vending machine business plan philippines

Your Guide to Vending Machine Business in the Philippines (2021)

Starting a business in the Philippines is not always a smooth sailing process. Even the idea of what business to do is tedious but still manageable in the long run.

If you are reading this article, you have probably researched some viable businesses to do this time, especially during this COVID-19 scare. You may now know what business to pursue and probably consider the vending machine business as an option.

Indeed, the vending machine business is lucrative, given its perks and advantages. But, the tricky part is determining what type of vending machine to have and the requirements needed.

Do not worry! This article will cover most of the things you need to know about starting a vending machine business in the Philippines.

Specifically, you will learn the following topics:

What is a vending machine?

Why start a vending machine business, the pros and cons of vending machine, how to choose the right vending machine, choosing your vending machine location, selecting the right product, machine maintenance, summarized steps on starting a vending machine business.

• Tips on Starting a Vending Machine Business
• Key Takeaways

That is quite a list, so here you go!  

A vending machine is a machine that dispenses products such as foods and drinks. However, today’s modern vending machine also offers other products such as cigarettes, sanitary pads, and other hygiene products.

To make it work, the customer needs to insert a coin, bill, or token that corresponds to the product’s amount. After entering the correct amount and choosing the product, the machine will release the item to you.

It is that simple.

But as simple as it sounds, many considerations should be taken into when getting a vending machine.

Hence, it is best to know some reasons why you should start a vending machine business. 

For some, getting a vending machine is a form of passive income. That is acceptable.

You can technically get a machine, put it in a place where there are customers, leave it there, and then go back after a few days or weeks.

Depending on the number of customers you get in that location, you should collect a fair amount of earnings. Then, you can get a part of it to repurchase new products and refill your machine.

Owning a vending machine does not require 24/7 staffing, so it is practically your best option if you want to own a business without much supervision.

You may be wondering what the other advantages of having a vending machine business are. We heard you, so the next topic will discuss the advantages and disadvantages of venturing into this business.

Just like any other business, the vending machine venture also has its fair share of advantages and disadvantages that you must consider before signing that purchase form.

Take a look at the following pros and cons.

Simple Concept

The idea of a vending machine is simple and easy to understand, unlike the other types of businesses that have complex business models.

Cost-Effective

Compared to other businesses, a vending machine does not require you to have a hefty amount of capital. You can practically work within a tight budget without the need to get a loan or borrow money to get started. You can even start this business with as low as PHP 20,000 capital.

Automated System

As mentioned before, a vending machine does not need an actual person to perform its primary job. Due to its sophisticated and systematized processes, it is already programmed to analyze the necessary functions and do the job.

You only need staff to collect the earnings and refill the machine, which you can practically do independently. That saves you a few more bucks.

Growth Opportunity

In a vending machine business, you can start even with only one machine. There is no need for a one-time purchase of several machines in one go. But this does not mean that you cannot maximize your profits. The truth is, you can eventually try to add more machines in different strategic locations.

If you are afraid to take risks but still want to try your luck, this business model fits you. It is less risky to invest in a single machine than spending your hard-earned money to create a business from scratch.

You Are the Boss

When managing a vending machine business, you have your time and schedule without any pressure. You do not need to adhere to strict schedules because you control everything - you are the boss.

You set your hours and decide on the frequency with which you visit and stock your machine. If you put it at a convenience store, you just have to agree with the store owner about your schedule.

Competition in Locations

It is essential to find the best location for your machine. This means you need to do thorough research on the possible places to put your machine or machines (if you decided to run more than one simultaneously).

You need to understand that even though this business is not everyone’s choice, there are still others out there who are vying for the same strategic location because, like you, they want to start this business.

So, it is better to be quick and thorough when it comes to finding your locations, or else you lose the chance to maximize your profits.

Periodic Maintenance

Since your primary tool is a machine, it means there is a need for regular maintenance. Doing this keeps your machine fine and in good condition.

Long Hours 

You indeed get flexible hours when running a vending machine business, but it is not always the case.

You may often end up working longer and harder than with the usual eight-hour job or business operations.

This means that the more machines you own, the more time you will need to put into the stocking and servicing them. And the only way to pull this off and be successful is to be committed to working overtime when deemed necessary.

Keeping Up With the Trend

Back in the old days, a vending machine is best known for dispensing sweet treats and beverages. But this is not the case anymore.

You need to monitor and continuously improve your product offerings. You are lucky if the current trends are fit for the current type of machine that you have. But what if it is not the case?

For example, you have a machine for snacks but now want to offer hot coffee or chocolate drinks. This could be a problem because you need to have another kind of device designed to do the work.

This would mean buying a new machine and disposing of or relocating your current machine to a different location where it can get more sales.

Additional Expenses

This is most common primarily if your machine is located at a run by another owner, such as a supermarket or a convenience store. 

Sure, this is the perfect location, but this might require paying an incentive to the site's owners, too. Moreover, for other areas, you need to pay for the space and electricity your machine uses. These expenses are usually a certain percentage of your earnings.

Aside from this, some products you sell may require special taxes levied on your final sales, so think twice before displaying them on your machine’s shelves.

In choosing the right vending machine, you need to understand the concept of “New Era Vending Machine.”

As its name suggests, the new era means trying to blend in with the industry’s current trends - sustainable, healthy, more alternatives.

However, when you choose which one is the best, you should have a purpose and a goal in mind.

Once you have a goal in mind, it would be easier for you to decide what kind of vending machine to get.               

Most standard vending machines are still stocked with candy, junk food, or soda which are not always the only opinions right now. The rise of healthy foods and fresh-food dispensing machines is now part of the trend. So, you might want to consider that.

At times, some machines are designed to serve specific purposes. One typical example is the wifi vending machine and those machines that accept online and card payments.

Furthermore, you must consider your capacity and resources to fulfill specific products in your vending machine.

Like in real estate, the most important thing is location.

The golden rule is to find locations with a lot of foot traffic because this means having secured customers. It needs a lot of research and right thinking.

Here are some essential tips you can consider trying.

Generate high-quality location leads

The vending machine business is always a “location generation” business.

There are other things involved in the process, but this business is unlikely to boom without securing the location first.

So, yes! When choosing a location, it should not only be an ordinary location. It must be the “best” one you can find.

Make a location plan

Yes, it sounds weird, but just like a business plan, it is best to have a location plan.

This means listing down your possible locations and the owners’ contact information and planning a strategy for approaching.

In other words, plan your contact strategy. This means having clearly defined objectives and proposals that would provide answers on how your vending business might meet the needs of this location.

Qualify your location leads

Well, if you think having the perfect number of leads is already the best answer to your location needs, then you are wrong.

You just cannot visit each location (especially if you have a hundred on your list) and waste your time. Hence, you need to qualify your leads.

This means narrowing down the funnel, filtering the most qualified ones, and then from there, you begin looking for the perfect prospect.

When evaluating each lead, try to ask the following questions:

• What is the location’s estimated daily foot traffic?
• Do they currently provide vending or food service options? If so, who is the vendor?
• Do they have a contract with any current vendors? If yes, how long is the deal?
• Do they currently receive a commission from vending machine sales? What is the percentage?
• Are there additional services?

It is also a best practice to avoid asking open-ended questions. Just stick to the close-ended ones so it will be easier for you to evaluate the answers later on.

Build rapport

The keyword here is to “engage.” You must build a connection with your leads.

You will likely get in touch with the same person from that place on several occasions, so build rapport with him or her as early as you can.

At the same time, keep things unique and fresh by diversifying your methods of communication. This will make the negotiation more enjoyable and can increase the chances of getting higher results.

Schedule the meeting

After successful screening and initial communications, it is now time to meet with your location lead in person.

The best strategy to set the appointment is to come prepared. This means being confident to deliver information that is relevant and powerful. They should feel that you need them, not the other way around.

Also, never forget to follow-up. This is one crucial part of the process. Otherwise, your efforts will all be put in vain.

Close the deal

Finally! It is now time to close the deal with your qualified location lead, who accepted your proposal.

Remember that you should give them ample time to evaluate things on their side too. Hence, do not hurry them. Wait for a few days, and if you have not heard from them within a week, send a polite follow-up email or call them at the best time.

Now, this part talks about selecting the right product for your vending machine business.

You have first to understand that doing this is necessary if you want to maximize your revenues.

The equation here is simple: putting the incorrect products in the right place will not generate sales and vice versa.

If you are planning to have food products on your machine’s shelves, consider doing the following when sourcing food products:

This is the most critical variable when creating a product mix for your machine. If your products do not match the taste profile of your average customers, then expect low sales.

Nutritional Value

Lifestyle changes and personal preferences are now part of the vending machine trend, so you might want to consider putting up nutritious snacks only like low-carb foods.

Affordability

Of course, price is also one factor. Price your products accordingly - not too expensive or cheap. The key here is to find suppliers that give more affordable products without sacrificing taste and quality.

When it comes to brand recognition, customers are always more likely to purchase a brand they know. Although there is still a chance that they will patronize new products, it is a gamble. They first need to see the products that they trust and know over the years.

In connection with the previous point, consider introducing new products gradually. There is always room for customers to try something new. 

A vending machine works like a robot: it is automated and follows codes and processes. And just like the usual machine, they tend to get wear and tear over time.

You do not want your machine to get broken just because you failed to take good care of it, don’t you?

Hence, bear in mind to do regular maintenance for all your machines (if you own more than one). This is one way to prevent malfunctioning units that will cost a problem with your sales or even hurt your savings if you end up replacing it with a brand new unit.

Most owners prefer to check their machines once a month, but the frequency really depends on you.

Alright! We are almost done giving all the facts you need to know about the vending machine business.

However, since this is the “ultimate” guide, here are two bonus parts you get to know to prepare yourself thoroughly.

First, here is a summary of the steps you should follow to start your dream vending machine business.

1. Learning the basics

You need to remember all the basics of this business and remember them by heart. It is the only way to get a holistic perspective on how to run the business. This means understanding what a business plan is and how to make one, familiarizing yourself with the vending machine’s business model, doing a market and competitor analysis, and other stuff you need to know.

2. Making the business plan

Creating your business plan is one task you should take seriously. It is not just any essay you can write without any basis - it needs strong support and data to back up all your claims. A comprehensive business plan must be detailed, concise, and valuable enough to keep you on track at all times.

3. Finding a suitable location

This has been elaborated on in the previous section, so you should have mastered by now the art of finding the best location for your business.

4. Preparing contracts and other requirements

A business should always be done legally. Hence, never forget to get your lawyer’s advice in every decision you make regarding this business, especially if you are going full scale. Make sure the following are also included in your papers.

• Statement of Compensation and Sales
• Machine and Product Type
• Duration of the Contract
• Exclusivity Clause

5. Getting the best equipment and products

As mentioned, you can already start this business with meager capital investment. At the same time, it is best to consider getting a brand new machine because it has a good warranty for one or two years. There is nothing wrong with getting a second-hand machine, but if you want to ensure that it is free from any defects, then a brand new unit is the answer. 

Everything has been almost covered in this article, so the rest of the work now relies on you. It is easy to decide that you want to start this kind of business, but there is so much to think about in reality.

Of course, this remains true if you are an aspiring entrepreneur who takes this venture seriously. Some people may make impulse decisions and still end up successful, so really, it is all about how you manage it. But you can never deny that planning everything has its advantages. It gives you fewer risks and ensures you more revenues. This is the main goal, and you should go for it.

In the end, we hope that this article helps you a lot in your decision-making process. Best luck!

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How To Start A Vending Machine Business Philippines

Do you want your own vending machine business in the Philippines but do not know where to start?

Worry not because this guide will walk you through the process. 

Owners purchase a machine and fill it up with goods that customers can buy.

However, similar to other kinds of businesses, there are steps needed to be taken to build a profitable vending machine business. in the Philippines.

Today we will also see the benefits of having a vending machine business in the Philippines!

Table of Contents

How To Start A Vending Machine Business In The Philippines

1. researching the foundations.

Here are two different areas to focus on when starting up a vending machine business in the Philippines.

Each decision you find has its advantages and disadvantages. 

1.1 Type Of Machines / Business Model

Both of these options come with pros and cons.

However, if capital is tight and a new business is, it is often recommended to purchase a second-hand unit.

Inspecting the machines and the current vending machine contract could also help you with your purchase.

A third option is through the rental of the machine or franchising. (see the update about franchising a vending machine business in the Philippines below)

You could see the list of vending machines from the Philippine Vending Corporation.

Please Note: PCV states – Vending is not a franchise business. It is our understanding that it is not viable for companies to buy two or more vending machines.

In other words, this option would be best if you already have a business and wish to rent a machine and not if you are looking to start a vending machine business in the Philippines

It’s always wise to carefully consider the three different options you have as a vending machine business owner in the Philippines.

1.2 Vending Machine Products

The standard vending machine products in the Philippines tend to be food and drinks, toiletries, and bulk vending machines.

Depending on the location and foot traffic type, it is recommended to store different food and drink items.

To stand out from existing vending machines in the area, you could offer something unique such as Korean snacks or drinks.

A unique selling point can help with all aspects of your business .

For example, a protein vending machine business set up at or outside of a local gym could do very well in terms of profitability .

The prices of their vending machines depending on the size.

Did you ever get a toy from a vending machine when you were little?

These are bulk vending machines. Aside from toys, a business owner could fill these up with gumballs and other candies.

One drawback is that profitability is lower, but it could be an excellent additional income for a current business.

2. Build Your Vending Machine Business Plan

For instance, owners could find out the location they have in mind has no demand for their vending machine’s products.

Therefore this is often a critical stage that is missed when building a business in the Philippines.

Alternatively, Here is a simple format that could help you write your business plan;

3. Find Suitable Locations

Location plays a crucial role in the success of your vending machine business in the Philippines.

However, other vendors could have taken most of the best locations or had an exclusive contract with the property owner. 

However, if the target market is not transparent, the vending machine unit might not succeed even in a high foot traffic area.

Profits could drain fast if there is damage or robbery to the machine.

You could consider areas that are patrolled, visible, and have CCTV cameras. 

4. Contracts And Requirements

Usually, an agreement is met based on the settled percentage from the sales (but not always).

However, this could vary depending on the size and number of vending machines.

To protect both parties, it is wise to draw up a contract.

As for the requirements, this would depend on the business, property manager, or owner.

They often can provide the elements needed to set up the business.

If you do not plan to lease a space, then this could be a slight difference.

For instance, getting a machine from Barista Choi would not require government documents since it is an add-on business (to date).

5. vending Equipment And Products

For example, for P20,000, you could buy, franchise, or even rent to start this business. 

New vending machines usually come with a warranty of 1 to 2 years for the parts.

In addition, you could repair the machines yourself if you have basic mechanical knowledge.

For the product dealers or suppliers, they are more than happy to answer your queries.

If suppliers are reputable, they would have terms and conditions related to their machines and products’ inventory, maintenance, warranty, and service.

In addition, comparing prices and making negotiations when buying in bulk would help.

You could also discuss the products with the property or business owners since this could be included in the contract. 

Candies and toys could be profitable in places where families go, such as supermarkets, malls, and parks, among many others.

Personal care items could sell well in restrooms in public areas such as train stations and malls. 

6. Maintenance And Customer Support

Like any business, the core of success in a vending machine business in the Philippines is being consistent in maintaining your business and providing excellent service.

Addressing the problems as soon as possible could ensure that your vending machines are operating well at all times.

In addition, this could generate more revenues which is crucial if owners plan to add a new machine or location for their business.

Vending Machine Franchise Philippines

Please don’t shoot the messenger!

(Please comment below if you find any! But nevertheless, we will continue to update this post every month just in case!)

A few vending businesses offer services to other businesses (such as the rental of a vending machine), but this is not part of a franchising agreement.

Advantages of Starting A Vending Machine Business In The Philippines

A. vending machine overhead costs.

There are a few expenses when operating a vending machine business.

Owners could easily manage the business themselves, so they would not need to hire employees. Therefore, it could lessen the stress of thinking about payroll or absences. 

B. Flexibility Of A vending Machine Business

They could also change the selection of products easily.

For example, a particular beverage was not selling well. It could be replaced with a different beverage quickly. 

C. Vending Business Growth Philippines

For example, some vending machine owners still have their day jobs while managing the business.

D. It Is A Straightforward Filipino Business

After you have found a vending machine, supplies, and location for your vending machine, operating it could be not too complicated.

Regular maintenance of the machines to check if they are in good condition, checking the stocks, and keeping track of the earnings are the main processes of this business.

Tips For Starting A Vending Business In The Philippines

1. use the right vending machine.

On the other hand, if you are eager to make a more significant purchase, you could consider buying automatic vending machines since these could be more profitable. 

2. Attention-Grabbing Vending Machines

Merely adjusting the lighting could, for example, could be great.

To keep the light shining brightly, you could replace the bulb located in front of the machine.

LED strips are priced around P150-P500 on Shopee .

These lighting tips could make customers notice your vending machine first before the other machines.

Then, to save time, they could end up choosing to purchase from your products. 

3. Making Professional Relationships

You could take note of these tips when meeting with the location or property owner or manager:

4. Vending Business Promotions & Growth

Furthermore, if they often buy a particular product, they could be more willing to buy a new one if they see a price reduction.

In addition, there could be an increased profit if no products are going to waste.

Vending Machine Business Philippines: Summary

To better understand the way to your vending machine business’ success, you could consider following the steps and tips mentioned.

Frequently Asked Questions:

Is vending machine a profitable business in 2022, how much profit does a vending machine make per month, more philippines business guides.

How to Start Vending Machine Business in the Philippines

For many people in the Philippines, vending machines are a convenient way to get quick and easy access to the things they need.

For business owners, vending machines can also be a great way to generate extra income. Unlike other franchises, such as convenience stores and the like, vending machines require less labor, and you're not limited by the people you can hire.

This makes vending machines a good business opportunity, especially if you're just a beginner business owner.

In this article, we'll discuss the vending machine franchising business so that you can take advantage of this business model.

What's a Vending Machine Business?

Source: Unsplash

If you've ever enjoyed picking different products neatly in front of you in a place that otherwise has no store, you've experienced the convenience that vending machines can add to your life.

Vending machines are ATMs for products. They're machines that take payments and dispense goods, be it drinks, food, sanitary products, or even medicine.

This business model is steadily gaining popularity among business owners because of its primarily automated nature; you don't have to sell your goods on-site to make a profit. All you have to do is deploy a machine, stock it periodically, and repair the machine when it breaks down.

Vending machines are highly convenient on the customer side because they can be placed in common areas that otherwise couldn't hold an entire store, such as long hallways between school classrooms, right outside your office in the heart of the city, or the like.

To make a vending machine work, all you have to do is insert a bill or coin. Modern digital vending machines accept digital payments, such as wallets and credit cards. Then you select from the product, and the machine dispenses your product.

As you can see, a vending machine is a simple, highly-effective business model that can be very profitable. However, there are still many considerations that you need to have before you start one.

Why You Should Open a Vending Machine Business

So now you know what vending machines are, but how do they stack up to other types of businesses? What are its advantages?

In this section, we'll talk about the advantages of vending machines so that you'll have a better idea of the advantages you can enjoy should you decide on this line of business.

Simple business model

One of the main appeals of this kind of business is that it's not as complicated as other businesses.

Vending machines only have a simple business model that's easy for individuals to grasp compared to other types of businesses, such as convenience stores, where you have to source suppliers, deal with people, and do all sorts of inventory and accounting.

While some of those things still exist in a vending machine setup, it's on a much smaller scale, making it more beginner-friendly compared to big operations like convenience stores.

In vending machines, you have to stock your machine route, repair it when it breaks down, and gather your income. Of course, you're going to have basic accounting and business networking. Still, generally, you don't need the amount of interaction and complexity you can get from other forms of business.

You don't need to interact with many people daily if you have a vending machine business.

Automated passive income

Another great benefit of a vending machine business model is that it's largely automated and doesn't need plenty of labor to make it run. As long as it's not malfunctioning and connected to a power source, it has the possibility of gaining your profits, even if you're not there directly supervising the whole procedure.

This makes vending machines incredibly ideal for passive incomes. It can become a lucrative side hustle or even a leading venture.

Of course, there are risks involved. For example, your machine could suffer vandalism and theft in their locations. Still, as long as you pick correctly and plan, you should be able to enjoy the automated nature of your vending machine business.

Easily scalable

Another benefit that vending machines offer is that you can quickly scale your business from one to a hundred.

A few vending machines can be a good side hustle that can get you a significant income. However, owning five or ten devices won't take that much time; the machines only need to be periodically stocked, checked, and repaired when needed. You can quickly expand your operations on a massive scale.

If you want to scale your operation, all you have to do is buy more vending machines, and plan their routes.

The stocking and maintenance are relatively easy as well, so if it gets to a point where you're occupied every day of the week, you can easily hire and train an employee to take over some of the work for you.

This way, you can quickly scale up vending machine businesses if you want to take a more significant part of the pie.

Can be very profitable

Vending machines can potentially become very profitable, especially if you can find items with high conversion value and high-profit margins. Secure a wholesaler for your items and buy in bulk, and you can maximize the margins for every item you sell.

Another thing you can do is to ensure that the products you're trying to sell are in demand. You can do this by looking at the other vending machines within that area and noting the products they offer, especially ones that are always sold out.

You can also talk to convenience stores or vendors nearby and see what people buy from their products. This gives you a hint about what you can offer as a competition.

But don't worry, you don't have to know everything at the start. Operating a vending machine is a long-term strategy; you can adjust your plan if you find new information about your products.

