Vending Machine Business Information
Starting a vending machine business allows you to make residual income on a monthly, weekly or daily basis by strategically placing vending machines in high-traffic or target locations. The vending machine business, which has been around for decades, offer items as small as bubble gum to a hot cup of coffee. Starting a vending machine business allows low overhead and minimal start-up costs depending on your goals and willingness to maintain your business.
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Vending machine options
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People interested in going into a vending machine business should consider the type of products that will be sold. The items business owners choose to sell within vending machines will determine appropriate locations for the business. For example, you wouldn't want a coffee vending machine in an video game arcade. Knowing the product line also helps determine the start-up costs. Popular vending machine products include gumballs, candy, toys, stuffed animals, change, snacks and cold drinks.
Location
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Potential vending machine business owners must consider the location of vending machines. To make a profit, vending machines must be placed at high-traffic locations. Popular locations include malls, car dealerships, banks, schools, corporations, hotels and warehouses. Vending machine owners also may offer the property's manager a percentage of any sales from the location.
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Costs
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People interested in buying vending machines as a business need a working budget to determine how many machines the business can afford. Vending machines can be as low as $100 for a used gumball machine to more than $10,000 for a vending machine that sells cold drinks, candy and snacks. Financing is available through banks or vending machine suppliers when paying for one or more vending machines. To see a significant profit, you need more than one vending machine at different locations or one vending machine in a high-traffic, profitable location.
Profit and return on investment
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The amount a vending machine business owner can make each month varies. The number of vending machines, location and the product being sold determines the level of profit. For example, a business owner who buys three or four machines can make a monthly profit of $300-$400 a month and see a return on investment within four years.
Business and tax information
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Consider incorporating your business to offer financial and legal protections. Obtain a business license from the your state's secretary of state office. Record business costs of maintaining vending machines, transportation and supplies for deductions at tax time. Consult a lawyer or certified public accountant for more information.
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