How to start a vending machine business

How to start a vending machine business, step by step

1. 01

   Find a location before a machine

   A machine in the wrong place earns nothing, and moving it costs a day and a truck. Walk the places where people wait or work long shifts: auto repair shops, gyms, apartment laundry rooms, warehouses, hotel lobbies. Count how many people pass in an hour and ask what they buy now.

   Look for a site with no machine at all, or with a machine that's empty or broken. Those owners already know what a working one is worth to their staff and customers.

2. 02

   Agree the commission in writing

   Most site owners expect a share of sales in return for floor space and power. Write down the percentage, how often you pay it, who pays for electricity, how much notice either side gives to end it, and whether you're the only vendor on site.

   Keep it to one page both of you sign. A handshake deal is the most common way a good location disappears when the manager changes.

3. 03

   Pick the machine for that spot

   Snack-only machines are the cheapest to buy and run. Combo machines sell chips and cold drinks from one cabinet, which suits a small break room with space for one unit. Refrigerated food machines sell more per sale but need more frequent visits and stricter dates.

   A refurbished machine from a dealer that offers a parts warranty is the safer first buy. A private sale is cheaper, but you inherit every fault and no one fixes the coin mechanism for you.

4. 04

   Add a card reader on day one

   Many buyers carry no cash, and a cash-only machine loses those sales without telling you. A cellular card reader takes cards and phone wallets, and the better ones also report what sold and when, so you can restock without opening the door to count.

   Check with the seller that the reader fits your machine's board before you order, and ask what the per-sale processing fee will be at your prices.

5. 05

   Register and set your prices

   Get your EIN from the IRS, which is free, and a sales tax permit in your state. Texas charges no fee for the permit and requires a sign on each machine saying the price includes sales tax.

   Price from your cost per item, the site's commission, card fees and your time on the route. Round to prices a reader handles cleanly, and check what the nearest store charges for the same drink.

6. 06

   Build a restocking route

   Buy stock from a warehouse club or a vending distributor, and keep a small shelf of your top sellers at home. Visit on a fixed day so the site owner knows when to expect you.

   Use the reader's sales report to swap slow sellers after two weeks. A slot holding something nobody buys is rent you pay for nothing, and the site owner notices a machine full of the same unsold snacks.

7. 07

   Put up a page that wins locations

   When you pitch a gym manager or a property company, they search your business name. A simple site with what you stock, the machines you place, how service works and a request form for new locations makes you look like a vendor, not a stranger with a dolly.

   Put a short number or link on each machine for refunds and product requests too. It saves the site owner from fielding complaints for you, and requests tell you what to stock next.

What it costs to start a vending machine business

What it costs to place one machine. The cheapest way in is one refurbished snack machine with a card reader at a site you've already signed.

Your first 30 days

1. Week 1

   Scout and pitch locations

   • List twenty workplaces nearby where people wait or work long shifts.
   • Visit ten in person and ask who decides what goes in the break room.
   • Note foot traffic, power outlets and what people buy there now.
   • Get your EIN and apply for your state sales tax permit.

2. Week 2

   Sign one site

   • Offer a one-page agreement with commission, power, notice and exclusivity.
   • Measure the doorway and floor space before you choose a machine.
   • Put up a simple site with your stock, service area and request form.

3. Week 3

   Buy and set up

   • Buy a refurbished machine sized for the site, with a warranty.
   • Order a card reader that matches the machine's board type.
   • Stock it from a warehouse club with the site's top requests.
   • Post the price-includes-tax sign and a refund contact on the front.

4. Week 4

   Tune the route

   • Check the reader's report and swap the two slowest sellers.
   • Pay the first commission on time and ask for a referral.
   • Pitch the next three sites using the first one as proof.

Build your vending business site

Frequently asked questions

How do vending machines make a profit?

Each item sells for more than you paid for it, and the gap pays the site's commission, card fees and your time restocking. Profit comes from a busy location and a short route, so the machine sells enough between visits to cover the drive.

Are vending machines still profitable?

They can be, at the right location. A machine in a busy workplace with no nearby store sells every day; the same machine in a quiet lobby barely covers restocking. Card readers help, since many buyers carry no cash.

Can you legally put a vending machine anywhere?

No. You need the property owner's permission, ideally in a signed agreement, and a sales tax permit where you sell. Some cities and buildings add their own rules, so ask the site and your city before you move a machine in.

Do I need an LLC for a vending machine business?

No. You can start as a sole proprietor with a free EIN and a sales tax permit. Many owners form an LLC once they have several machines on other people's property, since it separates business risk from personal assets.

How many vending machines do I need to make $100k?

It depends on what each machine nets after stock, commission and fees, which varies by site. Track one machine's monthly profit for three months, then divide your target by it. That number, not an average from someone else's route, tells you how many to place.

Should I buy a new or used vending machine?

Start with a refurbished machine from a dealer that gives a parts warranty. It costs well under half of a new combo, and you learn what your locations sell before you spend more. Buy new when a site needs refrigeration or a specific size.