Provides direct control

Unlike other forms of business, you have direct control over your vending machines, should you choose to go down that route.

Businesses such as convenience stores and similar types of establishments employ multiple people. For example, to run a convenience store, you need to have front liners, accountants, managers, stockers, and maybe delivery people. The same is true for most other establishments, such as water refilling stations.

While it's necessary to hand over control to multiple people, it does feel less like your own business if other people are running it. You might choose to become part of the workforce yourself, but you can't do everything, and it's impossible to run it without giving up control.

However, that's not true for fencing machine businesses.

This is because you don't need to employ other people; you can easily take charge of the procurement, stocking, and all the other tasks that need to be done. You have direct control over everything, making it feel like your business without giving up control.

Factors to Consider Before Opening a Vendor Machine Business

As we've seen from the previous sections, vending machines can be potentially lucrative, so it's no wonder you want to get started immediately.

Not so fast, though. This is a business, just like any other, and there are some things that you need to consider before you deploy your first machine. In this section, we're going to go through all of these first.

Vending machine type

The type of vending machine you're going to use heavily affects multiple aspects of your business, so you need to consider it. There are various types of vending machines, which we'll discuss in detail.

• Bulk vending machines. This machine offers only one product type but can deliver the product in big bulks. It's ideal if you have small-variety, highly-popular vending options that sell out quickly.
• Soft drink vending machines. This vending machine offers soft drinks of all kinds. Thus, it is refrigerated, and multiple makes and models offer many different temperatures to choose from. There are also hot and cold options designed to deliver the ideal drink temperature upon purchase.
•   Snack vending machines. This type of vending machine offers different kinds of snacks. Despite having the same properties as a bulk vending machine, it differs because it can provide multiple types of snacks in various sizes. Popular choices include chips, energy bars, gum, chocolates, and more.
• Coffee vending machines. True to its name, this type of vending machine offers a selection of coffee. Other varieties provide different kinds of coffee, tea, chocolate, and more. They are gaining popularity in high-traffic self-service places such as conference rooms, offices, and gas stations.
• Frozen vending machines. This vending machine keeps ice-cold food, such as desserts, in its stock.
• Hot food vending machines. The reverse of the previous vending machine keeps hot, fresh food in stock. It's ideal for self-service places that periodically need meals, such as offices, malls, schools, significant events, etc.
• Combination vending machines. True to its name, this type of vending machine holds multiple stocks. Popular combinations include snacks and soda, drinks and meals, desserts and drinks, and more.
• Custom vending machines. You can customize vending machines to offer in-demand products that are not typically offered in machines. Hotels usually customize vending machines to dispense toiletries on their premises. Vending machines also work for Covid-19 kits, supplies, and more.

This means that what you can sell, how you take payment, and how much money you can earn are impacted by what kind of vending machine you buy, so make sure you know what you're buying before you shell out the money.

What payment methods to accept

How you will be paid should also be a central concern regarding your vending machine business. Vending machines only used to accept coins and bills, but now you have digital options that can scan credit cards or accept payment online.

Deciding on this is essential because it's how you will get paid. Plus, it's going to affect things like costs and maintenance.

A digital vending machine, for example, would be more convenient and accessible to people. It will most likely bring you more profits. However, it's also more expensive and sensitive to tampering or vandalism. If you want to use digital machines, you need to be sure that it's in a safe area; the repair costs if one breaks down could also be pretty steep.

On the other hand, older vending machines that accept cash are cheaper and easier to come by. They also cost less to repair and aren't as susceptible to vandalism. The downside is that they're not as accessible or convenient for people, so you might make less money.

In the end, it's up to you to decide what vending machines you want to buy and how you want to get paid. Just be sure to do your research, so you know what you're getting into.

Location and route

One of the primary considerations when starting a vending machine business is where you will deploy your machines. The location and route you're going to take will be the primary determinant of its profitability.

If you don't put it in the right place, you will lose out on opportunities to earn a profit and might also risk your investment.

If it's not in a well-secured, well-trafficked location, it's more likely to be targeted by vandals and petty thieves, which means you're going to spend more for your machine instead of earning from it.

An additional consideration is distance. Since you or an employee will likely be the one to do check-ups, maintenance, and stocking, you'll want to place it in an easily accessible place to start with.

If you're only just starting, choosing popular and easily accessible places near your base of operations is ideal.

Places such as parks, malls, office complexes, bus stops, etc., are all high-traffic locations that aren't such a security risk. You can also add your offerings to a popular hangout spot, such as convenience stores.

Of course, make sure to talk to the right people and get the proper permissions, if necessary, before you put your vending machine in a certain location.

Franchising vs. your own brand

Whenever easily-replicable business models like this arise, one of your first considerations should always be whether you want to establish your brand or franchise from a more popular one.

Both are valid options, with their advantages and disadvantages, and it's critical to consider both choices because they will affect how you operate your business.

Starting your own brand will give you all the freedom of being a business owner. You'll take care of every aspect of your business, from buying the vending machines to stocking them with products that you choose on your own. Checkups, maintenance, and system updates will also be your care, if necessary.

This gives you the freedom to experiment and create solutions that are ideal for your route. Nobody will tell you what to do, and you don't have to split the profits with anyone.

On the other hand, you'll have to give up some control if you're franchising. If you're buying a franchise from a famous brand, you will not have complete freedom over your business. For example, branding and choosing what to stock won't be under your direct influence; the franchise will have a say in it.

You will also split profits with the franchise, which means your income won't be as good as if you have your line of vending machines.

However, as a tradeoff, there are fewer decisions that you have to make. You don't have to bother yourself with the minutiae, such as what to stock, which supplier to go to, and even who to get for maintenance.

Having your own brand is more fulfilling and profitable, but franchising might be ideal for new businesses.

Best Vending Machine Franchises You Can Get Today

Franchising is one of the best ways that you can start to get into the whole vending machine game.

In franchising, you won't have to take care of many things, such as choosing what products to stock and which supplier to buy them from. This makes the business model largely accessible, especially if you don't come from a business background and are just dipping your toes into this business.

Thus, here are the best vending machine franchises you can buy into here in the Philippines.

Best for Startups: Barista Choi

Barista Choi is a famous coffee vending machine line in the Philippines. This coffee vending machine is a nationwide franchise that delivers multiple Filipino flavors of coffee. They appeal to customers because of their cheap yet energizing and delicious products that can be relied on to boost energy.

Barista Choi is appealing to businesses because it's highly accessible in distribution and price. It's a popular nationwide franchise, so you can always have a unit delivered to your location.

More than that, it's also one of the cheapest franchises you can buy. The primary Coffee vending machine starts at Php 12,000. There are plenty of coffee flavors, such as Pinoy Blend, Milky Choco Loco, Macchiato, Cappuccino, Milk Tea, and Coffee White. Each flavor costs 190 per kilo.

Franchise Inclusions

●       Starting price: Php 12,000

●       Vending machine type: Coffee vending machine

●       Inclusions: Machine

Best for Coffee: Chong Cafe

Another popular vending machine franchise is Chong Cafe , a franchise that primarily offers coffee and coffee-related products. The main product of their franchise is the Hot Vending Machine Package which holds multiple coffee flavors.

Like Barista Choi, the Chong Cafe also sells high-quality and delicious coffee mixes. They have flavors like white coffee, hot choco, hazelnut, 3-in-1, cappuccino, and caramel.

Chong Cafe is a little pricier than Barista Choi, but it has sleeker aesthetics and a bigger capacity. It also has a six months-to-pay installment option through Billease.

They also offer other vending machines, such as cold drink machines with juice and iced tea of various flavors. Aside from that, they also sell coffee machines such as grinders and manual espresso machines.

Franchise Inclusions:

●       Starting price: Php 20,995

Best Softdrink Vending Machine: Official Coke Vending Machines

The well-loved Coca-Cola brand is one of the most popular and reliable vending machines. They have a line of machines that vend traditional coke products such as Coke cans and varying-sized plastic bottles.

Getting a vending machine from Coke can be a good franchise, especially if you're looking for an established brand everybody loves. With this kind of franchise, you don't need to pick what to stock the machine since you will just periodically refill it with Coke products from a distributor near you.

Moreover, checkups and maintenance are also easy since you can talk directly to company representatives about the kind of help you need. You can also choose between glass front and stack vending machines.

●       Starting price: Available upon inquiry

●       Vending machine type: Soft drink vending machine

●       Inclusions: Machine, products, installation, customer service

Best Full-Service Machines: Philippine Vending Corporation

The Philippine Vending Corporation is the premier vending machine franchise in the Philippines. They don't just offer a single unit or vending machine type; they provide solutions that you can tailor to the vending machine experience you want.

For example, if you have an office, they offer traditional vending machine services, subsidized vending machines, or company vending machines. Subsidized and company vending machines are incentive programs where your employees can get either discounted or fully-free snacks or drinks from the vending machine to raise their morale.

They'll take care of stocking it up and doing maintenance; all you have to do is pay a set fee in a set period.

They also have commercial solutions you can take advantage of, such as vending machine services for schools, offices, BPOs, and more.

●       Vending machine type: Various vending machine types

Best for Load and Digital Services: TouchPay Franchise

TouchPay Franchise is a growing vending machine service in the Philippines that offer digital services such as load, bank account access, payment centers, and more. For customers, paying through these nearby online payment centers is a vastly superior experience compared to going to the bank or government agency to make their payment.

This company offers many opportunities for aspiring vendor machine owners. They are much smaller than other vending machines, so they won't take up much space where they're deployed and can fit more.

It's also fully digital and can process card payments for customer convenience.

●       Vending machine type: Digital vending machine

●       Inclusions: Machine, installation, customer service

Easy Steps to Open a Vending Machine Business in the Philippines

Now that you know everything about the advantages of opening a line of vending machines in your area, you might be eager to start. Before you do that, you need to know the proper steps to take to lay a solid foundation for your business.

This section will outline the steps you need to take to open a vending machine business in the Philippines.

Phase 1: Planning

Any good business endeavor must begin with good planning, even if it's a business as seemingly simple as opening vending machines. You must consider a few logistics and factors before buying your devices, such as the following.

• Location. Before you even buy a vending machine, you need to have a good idea of an accessible, high-traffic, and safe place you can place the device.
• Vending machine type . The type of vending machine you're going to get will impact the kind of products you can sell and how you can accept payment.
• Franchise vs. your brand. Another thing that you should consider is whether or not you will franchise or make your brand.
• Markets. You need to find the right match between what the people in a given area want to buy and what is profitable to sell.
• Suppliers. Once you have your product and your market, you need to see whether you have suppliers willing to sell you the products in bulk and for wholesale so that you can increase the profit margin of each product.

Phase 2: Execution

Once you've laid out your business plan, you will want to start your execution. The first step is buying your vending machine unit from your chosen supplier or franchise.

As it might take a while to arrive, you can spend your time securing the location of your machine; if you can get people or other establishments in the area to keep an eye on it, all the better.

It would be best if you didn't forget the permits you need before you can operate your vending machine. Ensure that you're registered in the DTI as a business entity and that your taxes are in order.

Phase 3: Operations and Maintenance

Once your machine has been fully stocked and deployed, you will want to monitor it closely for a few days. Ensure that there are no problems with your chosen location, that the power supply is stable, that there is minimal risk from vandals, and that there is enough foot traffic that can turn to customers.

You should also have a maintenance plan for your vending machine, such as making sure that the products don't go stale and are restocked in a timely manner, that the machine itself is regularly cleaned, and that any technical problems are addressed swiftly.

If everything is going well, all you have to do is sit back and wait for the profits to come rolling in!

Everything You Need to Know About Vending Machines in the Philippines

Vending machines can be a profitable side hustle or even a main business if you do things right.

It presents a beautiful passive income opportunity since operating vending machines doesn't have to take a lot of your time every day; all it takes is to monitor it several times every week to ensure it's stocked and functional.

This article talked about vending machines, why you should start a business from one, and what advantages you can get. We also went over the best franchises you can buy into for profit.

You now have everything you need to know to run a successful vending machine operation here – all that's left is for you to follow up!

How much do vending machines cost in the Philippines?

Vending machines can be priced as low as Php 12,000, which is ideal for start-ups and small ventures. However, the price can vary wildly, ranging to as much as Php 100,000 for each unit, depending on the brand, type, and franchise.

Are vending machines profitable?

Yes, vending machines can be profitable, especially with the right products in the right market. They are convenient for the customers since they will give them the products they need without having to go through the hassle of finding a store. It also doesn't take a lot of labor to stock and maintain.

What products can you sell in a vending machine?

There are many types of products you can sell in vending machines. The most popular snack and drink products are chips, candies, soft drinks, hot drinks, and more. However, you can also sell desserts, electronics, and even frozen food, as long as you have a vending machine that can offer it.

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Exploring the Best Vending Machine Business in the Philippines

If you’re looking for a unique and profitable business opportunity, look no further than the vending machine industry in the Philippines. With a growing market and high demand for convenient snacks and beverages, now is the perfect time to invest in this exciting venture.

Key Takeaways:

Choosing the right vending machine business in the philippines.

Starting a vending machine business in the Philippines can be a lucrative opportunity, but it’s essential to choose the right company or franchise to ensure long-term success. Here are some top vending machine companies in the Philippines :

Company Name	Description	Contact Information
1. Vending Sense	Offers a wide range of vending machines for snacks, beverages, and other products. Provides full-service vending solutions with regular maintenance and support.	Phone: (+63) 905-253-1725 Email: [email protected] Website:
2. Happy Vending	Specializes in healthy and organic drinks and snacks. Provides customized vending machines to fit specific locations and customer preferences.	Phone: (+63) 917-887-6253 Email: [email protected] Website:
3. Francorp Philippines	Offers various franchise opportunities, including vending machines. Provides comprehensive training and ongoing support for franchisees.	Phone: (+63) 2 8631-1265 Email: [email protected] Website:

Benefits of Investing in a Vending Machine Franchise in the Philippines

“Investing in a vending machine franchise can provide a solid foundation for your business and help you avoid some of the common challenges of starting from scratch.”

Steps to Start a Vending Machine Business in the Philippines

Research the market.

The first step in starting a vending machine business in the Philippines is to research the local market thoroughly. You need to understand the demand for different products, the competition, and the pricing. Conducting market research will help you determine the types of products to offer and the best locations to place your vending machines.

Identify the Best Locations

Choose your products, securing your vending machines, managing your inventory.

Effective inventory management is crucial to the success of your vending machine business in the Philippines. You need to ensure that your machines are always fully stocked with popular products to meet the demands of your customers. Regularly monitoring your inventory levels and adjusting your product offerings can help you maximize your profits.

Marketing Your Business

Factors for a successful vending machine business in the philippines.

Running a successful vending machine business in the Philippines requires careful consideration of various factors. To ensure that your venture thrives, you must pay close attention to strategic placement, product selection, pricing, maintenance, and customer service.

Strategic Placement

Product selection, maintenance.

Maintaining your vending machines is critical for the longevity of your business. Ensure that your machines are functioning properly and well-stocked at all times. Regularly inspect and clean your machines to avoid breakdowns and malfunctions. Promptly address any issues to provide top-quality service to your customers.

Customer Service

Finding profitable vending machine business opportunities in the philippines.

By following these tips, you can identify profitable vending machine business opportunities in the Philippines and build a successful venture that generates high profits.

Top Vending Machine Suppliers in the Philippines

Supplier Name	Supplier Description
Technolux	One of the leading suppliers of vending machines in the Philippines. Offers a wide range of machines, including snack, beverage, and coffee vending machines.
Jofemar Philippines	Specializes in high-end vending machines with state-of-the-art technology. Offers customized solutions for businesses of all sizes.
Seaga Group Philippines	A global company that offers a variety of vending machines, including snack, beverage, and combo vending machines. Also provides financing options for their machines.
AVC Vending Corporation	A leading supplier of vending machines for over 20 years in the Philippines. Offers a wide range of machines with innovative technology, such as touch screen displays and cashless vending systems.
RHE Trading	Provides affordable and high-quality vending machines for businesses of all sizes. Offers vending machines for snacks, beverages, and other products.

Exploring Vending Machine Options for Sale in the Philippines

Before making a purchase, it’s recommended to research the current market rates for vending machines for sale in the Philippines. This will give you an idea of the price range, ensuring that you don’t overpay for a machine that doesn’t meet your business requirements.

Types of Vending Machines for Sale in the Philippines

Vending Machine Type	Description	Price Range (in PHP)
Snack Vending Machine	A machine that dispenses chips, chocolates, and other snacks	50,000 – 150,000
Beverage Vending Machine	A machine that dispenses soft drinks, bottled water, and juices	60,000 – 200,000
Combo Vending Machine	A machine that dispenses snacks and drinks together	80,000 – 250,000
Coffee Vending Machine	A machine that dispenses hot and cold coffee beverages	30,000 – 200,000
Ice Cream Vending Machine	A machine that dispenses various ice cream flavors	50,000 – 150,000

Small Scale Vending Machine Business in the Philippines

The key advantage of a small-scale vending machine business in the Philippines is the lower initial investment required. By starting small, you can avoid large overhead costs, such as rent or salaries, and can instead focus on building and growing your business gradually. Moreover, a small-scale vending machine business can be run from home, eliminating the need for a separate office or workspace.

Table of Potential Profitable Markets for Small-Scale Vending Machine Business in the Philippines

Market	Location	Potential Products	Profit Margin
Offices	Business districts	Coffee, snacks, energy drinks	40-60%
Schools	College and university campuses	Bottled water, healthy snacks, energy bars	60-80%
Tourist areas	Hotels, airports, tourist spots	Souvenirs, snacks, drinks	30-50%

Tip: Consider offering promotions or discounts to attract new customers and retain existing ones. For example, offer a free drink for every five purchased or a discount during the first week of operation.

Maximizing Profit with Vending Machine Business Franchises

Choose the right franchise.

Before investing in a franchise, research the company’s reputation and track record. Select a franchise that has a proven business model and a strong support system in place. Look for a franchise that offers ongoing training, marketing, and business development support.

Location is Key

Choosing the right location for your vending machine is crucial to the success of your franchise. Look for high-traffic areas such as commercial centers, schools, and hospitals. Make sure the franchise agreement permits you to choose your own location, giving you the flexibility to maximize profits.

Overcoming Challenges in the Vending Machine Business in the Philippines

Running a vending machine business in the Philippines can be highly profitable. However, like any business venture, it comes with its own set of challenges. Here are some common obstacles that you may face, and strategies for overcoming them:

1. Finding the Right Locations

2. maintaining machines, 3. dealing with competition.

The vending machine business in the Philippines is highly competitive, with many companies vying for the same locations and customers. To overcome this challenge, differentiate your business by offering unique products or services and providing excellent customer service.

4. Managing Inventory

These are just a few of the challenges that you may face when starting a vending machine business in the Philippines. By developing a solid business plan, conducting thorough research, and implementing effective strategies, you can overcome these obstacles and build a successful venture that generates long-term profit.

The Future of Vending Machine Business in the Philippines

Another trend is the integration of cashless payment systems in vending machines. With the rise of mobile payment technologies, vending machines are becoming more convenient and accessible, allowing customers to make purchases quickly and easily. This not only improves the customer experience but also facilitates increased sales for vending machine businesses.

The Impact of the COVID-19 Pandemic

The COVID-19 pandemic has had a significant impact on the vending machine business in the Philippines, as it has on many other industries. With social distancing measures in place, fewer people are visiting public spaces such as malls and offices, which are prime locations for vending machines.

However, despite the challenges posed by the pandemic, there are still opportunities for vending machine businesses to adapt and thrive. For instance, vending machines can be placed in areas with high foot traffic such as hospitals, schools, and residential areas, providing a convenient and safe option for customers. Additionally, the demand for contactless payment systems has increased during the pandemic, making vending machines with touchless payment options more attractive to customers.

The vending machine business in the Philippines is poised for continued growth and evolution in the coming years. With technological advancements, emerging trends, and the potential for innovative adaptations in response to the COVID-19 pandemic, there are many opportunities for entrepreneurs to build successful vending machine businesses in the Philippines.

The vending machine business in the Philippines is a growing industry with a lot of potential for entrepreneurs. With the right strategies and knowledge, you can establish a successful and profitable vending machine business in the Philippines . Remember to choose the right company or franchise, conduct proper market research, and prioritize customer service and maintenance.

Why Choose the Philippines?

The Philippines is a great location for starting a vending machine business due to its growing economy and increasing demand for convenient and accessible products. Its vibrant culture and diverse communities provide ample opportunities for discovering unique and profitable vending machine products that cater to different tastes and preferences.

The Best Vending Machine Business in the Philippines

By investing in the best vending machine business in the Philippines, you can maximize your profit potential and achieve long-term success. Consider partnering with top vending machine companies or franchises that offer quality machines and ongoing support. With the right product selection and strategic placement, you can ensure a steady stream of income and build a loyal customer base.

Don’t miss out on the chance to explore this exciting and lucrative venture. Start researching and planning for your vending machine business in the Philippines today!

What are the potential benefits of starting a vending machine business in the Philippines?

How do i choose the right vending machine company or franchise in the philippines, what steps do i need to follow to start a vending machine business in the philippines, what factors contribute to a successful vending machine business in the philippines.

Running a successful vending machine business in the Philippines requires strategic placement of machines, selecting popular and in-demand products, competitive pricing, regular maintenance and restocking, and providing excellent customer service. It’s crucial to monitor market trends and adapt your offerings accordingly to stay ahead of the competition.

How can I find profitable vending machine business opportunities in the Philippines?

