Buying a Vending Machine Business in 2021: Pros and Cons
Buying a vending machine business can mean buying an existing business in operation or buying the rights to open a franchise, where you still need to establish vending locations.
Many enticing advertisements claim low start-up costs with low overhead, but there are both pros and cons to buying a vending machine business.
When considering buying a sales business or franchise, consider the initial investment, marketing strategy, and your ability to maintain units in various locations.
Types of Vending Machine Businesses
A wide variety of vending machines exist for the potential owner. When most people think of vending machines , they imagine the candy and toy vending machines at the exit of supermarkets or the candy and soda vending machines found all over the place.
But gumballs, stickers, sodas, and candy aren’t the only options when it comes to vending machines.
Refrigerated vending machines offer snacks and lunch items. People can buy necessities from toiletry vending machines in public restrooms and even rent videos from vending machines.
Airports have electronics vending machines that sell headsets and wireless chargers. Find the type of products you want to sell, then look at the costs associated with starting the business.
Advantages of buying vending machines
Low entry cost. One of the main attractions of buying this type of business is the low start-up cost. You can pay as little as $150 to $400 per machine plus inventory to get started.
Franchise opportunities make it easy to purchase products like gumballs in bulk and not have to find product distributors. You can start small with a few locations and build as you establish income.
Established locations. If you’re buying an existing vending machine business, your start-up costs might be higher than when buying a few machines as a new franchise.
However, your purchase will come with established locations and a good understanding of existing cash flows. When someone sells a business, be sure to ask why. If that person is retiring or no longer able to store and manage machinery, they are a good candidate to buy.
Someone who struggles with locations and income is not your ideal choice. When buying an existing business, get all the financial information about each location, as well as the age of the machines and the contract for each location.
Buying a Vending Machine Business in 2021: Cons
Slow start. When starting a franchise vending machine business, be aware that it takes time to place machines in locations and generate revenue. Sometimes the margins are very low, so it will take some time before you see real revenue.
Transporting machinery also requires large vehicles or trucks. Make sure you have the resources to get machines and products in and out.
Replenishment schedule. Storing machines can get tedious, especially if you have a lot of them. If you can’t do it yourself, you have to hire someone. Companies allow you to install your machines there, hoping that they are filled regularly and in working order.
You risk losing slots if you don’t store and maintain the machines properly. Some machines need more replenishment than others. For example, a lunch and snack machine should be replenished daily before lunch.
If you can’t meet this schedule, look for a vending machine product that doesn’t require as much attention.
Vandalism. Vending machines are notoriously the target of vandalism. It is imperative to find quality locations where the machines are within sight of personnel or in secure locations.
If you’re buying an existing sales business, you might be locked into locations you don’t want due to previous contractual relationships. Understand your options to keep your machines safe.
Use our Contact page to discuss new vending machine opportunities with us. The novelty is the vending machine for fries!
Buying a vending machine business in 2021 is the future of this next decade!