When it comes to running a vending machine business, you need to carefully consider the type of machines you want and exactly what you want to sell.
It may be wise to stick to a popular niche and sell products that have proven popular and have a track record of success. However, some entrepreneurs have also done very well trying new concepts and have become pioneers in their introduction.
Let’s take a look at the variety of products sold in vending machines, both regular and unconventional, and the profit potential of some of these products.
Food, snacks and drinks
According to the National Automatic Vending Association (NAMA), canned beverages account for 40% of the general vending market, snacks for 19%, food for 10%, hot cup beverages for 8% and cold drinks in cup 8%. Snacks and beverages account for a total of 85% of the vending market in the US.
While the opportunities are plentiful, many experienced operators find that it can be labor intensive as the products are bulky and must be restocked frequently. Profits can also be quite low due to low prices for products in this area. Even if you increase 100% of the purchase price, it can be difficult to make money unless your machines are working really well.
More experienced traders report that junk food and soda options are much more popular than health bars and fruit juices. So unless you are in a school or out of a gym then you may be better off with the former as it has proven to be more profitable.
Bulk gum balls and candies
Bubble gum balls and other carefully selected treats can offer much higher markups than the purchase price. A bubblegum ball that can cost three cents can be marked over 700% and sold for 20 cents or more. Although we are only talking about a small amount of money here, one of these machines can hold thousands of gumballs.
These types of machines don’t have to be restocked frequently, and when they do, the owner can usually make more than $ 500 in near-pure profit. Candy machines can be adapted to any location, although they are best suited for areas with many children nearby.
An interesting candy-related niche that some operators are entering is that of small machines in restaurants that sell mints “after dinner” to guests.
Cigarettes
Cigarettes have traditionally sold well through vending machines in the right places and currently represent 2% of the vending industry according to NAMA. However, the market is changing lately with the gradual introduction of more anti-smoking regulations and therefore the cigarette sales business does not look like it has a bright future.
Toys & Stickers
Toys and trinkets that kids love, like inflatable balls and stickers, can also have an incredibly high markup and don’t need to be restocked as often. In a place with a lot of “young family” traffic, these types of products can work very well.
Newspapers
Newspapers need to be restocked daily, of course, as no one would want to buy yesterday’s newspaper. This makes newspaper vending machines a poor proposition for most vendors who would prefer to restock less frequently unless the location has a high volume of foot traffic. Good places to sell newspapers include busy street corners, train stations, and airports.
Bathroom related products
In the right environment, products such as soap, sanitary napkins, condoms, and perfumes can be sold from small units attached to bathroom walls.
Arcade and video games
The entertainment market is huge and many entrepreneurs choose to specialize only in this area. With the forms of entertainment sold, there are generally no product costs involved and the machines never have to be restocked, making this sector quite lucrative for those who know what they are doing.
Other products and services
Other products and services sold through vending machines include CDs, cameras, pantyhose, Internet services, DVD rentals, and photos. The Japanese, who are often the world leaders when it comes to vending machines, even sell cans of beer through machines.
An example of an exciting new vending service concept is conducting breath alcohol tests through a machine and placing them in or around bars or nightclubs.
New vending concepts are coming in all the time and big profits can be made if you can jump into a new idea at the right time. But at the same time, new business owners would do well to focus on vending machine products that make up the majority of market share, such as snacks, candy, and beverages, as these are proven winners and are more likely to be. succeed in any given location. .
Basically any product or service should eventually be able to be offered through a machine at a favorable cost and with the greatest convenience. The vending machine industry definitely has a bright future.