Which are the top vending machine suppliers in the philippines, what vending machine options are available for sale in the philippines, is it possible to start a small-scale vending machine business in the philippines, what are the advantages of vending machine business franchises in the philippines, what are some common challenges faced in the vending machine business in the philippines.

Running a vending machine business in the Philippines can come with challenges such as finding optimal locations, managing inventory and restocking, dealing with maintenance issues, and competition from other vending operators. However, by implementing effective strategies and staying proactive, you can overcome these challenges and build a successful business.

What does the future hold for the vending machine business in the Philippines?

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Vending Business: Profitable Business in the Philippines

Vending is one form of business that requires little time management and maintenance. It does not require an employee that will manage it every day. This business is a good source of residual income, where you can earn money while you sleep. It has also the possibility of getting money to your pocket 24/7.

Vending, like other businesses, is not an easy success. To make it a profitable business in the Philippines, it still requires careful studying of the location, potential market, and also the concentration of people in the area. Here are some of the vending machines you might get interested in investing in.

Coffee Vending Machines

A lot of people drink coffee every day. Some drink from twice to several times a day. With the increased population of night-shift workers, a coffee vending machine placed inside a commercial building or establishment can serve these workers day in and day out, 24/7 and no commercial break.

Each cup is sold for 5 pesos. Excluding the costs (supplies and electricity), each cup gives a profit of 2.15 pesos. The monthly profit depends on how many cups are sold per day. If you can sell 100 cups per day for a month, the return of investment is only 2 months. The maintenance for these kinds of machines is from medium to high because of the fact that they require electricity to operate.

Buy on Alibaba

Here are a few samples of Coffee Vending Machines that you can buy on Alibaba:

1. CECLE Coffee Vending Machine

2.  wifi coffee vending machine with android system.

warranty :12 months

Design and technology: Depending on qualified designers and technicians from China and Italy, as well as top-grade production plants, Hangzhou Yile’s products are developed and produced synchronously.  In recent years, their products have been sold to clients from over 50 countries and regions. They can also provide OEM products for branded food companies around the world.

Hygiene Vending Machines

Random calls of nature can occur in any part of the day. What if you get your call in a public place where toilet tissues, a pail of water and your lovely “tabo” are not with you? Good thing is there are vending machines that offer tissues and other toiletries 24/7.

One company that offers this service is the Vendo Corporation. They manufacture mechanical vending machines that dispense tissues, sanitary napkins, wet wipes, and panty liners. You may have seen and used one of their machines at major establishments such as malls and other commercial buildings.

These machines have little maintenance because they do not require electricity to operate. You only have to regularly refill their stocks to ensure they are available 24/7 to costumers.

We did our research and evaluated the best offers on Alibaba and selected the suppliers with the most experience and good reviews. Please check out our recommendations below:

Snacks and Beverage Vending Machines

Need to quench your thirst or have a light snack? These machines will surely be convenient to you. They are very easy to use and are more suitable for people who don’t prefer going out and lining up inside supermarkets just to buy 1 or 2 products. These will benefit people who need quick refreshments on their busy schedules.

There are quite a few companies in China that provide top of the art Snacks and Beverage vending machines. Let’s face it – everything is manufactured today in China. They learned how to be the No. 1 Manufacturer of the world.

They offer a wide variety of snack and drink items. Customers can choose from many different snacks, different kinds of bottle refreshments and different kinds of canned drinks. The parts are all fully automated.

Buy on Alibaba:

Here are a few options that you can check on Alibaba:

1. XY Snacks and Drinks Vending Machine (with Hot Water Dispenser)

This is a Snacks and Drinks vending machine with a hot water dispenser.

Cooling system: With R134a Refrigerating Fluid

Material: Stainless Steel

Certificate :CE, FCC, ISO9001

Payment system: Coin, Bill, Credit card.

Plastic film inside and wooden box outside with wooden pallet

Lead Time: 1-10 pcs within 2 weeks / 10-50 pcs within 30 days

2. CSCPower Beverage, Snacks and Food Vending Machine 

FUJIAN CENTURY SEA GROUP CO.,LTD. (CSC GROUP) is located in FUZHOU city of FUJIAN province in China. The company was founded in 2005. Its CSCPOWER ICE MACHINE CO.,LTD R & D provides production of ice machines, including flake ice machine series, tube ice machine series, cube ice machine series, block ice machine series, packing ice machines, complete set of refrigeration equipment, and provides pre-sales support, design, production, complete sets of installation and debugging, customer training, etc.

Loading Vending Machines

There are several companies that distribute these kinds of vending machines, like the Philippine Vending Corporation . The machines are usually very easy to use and they offer prepaid credits not only to mobile phone users but also for e-games, broadband service, cable TV service, landline service, and music as well.

The minimum investment is around 10,000 PhP, which includes the franchise fee (5,000 PhP) and the initial load balance (5,000). The return of investment is from 4-5 months depending on the monthly sales. You get a minimum of 4% profit on cell phone load and 3% profit on other services.

Things to Consider

Vending Machines are business with small capital, maintenance, and risk but grants high rewards. On the other hand, location plays a crucial role in the success on this venture. People want convenience and instant availability and these machines offer give that need and your job is to provide that need with minimum to no error. If your machine suffers an error or defect, you may lose a lot of customers because first impression lasts. One dissatisfied customer can spread his or her experience to a lot of people he or she knows.

TJ is an alumnus of the University of the Philippines Diliman. He is currently running an online business from home. He writes business articles for passion. On his free time he plays Dota 2. He simply wants to be a good son, brother, boyfriend, and Filipino citizen.

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Vending Machine Business Plan Guide + Example

July 6, 2023

Adam Hoeksema

Welcome to our definitive guide on crafting a robust vending machine business plan, complete with a real-world example to get your entrepreneurial gears turning! Vending machines are silent salespeople that work around the clock, presenting a lucrative business opportunity that often requires minimal upkeep.  In this blog post, we will explore the ins and outs of developing a comprehensive strategy, covering key considerations such as location analysis, product selection, and financial planning. 

After talking to customers who purchased our vending machine financial projection template , we realized that many customers also needed a business plan to be able to present to a potential funder, so I decided to take a deeper dive on the topic. 

Here is what I plan to cover in this article:

• Why write a business plan for a vending machine business?
• What to include in a vending machine business plan?
• Vending machine business plan outline

How to determine what type of vending machine to buy?

• How to find a good location for a vending machine?
• How to find a high foot traffic area for a vending machine?
• How to create financial projections for a vending machine?

Example Vending Machine Business Plan

Vending machine business plan faqs.

With that as a plan, let’s dive in!

Why write a business plan for a vending machine business? 

If there was ever a simple business that didn’t require a strategic business plan it would be a vending machine business right?  You just have to buy a machine, fill it with candy, place it in a high foot traffic location and watch the money roll in right?  What is there to plan?  

If that is your attitude I actually don’t think you are too terribly far off, BUT the real reason to write a business plan for a vending machine startup is because your potential investors or lenders have asked you for projections and a business plan.  If that is the case, then you really just have to get it done right?  

What to include in a vending machine business plan? 

I think a vending machine business plan can really be quite simple.  Below you will find the outline from our free vending machine business plan template . 

Vending Machine Business Plan Outline

• Executive Summary
• Company Description
• Market Analysis
• Marketing and Sales Strategy
• Operations and Management
• Financial Plan

There are at least 10 types of vending machines that you could choose from.  There is also the question of whether you should decide on a location first or decide on a type of vending machine first and then find the right location for that machine.  We are going to take a look at the process for finding the right machine to buy first.   

The best choice for you depends on your budget, target market, location, and your personal preferences. Here are some steps to guide you in making the right decision:

• Define Your Budget: The first step is to determine how much you're willing to invest in this business. Vending machines come in a range of prices, from a few hundred to several thousand dollars. Your budget will dictate whether you start with used or new machines, as well as the number and type of machines you can afford.
• Understand Your Target Market: Understanding your customers is key. Conduct a market research to find out what products are in high demand in your desired locations. Are you targeting office workers who'd appreciate a quick snack or drink? Students who might need stationery or school supplies? Understanding the needs and wants of your prospective customers will guide you on the type of vending machine to invest in.
• Analyze Location: The success of your vending machine business largely depends on where your machines are located. If you're planning to place your machine in a gym or health center, a vending machine selling healthy snacks or drinks would be ideal. For a location with lots of kids, a toy or candy machine could work well.
• Maintenance and Operation: Certain types of vending machines require more maintenance and restocking than others. Consider how much time and effort you can invest in the maintenance of your vending machines. Some machines, like those selling perishable goods, require more frequent restocking and cleaning.
• Supplier Relationships: Your choice might also depend on the suppliers you have access to. If you have a good relationship with a supplier of a certain product, it might be profitable to focus on that type of vending machine.
• Profitability: Lastly, analyze the profitability of each type of vending machine you're considering. Some machines may cost more but have a higher profit margin, while others may be cheaper but have lower returns. Look at both the initial cost of the machine and the potential ongoing income it can generate.

Now that we have decided on a type of machine, we need to find a good location.  

How to find a good location for a vending machine? 

The location of your vending machine plays a critical role in determining the success of your business. Here's a step-by-step guide on how to find a promising location:

• Identify High Traffic Areas: A good vending machine location is somewhere with high foot traffic. Look for places where people gather or pass by frequently. These could include shopping malls, office buildings, universities, airports, hotels, and busy street corners. However, remember that high traffic doesn't always mean high sales, as it depends on the needs and preferences of the people frequenting that area.
• Understand Your Target Market: Knowing who your target customer is will help you choose the right location. If you're targeting office workers, you might want to place your vending machines in or near commercial buildings. If students are your target market, universities and colleges would be ideal.
• Consider Location Compatibility: The type of products you plan to sell should align with the location. For instance, a vending machine selling protein bars and healthy drinks will likely perform well in or near gyms and health clubs. Likewise, a machine selling toys or school supplies might do well in a family-friendly mall or near a school.
• Research Existing Vending Machines: Analyze the performance of existing vending machines in potential locations. Are they doing well? If so, similar products might succeed in that location. But be cautious about placing a similar machine too close, as it might lead to fierce competition.
• Negotiate with Property Owners: Once you've found a potential spot, approach the property owner or manager to discuss installing your vending machine. Some might charge a flat fee, while others may ask for a percentage of the profits. Be ready to discuss why your vending machine would benefit their location, whether it's by providing a service to their customers or staff or offering them a share of the profits.
• Review Legal and Zoning Requirements: Be sure to understand any legal or zoning requirements for vending machines in your chosen location. Some cities may have restrictions on where machines can be placed, so you'll need to check this out in advance.

Finding the right location takes time, research, and sometimes a bit of trial and error. But with careful planning and consideration, you can find a location that's a great fit for your vending machine business.

How to find a high foot traffic area for a vending machine? 

It can be difficult to find potential high foot traffic areas for your vending machine.  We have a foot traffic report that will allow you to select an address and receive a foot traffic estimate for that specific location.  As an example, I looked up an office building that I used to work at and can see it has roughly 18,000 visitors per month.    

These reports can be incredibly helpful in identifying potential target locations for your first vending machine.  

How to Create Financial Projections for a Bar Business Plan

Just like in any industry, the vending machine business has its unique factors that impact financial projections, such as location selection, product assortment, and consumer foot traffic. Utilizing a vending machine financial projection template can simplify the process and boost your confidence. Creating accurate financial projections goes beyond showcasing your vending machine's ability to generate sales; it's about illustrating the financial path to profitability and the realization of your business goals. To develop precise projections, consider the following key steps:

• Estimate startup costs for your vending machine business, including machine acquisition or leasing, product inventory, installation, permits, and initial marketing efforts.
• Forecast revenue based on projected sales volume, product pricing, average transaction value, and anticipated foot traffic or demand in chosen locations.
• Project costs related to product sourcing, machine maintenance and repair, and restocking expenses.
• Estimate operating expenses like machine rental or location fees, utilities, insurance premiums, marketing, and administrative costs.
• Calculate the capital needed to launch and sustain your vending machine business, covering initial expenses and providing working capital for continued growth and operations.

While financial projections are a critical component of your vending machine business plan, seek guidance from experienced professionals in the industry. Adapt your projections based on real-world insights, leverage industry resources, and stay informed about market trends, consumer preferences, and emerging vending technologies to ensure your financial plan aligns with your goals and positions your business for long-term success.

Below, you will discover the content of our vending machine business plan. For your convenience, you can access and edit this vending machine business plan template in Google Doc format by downloading it from this link. Additionally, we have provided a helpful video walkthrough to guide you in customizing the business plan to suit your unique vending machine concept.

Table of Contents

1. executive summary.

1.1 Organization Overview

1.2. Objectives

1.3. Mission Statement

2. Organization Description

2.1. Organization History

2.2. Legal Structure

2.3. Unique Value Proposition

2.4. Target Beneficiaries

3. Market Analysis

3.1. industry overview.

3.2. Collaborator and Competitor Identification

3.3. Target Beneficiaries

Key Point  1

4. Marketing and Fundraising

4.1. Strategic Plan

4.2. Program or Service Offerings:

4.4. Distribution Channels

4.5. Promotions and Fundraising

Key Point  2

5. Organizational Structure and Management

5.1. Organization’s Facility & Location

5.2. Staffing Plan and Volunteer Management

5.3. Governance, Financial Management, and Accountability

Key Point  3

6. financial plan.

6.1. Startup Costs

6.3. Expense Projections

6.4. profit and loss statement, 6.5. cash flow projections, 6.6. break-even analysis, 7. appendix.

7.1. Supporting Documents

7.2. Glossary of Term

7.3. References and Resources

Key Point  5

 1.1. company overview.

Briefly introduce the company's background, products or services, and target market.

      -  Example: FitFuel is a leading provider of convenient and nutritious snack options in Nashville, Tennessee. Our vending machines offer a wide range of healthier alternatives, including granola bars, nuts, dried fruits, and low-sugar beverages, to individuals seeking wholesome and satisfying on-the-go snacks.

   1.2. Objectives

Outlines the company's short-term and long-term goals.

        - Example: Establish a strong presence in key locations throughout Nashville, securing partnerships with high-traffic areas like office buildings, gyms, schools, and community centers.

    - Example: Long-term: Expand operations to neighboring cities and regions, introducing FitFuel  as a recognized and trusted brand in the healthy snacking industry

  1.3. Mission Statement

 Describes the company's purpose and core values.

        - Example: At FitFuel, our mission is to make nutritious snacks easily accessible to individuals in Nashville, empowering them to make healthier choices in their busy lives. We are committed to promoting wellness, providing exceptional customer experiences, and supporting our local community's health and well-being.

  1.4. Keys to Success

Highlights the factors that will contribute to the company's growth and success.

        - Example:  Our success hinges on offering a diverse range of high-quality, healthier snacks to accommodate diverse dietary needs, strategically placing vending machines in high-traffic areas for maximum convenience.

2. Company Description

   2.1. company history.

Provides context on the company's background and founding story.

        - Example: FitFuel was founded by Jo McClain, an entrepreneur passionate about promoting healthy snacking options. Inspired by personal wellness journeys, Jo established FitFuel in Nashville, Tennessee, to offer a range of nutritious snacks to health-conscious individuals seeking convenient and nourishing choices.

   2.2. Legal Structure

 Describes the company's legal structure (e.g., sole proprietorship, partnership, LLC, corporation).

        - Example: FitFuel operates as a sole proprietorship, with Jo McClain as the owner and responsible for the business's operations and management.

 2.3. Unique Selling Proposition

  Emphasizes the company's competitive advantage or unique offerings.

        - Example: FitFuel sets itself apart by providing a diverse selection of high-quality, healthier snack options that cater to various dietary needs and preferences. With an emphasis on granola bars, nuts, dried fruits, and low-sugar beverages, FitFuel offers a convenient and satisfying snacking experience that supports a healthy lifestyle.

  2.4. Target Market

Defines the company's ideal customer base.

        - Example: FitFuel caters to busy professionals, fitness enthusiasts, students, and anyone seeking wholesome on-the-go snacking options that align with their dietary goals.

  Presents a general overview of the industry, its trends, and growth potential.

        - Example: The healthy vending machine industry is experiencing significant growth, driven by the increasing demand for healthier snack options and a growing emphasis on wellness and nutrition. 

3.2. Competitor Analysis

 Evaluates the company's direct and indirect competitors, as well as their strengths and weaknesses.

        - Example: Direct competitors: Nourish-N-Go: Known for their wide variety of organic and gluten-free snacks, Nourish-N-Go has established a strong presence in the healthy vending machine market.

        - Example: Indirect competitors: Traditional Vending Machines: While not solely focused on healthy snacks, traditional vending machines still pose a competitive challenge by offering a broader range of convenience snacks.

3.3. Target Market Analysis

Explores the company's target customers, demographics, preferences, and pain points.

        - Example: FitFuel's target market comprises health-conscious individuals in Nashville, Tennessee, who prioritize nutritious snacking options. This includes fitness enthusiasts, working professionals, students, and individuals actively seeking healthier alternatives. 

3.4. Market Opportunities

Identifies potential opportunities for the company to grow within the market.

        - Example: FitFuel has several growth opportunities in the healthy vending machine market, including expanding into high-traffic locations, partnering with local health and wellness initiatives, leveraging technology for personalized recommendations, and establishing strategic alliances with local snack manufacturers and suppliers.

• Example 1: Conduct a survey or order a market research report of potential locations to determine the foot traffic and identify high-traffic areas for placing FitFuel vending machines. (e.g., Location A records 500 people passing by every hour during lunchtime, indicating a prime spot for a vending machine)
• Example 2: Contacting every gym in the area to determine if they have or would be open to having one of our vending machines. Compile that list.
• Example 3:  Analyze the demand for healthier snack options in the target market by surveying employees in office buildings and educational institutions. (e.g., 80% of surveyed employees express a preference for healthier snacks and beverages in vending machines)

4. Marketing and Sales Strategy

4.1. product or service offerings: .

Describes the company's products or services in detail.

        - Example: FitFuel offers a diverse range of healthy snack options, including granola bars, nuts, dried fruits, and low-sugar beverages. Our products are carefully selected to cater to various dietary needs and preferences, providing customers with convenient and nutritious on-the-go options

4.2. Pricing Strategy

 Outlines the company's approach to pricing its products or services.

        - Example: FitFuel adopts a competitive pricing strategy that reflects the value and quality of our healthier snack offerings. Our pricing is designed to be affordable and accessible to a wide range of customers, encouraging regular purchases and promoting healthier snacking habits.

4.3. Sales Strategy

  Explains how the company plans to generate sales and build customer relationships.

        - Example: FitFuel's sales strategy focuses on establishing strong partnerships with local businesses, gyms, and wellness initiatives to expand our customer reach. Additionally, we prioritize customer satisfaction by maintaining a well-stocked inventory of fresh and enticing snack options.

 Describes the methods through which the company will deliver its products or services to customers.

        - Example: In addition to placing our vending machines in high-traffic areas such as office buildings, gyms, and educational institutions, we also partner with local retailers and wellness centers to make our products easily accessible to a broader audience.

4.5. Promotions and Advertising

 Details the company's promotional efforts and advertising strategies.

        - Example: FitFuel employs a targeted marketing approach that includes social media campaigns, and collaborations with influencers in the health and wellness space. We also implement promotional offers, and strategic partnerships to incentivize customer engagement and attract new clientele to our healthier snack options.

• Example 1:  Partner with local fitness centers, gyms, and wellness events to offer promotional discounts on FitFuel vending machine products, attracting health-conscious customers. (e.g., 200 customers redeem promotional discounts within the first month)
• Example 2:  Create a list of local gyms that have agreed or opted into housing one of our vending machines.
• Example 3: Perform a pilot test at a few gyms by selling or giving away the snacks and drinks at a display using the honor system or manning the booth yourself and take note of gym member feedback on the snacks themselves and if they’d like to have a vending machine on site

5. Operations and Management

5.1. vending machine placement:.

Involves identifying suitable locations and securing contracts for the strategic placement of vending machines 

        - Example: FitFuel will strategically acquire and place vending machines in high-traffic areas such as office buildings, gyms, universities, and shopping centers. We will negotiate agreements with property owners to secure prime locations that offer maximum visibility and convenience for our target customers.

5.2. Inventory Management and Restocking:

  Refers to the systems used to monitor and replenish product inventory

        - Example: FitFuel will utilize an advanced inventory management system that tracks product levels in real-time and generates automated alerts for restocking. We will establish strong partnerships with trusted suppliers to ensure a consistent supply of high-quality, healthier snack options.

5.3. Maintenance and Service:

Highlights inspections, repairs, and cleaning to maintain vending machine functionality

        - Example: FitFuel will prioritize the maintenance and upkeep of our vending machines to ensure uninterrupted service. We will implement a proactive maintenance schedule, conducting regular inspections and cleaning to maintain cleanliness and functionality.

• Example: The FitFuel's founding team, led by Jo McClain comprises nutritionists, health professionals, and business experts who collectively possess extensive knowledge of the vending machine industry, nutrition, and customer preferences. This expertise enables FitFuel to curate and offer the most suitable and appealing healthy snack options for its customers.

5.4. Technology Integration and Data Analysis:

Describe the technology and systems that will be utilized to streamline operations and enhance efficiency.

        - Example:  FitFuel will integrate cutting-edge technology into our vending machines, offering cashless payment options, touch-screen interfaces, and remote monitoring capabilities. This will enhance the customer experience and provide valuable insights into machine performance and product popularity.

