How to Start a Vending Machine Business

Find a suitable location. Talk to everyone you know in your community about your new vending business and ask for references. As with every business, the number one thing you need to succeed is a great location. If you have a good location, you can't fail. The type of location you find will determine the type of vending machine you need.

Buy the right vending machine at the right price. There are tons of different vending machines out there and they are all different. Narrowing it down to four main types, you'll find they consist of:

• Snack vending machines: These are machines that sell mainly food and are often placed next to a drink machine. The newer machines will often have credit card readers which are really easy to set up and can add great value to your machine.
• Soda vending machines: These are the most popular style of vending machine but may often times be old, outdated, and very limited on their abilities. You can steal a great location by being able to offer an updated soda machine that can vend the newer bottles, Red Bulls, water, Gatorade, etc. Offer credit cards and you will be bumped up a notch again.
• Combo vending machines: These are machines that sell both snacks and drinks all in one and take up much less space and energy. They work well in office settings or smaller businesses what don't warrant having two full size snack and soda machines.
• Bulk candy vending machines: These are your traditional gumball or M&M machines. They work best in malls, restaurants, barber shops, and the like; they are usually pretty easy to place.

Stock the machine with product. The number one question tends to be: "Where do I buy my product?" The answer to this is crucial to the success of your vending business. In the USA, it's a good idea to buy from such places as Sams Club or Costco if you have them in your area. Avoid the temptation to special order product that needs to be shipped to your house. You will always pay more this way and you'll have to pass that expense on to your customers, which means less money for you. It is also important to buy locally, so that you can get the popular items that everyone in that area wants.

Set your prices right. When deciding how much to charge for each item, you will need to consider your competition, as well as your customer base. As a general rule, mark your prices two to three times higher than the price you paid for it. For example, you can buy a small bag of chips at Sams Club for approximately 30 cents when buying in bulk. It is recommended that you would charge 75 cents for that product when in the vending machine. A candy bar costs approximately 45 cents, so you would charge your customers around $1.00 typically. Try to keep the prices in 25 cent increments, if possible and avoid dimes and nickels or else you may run out of change in you coin unit.