, in particular, their strengths and weaknesses. This will help you identify your competitive advantage. In other words, this will help you figure out what you can give your customers that they're not getting from the other businesses. And keep from emulating the competition's strategy. Instead, make the most of your own advantage points.
It is wise to start out small, maybe buy one or two soda vending machines, and then start buying more as revenue starts coming in. You will also have to invest in products, depending on which type of vending machine business you have.

Pros And Cons of Opening A Vending Machine Business:

The Pros of Running a Vending Machine Business:

It's fun

You get to meet a lot of people

You can set your own schedule

The Cons of Running a Vending Machine Business:

Lots of competition

You need to have a vending machine business develop slowly over several years or investing a large amount of money upfront to get started

Type of Customers You Need to Attract:

Any type of business or organization is a good fit for customers. In addition, you can provide vending machines for special occasions such as birthdays and other children's functions.

Vending Machine Business Statistics:

See Valuation Resources for current vending machine statistics.

Revenue:

Vending is a numbers game; this is very true in bulk vending, but less so in full service vending. By this I mean you will need a lot of bulk vending machines to make any decent money.

What's a lot of bulk vending machines and what is decent money? Consider that an average bulk vending machine makes $7. per month per head, so a triple machine is expected to make $21 per month.

Mind you, this is gross not net.

Add in anywhere from 20%-35% cost of goods and you get a general ball park. And this is given as an industry standard for bulk, not everyone will achieve this goal.

My experience is that $5. per head is more likely.

Vending Machine Business Resources:

Industry-Specific Websites:

Vending Machine Connection

Vending World

1-800 Vending

Courses:

The Vending Start Up Kit

Equipment and Supplies:

Vending Machine Connection

Vendstar

Gum balls

UTurn Vending

Forums:

Vending Chat

Franchises:

Gum balls

Kiddie Castle

Yo! Naturals

h.u.m.a.n. Healthy Vending

Associations:

Vending Connection

NAMA

Books:

Small Change

My Vending Secret

Other:

The Vending Machine Business