All of the unique Vending Machine projections you see here were generated using ProjectionHub’s Vending Machine Financial Projection Template . Use PH20BP to enjoy a 20% discount on the template. 

   6.1. Startup Costs

 Provide a detailed breakdown of the total startup costs requirements, and where you plan for those funds to come from. You will also want to break down how the startup costs will be used including working capital to cover losses before the business breaks even.

        - Example: Creating a solid financial plan is crucial, and we are taking the necessary steps to ensure the success of FitFuel. We have already raised $75,000 through a personal investment from the owner and we are working with a financial institution to secure a business loan of around $50,000 to $100,000 for working capital and to purchase a truck. By combining these funding sources, we are confident in our ability to meet the startup cost requirements and establish a strong foundation for FitFuel.

6.2. Revenue Projections

Provides an estimate of the company's future revenue based on market research and assumptions.

        - Example:  FitFuel projects $500,000+ in revenue in year 3 and break –even during year 2. The company anticipates steady growth in revenue over the initial five-year period.

 Estimates the company's future expenses, including fixed and variable costs.

        - Example: FitFuels expenses include property lease, accounting, advertising, maintenance, utilities, and fuel costs.

Summarizes the company's revenue, expenses, and net income over a specific period.

        - Example: FitFuel  expects to achieve profitability within the first two years of operation.

 Outlines the company's projected cash inflows and outflows.

        - Example: FitFuel’s cash flow projections account for seasonal fluctuations in sales and expenses.

  Determines the point at which the company's revenue equals its expenses.

        - Example: FitFuel anticipates reaching its break-even point early in year 2 of operation.

Watch how to create financial projections for your Vending Machine Business

Key Point  4 

• Example 1: Research industry benchmarks for vending machine businesses to estimate projected revenues, expenses, and profit margins. (e.g., The average annual revenue per vending machine in the industry is $10,000, aligning with FitFuel's projected revenue)
• Example 2: Consider factors such as machine maintenance costs, product spoilage, and product demand fluctuations to create a comprehensive financial projection. (e.g., Accounting for a 10% annual maintenance cost and a 5% spoilage rate in the financial projections)

   7.1. Supporting Documents

 Includes any relevant documentation that supports the information presented in the business plan, such as resumes, financial projections, market research data, and permits or licenses.

   7.2. Glossary of Term

 Provides definitions for industry-specific terms used throughout the business plan to ensure reader comprehension.

   7.3. References and Resources

Lists any sources or resources referenced during the preparation of the business plan, including industry reports, market research data, and relevant publications.

• Example: As the owner and entrepreneur behind FitFuel, Jo McClain has invested a significant amount of personal capital into the business, demonstrating a strong commitment and dedication to its success. By leveraging personal resources and assuming financial risk, Jo showcases a vested interest in the growth and profitability of FitFuel.

How do I start a vending machine business?

To start a vending machine business, identify profitable locations, choose the right vending machine types and products, secure necessary permits and licenses, find reliable suppliers, establish agreements with location owners, monitor inventory and sales, and market your vending business.

What types of products can I sell in vending machines?

Vending machines can sell a variety of products depending on the target market and location. Options can include snacks, beverages (soda, coffee), healthy food options, convenience items, personal care products, electronics, or even specialized products like toys or pet supplies.

How can I find suitable locations for my vending machines?

Finding suitable locations for vending machines involves identifying high-traffic areas such as office buildings, schools, hospitals, shopping centers, and recreational areas. Consider approaching location owners or working with vending machine placement companies to secure locations.

How can I optimize sales and profits in my vending machine business?

To optimize sales and profits, ensure your vending machines are well-stocked and regularly serviced, regularly analyze sales data to understand popular products and adjust inventory accordingly, price products competitively, consider upselling or cross-selling strategies, and provide excellent customer service.

What are the maintenance requirements for vending machines?

Vending machines require regular maintenance, including restocking products, cleaning and sanitizing, performing routine maintenance on the machine's mechanisms, troubleshooting and repairing any malfunctions, and ensuring proper cash handling and accounting procedures.

About the Author

Adam is the Co-founder of ProjectionHub which helps entrepreneurs create financial projections for potential investors, lenders and internal business planning. Since 2012, over 50,000 entrepreneurs from around the world have used ProjectionHub to help create financial projections.

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How To Start a Vending Machine Business: A Seven-Step Guide

Published: July 15, 2023

The first vending machines dispensed postcards in exchange for coins in the 1880s. Now, vending machines are a $18B industry .

With low startup costs and little maintenance required, vending machines offer an exciting, passive opportunity for entrepreneurs looking to launch their first businesses or a side hustle.

But figuring out how to start a vending machine business requires picking a profitable niche , an ideal location, and the right suppliers.

What is a vending machine business?

A vending machine business is a firm that operates machines that dispense goods, mainly foods and beverages. An owner of one or multiple vending machines selects where to place them, what goods to sell, and collects money deposited by customers.

Vending machine businesses sell a diverse range of goods, such as:

• Food (e.g., candy, chips, snacks)
• Beverages (e.g., soda, water, hot drinks)
• Tech products (e.g., chargers, tablets, earphones)
• Lottery tickets

Many universities and offices feature vending machines with oft-used supplies, such as keyboards and mouses. Other more traditional ones, such as gumball or food machines, give customers easy access to a quick treat. Whatever you can fit inside a rectangular box (even live crabs or caviar ), you can start a vending machine business with it.

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What's the market like for vending machine businesses?

The industry isn’t dominated by large players. The vending machine market features millions of small, independent owners. Not one firm owns 5%+ of the market. This makes launching a vending machine business ideal for those looking to start small.

Although the pandemic caused drops in revenue for owners of vending machines, the market has rebounded and now grows at a CAGR of 16.7%.

Are vending machines profitable?

The average vending machine earns $35 a week, but your profitability depends on the location of your machine and the kind of goods sold. Operators purchase goods in bulk and sell them for a premium in their machines, making margins as high as 86% on items such as water.

However, low foot traffic affects the machine’s profitability. A vending machine on a popular boardwalk will likely pull more sales than one in a half-occupied office building.

“At the right location, you can expect the machine to pay itself off in as little as six months in some cases,” says vending machine consultant Lakinya Francis .

The type of vending machine you choose also impacts its profitability. Bulk vending machines, such as ones that only sell toys, gumballs, temporary tattoos, and other cheap knickknacks, tend to see the highest margins alongside the lowest costs. These machines tend to cost less than more standard vending machines, and the products are cheap to purchase (e.g., $35 for 800 gumballs).

More advanced machines that sell goods such as beauty supplies can pull in significantly more revenue. However, these require higher startup and maintenance costs. If you're ready to form a vending machine business but feel intimidated by the red tape, there are business formation companies (for example,  ZenBusiness ) that can help you set up an LLC or corporation, provide registered agent services, help with accounting tasks, and more.

How much does a vending machine cost?

Vending machines can cost anywhere from a few hundred dollars to $10k, depending on the quality and make of the machine. More high-tech machines with smart features cost more than traditional vending machines. Relative to other startup ideas, however, vending machines tend to have lower costs.

However, other costs reported by operators will also eat at your margins, including:

• Insurance ($500/yr for $100k+ in annual sales)
• Location-based commissions (5%-25% of revenue)
• Credit card fees (~5%-6%)
• Taxes (10%-37% of adjusted gross income)
• Maintenance ($50-$250/yr)

Putting everything together: If an operator brings in $5k every month, they will likely see $2k in profit.

How to start a vending machine business

1. figure out what to sell in your vending machine.

To figure out what to stock in your vending machine, first identify your target location and demographic. Do you plan on putting a vending machine in a corporate office or inside a school cafeteria? What kind of goods would these customers likely need from a vending machine?

Office workers may want a vending machine that dispenses beverages like energy drinks or coffee. On the other hand, college students may want a vending machine with snacks or quick meals in between classes.

Next, figure out which products have enough demand and high profit margins. An ice vending machine requires virtually no cost to stock, as an example. However, this type of machine may see smaller volume than one that sells beverages or food. Pick goods that have a solid balance of high margins and high demand.

2. Research and find an ideal location

Your target demographic will make choosing an ideal location easier. For example, if you choose to sell to college students, you likely plan on placing it on a campus. Now, you need to figure out an exact location (e.g., a residential hall compared to a student center). Consider the following questions when selecting a specific location:

• How many people walk by this location?
• Is this location primarily outside or inside? What’s the weather like (e.g., cold, warm?)
• Are there other vending machines already here? What do they sell? Are they outdated or new?
• Who manages or owns the location? Would they likely permit the placement of a vending machine?

Create a list of several potential locations. Then, find contact information for the owners and call them to set up a meeting. Dress professionally, bring information about your vending machine idea, and answer any questions.

As noted before, you can expect to pay 5%-25% of your gross income to the location owner. Negotiate with them on what cut of your profits you can give, using the range as a guide.

3. Pick an optimal machine

Choosing the right vending machine depends on your budget and goods sold, per Francis.

If you plan on selling drinks and snacks, for example, you will need to purchase a machine that can accommodate both. More technologically advanced vending machines, such as ones that make coffee, require purchasing specialized equipment.

Additionally, you should consider the pros and cons of purchasing a new or old machine. New machines likely cost more, but require less upkeep and often have more technologically advanced features. Old ones, on the other hand, cost much less, but may cost more in maintenance.

“[Buying] a brand-new machine means it will come with a credit-card reader, warranty, and a peace of mind that you won’t have any issues for a while,” says Francis.

Vending machines types include:

• Combination
• Hot and cold food (e.g., burgers and fries, ice cream)
• Merchandise (e.g., earphone, face masks)

You also need to consider whether to purchase a machine that accepts electronic payments. With customers growing increasingly used to making digital payments alongside poor coin circulation , you may want to pay a higher price to get a machine that accepts card or mobile payments.

Many operators purchase vending machines from suppliers in their area, often found via a simple Google search. Retailers such as Sam’s Club and Amazon also sell new vending machines. Alternatively, you can find used ones on marketplaces such as Facebook , eBay , or OfferUp .

However, before making any purchase, remember to vet the machine’s specs, reviews, warranty, and any other information. When buying used, check the buyer’s reputation and ask any follow-up questions you have on the machine.

4. Sign any permits or applications needed for the business

Every city has different restrictions when it comes to vending machines. However, you will likely need all or some of the following permits to get started:

• Beverage license
• Food service license
• Health inspection

You also need to get other licenses and permits that come with running any business, such as getting a seller’s permit, state or federal licenses, registering your business name, and applying for an Employer Identification Number (EIN).

Additionally, remember you will have to file taxes for your vending machine business.

5. Stock the machine

You know what you want to put in the machine, so now you need to secure a supplier. Buying in bulk represents the best way to reduce marginal costs and to keep profits as high as possible.

Many operators use membership clubs, such as Costco , Sam’s Club , and BJ’s , which offer discounted prices. Alternatively, you can purchase directly from wholesalers, such as General Mills and Kind Snacks , though you will have to pay shipping fees.

6. Conduct regular maintenance, repairs, and restock

When you first get started, check on the machine at least once a week. That way, you can see which products sell, when to restock, and to address any issues with the vending machine.

Once you understand the machine’s cadence, you can adjust your schedule accordingly. For example, if you know the machine tends to run out of products every two weeks, you can schedule restocking then.

7. Review and optimize your operations

Once you get your machine set up, regularly review to optimize your operations. This means making adjustments over time to get the most out of your machine. When analyzing the performance of your current machine and thinking about expansion, consider the following money-saving strategies:

• Purchasing a used or more traditional machine (e.g., gumball vending)
• Negotiating a lower commission for the location owner
• Working with a vending machine consultant to get a discounted deal from suppliers
• Buying low-cost items for the vending machine (e.g., water, candy)

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Exploring the Best Vending Machine Options in the Philippines | Vending Solutions for Every Business

When it comes to running a successful business in the Philippines, offering convenient and accessible products to customers is key. One way to achieve this is by utilizing vending machines, which have become increasingly popular in various industries all over the country. Whether you own a small retail shop, operate a large office complex, or manage a bustling shopping mall, there is a vending machine solution available to meet your needs.

One of the most important factors to consider when choosing a vending machine is the type of products you want to offer. From snacks and beverages to personal care items and electronics, the options are virtually endless. You can customize the contents of your vending machine to cater to the preferences and needs of your target customers. This not only allows you to provide a convenient shopping experience but also diversify your revenue streams.

Another key consideration when selecting a vending machine is its functionality and features. Today’s vending machines come equipped with advanced technologies that enhance user experience and improve operational efficiency. Touchscreen interfaces, cashless payment systems, and real-time analytics are just some of the features that can streamline your vending operations and provide valuable data to help you make informed business decisions.

Whether you are a budding entrepreneur looking to start your own vending machine business or an established retailer seeking to expand your product offerings, investing in the best vending machine options available in the Philippines can significantly boost your profitability and customer satisfaction. With a wide range of choices to suit every budget and business requirement, there has never been a better time to explore the possibilities of vending solutions in the Philippines.

Ultimately, the success of your vending machine venture relies on choosing the right machine for your specific needs. By doing thorough research, considering your target market, and understanding the features and functionality available, you can find the perfect vending machine that will help take your business to the next level.

Table of Contents

Exploring the Best Vending Machine Options in the Philippines

If you are considering starting a vending machine business in the Philippines, it’s important to choose the right machine for your needs. With a diverse range of options available, it can be challenging to find the best vending machines that will maximize your profits and cater to the preferences of your target market.

One popular option is the snack vending machine, which dispenses a wide variety of snacks such as chips, chocolates, and candies. These machines are ideal for high-traffic areas like schools, offices, and shopping malls, where people often crave a quick and convenient snack. By offering a selection of popular and well-known brands, you can attract more customers and increase sales.

If you want to provide healthier options, a fresh food vending machine might be the right choice for you. These machines offer a selection of fresh fruits, salads, sandwiches, and beverages, catering to the growing demand for healthier food choices. Fresh food vending machines are a great fit for gyms, health clubs, and fitness centers, where customers are looking for nutritious options to fuel their workouts.

For those who want to tap into the thriving coffee culture in the Philippines, a coffee vending machine is a must-have. These machines can dispense a range of hot beverages, including espresso, cappuccino, and hot chocolate, and are perfect for office break rooms, hospitals, and airports. By offering high-quality coffee quickly and conveniently, you can attract coffee lovers and boost your profits.

Another popular option is the combo vending machine, which combines snacks, beverages, and even non-food items in a single machine. These versatile machines can cater to the preferences of a wider range of customers, making them a great fit for locations with diverse customer bases. Combo vending machines are frequently found in bus stations, airports, and entertainment centers, where people are looking for both snacks and drinks.

No matter what type of vending machine you choose, it’s essential to consider factors like the quality of the machine, its reliability, and the level of customer support provided by the manufacturer. Investing in a reputable brand and ensuring regular maintenance and restocking will help you run a successful vending machine business in the Philippines.

In conclusion, when exploring the best vending machine options in the Philippines, it’s crucial to select a machine that aligns with your target market and their preferences. Whether you choose a snack vending machine, fresh food vending machine, coffee vending machine, or combo vending machine, providing high-quality products and excellent customer service will ultimately determine the success of your vending machine business.

The Growing Demand for Vending Machines

As technology continues to advance and consumer preferences evolve, the demand for vending machines in the Philippines is on the rise. In recent years, vending machines have become a popular and convenient option for both retailers and customers.

One of the main reasons for the growing demand for vending machines is the ease and convenience they offer. With a vending machine, customers can quickly and easily purchase a variety of products such as drinks, snacks, or even electronics, without the need for cashiers or long waiting lines. This convenience is particularly appealing to busy individuals who are always on the go and have limited time to spare.

Furthermore, vending machines allow retailers to expand their reach and increase their sales opportunities. By placing vending machines in strategic locations such as shopping malls, office buildings, or transportation hubs, businesses can reach a wider audience and capture potential customers who may not have otherwise visited their store. This can lead to increased brand recognition and customer loyalty.

In addition, vending machines provide a cost-effective solution for retailers. Unlike traditional brick-and-mortar stores, vending machines require minimal overhead costs, such as rent and labor. This makes vending machines an attractive option for businesses, especially those with limited budgets or startup ventures.

Moreover, the COVID-19 pandemic has further accelerated the demand for vending machines. With social distancing measures and hygiene concerns, vending machines offer a touchless and contactless shopping experience. Customers can simply use their smartphones or contactless payment methods to make a purchase, reducing the risk of virus transmission.

In conclusion, the demand for vending machines in the Philippines is growing due to the convenience they offer to customers, the increased sales opportunities for retailers, the cost-effective solution they provide, and the touchless shopping experience they offer in light of the COVID-19 pandemic. As the technology continues to advance, vending machines are expected to play an even larger role in the retail industry.

Innovative Vending Machine Solutions in the Philippines

The vending machine industry in the Philippines has experienced significant growth in recent years. With advancements in technology and changing consumer preferences, vending machines have evolved from simple snack or beverage dispensers to innovative solutions that cater to a wide range of businesses and industries.

One of the most notable developments in vending machine solutions is the integration of cashless payment options. Many vending machines now accept not just coins and bills but also electronic payment methods such as credit cards, debit cards, and mobile payments. This convenience allows customers to make purchases without the need for physical currency, making transactions faster and more convenient.

Another innovative feature of vending machines in the Philippines is the inclusion of interactive touch screens and digital displays. These screens provide customers with detailed product information, nutritional facts, and even customization options. This interactive experience enhances the overall vending machine user experience and helps businesses showcase their products in a visually appealing way.

Vending machines in the Philippines are also being used in unique ways to meet specific market demands. For example, there are vending machines that dispense fresh fruits, vegetables, and even cooked meals, catering to health-conscious consumers. Other vending machines offer beauty and personal care products, electronics, or even books, providing convenience to customers who may need these items on the go.

Furthermore, vending machines are being utilized as automated retail solutions for businesses. This means that companies can set up vending machines to sell their products without the need for a physical store or manned sales staff. This not only reduces operational costs but also provides consumers with 24/7 access to the products they need.

Advantages of Innovative Vending Machine Solutions	Examples of Innovative Vending Machines in the Philippines

As more businesses in the Philippines recognize the benefits of vending machine solutions, the industry is expected to continue its growth trajectory. With constant innovations and advancements, vending machines are becoming an integral part of the retail landscape, providing convenience, accessibility, and profitability for businesses and customers alike.

Factors to Consider When Choosing a Vending Machine

When looking for a vending machine for your business, it is important to carefully consider several factors to ensure that you make the best decision. Here are some key factors to keep in mind:

1. Type of Products: The type of products you plan to sell will play a significant role in selecting the right vending machine. Different machines are designed to accommodate specific products, such as snacks, beverages, or personal care items. Consider the size, shape, and packaging requirements of your products to determine the most suitable machine.

2. Machine Size: The size of the vending machine should be compatible with the available space in your business location. Measure the dimensions of the area where you plan to place the machine to ensure that it will fit without any issues. Additionally, consider the capacity of the machine, as it should be able to hold enough inventory to meet customer demands.

3. Payment Options: Evaluate the payment options offered by the vending machine. Most machines accept cash, but you may also want to consider machines that accept credit cards, mobile payments, or offer cashless payment alternatives. The availability of different payment options can enhance customer convenience and boost sales.

4. Maintenance and Support: Look for a vending machine supplier that offers reliable maintenance and support services. It is important to have prompt assistance if any problems arise, such as malfunctioning parts or technical issues. Regular maintenance is also crucial to keep the machine operating optimally and avoid any potential revenue loss.

5. Energy Efficiency: Consider the energy efficiency of the vending machine, as it will impact your operating costs. Look for machines that have energy-saving features, such as LED lighting and low-power consumption modes. Energy-efficient machines can help reduce electricity bills and contribute to a more sustainable business operation.

6. Security Features: Security is a crucial aspect when choosing a vending machine, especially if you plan to operate it in a high-traffic or unattended area. Look for machines with robust security features, such as sturdy locks, tamper-proof mechanisms, and surveillance systems. These security measures will protect your inventory and minimize the risk of theft or vandalism.

By carefully considering these factors, you can choose a vending machine that best meets the specific needs and requirements of your business, ensuring a successful and profitable vending operation.

Location and Target Market

When it comes to setting up a vending machine business in the Philippines, location and target market play a crucial role in its success. Choosing the right location for your vending machines is essential to ensure that they are easily accessible to your target market.

One of the key factors to consider when selecting a location is the foot traffic. High foot traffic areas such as malls, airports, train stations, and office buildings are ideal for vending machines. These locations provide a steady stream of potential customers who are looking for convenience and quick snacks or beverages.

Another important aspect to consider is the target market. Identifying your target market will help determine the type of products that you should offer in your vending machines. For example, if your target market is students, setting up vending machines near schools or universities would be a strategic location. On the other hand, if your target market is office workers, placing vending machines in office buildings or business districts would be a better choice.

It’s also important to research the demographics of the area where you plan to set up your vending machines. Factors such as income level, age group, and lifestyle can impact the demand for certain products. For instance, if you plan to target a younger demographic, offering trendy and healthier snack options might be more appealing.

Overall, finding the right location and understanding your target market are fundamental steps in ensuring the success of your vending machine business in the Philippines. By strategically placing your machines in high foot traffic areas that cater to your specific target market, you can maximize your chances of attracting customers and generating profits.

Machine Types and Features

When it comes to vending machines in the Philippines, there are several types and features available for businesses to choose from. Understanding the different options can help business owners make an informed decision about which vending machine will best suit their needs.

