Did you know the global vending machine industry is forecast to reach $25.25 billion by 2027, up from $18 billion in 2018?
If you’re planning to invest in a vending machine business, it’s clear you’re entering an industry that’s thriving and expanding. However, this alone isn’t enough of a reason to make an investment. A thriving industry doesn’t necessarily mean your investment will be successful.
The good news is that starting a vending business has other solid benefits. In this guide, we’re telling you why you should open the purse and make the investment.
1. Plenty of Franchise Opportunities
When you’re starting a business, you have two basic options: start it from scratch or acquire a franchise.
While both options have their own advantages and disadvantages, franchising gives you a better shot at success. You’re buying into a proven business model, so the risk of the enterprise failing because the idea isn’t commercially viable is low.
In the vending machine industry, there are plenty of established companies offering franchising opportunities. All you need to do is research and find the one that best suits your goals and objectives as an entrepreneur.
For example, if you’re into health and wellness, how about investing in a healthy snack vending business? In this case, Healthy You Vending is one of the potential franchisors you should be considering. You can find Healthy You Vending reviews to learn more about the organization.
Keep in mind that buying a great franchise alone isn’t enough to make your investment profitable. You still have to satisfy other fundamentals of running a successful vending machine business, such as choosing the best locations for the machines.
2. Lower Start-Up Costs
Businesses have different startup capital requirements. Whether you’re starting from scratch or buying a franchise, you need a substantial amount of money.
Getting started as a vending business owner isn’t as capital-intensive as other types of business. That’s because you won’t incur a lot of money in rent, which is one of the biggest costs for most businesses. Vending machines only occupy a small space (about 2-3 square feet of floor space for most machines).
Plus, you can strike commission-based deals with various location landlords, including private offices, schools, and malls, to install your vending machines. Some businesses, for instance, want their offices to have in-house vending machines as a way to provide a better workplace environment for employees. You’ll install your vending machine without paying any rent, but in exchange, you’ll pay a percentage of the revenues generated from the machine to the location’s landlord/owner.
Another major cost you’ll avoid when running a vending business is labor. You won’t hire a worker to tend to each vending machine since the machines are self-operated. However, depending on the number of machines you have, you’ll need to hire a few workers to restock the items and service the machines.
That being said, be sure to crunch the numbers and know your startup costs before you start a vending business. Don’t just assume that because startup costs are typically low, you can start out with any small amount you have. Most small businesses fail because they run into cash flow issues, so ensure you’re starting out with adequate capital.
3. A Source of Passive Income
Would you like to make money while you sleep? Most people dream of having a passive income, but only about 20 percent of Americans have pulled it off.
Investing in a vending machine business is an ideal way to earn a passive income. Yes, it’s a business at the end of the day, but it requires minimal input in terms of your time and energy. Modern vending machines have advanced software that keeps track of everything, so you don’t have to visit your machines every other day to ensure everything is okay.
This also effectively means a vending machine business is ideal for everyone. Whether you’re a student, full-time employee, or even retired, you can own a profitable vending business without interrupting your schedule or day-to-day life.
4. Sell Anything (As Long as It’s Dispensable)
A vending machine can dispense a wide range of items from drinks to snacks, lottery tickets, cigarettes, and postcards. This versatility gives you the freedom to sell whatever you want, as long as the location is ideal. If an item isn’t doing well, you can try out a different item and see if it works.
Though, your freedom to sell anything in your vending machines can be limited by certain factors. For example, if you bought a healthy snacks franchise, you’ll typically only be allowed to dispense healthy snacks, otherwise, you’ll be in violation of the franchising agreement. Some franchisors may even require you to only dispense products from specific brands.
Some locations can also restrict what you can dispense. If you have a machine installed in a learning institution, for example, you may be restricted from dispensing alcohol and cigarettes.
5. Easy to Expand
A vending machine business is easy to expand. Just scout for new locations, acquire a new vending machine, install it, and voila! There are many success stories of people who started with one vending machine and now have thousands of machines across the country.
The ease of expansion means you won’t need lots of expansion capital all at once. As long as you’re expanding one location at a time, you’ll easily manage it.
A Vending Machine Business Is a Good Bet
Vending machines are indispensable in today’s world. Whether you need a cold drink on a hot day, a cigarette to calm your nerves, or a quick snack to keep your tummy occupied, there is always a vending machine nearby. As an investor, you won’t go wrong with a vending machine business. The benefits, as we’ve demonstrated, are aplenty.
