How To Start A Vending Machine Business In Just 5 Steps? [2024]
Starting a business is one of the best things you can do to earn more money. However, considering you must invest time and money, it’s also among the riskiest. Therefore, learning how to start a vending machine business will help you make money fast!
You will find vending machines everywhere in the USA. vending machines are common sight in footpaths, bus stops, fuel pumps, and more. They have become a necessity everywhere for people needing potato chips or a bar of Snickers to satiate their hunger!
Therefore, read this post to learn how to start a vending machine business in just five steps in 2024!
Why Start a Vending Machine Business In 2024?
While vending machine businesses might not be one of the best small town business ideas in 2024, starting one can still provide you with a good source of income.
Therefore, here are some fantastic reasons why learning how to start a vending machine business might be a game changer:
1. Easy Setup
Starting a vending machine business is easier than other businesses.
The primary reason it’s easy to set up is that there’s no need to recruit employees for this job. In addition, you don’t need anyone near the vending machine to tend to your customer’s needs!
All you must pay is to register the business and purchase vending machines (which are expensive, though). Moreover, you only need to resupply the stocks of your vending machines once they run out of goods.
2. Easy Maintenance
Secondly, vending machines are the best, unlike other businesses that might require HRs and lots of time spent on resolving inter-employee conflicts.
You put money in them, and they give you what you want, easy and quick, without asking unnecessary questions. All you need to do is maintain them through regular servicing checks every few months.
Moreover, keep these machines filled with goodies to keep the money coming!
3. Flexible Margins
Depending on which products you wish to sell by learning how to start a vending machine business, your profit margins can be flexible.
For example, the profit margin per item will be lower if you sell FMCG (Fast Moving Consumer Goods) like packets of chips, cigarettes, or even soft drinks and juices. However, money will keep rolling since you will earn by selling more goods.
On the contrary, selling FMDG (Fast Moving Durable Goods) like chargers, headphones, small toys, pens, deodorants, cosmetics, etc., have higher profit margins. Since these products are meant to sell in lesser quantities than FMCG, you can keep a higher profit margin.
Therefore, depending on what type of product you wish to sell through your vending machines – and where you sell them, your profitability and turnover depend significantly on it. As such, you must choose the products you wish to sell carefully.
How To Start a Vending Machine Business In 2024?
Learning how to start a vending machine business in five steps isn’t too tricky. However, you must put in the time, effort, and money to see the money flowing in!
Therefore, follow these steps below to learn how to start a vending machine business in just five steps in 2024!
1. First, Conduct Market and Customer Research
The first thing you must do while starting any business is learning how to start a dropshipping business or a cleaning business- is to know the market in detail.
However, you must specifically focus on two segments of the vending machine market, which are:
I. The Regional Customer Base
Researching your customer base is necessary since it will help you understand their needs and preferences.
For example, through various surveys and market research, you can identify what products customers in your region are most likely to buy from vending machines.
Therefore, if you identify that vending machines selling electronic devices like earphones and chargers sell the most – you know what to sell now!
II. Your Competition
Once you finish researching your regional customer base, it’s time to shift your focus to your competitors.
Everyone knows that gaining knowledge is vital to winning the war. Therefore, in this war, to become the best vending machine business in your region, knowing what your competitors sell, their vending machine location and their marketing strategies are essential.
Suppose you look at successful vending machine businesses in the USA, like Pharmabox. They have made a name for themselves through proper branding and have become one of the first vending machine businesses to sell pharmaceutical products.
Moreover, businesses like Canteen made a name for themselves for providing healthy snacks in workplaces and schools.
Therefore, analyze the products they sell and the machines they use. Pair this knowledge with customer research. You will soon be able to find new, profitable ideas before you learn how to start a vending machine business!
2. Next, Select the Perfect Location
The next thing you must do to start a vending machine business is to find the right spot – or spots.
You cannot place a vending machine anywhere you want. As such, you must be strategic about it.
Therefore, you must choose an excellent location to set up your vending machine. This is why you must set up vending machines in crowded places where people will notice it – and open their wallets!
For example, you would want to avoid setting up your vending machine in a desolate street or the middle of a desert. Instead, you must set up vending machines in busy places near parks, hospitals, and retail hubs, where you will always find people.
Moreover, the right location also depends on the type of goods you are selling. For example, many hospitals and commercial buildings have vending machines for snacks.
Therefore, what you sell through your vending machines heavily depends on where you sell them.
3. Buy The Right Vending Machines
You are almost ready after knowing which products to sell and the perfect places to place your vending machines. However, do you know which vending machines you need?
You must purchase the appropriate vending machines depending on the type of products you wish to sell.
For example, the vending machines for packets and chips and Coca-Cola will differ from those used to dispense candies. The same can be said for vending machines for electronic devices.
Therefore, you must buy several vending machines in bulk. However, purchasing around five at first should suffice since you are just learning how to start a vending machine business. You can always install more as your business grows!
In the USA, you can buy vending machines from popular manufacturers like:
4. Register Your Vending Machine Startup
Now that your vending machines are ready, it’s time to register your new business.
Therefore, head over to the office of your federal registrar and complete all the necessary paperwork. This includes stating your business name and address to get your Employer Identification Number (EIN).
However, remember that officially registering your business can take some time.
Moreover, before registering your business, you must ensure you know which type of company you want to register as. This can be a sole proprietorship, limited liability partnership, or a corporation.
Recommendation: We recommend starting as a sole proprietor or in a partnership regarding vending machine businesses.
5. Stock Your Machines and Start Marketing
After you register your new vending machine business, it’s time for you to start the setup process.
First, set up your vending machines in critical public places (with permission). After you do so, it’s time for you to contact suppliers in your region. Leveraging supply chain consultants is necessary to ensure that your vending machines are instantly packed once they become empty.
It would help if you started marketing your business once you finished installing and stocking your vending machines. Therefore, you must begin marketing your business through social media, like Instagram and TikTok.
However, it would help if you remembered that you are not marketing to people so that they buy from your vending machines.
Instead, you will primarily conduct B2B marketing since you want your vending machines to be available inside schools, colleges, corporate offices, and other private places.
Bonus: Continuously Repair and Maintain Machines
Congratulations! You successfully learned how to start your vending machine business in 2024 in just five steps!
However, your journey doesn’t end here. You must hire a few employees to maintain your vending machines and ensure they perform flawlessly. After all, you don’t want the can of Pepsi to not come out after paying for it, do you?!
Bottom Line
Learning how to start a vending machine business in 2024 in just five steps isn’t easy, but it will be worth it in the end!
Vending machine businesses might be less profitable in 2024, but its lower setup costs and easy maintenance make it quite a venture. Moreover, as your business expands and you install more machines and products, your profitability will sharply rise over time!
Thanks for reading this post! If you need any help, please comment below! Moreover, please share it with others interested in learning how to start a vending machine business in 2024!
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