One common type of vending machine is the snack machine, which is designed to dispense a variety of snacks and candies. These machines often feature multiple shelves and compartments to hold different types of products, such as chips, chocolate bars, and gum. They may also have a clear glass front to allow customers to see the available options before making a selection.

Another popular type of vending machine is the beverage machine, which is typically used to dispense cold drinks. These machines can hold a variety of beverages, such as soda, water, and juice. Some beverage machines also have the ability to offer hot drinks, such as coffee or tea. They usually have a refrigeration system to keep the beverages cold and a mechanism to dispense the selected drink into a cup or bottle.

In addition to snack and beverage machines, there are also specialized vending machines available in the Philippines. For example, some machines are designed specifically for selling cigarettes or lottery tickets. These machines often have age verification systems in place to ensure that only adults can make a purchase.

When choosing a vending machine, it’s important to consider the features that are most important for your particular business. Some machines offer cashless payment options, allowing customers to make transactions using a credit or debit card. Others have touchscreen interfaces that make it easy for customers to browse the available products and make a selection. Some machines even have built-in cameras or sensors to monitor inventory levels and notify the owner when it’s time to restock.

Overall, the vending machine market in the Philippines offers a wide range of options to suit any business’s needs. Whether you’re looking for a snack machine, a beverage machine, or a specialized machine, there are plenty of choices available to help you provide convenient and accessible refreshments to your customers.

Costs and Financing Options

When considering vending machine options for your business in the Philippines, it’s important to take into account the costs associated with purchasing and maintaining the machines. The upfront cost of a vending machine can vary depending on the type and size of the machine, as well as any additional features it may have. On average, a new vending machine can cost anywhere from ₱50,000 to ₱200,000.

In addition to the initial cost of the machine, you will also need to factor in the cost of stocking the machine with products. This will vary depending on the type of products you choose to sell and the demand for those products. It’s important to analyze your target market and determine what products will be most profitable for your vending machine business.

When it comes to financing options for your vending machine business, there are a few different routes you can take. One option is to purchase the machine outright, using your own funds or a business loan. This allows you to have full ownership of the machine and keep all profits generated. However, this may not be feasible for all businesses, especially those just starting out.

Another option is to lease a vending machine. Leasing allows you to pay a monthly fee for the use of the machine, rather than purchasing it outright. This can be a more affordable option for businesses with limited funds, as it spreads out the cost over time. However, keep in mind that with a lease, you do not own the machine and will have ongoing monthly expenses.

Finally, some vending machine suppliers may offer financing options to help you purchase a machine. This can be a good option if you don’t have the funds to buy a machine upfront. With financing, you can make monthly payments towards the cost of the machine over a set period of time. However, be sure to carefully review the terms and conditions of the financing agreement, including interest rates and any additional fees.

Ultimately, the decision of whether to purchase or lease a vending machine will depend on your individual circumstances and financial situation. It’s important to carefully consider the costs and financing options available to you before making a decision.

Popular Vending Machine Products in the Philippines

The vending machine industry in the Philippines offers a wide variety of products to meet the diverse needs and preferences of consumers. Here are some of the most popular vending machine products in the country:

• Beverages: Vending machines that dispense cold beverages such as soda, bottled water, energy drinks, and iced tea are widely available in the Philippines. These machines are often found in public places like malls, train stations, and office buildings.
• Snacks: Vending machines that offer a range of snacks are also popular among Filipinos. These machines can contain a variety of items such as chips, chocolate bars, cookies, and candies.
• Cigarettes: In some areas, vending machines that sell cigarettes can be found. These machines require an age verification process to ensure they are only accessed by adults.
• Personal Care Products: Vending machines that dispense personal care items like sanitary napkins, condoms, and toiletries are becoming increasingly common in public restrooms and convenience stores.
• Tickets: Vending machines that sell tickets for various events and transportation services are also available in the Philippines. These machines offer convenience to travelers and individuals attending concerts, movies, and other entertainment events.
• Mobile Phone Accessories: Many vending machines now offer mobile phone accessories such as chargers, earphones, and phone cases.
• Coins, Cards, and Tokens: Vending machines that dispense coins, cards, and tokens for games and transportation services are commonly found in arcades and transportation stations.

These are just a few examples of the popular vending machine products in the Philippines. The country’s vending machine industry continues to evolve and innovate, offering a wide range of products to cater to the needs and preferences of consumers.

Snacks and Beverages

When it comes to vending machines, snacks and beverages are a popular choice for many businesses. Whether you’re looking to provide a quick snack option for employees or offer drinks to thirsty customers, there are plenty of vending machine options available in the Philippines.

Snacks can range from chips and cookies to candy bars and pastries. It’s important to choose a vending machine that can accommodate a variety of snack options and provide easy access for customers. Some machines offer multiple compartments or rotating shelves to house different snacks.

Beverages are another essential item for vending machines. From bottled water and soda to energy drinks and juices, there are many options to choose from. Consider the size and capacity of the machine to ensure it can hold an ample amount of beverages. Temperature control features are also important to keep drinks cool and refreshing.

In addition to traditional snacks and beverages, healthy options have become increasingly popular. Vending machines that offer granola bars, dried fruit, and nuts are a great choice for those looking for healthier alternatives. These options cater to the growing demand for nutritious and convenient snacks.

When selecting a vending machine for snacks and beverages, it’s important to consider the payment options available. Many machines now offer cashless payment methods, such as card readers or mobile payment systems. These options provide convenience and flexibility for customers who may not always have cash on hand.

Overall, offering snacks and beverages through vending machines is a great way to provide convenience and variety to customers and employees. With the right machine and options, you can satisfy everyone’s cravings and keep them refreshed throughout the day.

Health and Wellness Products

As more and more people prioritize their health and well-being, the demand for health and wellness products continues to rise. This presents a great opportunity for businesses to offer these products through vending machines.

Whether it’s vitamins, supplements, protein bars, or natural and organic snacks, vending machines can provide convenient access to a wide range of health and wellness products. These vending machines can be strategically placed in gyms, malls, offices, and other high-traffic areas to cater to the growing health-conscious population.

One of the advantages of vending machines is their 24/7 availability, allowing customers to purchase health and wellness products at any time. This convenience factor is especially beneficial for those with busy lifestyles who may not have time to visit a store during regular business hours.

By incorporating cashless payment options, such as mobile payments or contactless cards, vending machines can further enhance the customer experience. This eliminates the need for cash and adds an extra layer of convenience for users.

Furthermore, vending machines can also be equipped with smart technology that enables real-time inventory tracking and automatic restocking. This ensures that popular health and wellness products are always available and reduces the risk of running out of stock.

When stocking health and wellness products in vending machines, it’s important to offer a variety of options to cater to different dietary needs and preferences. This can include gluten-free, vegan, and low-sugar products to accommodate a wide range of customers.

In conclusion, vending machines provide a convenient and accessible way to distribute health and wellness products. By tapping into this growing market, businesses can not only meet the needs of health-conscious customers but also capitalize on a profitable niche.

Electronics and Gadgets

One of the most popular categories in vending machines is electronics and gadgets. These machines provide a convenient way for people to purchase the latest tech gadgets and accessories. Whether it’s a phone charger, headphones, or even a portable speaker, vending machines make it easy for consumers to get their hands on the latest gadgets.

In the Philippines, there are several vending machine options that cater specifically to electronics and gadgets. These machines are typically stocked with a variety of items, such as phone cases, power banks, earphones, and USB cables. They are strategically placed in locations where people are likely to need these items, such as airports, malls, and business centers.

One of the advantages of using vending machines for electronics and gadgets is that they are available 24/7. This means that customers can make a purchase at any time, even when traditional retail stores are closed. Vending machines also offer a contactless buying experience, which is especially important in the current pandemic situation.

Furthermore, vending machines for electronics and gadgets often accept various payment options, including cash, coins, and digital transactions. This enables customers to make a purchase using their preferred payment method. Some machines even have touch screens that allow customers to browse through the available products and make a selection before making a payment.

In conclusion, vending machines for electronics and gadgets are an innovative solution that provides convenience and accessibility to customers. They offer a wide range of tech products and accessories, are available 24/7, and accept various payment options. With the growing demand for tech gadgets, these vending machines are becoming increasingly popular in the Philippines.

Success Stories: Businesses Using Vending Machines in the Philippines

Vending machines have become a popular business solution for many businesses in the Philippines. These machines offer convenience, efficiency, and profitability for various industries. Here are some success stories of businesses using vending machines in the country:

• Snack Companies: Snack companies in the Philippines have found great success by using vending machines to distribute their products. These machines allow them to reach a wider customer base and increase their sales. With the machines strategically placed in high-traffic areas such as malls, schools, and offices, snack companies have experienced an increase in revenue and brand visibility.
• Water Refilling Stations: Water refilling stations have recognized the benefits of using vending machines to offer their services. Customers can now conveniently refill their water bottles at these machines, eliminating the need for traditional manual refilling. This automation has not only improved customer satisfaction but also increased the station’s profitability.
• Coffee Shops: Coffee shops have also embraced vending machines as a way to extend their reach and serve their customers 24/7. These machines provide coffee lovers with easy access to their favorite hot beverages at any time of the day. Coffee shops have seen a significant increase in sales and customer satisfaction by incorporating vending machines into their business model.
• Pharmacies: Pharmacies have started utilizing vending machines to ensure efficiency in fulfilling customers’ medical needs. These machines are stocked with commonly needed over-the-counter medicines, vitamins, and health supplements. Customers can now access these essential products conveniently and quickly, reducing waiting times and improving the overall customer experience.
• Beauty and Personal Care Products: Cosmetics and personal care companies have found success by using vending machines to distribute their products. Customers can purchase their favorite beauty items, skincare products, and toiletries from these machines. By strategically placing vending machines in shopping centers and other busy areas, these companies have significantly increased their sales and brand exposure.

These success stories demonstrate the diverse applications and advantages of using vending machines in the Philippines. Whether it’s for snacks, water refilling, coffee, pharmaceuticals, or personal care products, businesses have discovered how these machines can boost their revenue and customer satisfaction. The future looks promising for businesses that choose to incorporate vending machines into their operations.

Questions and answers

What are the different types of vending machines available in the philippines.

There are various types of vending machines available in the Philippines, including snack vending machines, beverage vending machines, coffee vending machines, and even healthy food vending machines.

How can vending machines benefit businesses in the Philippines?

Vending machines can benefit businesses in the Philippines by providing a convenient and accessible way for customers to purchase products. They can help generate additional revenue, reduce labor costs, and provide around-the-clock service to customers.

What factors should businesses consider when choosing a vending machine?

When choosing a vending machine, businesses in the Philippines should consider factors such as the product selection, machine capacity, payment options, maintenance and support, and the overall cost and return on investment.

Are there any vending machine companies in the Philippines that offer custom vending machine options?

Yes, there are vending machine companies in the Philippines that offer custom vending machine options. These companies can work with businesses to design and develop vending machines that meet their specific needs and requirements.

Can vending machines in the Philippines accept different forms of payment?

Yes, many vending machines in the Philippines are equipped to accept different forms of payment, including coins, bills, and even contactless payment options such as credit cards or mobile wallets.

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Tips on Starting a Vending Machine Business

Starting a business can be a daunting prospect, especially if you’re still unsure of what you should really open. For many, the vending machine business is a good option for earning money even without a lot of manpower and space.

There are other advantages of picking a vending machine business. One is that it can actually operate 24/6 without supervision; though you have to make sure someone checks on the stocks frequently. It is also a cash business – you are sure that the consumers will pay for the products before they get it.

No matter what brand or company you wish to collaborate with for your vending machine business, these tips will help out.

Location is Key

No matter how impressive and useful your products might be, you are likely going to just have an idle machine when you put it in a bad location. Find a location where is plenty of foot traffic and space for people to stop and use the machine.

Public transport terminals, lobbies of offices, and school hallways are among the most popular choices.

Just make sure that the spot is safe from vandals.

Products to Match Location

With an excellent location in mind, you have to think of products that would match the needs of your customers who would be gathered at that particular location. For instance, tissues and sanitary napkins are often seen at public bathrooms while coffee vending machines are perfect for offices.

Reliable Suppliers

What use would an excellent location and having the best products would be if you can’t find reliable suppliers? You’ll only be wasting the space because the suppliers can’t provide products for your target market.

Also, make sure that the suppliers for the vending machine are reputable. You can choose to buy, lease, or franchise.

There are plenty of suppliers across the Philippines. You can contact the following options to check what they could offer:

Philippine Vending Corporation

Manila: 54 E. Rodriguez Jr., Ave. Bagong Ilog, Pasig City. Tel: 6716230, 6710363

Cebu: WH B23 J King Warehouse,Opao, Mandaue City, Cebu. Tel: (032) 3448882 to 84

Tri-East Philippines, Inc.

Manila: 3/F Rodeo Building #802 km. 18, West Service Road, South Super Highway, Paranaque City. Tel: 8222222

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Vending Machine

Back to All Business Ideas

Profitable Side Hustle: Starting Your Vending Machine Venture

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on October 29, 2021

Investment range

$1,357 - $3,950

Revenue potential

$48,000 - $148,000 p.a.

Time to build

0 - 3 months

Profit potential

$10,000 - $30,000 p.a.

Industry trend

Important factors to remember as you launch your vending machine business:

• Define your services — Decide on the types of products you will offer in your vending machines, such as snacks, beverages, healthy options, and specialty items like coffee or electronics. Consider whether you will offer full-service vending, including machine maintenance and restocking.
• Health permits — Ensure compliance with local health department regulations regarding the sale of food and beverages.
• Choose locations — Select high-traffic locations with good visibility and accessibility, such as office buildings, schools, gyms, shopping malls, and transportation hubs. Negotiate placement agreements with property owners or managers.
• Vending machines — Invest in high-quality vending machines that suit your product offerings. Consider machines with features like temperature control, digital displays, and inventory tracking.
• Machine setup — Ensure your vending machines are properly installed and maintained. Choose machines that are user-friendly, reliable, and equipped with modern payment systems (e.g., credit/debit card readers, mobile payments).
• Register your business — A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple. Form your business immediately using ZenBusiness LLC formation service or hire one of the best LLC services on the market.
• Commercial property insurance — Secure commercial property insurance to cover your machines and inventory in case of theft, vandalism, or other damages.
• Legal business aspects — Register for taxes, open a business bank account, and get an EIN .

Interactive Checklist at your fingertips—begin your vending machine business today!

You May Also Wonder:

How profitable are vending machines?

Vending machines can be quite profitable. Any given machine’s profitability will depend upon its location and overall pricing. Different food, drink, and product options have their own margins based, and a savvy owner will leverage the best ones. A well-placed and well-serviced vending machine can earn up to $400 in monthly revenue and $100 in profit.

Do vending machine owners pay rent?

Yes, vending machine owners generally pay 5-20% of sales revenue to the owners of the building or business where their machines have been installed.

Are vending machines taxed?

Yes, vending machines are charged sales tax on the revenue they generate, which varies based on state.

Where can you place vending machines?

The vast majority of vending machines are in commercial spaces such as offices, hotels, factories, entertainment spaces, and so on. You will likely need to sign a contract with the owner before installing your machines. For public places, you will need to reach out to the local government to find out what you need to do.

Can I operate a vending machine business part-time?

Yes, it is possible to operate a vending machine business part-time. You can start small by placing machines in a few locations and gradually expand as your business grows.

Operating a vending machine business part-time is indeed possible. Many vending machine business owners start part-time and gradually expand as their business grows. It allows for flexibility and can be a great way to generate additional income. 

How can I stand out from competitors in the vending machine industry?

Offer a variety of products that cater to specific customer preferences or niche markets. Consider including healthier snack options, specialty beverages, or unique and regional snacks that are not readily available in other vending machines.

Step 1: Decide if the Business Is Right for You

Pros and cons.

Every business has its advantages and disadvantages, which you should weigh to decide if starting a vending machine business is your best choice.

• Low startup costs – Main costs are the vending machines, which can be financed, and a large vehicle and related equipment.
• Flexible schedule – Collect money and restock the machines when you want.
• Grow at your own pace – You decide when to add more machines, and how many.
• Simple business model – Secure contracts with the businesses that host your machines, maintain and keep records — that’s about it.
• Need to scale up – Each machine’s profits can be small; making good money will likely require scaling the business with additional capital.
• Competition for prime locations – There’ll be fierce competition for high-traffic spots; you’ll need to be savvy to get your machines in prime territory.
• Added expenses – Getting top spots may require additional payment, such as rent, while new laws may tax the sale of sugary snacks and drinks.

Vending machine industry trends

Industry size and growth.

• Industry size and past growth – Market researcher IBISWorld values the US vending machine industry at $10 billion.(( https://www.ibisworld.com/industry-statistics/market-size/vending-machine-operators-united-states/ )) Prior to 2020, when the industry shrunk due to pandemic-driven lockdowns, the US vending machine market expanded by 22% over five years, from $7.6 billion in 2014 to $9.25 billion in 2019. 
• Growth forecast – The market is predicted to grow around 4% in 2022. Globally, the vending machine market is expected to grow nearly 7% annually over the next five years, according to market analyst Allied Market Research.(( https://www.alliedmarketresearch.com/vending-machine-market-A09486 ))
• Number of businesses – There are almost 19,000 vending machine operators in the US.(( https://www.ibisworld.com/industry-statistics/number-of-businesses/vending-machine-operators-united-states/ )) 
• Number of people employed – The industry employs more than 52,000 people.(( https://www.ibisworld.com/industry-statistics/employment/vending-machine-operators-united-states/ ))

Trends and challenges

Key trends in the vending machine market include:

• Internet of things functionality – Manufacturers are now developing vending machines that can utilize the internet of things (IoT) to gather real-time data on consumer demand and improve the machine’s offerings.
• Junk food regulations – New laws aim to curb the sale of unhealthy, high sugar products. Many places now use taxes or bans to curb the sale of such “junk” foods, especially in schools.
• Specialty machines – Many retail outlets now offer specialty vending machines selling electronics, clothes, or accessories.

Challenges in the vending machine industry include:

• Pandemic supply chain issues – The pandemic hurt logistics for many industries and could lead to continued shortages and other supply chain issues.
• Rising demand for healthy food

What kind of people work in vending machines?

• Gender – 72% of vending machine operators are male, while 28% are female.(( https://www.zippia.com/vending-machine-operator-jobs/demographics/#gender-statistics ))
• Average level of education – Nearly half (47%) of vending machine operators hold a bachelor’s degree.(( https://www.zippia.com/vending-machine-operator-jobs/demographics/#degree-level-types ))
• Average age – The average age of a vending machine operator is 44 years old.(( https://www.zippia.com/vending-machine-operator-jobs/demographics/#age-statistics ))

How much does it cost to start a vending machine business?

The startup costs for a vending machine business can range from around $1,400 to $4,000, according to Step By Step Research. The biggest expense is of course your vending machine or machines. The cost varies, depending on whether you purchase used or refurbished ones, or lease your machines on a monthly basis.

The other main startup costs include the required licenses and permits, as well as insurance, rent, and taxes. These costs vary widely based on your state and the business owners with whom you work.

You really only need one item to launch a vending machine business, but you might consider some additional equipment to help you get off the ground such as a truck and moving equipment. Keep in mind that additional costs will arise as you expand your business.

Here’s a sample computation, assuming you start with a refurbished vending machine. The cost would be much less if you just lease a machine, and higher if you get a new machine.

Start-up Costs	Ballpark Range	Average
Vending machine	$1,000 - $3,000	$2,000
Licenses	$200 - $300	$250
Insurance	$100 - $500	$300
Inventory restock	$30 - $50	$40
Rent (% of sales to property) per machine	$15 - $80	$48
Taxes (% of sales based on state) per machine	$12 - $20	$16
Total	$1,357 - $3,950	$2,654

How much can you earn from a vending machine business?

For your vending machine business, profitability depends on location and scale. How many vending machines are you operating, and where they are located?

The average monthly revenue for a vending machine is $300 to $400, and with profit margins ranging from 16-25%, you’ll net about $50 to $100 from each machine every month. According to a survey by the entrepreneurial news site The Hustle , US vending machine operators oversee 13 machines on average and gross $309 per machine each month, bringing in $48,000 in annual revenue and $10,000 in profit (20.5% margin).

With a vending machine business, your annual revenue and profit will depend on the scale of your operation. The more machines, the more money you’ll make. To leverage economies of scale in key overhead costs — purchase/lease, installation, and maintenance — an entrepreneur would need to oversee at least 40 vending machines to generate $148,000 in annual revenue and make a livable salary of around $30,000.

What barriers to entry are there?

• Restrictions – Food and drink vending machines are regulated and taxed, depending on the products offered. They may also be constrained by property owners, who could require a certain # of users or profit.
• Time commitment – You’ll need to make the rounds of your vending machine locations to stock, service, and collect money.
• Determining prices and payment options – Many potential customers claim vending machines are too expensive. Some older vending machines do not accept credit cards.
• Few healthy options – People today want healthier food and drinks, but many of the available vending machine choices are less than healthy.
• Securing prime locations – Finding and securing space at the highest-traffic locations can be a challenge.

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Step 2: hone your idea.

Now that you know what’s involved in starting a vending machine business, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Assuming you’re new to the vending machine industry, the first thing you should do is research. Find the most popular locations for machines in your city or town. Look into the types of vending machines – Drinks? Chips? Candy? – that are most profitable in your area and across the industry. Check nearby offices, hotels, hospitals, and other public spaces to see which items sell best — if it’s often out of stock, it must be in high demand!

