Being Your Own Boss With Vending Machines: Weighing the Pros and Cons
Thinking about getting into the vending machine business? Before you sign any contracts and buy inventory, you’ll want to read up on the pros and cons first.
Looking for a business that allows you to be your own boss — without requiring too much liquid capital?
Want to be able to make a living off of small change?
If so, then getting into vending machines might be the right choice for you.
Not only do vending machines give you 24/7 business hours, they’re also inexpensive to run.
However, it’s not always so easy.
In this article, we’ll break down the pros and cons of entering into the vending machine business.
From learning more about healthy options for vending machines to understanding the costs associated with the machines, by the end, you can decide if this business is a good fit for you.
The Pros of the Vending Machine Business
Once you’ve mastered how to get into the vending machine business, we know that you’re eager to learn more about why it’s such a good idea.
Though you might not immediately be able to make $2 million off your business, like the superstars at Tri-Star Vending in L.A. did, it can still be a lucrative gig.
Read on to learn why investing in vending machines is the right idea.
You’re Always Open
Most businesses, even in today’s e-commerce-centered world, still close their doors after night falls.
But in the vending machine business, you never take holidays — or any time at all — off.
This gives you a huge chance to increase your overall earning potential. However, it also means that you’ll need to perform more frequent service inspections/repairs/restocks on your machines.
However, unlike other stores that are always open, there’s a much lower cost towards keeping things going 24/7. This is because you don’t have to pay for things like health insurance, salary, and other employment costs.
It Doesn’t Require a Serious Time Commitment
In the era of the side hustle, people are always looking for ways to supplement their income.
Vending machines are a great side business to run, and you don’t even have to worry about customer interactions and complaints.
Your main operational costs will be paying someone else to restock and collect the money from the machine. Plus, because you can charge a higher profit margin on affordable snack items, you’ll be raking in the dough in no time.
There’s a Diversity of Vending Machine Products
These days, everyone is interested in maintaining as healthy a lifestyle as possible.
Vending machines have adjusted to that.
There’s no longer an option to only stock sticky doughnuts and processed foods.
Now, there are healthy options when it comes to your vending machine stock.
Companies like HealthyYOU have switched to more heart-healthy and lower calorie options — and vending machine businesses are seeing the benefits.
Click here to read HealthyYOU vending reviews, and to decide if lower-calorie options are the right choice for your vending machine business.
The Cons of Owning a Vending Machine
Of course, as with any business, there are two sides to every story. Owning vending machines may be an easy way to up your passive income, but that doesn’t mean that they don’t require serious work.
You’ll need to make sure you always have popular items in stock, pick the right location, and get them serviced frequently.
Read on to learn about the downside of getting into the vending machine business.
Location Influences Profit
If you want to increase your vending machine business profit margin, then you likely already understand just how much of a role location can play in making it happen.
You need to be certain that machines are installed in an intuitive, easy-to-access location. You’ll also need to find locations with large amounts of foot traffic.
Think places like train station platform, offices, high school cafeterias, and even state parks.
You’ll likely enter into the business already facing some stiff competition.
Make sure you switch up your snacks and products often to get a leg up, and start trying to secure the best locations possible before you make a huge investment on multiple machines.
Security Is Fairly Minimal
From people who shake your vending machines to those who just vandalize it and break the casing, security is a major concern in the vending machine business.
Because the cost of the items in the machine is so low, even CIA contractors have been guilty of stealing from vending machines. You need to think twice about how to account for incidents of theft before you decide to work in the vending machine business.
Things like installing dummy cameras, and putting the machines themselves in high traffic areas can help. But the truth is that security will always remain one of the biggest risks and hurdles in this business.
You May Need a Leasing Agreement
Last but not least, be aware that you’ll often need to create a leasing agreement for your vending machine space.
While in some cases, this will be fairly easy?
Other times, the place/business where you’re placing your machine might want a portion of your profits.
Make sure you only enter into terms that work for you.
Are Vending Machines Right for You?
We hope that this post has helped you to decide whether or not owning vending machines is the right move for you.
Though the business certainly isn’t without its challenges, as you can see from this article, it’s a low-cost business to run that doesn’t require much maintenance.
Looking for more ways to add to your current income, and interested in learning more about entrepreneurship?
We’ve got you covered.
Check out our website for more tips and tricks on owning your own business and making the most of it.