How to Run a Vending Machine Business

The vending machine industry is a multibillion-dollar industry and continues to grow. Society is more fast-paced; people need stuff on the go and they don't always have time to wait on line at the grocery store or deli. Even small gumball vending machines can turn a great profit for a vending machine business owner. An investment of a few pennies per gumball can bring a return of 900 percent or more when sold for a quarter. In addition to profits, a vending machine business can offer the owner a more relaxed and enjoyable lifestyle when operated properly.

Things You'll Need

• Vending machines
• Product to sell
• Standard contract
• Brochure designed
• Car or van
• Coin-counting machine
• Paper coin holders

Instructions

1. Determine what types of products you want to sell. Will you sell food, drinks, candy or a more creative in-demand product such as CDs or DVDs? Examine the potential profit margin of each type of product.

2. Decide on at least 20 potential high-traffic locations in a 25-mile radius that would be receptive to a new vending machine containing your chosen product. Check out the competition in your area. It doesn't make sense to try to put yet another soda machine next to two others selling the same products.

3. Draw up an official contract and a brochure related to your new vending machine business. These materials will be for presentation to owners at your desired locations and should identify the product, have pictures of the vending machines, and tell the owners how much they will make from having these machines in their stores. Visit the owners with the contract and brochure in hand, talk to them about having your vending machine in their store, and then leave the materials with them along with your business card. Chances are, if you did a good job of presenting yourself, you will get responses.

4. Buy vending machines that fit the product you are planning to sell; you can order machines online or through a distributor. Get used machines whenever possible since they are usually just as reliable for a lesser cost. You can also have a special vending machine manufactured according to your needs.

5. Buy the products that you will be selling in your vending machines. You can go to BJs wholesale club or Costco to find small food-related items like gumballs, candy and sodas, or work with a distributor that carries your desired items.

6. When your vending machines arrive, transport them to the stores as soon as possible and fill them up with the product. Put an 800 number up on the machine for customers to respond when they have problems with the machine.

7. Visit your vending machines at least once every two weeks to restock the machines and collect money. Pay the owner of the store either biweekly or monthly according to your arrangement. Since you will probably have to deal with a lot of coins, you will need to use your coin-counting machine to properly package the coins for deposit at your bank.

8. Respond to customer issues regarding the machine promptly. The owner of the store is not responsible for problems with your machines. Do a test run of each machine whenever you come to refill them by buying a product.

Tips & Warnings

• Make sure that there is some type of warranty on the vending machine you are buying. Repair costs can be expensive. Some banks (like TD Bank) and major chain supermarkets have machines that will count the coins for you (such as Coinstar machines).

• Don't go to your bank with thousands of quarters in a bucket. It is your responsibility to count and package the coins properly. Don't let your machines go unchecked for more than a month.