Research the prices for local vending machines for sale, new or used, and check in on the leasing rates for machines available for lease.

As this is the primary startup cost to getting going in this business, it is best to spend considerable time finding the right choices for the beginning of your vending machine empire.

What? Determine vending machine products

When it comes to product choice, the possibilities are broader than you might think.

Vending machines can offer food or drink, or both. They can feature tobacco products, which require a special license, or medical products, such as tests for pregnancy or COVID-19. Non-food vending machines sell items as wide-ranging as laundry detergent, iPhone accessories, and makeup. A new vending machine in Rome pumps out piping hot pizzas! Depending on the demand in your area, you might consider healthy vending machine options, which have gained popularity in recent years.

Payment options and food selection technology vary based on the machine. Some older models accept only cash and coin, while many newer vending machines only provide electronic payment and card options. The latest smart vending machines go even further, offering touchscreens as well as touch-free transactions via mobile payment.

Depending on your level of financing and personal preferences, it’s a good idea to examine all of your options.

Here are some of the most popular snacks for vending machines:

• Chips: Brands like Lay’s, Pringles, and Doritos are common choices. Flavors like original, barbecue, and sour cream & onion are often popular.
• Chocolate Bars: Snickers, Kit Kat, Twix, Milky Way, and Hershey’s bars are frequent picks.
• Candy: Skittles, M&M’s, Starburst, and gummy candies like Haribo are usual finds.
• Nuts and Trail Mix: These offer a healthier alternative to chips and candy. Planters is a common brand.
• Granola Bars / Protein Bars: Items like Nature Valley granola bars, Clif Bars, or Kind Bars are also popular.
• Crackers and Cookies: Brands like Oreo, Chips Ahoy, and Ritz crackers are often stocked.
• Gum and Mints: Brands like Orbit, Trident, and Altoids.

Here are some of the most popular drinks for vending machines:

• Carbonated Soft Drinks: Brands like Coca-Cola, Pepsi, Dr. Pepper, and Mountain Dew are popular.
• Water: Bottled water is a must-have. Brands often include Dasani, Aquafina, or local brands.
• Sports and Energy Drinks: Gatorade, Powerade, Red Bull, and Monster Energy drinks are commonly found.
• Juices: Brands like Minute Maid, Tropicana, and Capri Sun are often available.
• Tea and Coffee: Ready-to-drink iced teas (like Lipton or Snapple) and cold coffees (like Starbucks Frappuccino) are popular.
• Diet or Zero-Sugar Drinks: Brands like Diet Coke or Coke Zero, Diet Pepsi or Pepsi Zero Sugar are often stocked.

How much should you charge for vending machine products?

The average food or drink item in a vending machine typically costs $0.50 to $2.00. But this will of course be higher if you decide to offer premium products. Either way, your prices should be competitive with machines offering similar products in your market.

A good approach is to initially offer all items in a specific category, such as candy bars or sodas, at the same price. From there, you see how sales go and experiment to find the right pricing for your location and product offerings.

Prices are of course based on the cost of the item, plus your target profit margin of around 20%. 

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

The key market segments for vending machines include corporate offices, industrial workplaces, hotels, restaurants, schools, hospitals, and public spaces.

Manufacturing centers such as factories are often prime locations, mainly because blue-collar workers buy twice as many vending machine products as other groups.

You will want to position your vending machines in locations with a lot of foot traffic, preferably by people who are regularly gripped by pangs of hunger or thirst!

Where? Choose a vending machine location

Choosing the right location for a vending machine can greatly affect its profitability. The best location can depend on the type of products you plan to sell, but generally, it should be a place with high foot traffic and suitable for the product category. Here are some key factors to consider:

• Foot Traffic: The number of people who pass by the vending machine is crucial. More foot traffic typically translates to more sales. High traffic areas might include shopping malls, busy streets, office buildings, schools, hospitals, airports, train stations, gyms, etc.
• Target Audience: Consider the demographics of the people who frequent the area. For example, a vending machine selling healthy snacks might do well in a gym, while a machine selling toys or novelty items might do better near a playground or family entertainment center.
• Availability of Similar Products: If similar products are readily available nearby, it might affect your sales. For instance, if there’s a coffee shop next to your coffee vending machine, it might not perform well.
• Safety and Security: The safety of the location is another factor to consider. A location with good security or surveillance can help mitigate these risks.
• Visibility: The vending machine should be clearly visible and not hidden away in a corner.
• Accessibility: The location should be easily accessible 24/7.
• Competition: Check if there are other vending machines in the area. If the competition is too high, it might affect your sales.
• Lease and Utility Costs: Consider the cost of renting the space (if applicable), as well as utility costs such as electricity.
• Regulations: Some places may have restrictions or regulations regarding vending machines. Make sure to check this beforehand.
• Ease of Restocking: Consider how easy it will be to restock the machine. If the location is too remote or difficult to access, it might not be practical.

One of the best things about running a vending machine business is that you can operate out of your home. Your main job will be scouting out locations and then maintaining, restocking, and retrieving your money from the machines over time. Depending on the size of your operation, you may even be able to use your personal vehicle for these tasks.

As your business grows and operations intensify, you may need to hire workers for various job roles. You may also need to lease or buy a truck to better service your machines. If you do end up needing an office, you can find commercial space to rent in your area on sites such as Craigslist , Crexi , and Instant Offices .

Step 3: Brainstorm a Vending Machine Business Name

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “vending machine” or “food”, boosts SEO
• Name should allow for expansion, for ex: “The Smart Vendors” over “Snack Attack Vending” or “Coffee Vending Group”
• A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

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Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that set your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Vending Machine Business Plan

Here are the key components of a business plan:

• Executive Summary: Outline your vending machine business’s goal to provide convenient, on-the-go snacks and beverages through strategically placed vending machines in high-traffic areas.
• Business Overview: Describe the operation of placing and stocking vending machines with a variety of products, such as snacks, drinks, and potentially non-food items, in various locations.
• Product and Services: Detail the range of products offered in your vending machines, including traditional snacks, healthy alternatives, beverages, and potentially niche products like tech accessories.
• Market Analysis: Assess the demand for vending machines in your target locations, such as office buildings, schools, or transportation hubs.
• Competitive Analysis: Compare your vending services to other vending companies or alternative snack options, focusing on your unique offerings like product variety or machine technology.
• Sales and Marketing: Outline your strategy for securing prime locations for your vending machines and attracting end-users, possibly through promotional deals or partnerships with location owners.
• Management Team: Highlight the experience and qualifications of your team, particularly in areas like logistics, retail, and maintenance.
• Operations Plan: Describe the day-to-day operations, including machine maintenance, restocking, and managing cash or electronic payments.
• Financial Plan: Provide an overview of financial aspects, including start-up costs for purchasing machines, operational expenses, and revenue projections.
• Appendix: Include supplementary documents such as contracts for location placements, machine purchase agreements, or detailed market research data to support your business plan.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — a prerequisite to paying taxes, raising capital, opening a business bank account, and other guideposts on the road to getting a business up and running.

Registration is exciting because it makes the entire process official! Once it’s done, you have your own business.

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to vending machine operations. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Businesses come in several varieties, each with its pros and cons. The legal structure you choose for your vending machine business shapes your taxes, personal liability, and business registration requirements, so it’s important to choose wisely.

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just needs to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have. 

Form Your LLC

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Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans : This is the most common method, but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans : The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants : A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal: Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best options, other than friends and family, for funding a vending machine business. 

Step 8: Apply for Vending Machine Business Licenses and Permits

Starting a vending machine business requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting a vending machine business may include doing business as (DBA), health license and permit from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits.

Any vending machine that takes money in exchange for products requires its operator to get a state-based business license. You may also need a business license and local county or city-based health and food-handling licenses and permits. Additional beverage or food licenses may be required based on what your vending machines carry. If you plan to offer tobacco products or alcohol, you will need additional licenses. Additionally, your vending machines may need to be inspected to complete the application process, according to business launch adviser Corpnet.

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your vending machine business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some of the different types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of any of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business.

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, a number of excellent software programs and digital tools can help you with many business tasks. 

You may want to use a vending managing system to help manage your vending machines, with prices ranging from about $20 per month to $100 per month. But depending on the level of technology in your chosen machines, they may come pre-programmed with software that tracks inventory and revenue.

Some popular VMS websites are:

• Parlevel Systems Vending Management System (VMS)
• Vending Purchase Group
• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero .
• If you are unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using services like WordPress, Wix, or Squarespace . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google.

Here are some powerful marketing strategies for your future business:

• Location is Key: Identify high-traffic locations with a target audience for your products, such as offices, schools, gyms, and waiting areas, to increase the visibility and accessibility of your vending machines.
• Strategic Product Selection: Tailor your product selection to match the preferences and needs of your target audience, ensuring a mix of popular snacks, beverages, and healthier options to appeal to a broad customer base.
• Dynamic Pricing and Promotions: Implement dynamic pricing strategies, offering promotions, discounts, or bundle deals during peak hours or specific seasons to encourage more sales and create a sense of urgency among customers.
• Regular Machine Maintenance: Keep your machines well-maintained, ensuring they are clean, fully stocked, and in good working condition to enhance customer satisfaction and encourage repeat business.
• Branding and Eye-Catching Design: Utilize eye-catching and cohesive branding on your vending machines to make them stand out and create a memorable impression, increasing the likelihood of attracting and retaining customers.
• Loyalty Programs: Introduce loyalty programs or rewards for repeat customers, encouraging customer retention and building a loyal customer base over time.
• Social Media Engagement: Leverage social media platforms to showcase your vending machine offerings, share promotions, and engage with your audience to build brand awareness and foster a sense of community.
• Customer Feedback Integration: Actively seek and incorporate customer feedback to improve your product selection and customer experience, demonstrating responsiveness and a commitment to meeting customer preferences.
• Community Partnerships: Explore partnerships with local businesses or community organizations to expand your vending machine network, tapping into new customer bases and increasing the visibility of your brand.
• Mobile Payments and Technology Integration: Stay current with technology trends by offering mobile payment options, interactive touchscreens, or other technological conveniences to enhance the customer experience and attract tech-savvy consumers.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your vending machine meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your vending machine business could be:

• Make products easily accessible using selection and payment options
• Keep machines clean and well serviced
• Secure prime locations
• Embrace appealing branding design
• Offer unique products, such as electronics or health-related items

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a vending machine business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working as a vending machine operator for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in vending machines. You’ll probably generate new customers or find companies with which you could establish a partnership. Online businesses might also consider affiliate marketing as a way to build relationships with potential partners and boost business.

Step 12: Build Your Team

You may not need to hire any employees if you are starting as a small business run out of your home. But as your business grows, you will likely need full-time employees to fill various job roles, such as:

• Truck Driver
• Installation Lead
• Maintenance Supervisor
• Inventory Manager

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Vending Machine Business – Start Making Money!

You’re now ready to take the first step in your entrepreneurial journey. This may be one of the best passive income ideas , assuming what you have are brand new vending machines that don’t require much repair and maintenance services. 

It’s not without risks, though. For example, not a few movies show a character kicking a vending machine when it fails to dispense or simply for free food or beverage. Well, the good news is that the latest technologies prevent misvends and other mishaps while improving customer experience. 

So what are you waiting for? Get out there, deploy your machines, and start vending!

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• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm a Vending Machine Business Name
• Create a Vending Machine Business Plan
• Register Your Business
• Register for Taxes
• Fund your Business
• Apply for Vending Machine Business Licenses and Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run a Vending Machine Business - Start Making Money!

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Vending Machine Business Plan: The Ultimate Guide

You’ve looked into the steps of starting a vending machine business, but you haven’t developed business plans. We’ll help you create a vending machine business plan.

Adam Hill has owned and operated Hill Vending since 2014, when he bought a $120 vending route. Now he’s making over $600K in annual sales. He’ll share vending machine tips so you know how to estimate vending machine profits and other costs.

We’ll explain everything you need to know to communicate your business plan. These vending machine business links will send you directly to the section of the blog you want to read:

What Is a Vending Machine Business Plan?

Why you need a vending business plan, how to buy vending machines, vending machine business plan template, executive summary, company analysis, vending machine industry analysis, customer analysis, competitive analysis, marketing plan, operations plan, management team, income statement, balance sheets, cash flow statement, how much are vending machines, how to start a vending machine business, how much does a vending machine make, what do i need to start a vending machine business, write your vending machine business plan.

A vending machine business plan provides a snapshot of where your business is, where it’s going, and how you will achieve the business goals over the next three to 10 years.

Vending business plans will include market research on the vending machine industry, local vending machine associations, a marketing plan, an operations plan, and a financial plan to provide a clear path of how you expect your vending machine company to make money and grow.

Your chances of starting a successful vending machine business double by writing and following a vending machine business plan. Plus, companies that follow their business plans grow nearly 30% faster and get more funding than those without a business plan.

Make sure to update your vending machine business plan annually as your company grows and achieves its goals.

The main ways to buy a vending machine business are personal savings, credit cards, private loans from the current business owner, bank loans, and angel investors.

Private Loans

One of the top ways to get into the vending machine industry is to buy an existing vending machine business. Business owners will often agree to owner financing, where you pay 0-20% down and then pay off the remainder over one to five years.

Banks will want to review your vending machine business plan and decide whether they believe you can accomplish the goals you’ve included. More specifically, a loan officer will want to see a professional vending machine business plan to verify that your financial assumptions are reasonable.

Angel Investors

Another way to fund a vending machine business is by taking a loan or equity deal from angel investors. An angel investor is just a wealthy individual who helps people start businesses in exchange for a share of the profits.

Learn more about buying a vending machine .

You’ll want a business plan template for your vending machine business. Download our free vending machine business plan template below.

You’ll also get our How to Start a Vending Machine Business PDF.

Check out our other business plan templates for more resources or watch our interview with a business owner who started one of the fastest growing franchises in North America to learn how he writes a business plan.

What Should I Include in a Vending Machine Startup Business Plan?

A business plan for a vending machine company should include:

• Competitor Analysis
• Vending Machine Marketing Plan
• Vending Machine Operations Plan
• Vending Machine Financial Plan

Keep reading to learn what vending machine operators should include in their business plans. We’ll also provide examples of what key parts of a vending machine business plan might look like.

Vending machine operators should start their business plan with an executive summary. All an executive summary does is summarize what the rest of the document is about.

The executive summary should be under a page long and should include a sentence or two about each section so that people can get the main points quickly.

This section of your vending machine business plan should include:

• An introduction to your company
• Your company’s mission and values
• The vending machine services you’ll offer
• Your competitive advantage

In your industry analysis, you need to provide an overview of the vending machine business. Your research will help you understand the market, improve your strategy to utilize market trends, and prove to readers you know what you’re talking about.

Your vending machine business plan should answer the following questions about the vending industry:

• How much do vending machines make a month? (Both as an industry and per machine)
• How much of the industry revenue is in the local market? Use the industry revenue multiplied by your location divided by the U.S. population.
• Is the market growing or shrinking?
• Who are the market leaders in the industry?
• Who are the primary vending machine manufacturers and suppliers of products?
• What vending machine business trends will impact the industry?
• What is the vending industry’s 5-10 year growth forecast?

I suggest using the IBIS World report we linked to earlier because it includes all the information about the U.S. vending machine market. You may need to purchase a local plan as well.

Industry Analysis Example

The vending machine industry makes $10 billion per year across 17,739 vending operators in the U.S. That means they make an average of $563,729 per year.

The average monthly revenue of a vending machine is approximately $2,000, which means a company needs 24 machines to earn the average across the industry.

The Las Vegas vending machine business market is approximately $69,343,972.03, and there are 99 vending machine operators , which means each vending machine operator is making approximately $140K per year more than the national average.

The market is expected to slightly decline in revenue, but companies that capitalize on existing trends like Apple Pay, Google Pay, and specialized vending machines are able to see growth by creating new markets in high-traffic areas.

According to ThomasNet , the major vending machine equipment manufacturers and suppliers are:

Wurth Industry North America	Brooklyn Park, MN	1945	1000+
Haggard & Stocking Associates, Inc.	Indianapolis, IN	1972	50-99
Atlantic Paper & Supply	Pawtucket, RI	1948	10-49
Grune Technica	Gresham, OR	1977	1-9
Elite Restaurant Equipment	Newark, NJ	2001	10-49
Moses Enterprise LLC	Baton Rouge, LA	2005	1-9
Westerfield Sales and Service	Cleveland, OH	1946	1-9
Rockleigh Industries, Inc.	Rockleigh, NJ	1998	10-49
IVM, Inc.	Indianapolis, IN	1991	10-49
Lynde-Ordway Co.	Huntington Beach, CA	1925	1-9

Adam suggested two manufacturers of vending machines he prefers to use.

In addition, snack foods and drinks are available from stores like:

• Coke distributors
• Pepsi distributors
• Other distributors

Your vending machine business plan should describe the target market you will be providing vending.

Your target market will impact the pricing and product options you carry. Make sure to understand the demographics of the customers in each type of facility you serve. You won’t want to offer the same vending machine products in a gas station as you would a cardiac wing in a hospital.

Analyze customer demographics. You’ll want to discuss the age, gender, location, and income levels of decision-makers, their customers, and where you want to place your vending machines .

You’ll also want to include psychographic profiles, meaning the details of your customers’ wants and needs. You wouldn’t want to offer all candy and soda in a yoga studio vending machine because the students will probably want water and healthier snack choices.

Your vending machine business plan should include a competitive analysis that shows your understanding of the direct and indirect competitors you will be competing with for your target customers.

Direct competitors are limited to vending machine operators in the local area, while indirect competitors are any type of business where your target customers can get the same products.

A vending machine business will have indirect competitors, including grocery stores, convenience stores, delivery apps, pharmacies, and fast food restaurants.

Not mentioning these vending machine competitors may show lenders that you don’t realize there are other places where someone can buy the same products even when in a rush.

You want to describe in greater detail the other vending machine businesses you’ll compete with. Your direct competitors will be other vending machine locations within a mile of your machine.

Create an analysis of each local vending machine company that answers the following:

• What locations does each business serve?
• What items do they sell in the vending machines?
• How do they price each item?
• What are the machine owners’ competitive advantages?
• What opportunities do they leave open?

After you’ve done this, you should be able to answer questions like:

• How can I provide superior products?
• What products can I offer that competitors do not?
• How can I create an excellent customer service culture?
• Can I beat their pricing?

Finding ways to provide better customer service at a similar or lower cost will provide a competitive advantage. Just make sure the pricing is correct for your vending machine business to be successful.

Have you ever heard of the 4Ps of marketing?

Every vending machine business should include them in its marketing plan.

This section of your vending machine business plan should remind the reader what type of vending machine business you are. Make sure to be specific about the products you’ll be offering in your vending machines. You’ll want to keep the product list consistent across vending machines.

You should have already analyzed how other vending machine businesses sell their products. Now it’s time to create your pricing guide. Adam suggests pricing the products at twice what you pay for them.

If you buy a 12-pack of soda from Sam’s Club for $12.99, then your vending machine company should be selling each can for $2.25 if the market will allow it. At the very least, factor in 50 cents profit per item.

Where will you be placing your vending machines? Document every location, the types of vending machines at the location, and how often you’ll need to check it.

You should also explain why each location is a good spot for a vending machine in your vending machine business plan. Learn more about vending machine placement .

The promotion section of a vending machine marketing plan documents how you will help people find your vending machine company and the locations where you have placed a vending machine.

Some promotional methods you might use for a vending machine company include:

• A vending machine website
• Adding your branding to your vehicle
• Creating brochures for business owners
• Focusing on vending machine experience and user experience (UX)
• Keeping your vending machines clean and branding them to help people recognize your brand
• Placing vending machines in strategic locations
• Providing maps that show where your vending machine business is located
• Sharing cool features of your vending machines on social media

You could also create a course to help other people learn how to start a vending machine business. That’s one of the ways that Adam has built upon his vending machine business. Check out our free vending machine training .

An operations plan is part of your vending machine business plan that explains your daily operations. Your operations plan should include two sections:

• Long-term goals
• Processes for operational excellence

Long-Term Goals

What milestones do you want to achieve in your vending machine company?

Your long-term goals might include the number of machines you want by a certain date, when you want to hire employees, and how much revenue you want within five years.

Make sure to add these details to your vending machine business plan.

Processes for Your Vending Machine Business

Your processes are the steps you will take during the day to keep your vending machine business running smoothly. Your main tasks will include:

• Buy vending machine products
• Store vending machine products
• Deliver machines
• Restock vending machines
• Clean vending machines
• Buy new vending machines
• Secure contracts for vending machine placement
• Buy vending machine routes
• Provide customer service

You should also include your management team and business structure in your vending machine business plan. Planning for a team shows that you have thought through starting a vending machine business and realize that you can’t do everything.

While vending machine businesses are typically able to be run by a single person, that doesn’t mean you won’t need help from other professionals including:

• Vending Machine Repair Person
• Sales and Marketing

Hiring people to manage portions of the company you don’t understand will make starting a vending machine business much easier. Emphasize how your leadership team is going to make you more successful by touting their past experience.

Direct experience in the vending machine business is best, but if your team has experience in other areas that are related, it works well, too. An advisory board familiar with vending machines is also an option.

Financial Plan

When you own vending machine business assets, you need a financial plan. Your financial plan should cover one to five years from your vending machine business starting.

Three financial statements should be included with your business plan:

• Income statement
• Balance sheet
• Cash flow statement

A Profit and Loss statement, P&L, or income statement shows your revenues and expenses to show how much money you made or lost.

You’ll have to make some assumptions when you create an income statement. Vending machine owners will need to make and document assumptions that answer the following:

• How many products will you serve?
• What will inflation be?
• How much will revenue grow each year? How?

Example Vending Machines Income Statement

Let’s assume the following:

• We bought 10 vending machines for $20,000 with $0 down and one year to pay $25K.
• Revenue is $2K/month per machine .
• Gross margins are 50% .
• Taxes are 20% .
• Marketing costs $1,000 annually .

Cost of Goods Sold (COGS)	$120,000
Marketing	$1,000
Loan Expenses	$25,000
Depreciation	$2,000
	$92,000
Income Tax	$19,320

Note: EBITDA = Earnings before interest, tax, depreciation, and amortization

Balance sheets are used to compare your assets and liabilities. Your balance sheet will show five sections:

• Current Assets: Cash and items that can be turned into cash within a year, including accounts receivable, inventory, prepaid expenses, and marketable securities.
• Long-Term Assets: Items that cannot be sold fast, like land, patents, brands, trademarks, goodwill, and vending machine equipment.
• Current Liabilities: Any debt due within a year, including accounts payable, debt financing, payroll, rent, utilities, and other accrued expenses.
• Long-Term Liabilities: Any debts that last longer than a year, including bonds payable, deferred taxes, leases, loans, and pensions
• Shareholder Equity: Shares, reserves, and retained earnings are all parts of owners’ equity

Effectively, you are aiming to balance the equation:

Current Assets + Long Term Assets = Current Liabilities + Long-Term Liabilities + Shareholder Equity

Learn more about balance sheets .

Your cash flow statement shows how much money you need in your business bank account to cover startup costs and operating expenses until you are fully self-sustaining.

Your cash flow statement adjusts the net income to add:

• Depreciation
• Decreases in accounts payable
• Increases in taxes payable
• Increases in accounts receivable

Then you’ll want to subtract the cost of any inventory to get the cash from operations. You’ll also want line items for any investment or financing you need for the following items:

• Cost of equipment like vending machines, refrigerated delivery trucks, etc.
• Cost of maintaining an adequate amount of inventory
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

The final part of your vending machine business plan should be an appendix that includes all the supporting documentation for your business plan. You’ll want to include tables, links, and citations so that anyone reviewing your vending machine business plan can verify your facts.

For the sake of brevity, in this Example Appendix, I am only including the formula I used for the Las Vegas Vending Machine Industry calculation.

Vending Machine Business FAQs

Buying a vending machine will cost anywhere from $100 for a small candy vending machine to a few thousand dollars for new and used drink or snack machines. The custom vending machine cost can reach $20,000.

Starting a vending machine business requires:

• Establishing if the vending machine business will be profitable
• Creating financial projections
• Writing a vending machine business plan
• Forming your vending machine business
• Buying a vending machine
• Getting products to fill your vending machine
• Finding a location for your vending machine
• Storing vending machine products
• Maintaining vending machines
• Restocking and collecting money from your vending machine investment

According to Adam, most vending machines make around $2,000 per month if they are in good locations.

Market research may show that other vending machines can have even better results, but use $2,000 a month per machine in financial projections for your business plan unless you can document that your machines will have better returns.

Of the $2,000, approximately 30% should be profits or wages.

The vending machine business model normally requires a:

• Vending machine
• Business license and LLC
• Location for the vending machine
• Way to handle refunds

Whether you decide to offer ice cream vending machines, coffee vending machines, or bulk vending machines, a vending machines business plan will help you make the most out of your new venture.

If you haven’t already, don’t forget to download your free business plan.

What will be your vending machines business model?

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FILIPINO BUSINESS HUB

How to Start a Piso Wifi Vendo Business: A Step-by-Step Guide

Piso Wifi Vendo businesses have quickly become an emerging trend in the Philippines, offering affordable internet access through pay-per-use. Operating such an enterprise requires installing vending machines that dispense wifi service at affordable rates ranging from Php 1-10. The machine is connected to the internet, and customers can purchase a certain amount of data or time by inserting coins or bills.

Piso Wifi Vendo has grown increasingly popular due to its profitability and low start-up costs, offering promising entrepreneurs a chance to provide essential services while making substantial returns on their investments.

If you want to start a Piso Wifi Vendo business, this article is for you. Here we offer a step-by-step guide on how to get started – from conducting market research, setting up the machine and network infrastructure, and marketing your service to potential customers – to ultimately running and growing a successful Piso Wifi Vendo venture. By the time this guide concludes, you should have an in-depth understanding of all it takes to run one.

Table of Contents

Research and planning for piso wifi vendo business.

Before jumping in with both feet to launch a Piso WiFi Vendo business, conducting extensive market research is essential. This step will enable you to assess demand for WiFi access within your target market and establish whether the concept for your venture can work. Here are some critical factors for consideration:

• Conduct Market Research Gather information on the demand for internet access in your target location, including demographics, competition, customer preferences, and pricing structures. Visit internet cafes, co-working spaces, or public areas offering WiFi to assess pricing and features and talk with potential customers to understand their preferences for wireless internet.
• Identifying Target Market and Location Determine your target market and location by understanding customer preferences, taking into account high-traffic areas such as schools, public transportation terminals, and business districts as potential locations with few internet service provider options available but high demand for internet access.
• Developing a Business Plan Constructing a comprehensive Piso WiFi Vendo business plan will be the blueprint for its success. A well-written business plan should contain details about your organization, such as market analysis, revenue streams, marketing strategy, and financial projections – in addition to being helpful when applying for loans from financial institutions or investors.
• Identifying Startup Costs and Funding Sources Determine all startup costs involved with starting a Piso WiFi Vendo business, including vending machine costs, internet service provider costs, electricity costs, and other expenses associated with setting up the business. Next, identify what amount of funding is necessary and explore all potential funding sources, such as personal savings accounts, loans, or investors, to get your venture underway. Finally, create and stick to a budget to ensure sustainability.

By conducting extensive research and planning, you’ll be able to establish a solid base for your Piso WiFi Vendo business and reduce the risks involved with starting new ventures.

Setting Up the Piso Wifi Vendo Business

Once your research and planning are complete, the next step in setting up your Piso Wifi Vendo business should be simple. Here are the main steps involved:

• Choosing the Right Piso Wifi Vendo Machine Various Piso Wifi Vendo machines are on the market, from basic models to more complex options with advanced features. When selecting, consider factors such as cost, reliability, durability, and ease of use.
• Selecting Internet Service Provider and Bandwidth Vendo business relies heavily on Internet connectivity. Make sure that you select an ISP with high-speed connectivity and excellent reviews as a reliable service provider, considering which bandwidth capacity requirements you have based on the number of users participating and the types of activities they will engage in online.
• Finding a Reliable Supplier for Machine Parts and Accessories You’ll need a trustworthy source for machine parts and accessories to keep your Piso Wifi Vendo machine running efficiently. Look for suppliers with high-quality products at competitive pricing who also provide excellent customer service.
• Registering the Business and Obtaining Necessary Permits Once registered with the appropriate government agencies – Department of Trade and Industry or Securities and Exchange Commission, for example – and obtained all necessary licenses, such as business permits and barangay clearance certificates, you should start operating your Piso Wifi Vendo business.

By following these steps, you can launch your Piso Wifi Vendo business successfully and legally. Taking the time and care to create a solid business foundation is vital for long-term success.

Installation and Maintenance

Once your Piso Wifi Vendo business is set up, the next step should be completing and maintaining its machine and network infrastructure. Here are the key steps involved:

• Setting Up the Machine and Network Establish the Machine and Network Position your Piso Wifi Vendo machine in an easily accessible area for customers to access it, then configure its settings so they provide the optimal customer experience, such as login requirements or pricing models.
• Testing the Machine and Internet Connectivity Before conducting any activity with customers or equipment, always verify their connectivity to the internet and if charges are being correctly applied. If everything appears correct, conduct further tests on both elements to verify their functionality and accuracy of billing.
• Implementing Security Measures to Protect the Machine and Customer Data Establish security measures to secure the Piso Wifi Vendo machine and customer data, such as passwords, firewalls, and other protection protocols to stop unauthorized access. In addition, educate customers on safe internet practices like avoiding phishing scams and selecting secure websites.
• Regular Maintenance and Troubleshooting Perform routine maintenance on both the Piso Wifi Vendo machine and network to ensure peak performance, such as cleaning the machine, replacing parts when necessary, or addressing any technical issues. In addition, stay abreast of technology trends and software updates for top competitive edge and security in business operations.

By following these steps, you’ll be able to provide reliable internet access to your customers while ensuring the safety and security of your business. It’s important to prioritize maintenance and troubleshooting to avoid downtime and minimize the risk of technical issues.

Marketing and Promotion

Marketing and promotion are crucial components of successfully running a Piso Wifi Vendo business. Here are the steps involved:

• Developing a marketing strategy Create a comprehensive marketing plan to promote your Piso Wifi Vendo business to its target market. Be mindful of factors like target audience, messaging, and channels when developing this plan. A mix of online and offline tactics, such as social media ads, email marketing, or print advertisements, may help reach potential customers more efficiently.
• Creating a brand identity Create a brand identity for your Piso Wifi Vendo business that expresses your values and resonates with its target market. This process could involve creating a logo, developing brand voice guidelines, or designing marketing materials consistent with this identity.
• Pricing strategy Create a pricing strategy that’s attractive and competitive among your target market, taking into account factors like internet connection costs, maintenance and repair expenses, and profit margins when setting it.
• Customer service and engagement Deliver impeccable customer service to keep customers returning for more of your Piso Wifi Vendo business. Provide 24/7 customer support, respond quickly to customer inquiries, address any issues as soon as they arise professionally, and engage with your audience on social media channels such as Facebook to build brand loyalty and foster an atmosphere of community spirit.

By following these steps, you can effectively market and promote your Piso Wifi Vendo business, attract customers, and build brand loyalty. Remember to always stay ahead of the competition by continuously adapting and monitoring your promotional strategies in response to changing needs of your target market.

Financial Management

Adequate financial management is crucial to the success and sustainability of your Piso Wifi Vendo business. Here are the critical steps in this process:

• Tracking Sales and Revenue Monitor Piso Wifi Vendo sales and revenue to assess your business’s financial performance on an ongoing basis. Utilize analytics software tools to collect customer usage and revenue data, then utilize that analyze data to identify trends or potential areas for improvement.
• Budget Management Adopting an expense and budget management system is crucial to maintaining profitability and the long-term viability of any business. First, keep an eye on expenses such as internet connectivity fees, machine maintenance, and advertising costs, then create a budget based on anticipated revenues and profit margins.
• Accounting and Record-Keeping Accurate accounting and record keeping are crucial elements of running your Piso Wifi Vendo business’s finances efficiently. Use accounting software to monitor expenses and revenue while keeping detailed records of all transactions.
• Expanding Your Piso Wifi Vendo Business Once your Piso Wifi Vendo business is up and running and generating steady revenue, consider scaling it further to increase profits and widen your customer base. This could involve adding more machines, expanding to new locations, or offering additional services like phone charging stations or printing.

Maintaining the finances of your Piso Wifi Vendo business properly will enable you to increase its profitability and sustain it long-term. Keep a constant eye on sales and expenses, keep accurate records, and use data-driven decisions as part of a data-driven decision-making process to keep your Piso Wifi Vendo business competitive and profitable.

Starting a Piso Wifi Vendo business can be a profitable and rewarding venture. By conducting thorough research, selecting an ideal machine and internet service provider, implementing security measures, developing a marketing strategy, managing finances effectively, and offering excellent customer service, you can build and sustain your enterprise over the long haul.

As previously outlined, key considerations when starting a Piso Wifi Vendo business include:

• Understanding your target market.
• Selecting an ideal machine and Internet service provider.
• Creating a marketing strategy.
• Properly managing finances.

With the increasing demand for high-speed internet connections and the rising popularity of convenient vending machines, Piso Wifi Vendo businesses are promising for entrepreneurs who hope to take advantage of this market and build successful enterprises.

If you are considering starting a Piso Wifi Vendo business, don’t be intimidated to leap into entrepreneurship. With careful planning, hard work, and commitment to providing exceptional customer service, you can build a profitable and successful Piso Wifi Vendo operation that meets the needs of its target market while making an impactful statement in your community.

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Ask the analyst for, philippines vending machines market (2022-2028) | industry, outlook, forecast, revenue, size, share, growth, analysis, trends, value, segmentation & covid-19 impact.

Market Forecast By Applications (Commercial Places, Offices, Public Places, Others), By Payment Mode (Cash, Cashless) And Competitive Landscape

-->

ETC043989	Nov 2022	Report
6Wresearch	70	35	5

• Report Description
• Table of Content
• Related Topics

Philippines Vending Machines Market Synopsis

Philippines vending machines market is projected to grow during the forecast period. This growth is driven by the increasing demand for healthier and convenient food options, as well as the rising incidence of obesity in the country. Vending machines are key contributors to this market growth, as they provide consumers with healthy snacks and beverages options that are convenient and affordable. In addition, the increasing popularity of home-based businesses is also expected to drive demand for vending machines in the Philippines over the next few years.

According to 6Wresearch, the Philippines Vending Machines Market size is expected to grow during 2022-2028. The Philippines is a popular destination for tourists, and public places catering to tourists are well-targeted for vending machines. These machines can provide convenient access to drinks and snacks, as well as promote the local tourist attractions.

The Philippines has a rich heritage and culture that is reflected in the public places where vending machines are located. These venues typically offer traditional foods such as noodle dishes, spring rolls, and barbecue pork. In addition, there are several international chains that have set up shop in the country, including Starbucks and Dunkin' Donuts.

Drivers in the Philippines Vending Machines Market

The main factors that are driving the Philippines vending machines market growth are:

• Increasing consumer spending in the country.
• Growing demand for healthier food options.
• Increase in awareness about the benefits of using vending machines for healthcare and wellness purposes.
• Growing popularity of e-commerce in the country.
• Increasing elderly population in the country.
• Rising consumption of food and beverages.
• Increased investment in health and wellness sectors.
• Increasing popularity of tourism in the country.

Challenges in the Philippines Vending Machines Market

Some of the key challenges faced by the Philippines vending machines market include high capital requirements, lack of awareness about the benefits of using vending machines, and reluctance of customers to adopt new technologies.

Additionally, challenges faced by the operators of the Philippines vending machines market include high cost of maintenance and equipment, low margins, and lack of awareness about the potential profits from these machines. Furthermore, stringent regulations pertaining to food safety and hygiene are also hampering the Philippines Vending Machines Market revenue.

Despite these challenges, there are some promising signs for the Philippines vending machine market. For example, Hypermarché saw strong growth due to its innovative products such as coffee capsules that can be brewed directly from a vending machine. Moreover, many operators are expanding their product lines to offer additional services such as digital wallet payments and meal delivery. Overall, despite some challenges, there is reason for optimism about the future of the Philippines vending machine market .

Market Analysis Based on Payment Mode

Based on Payment Mode, there are two main types of payment modes used in the Philippines vending machines market: cash and cashless. Cash is the predominant mode of payment, accounting for more than two-thirds of total payments made in the Philippines vending machines market . This is due to high levels of consumer consensus and convenience factors associated with using cash.

Cashless payments are growing rapidly, however, as they offer several benefits such as reduced operational costs, greater security, and faster transactions. This is being driven by increasing adoption of electronic payments platforms such as mobile wallets and e-wallets, which provide added convenience to consumers.

Impact of COVID-19 on the Philippines Vending Machines Market

The recent COVID-19 pandemic has impacted the  Global Vending Machines Market , with customers preferring to buy pre-packaged food and drinks. The impact on industries such as hospitality, retail, and food & beverage will be significant over the next few months as businesses try to make sense of how the pandemic has affected their operations.

In terms of depreciation rates for different types of vending machines, it is yet to be seen how severely COVID-19 will affect them. However, given that older generation machines tend to have a higher depreciation rate than newer ones, it is safe to say that they will lose value faster. For restaurateurs and retailers who own traditional vending machines, it would be prudent to install COVID-19 filters or upgrade their systems so that they can continue dispensing soda beverages etcetera even if there are no customers present.

Government Policies towards the Philippines Vending Machines Market

The Philippine government has been supportive of the vending machine market, approving new regulations in 2018 that favour the industry. These new regulations include a minimum purchase requirement for machines, as well as tax breaks and other incentives. The government also plans to establish a vending machine industry support center to help manufacturers and operators comply with regulations. Despite these policies, the Philippine vending machine market is still relatively small and lacks both technical infrastructure and customer awareness. This could be due to several factors, including a lack of competitively priced machines, high shipping costs, and the difficulty of importing goods into the country.

Target Markets and Niche Opportunities in the Philippines Vending Machines Market

The key trends in the Philippines vending machines market are increasing demand for convenience foods and beverages, growing health consciousness, and increasing investment in the sector.

Philippines vending machines market share is divided into three submarkets: domestic, regional, and international. Domestic players account for the majority of the market share, followed by regional players. The international segment is expected to grow at a faster rate due to increasing investment in the health and wellness sectors in countries such as China and India.

The Philippines was among the top ten global countries with the highest number of installed vending machines (IVMs). This high number is due to two reasons: an aging population and growing spending power of consumers. Additionally, the country's large population provides a large potential market for IVMs.

Key Attractiveness of the Report

• COVID-19 Impact on the Market.
• 10 Years Market Numbers.
• Historical Data Starting from 2018 to 2021.
• Base Year: 2021.
• Forecast Data until 2028.
• Key Performance Indicators Impacting the Market.
• Major Upcoming Developments and Projects.

Key Highlights of the Report

• Philippines Vending machines Market Outlook
• Market Size of Philippines Vending machines Market, 2021
• Forecast of Philippines Vending machines Market, 2028
• Historical Data and Forecast of Philippines Vending machines Revenues & Volume for the Period 2018 - 2028
• Philippines Vending machines Market Trend Evolution
• Philippines Vending machines Market Drivers and Challenges
• Philippines Vending machines Price Trends
• Philippines Vending machines Porter's Five Forces
• Philippines Vending machines Industry Life Cycle
• Historical Data and Forecast of Philippines Vending machines Market Revenues & Volume By Applications for the Period 2018 - 2028
• Historical Data and Forecast of Philippines Vending machines Market Revenues & Volume By Commercial Places for the Period 2018 - 2028
• Historical Data and Forecast of Philippines Vending machines Market Revenues & Volume By Offices for the Period 2018 - 2028
• Historical Data and Forecast of Philippines Vending machines Market Revenues & Volume By Public Places for the Period 2018 - 2028
• Historical Data and Forecast of Philippines Vending machines Market Revenues & Volume By Others for the Period 2018 - 2028
• Historical Data and Forecast of Philippines Vending machines Market Revenues & Volume By Payment Mode for the Period 2018 - 2028
• Historical Data and Forecast of Philippines Vending machines Market Revenues & Volume By Cash for the Period 2018 - 2028
• Historical Data and Forecast of Philippines Vending machines Market Revenues & Volume By Cashless for the Period 2018 - 2028
• Philippines Vending machines Import Export Trade Statistics
• Market Opportunity Assessment By Applications
• Market Opportunity Assessment By Payment Mode
• Philippines Vending machines Top Companies Market Share
• Philippines Vending machines Competitive Benchmarking By Technical and Operational Parameters
• Philippines Vending machines Company Profiles
• Philippines Vending machines Key Strategic Recommendations

Market Covered

The report offers a comprehensive study of the subsequent market segments:

By Applications

• Commercial Places
• Public Places

By Payment Mode

Philippines vending machines market: faqs, does the report include the impact of covid-19, which factor is driving philippines vending machines market, who are the key customers in philippines vending machines market, what is the forecast period for the philippines vending machines market report, do you also provide customisation in the market study.

2.1 Key Highlights of the Report

2.2 Report Description

2.3 Market Scope & Segmentation

2.4 Research Methodology

2.5 Assumptions

3.1 Philippines Country Macro Economic Indicators

3.2 Philippines Vending machines Market Revenues & Volume, 2021 & 2028F

3.3 Philippines Vending machines Market - Industry Life Cycle

3.4 Philippines Vending machines Market - Porter's Five Forces

3.5 Philippines Vending machines Market Revenues & Volume Share, By Applications, 2021 & 2028F

3.6 Philippines Vending machines Market Revenues & Volume Share, By Payment Mode, 2021 & 2028F

4.1 Impact Analysis

4.2 Market Drivers

4.3 Market Restraints

6.1 Philippines Vending machines Market, By Applications

6.1.1 Overview and Analysis

6.1.2 Philippines Vending machines Market Revenues & Volume, By Applications, 2018 - 2028F

6.1.3 Philippines Vending machines Market Revenues & Volume, By Commercial Places, 2018 - 2028F

6.1.4 Philippines Vending machines Market Revenues & Volume, By Offices, 2018 - 2028F

6.1.5 Philippines Vending machines Market Revenues & Volume, By Public Places, 2018 - 2028F

6.1.6 Philippines Vending machines Market Revenues & Volume, By Others, 2018 - 2028F

6.2 Philippines Vending machines Market, By Payment Mode

6.2.1 Overview and Analysis

6.2.2 Philippines Vending machines Market Revenues & Volume, By Cash, 2018 - 2028F

6.2.3 Philippines Vending machines Market Revenues & Volume, By Cashless, 2018 - 2028F

7.1 Philippines Vending machines Market Export to Major Countries

7.2 Philippines Vending machines Market Imports from Major Countries

9.1 Philippines Vending machines Market Opportunity Assessment, By Applications, 2021 & 2028F

9.2 Philippines Vending machines Market Opportunity Assessment, By Payment Mode, 2021 & 2028F

10.1 Philippines Vending machines Market Revenue Share, By Companies, 2021

10.2 Philippines Vending machines Market Competitive Benchmarking, By Operating and Technical Parameters

Middle East Vending Machines Market 

North America Vending Machines Market 

Latin America Vending Machines Market

Europe Vending Machines Market 

Asia Pacific Vending Machines Market

Africa Vending Machines Market 

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How to Start a Vending Machine Business: Cost, Tips, Pros and Cons

Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

Vending machines are not a novel business idea — they’re basically everywhere. However, if you’re looking to start your own business, there is a lot to like about the vending industry. Consider that there are millions of machines in the U.S. alone — and the vending machine industry in the U.S. generated over $8.6 billion in annual revenue in 2023 [0] IBISWorld . Vending Machine Operators in the US - Market Size (2005–2030) . Accessed Feb 21, 2024. View all sources .

The vending machine industry is an attractive option for both new and experienced entrepreneurs because of its versatility. It can be a great weekend side hustle, a low startup-cost business or an interesting new way to expand your portfolio.

Vending machine costs

The majority of the cost to start a vending machine business comes from the vending machines and the stock items, and can be financed through a small-business loan or personal savings. With as little as a $2,000 investment, you can generally get a basic vending machine business up and running.

Many vending machine operators recommend buying used or refurbished machines, which you can find between $1,200 and $3,000. A new vending machine will cost anywhere from $3,000 to $10,000, depending on its size and features.

Besides the machine itself, you'll also want to consider the cost of inventory to stock your machines. Depending on how many machines you plan to own and what kind of inventory you'll stock, this could span a few hundred to thousands of dollars.

How much do you need?

with Fundera by NerdWallet

We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

How to start a vending machine business: A step-by-step guide

Though helpful, previous experience and connections in the industry aren’t necessary to get a vending machine business off the ground — and make money doing it. Here's how to start a vending machine business in six steps.

1. Consider your vending machine options

There are a wide range of vending machines available today. In general, there are four different categories of vending machines (which we'll outline below). Consider all four types when choosing the machine whose products are best suited to the target market you’ve defined in your business plan .

Whichever type of vending machine you choose, start out with one or two machines with a specific market focus. That way, you can gradually learn about popular stock- and site-specific patterns, and add new machines accordingly.

Food and beverage vending

According to a report from Vending Market Watch released in 2023, food and beverage vending machines with snacks, soda and candy make up the majority of the vending market share in the U.S., with beverages alone accounting for 23% of vending sales.

You can get a machine that just offers drinks, snacks or snack-and-drink combinations. Some vending machine entrepreneurs choose to purchase different types of machines for one location or place one kind of machine in multiple locations. If you’re a new vending operator, consider starting with a specialty — healthy snacks, beverages or fresh food — until you learn more about the industry.

To make the most sales, cater your offerings to a specific, location-driven market. For instance, you might stock healthy alternatives such as protein bars and shakes at a gym location or juice and granola bars in a school vending machine.

Bulk vending

Starting a vending machine business with machines that stock gum balls, stickers or rubber balls — also known as bulk vending — requires very little capital and low maintenance costs.

These typically low-maintenance vending machines might not be glamorous, but the quarters do add up. A refurbished vending machine could cost you less than $50 and bring in $30 per month with only a few sales a day. The products you’re offering have incredibly low overhead. In the right market — like a school or amusement park — this modest investment offers the potential for a reliable, passive income source.

Most bulk vending machines are mechanical devices and don’t require electricity or battery power to operate, which means the cost of operation is low to nonexistent. That said, many candy and toy vending machines are older, so a used device might require minor repairs before it’s functional.

Specialty vending

You're not just limited to food and drinks when starting a vending machine business. Large public places like arenas, airports and malls often have machines offering goods like tech accessories, beauty products or other specialty items. Some of these vending machines use the same technology as standard vending equipment, and some with advanced features like touch screens and contactless payment are differentiated as Automated Retail Machines.

Some specialty vending items include:

Hot beverages: Coffee or hot beverage vending can be successful in offices, universities and conference centers. Manufacturers often produce both specialty beverage equipment and traditional machines, so you may be able to combine your purchases.

Retail merchandise: Essential travel items like phone chargers, headphones and neck pillows can be lucrative vending products if you’re able to negotiate a contract with a local transit station or airport. Upscale vending machines in malls and airports often contain luxury skin care products or electronics.

Laundry products: Individually packaged detergent, fabric softener and dryer sheets make great vending products if you identify the right market for it — like laundromats, apartment complexes or dormitories.

Tobacco: Tobacco vending is legal in many states and can be lucrative, depending on the state taxes. Even cannabis vending machines are becoming available, but with a much more limited market.

Franchising options

If you don’t want to build your business from scratch, you may want to consider buying a franchise to start your vending machine business. As a franchisee, you will be able to work within a proven business framework and receive extra support and training to get your vending business set up. You’ll also be able to decide how many or how few machines you want to invest in. However, keep in mind that as a franchisee, you will be responsible for paying a portion of your profits to the franchisor.

» MORE: Best franchise financing options for your business

2. Find the right location for your vending machine

The location of your vending machine is a crucial factor in earning a profit. For instance, an upscale food and beverage vending machine might fail in a strip mall full of restaurants, but that same machine might flourish in an office park.

When starting a vending machine business, think about the locations where you have personally purchased something from a vending machine, as well as the times when people are most likely to purchase beverages, snacks or other items.

Some location ideas for your vending machine include:

Schools, colleges and university campuses.

Hospitals, medical centers and care facilities.

Grocery and retail stores.

Airports, train and bus stations.

Shopping malls.

Laundromats.

Gyms and other exercise facilities.

Business offices and complexes.

Apartment buildings.

Manufacturing plants, distribution centers and industrial parks.

Car dealerships.

Secure your location

If you already have locations in mind, reach out to proprietors or work on getting contact information for the relevant manager. Talking to prospective proprietors about location needs can help you get a better understanding of local demand and inform your vending machine and product selection.

Researching online or contacting your local Chamber of Commerce for information about major businesses in your area can help you identify potential locations. Ideally, try to place your vending machine at companies with at least 100 employees or considerable foot traffic, like a multi-business office park.

Understand state-specific vending laws, regulations and compliance

Different rules apply to various types of vending machines, and vending regulations vary by state. Before starting a vending machine business and reaching out to prospective location proprietors, find out how your state governs vendors by looking up your state and local small business regulations online.

Also, any vending machine you put in a public place may be subject to certain ADA compliance standards , and it’s a good idea to keep accessibility in mind when considering vending machine options.

Know commission requirements and prepare a proprietor contract

You’ll need to pay commission to the proprietor who provides the location and the electricity required to operate your machine. Generally, you can expect to pay the property owner 5% to 25% of the revenue from your vending machine.

Draw up a contract with the proprietor stating your agreed compensation rate, contract length and terms. Include provisions for breach of contract, too. It’s also smart to include expectations and obligations regarding servicing and restocking your vending machines, vandalism or theft, and the possibility of unprofitability. As always, have a lawyer look over the contract before signing.

3. Find your vending machine

Finding your vending machine can be as simple as an online search. To get an idea of the different vending machines offered and price points, search both local and national suppliers. You’ll also want to consider the cost of inventory when looking at vending machine prices.

You can start your search with these three types of sellers:

Manufacturers or wholesale vending suppliers have the widest selection of vending machines for sale, new technology and end-to-end services for delivery, repairs and training. This is likely the most expensive option.

Secondary market sellers or specialty online retailers allow you to browse multiple brands and models of vending machines and often have helpful resources for business owners.

Consumer-to-consumer platforms like Craigslist and eBay have vending machines for sale. Save time by filtering by merchant or owner location, so you don’t have to worry about major shipping costs. This may be the best option for first-time vending entrepreneurs who don’t want to spend thousands on a new or refurbished machine.

Vending machines come with a range of features and capabilities, all at different price points.

Some of those special features include:

Snack/drink combination machines.

Credit card and large bill functionality.

Touch or voice accessibility.

Remote monitoring software and low-stock alerts.

Branded “wraps” for the front of your machine.

Interactive screens.

These special features can be tempting, but they will often add to the overall cost of the machine. Choose the vending machine that best fits the products you want to offer and what you can afford.

4. Explore your financing options

Starting a vending machine business doesn’t typically require as much startup capital as some other small businesses, which can cost hundreds of thousands of dollars to start.

However, depending on the type and number of machines you want and the stock you plan to carry, you may want to explore financing. Here are some options to consider:

Short-term loan

If you’re already a business owner and have the business financial history to prove it, securing a short-term loan to finance your vending machine might be your best course.

Short-term lenders deposit a lump sum of cash directly to your business bank account, and you’ll repay your loan, plus interest, over a predetermined amount of time. Repayment terms for short-term loans are usually 12 months or less, although you may find terms up to 24 months. Interest rates are a bit higher than longer-term loans.

Short-term loans can be easier to qualify for than other forms of financing because lenders are often more flexible when it comes to credit score and time in business.

» MORE: Best online business loans

Equipment financing

An equipment financing loan is another option to consider. The terms of these loans depend on the value of your equipment, which also acts as collateral in case you default on your loan payments.

In addition to your financial information and business plan, you will need equipment quotes for the machine(s) you plan to purchase when you apply for an equipment loan. And, if you need capital to purchase inventory, you may want to consider inventory financing .

5. Stock your vending machine with inventory

Once you’ve settled on a vending machine, you have to stock it with inventory.

Rather than choosing to stock items based on wider food and beverage trends, pay attention to local, site-specific needs. To stay on the safe side, don’t over-order stock in the beginning, and adjust your offerings based on demand.

If you choose to provide combined food and beverage services in your vending machine business, drinks will make up most of your sales. As the growing refreshments market expands to flavored water and healthier beverages like coconut water, consider what your location can support in terms of pricier specialty foods and drinks.

Drink size and shapes will affect your range of machine choices, so if you feel strongly about selling cartons or irregularly shaped products, try to find a machine with adjustable product sizing.

6. Make the right investments

After you’ve purchased your machine and placed it at a selected location, you’ll want to focus on making the business profitable.

Invest in a vending management system (VMS)

Depending on the technology in your machine, your vending equipment may come pre-programmed with management software, which you can use to streamline operations, record inventory and track revenue.

If you have machines that require you to manually manage your inventory, it might be possible if you own just a couple of vending machines. Once you have five to 10 vending machines, though, it’s probably a good idea to invest in a vending management system to help you stay on top of your inventory remotely. VMS software allows you to remotely manage your vending machines from an internet-enabled device. Most VMS systems provide real-time inventory updates and reporting tools.

Invest in customer service

Even if you only have one or two vending machines, it’s worthwhile to emphasize customer service from the beginning of this (or any) venture.

Most importantly, ensure that your vending machines are stocked and functioning on a weekly or biweekly basis. You can also consider providing an 800-number for service requests and comments, which is a great way to get useful feedback.

Like many location-based businesses, vending operators are often dependent on word-of-mouth referrals and in-person connections. Foster relationships with business owners, look up your state’s vending association or join local networking groups for entrepreneurs.

Invest your time

Starting a vending machine business requires more than just capital investment — you’ll have to invest some time and attention to your vending machine business, too.

A full-size vending machine might require you to collect money weekly, which is important to keep in mind when determining how much time you can realistically spend traveling to locations. In addition to the time it takes to purchase inventory, visit locations and restock, operating a vending machine business requires you to spend time researching trends in sales, new products or locations, and talking to peers.

If you can’t get away from your full-time commitments often, bulk vending — with non-perishable candy or stickers — might be a good way for you to break into the vending machine business without sacrificing too much of your time.

Pros and cons of starting a vending machine business

Like any new venture, starting a vending machine business has advantages and disadvantages to consider.

Easy to scale: Scaling your vending machine business is relatively easy. You can start off with a few vending machines, and as you become more successful, expand locations.

Variety of choices: There are all types of vending machines. Vending machines now serve healthy foods, gourmet options and items completely unrelated to food.

Little to no overhead costs: There are little to no overhead costs of running a vending machine business, especially if you don’t have employees or require office space.

Time commitment: Operating a vending machine business will require you to commit some time and energy into stocking, servicing and collecting money from your machines on a regular basis.

Theft and vandalism: Vending machines can be an easy target when it comes to theft and vandalism. Ensure that your machines are in secure and safe areas to avoid a loss in profits.

Yes, vending machines can be profitable. The average vending machine generates $75 a week or around $300 a month. However, vending machines that are well-stocked and placed in safe, high-traffic locations can generate more than double that.

Yes, vending machine owners pay rent or commission to the owner of the property. Vending machine owners generally pay between 5% to 25% of their vending machine sales.

Yes, vending machines are charged sales tax on the revenue they generate. The amount of sales tax varies depending on your state.

You can place vending machines in most commercial spaces such as offices, retail shops, bowling alleys and more. But you'll need to sign a contract with the property owner first.

LLC Formation

A version of this article originally appeared on JustBusiness, a subsidiary of NerdWallet.

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Our vision at Philippine Vending Machine Enterprise Corporation is to revolutionize the vending industry in the Philippines by providing cutting edge technology and innovative solutions that exceed customer expectations. We aim to be the go-to provider for all vending needs, offering a wide range of products and services that cater to diverse markets. We envision a future where our vending machines are ever-present, providing convenient and accessible business options for people. We are committed to achieving this vision through continuous improvement, collaboration, and a passion for excellence.

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The Thrifty Pinay

Author & Keynote Speaker of Finance, Women Empowerment; Empowering Women To Learn, Earn & Be Financially-Independent

How To Start a DISHWASHING VENDING MACHINE Business Philippines

By Rhea Trillanes

After my last entrepreneurial find, How to Start a Piso Wifi Business , here’s another innovative vending idea: The Dishwashing Vending Machine Business.

The Vending Machine Business In The Philippines

The vending machine business in the Philippines is starting to evolve. It has now transpired into an opportunity for entrepreneurs to start a business at little cost and for consumers to buy products from convenient spots at budget-friendly prices. 

A dishwashing vendo, also known as a laundry vendo machine in other parts of the world is starting to make noise on Tiktok and Facebook.

It combines the vending machine idea and the “tingi” strategy notorious at sari-sari stores in the Philippines. With this, a dishwashing vending machine can be a typical existence in your neighborhood in a couple of years.

In this article, I’ll make sure to answer the following questions:

• How to Start a Dishwashing Vending Machine Business in the Philippines?

How much does a dishwashing vending machine cost?

• Is there a dishwashing vending machine rental? 
• Dishwashing Vending Machine: How To Price?
• Are there customized Vending Machine Suppliers in the Philippines?

What are the best marketing strategies and locations for this type of business?

• Is a Dishwashing Vending Machine Business Profitable In the Philippines? 
• How Do I Maintain A Dishwashing Vending Machine Business?

How to Start a Dishwashing Vending Machine Business in the Philippines

1. choose a location .

As with every other vending machine business in the Philippines, location is crucial. Since you’re pushing a household product, it will thrive in residential areas. 

Foot traffic areas are good and it’s better as a complementary business in an existing one. For example: a sari-sari store or a regular dishwashing business. 

2. Buy A Dishwashing Vending Machine

All machine options in the market have easy plug-and-play features and low maintenance demands. Builtwise, the main difference would be the encasement and top box in the pricier options. If you have an existing sari-sari store, the coin slot machine works well as an aid for your already existing tingi offers. Otherwise, an enclosure would be necessary for stand-alone vending machines.

Dishwashing Vending Machine Cost Philippines

Suppliers for dishwashing vending machine suppliers are relatively few in the Philippines compared to Piso Wifis and Piso Carwash. Among the ones I checked out, I have found two types of machines you can look into. 

• Vending machine with coin slot and top box

Sabon ni Kabayan , the pioneer in dishwashing vending machine manufacturing in the Philippines offers a 10,000 pesos apparatus with a coin slot and encasement for the dishwashing container. The case keeps your solution secured and free from contamination. 

• Vending machine with coin slot 

Another option would be a coin slot machine for 2,000 (more or less depending on the supplier) which gives you a preset coin slot device with tubes you can connect to your own container. You can find sellers on Facebook and Shopee. If you’re from Bulacan, I found one located in Meycauayan .

Reminder on Purchasing A Vending Machine

With much difference in machine cost, even I am tempted to jump on the cheaper alternative in a heartbeat. But, be reminded that your choice should also consider your machine’s location, contamination concerns, and value for money. 

Due diligence is the key. Visit at least one of each type of machine before going for a purchase.

Customized Vending Machine suppliers in the Philippines

There are no customized offers for dishwashing machines yet that I found but there’s nothing stopping you from talking to manufacturers and assemblers to ask for the possibility of a special order. 

3. Buy the Product / Supplies 

Most machine suppliers sell the ingredients for the dishwashing solution but you are free to purchase your own solution from outside sources. Visit Shopee or Facebook for online options. Look for well-reviewed sellers with legitimate pages. 

Costing of Dishwashing Solution

Low-cost dishwashing solutions are around 15 pesos per 1000ml not including shipping and equipment needed for mixing.

Sample pricing for two types of dishwashing liquid kits that yields 50 liters:

700.00 Regular

750.00 Premium

If you are near Malabon , there’s a warehouse that offers even cheaper prices. 

4. Set it up

Set up the machine, your container, and your dishwashing solution in the location you chose. 

Your collection schedule will depend on how fast your supply lasts. You might need to do a trial-and-error effort on this and do periodical visits in the earlier stages to grasp how long you can leave the machine on its own.

My advice is to collect at the same time you replenish the liquid so you can record costs and sales neatly.

6. Maintain

There’s not much maintenance needed, actually. A little dusting is all the machine needs unless there are accidental spills. Tubes can be washed (if debris or contamination occurred) by letting them suck and expel water continuously until clean.

How much do I need to start a dishwashing vending machine business in the Philippines?

Php 2,550.00 will suffice for this type of venture but it could be as high as Php 10,650.00 depending on which machine type you choose. See sample computation below:

1,800.00 Coin Slot Machine

100.00 Container

650.00 Dishwashing Liquid Kit (50liters)

  2,550 Total

10,000 Dishwashing Vending Machine 

 650.00 Dishwashing Liquid Kit (50 liters)

 10,650 Total

You’ll have to add a little more for delivery fees.

Dishwashing Vending Machine: Pricing or How to price

A dishwashing vending machine is preset (you can change it) at a 3-second liquid release which equals a small cup or 100ml worth of dishwashing solution for a 5 peso coin. 

Doing the math on supplies cost and sales, looking back at the 15 per liter cost in the costing section, that’s a 35 pesos profit yield per liter, not considering the equipment and extra costs.

Let’s assign 10 pesos give or take to additional costs, that’ll still give us a 25 gain doubling your money on product cost.

FAQs of a Dishwashing Vending Machine Business Philippines

How does a dishwashing vending machine business compare to a regular dishwashing retail business.

While regular dishwashing retail businesses need individual containers to sell their product, a vending machine does not. But to be fair, you can say that the cost of a machine does not compare to a mere 5 pesos per PET bottle. 

Dishwashing liquid is one of the top products to sell online and for that, reach is also a major difference. Vendos, in general, are made to cater to needs in the proximity of their location. 

While a regular business needs time and constant effort, a vending machine is a passive type of income when you have spare funds and a good eye for locations. 

This leads us to the next question:

Marketing Strategies

The best marketing strategies for these types of business is nothing grand. Simply informing the local community of the presence of the vending machine business will suffice. 

There is not much room for creative marketing but if you want to push it, I suggest increasing the number of ml for a set period or getting the marketing on social media platforms following these time-tested tips for online selling . Consumers can have awareness and you can bank on loyalty when competitors surge.

The best location for this is in a neighborhood convenience store or in populated residential areas.

A vending machine business’ success is reliant on its location. A double yield on dishwashing liquid kits without the hassle of packing or exhaustive marketing is definitely a sign of great potential. 

Is a Dishwashing Vending Machine business profitable in the Philippines?

A full-time dishwashing retail business’ profit can’t be compared to a vending machine’s. This is not for someone looking for income tantamount to a full-time job unless you’re looking into tapping province-wide vending machine business *wink *wink. That’s a whole new venture article for another day.

If you’re aiming for earnings to dedicate to an emergency fund , savings fund , or life insurance , this is a convenient way to go. It’s perfect for professionals, young entrepreneurs, or stay-at-home moms looking for additional income streams .

When is the Best Time to Start a Dishwashing Vending Business?

Unlike seasonal business ideas , a dishwashing business is good to start whenever. Start now when there is less competition.

Can I use the dishwashing vending machine for other products?

Yes, as long as it’s liquid that’s possible. You will have to adjust the setting for the right amount of liquid discharge for every 5 pesos. Also, be sure to sanitize the tubes properly before switching products. Cooking oil, sot sauce, and vinegar are among the alternatives.

Dishwashing Vending Machine Outside Business 

It is a very straightforward venture idea, sure, but you know what else? It’s also one genuine step towards eco-sufficiency. A dishwashing vending machine business is one sure road to potential income and less earthly waste. That is the end of today’s piece. See you next business uncovering, fellow Thrifty Pinays !

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Rhea Trillanes is a writer of The Thrifty Pinay, an entrepreneur, and a proud mother & wife to a family of three in the Philippines. Her background in business and accounting makes her the perfect pro-bono business consultant for family and friends. She spent 10 years in corporate before discovering the world of freelancing. She writes articles and business proposals in the wee hours of the night. When not absorbed in writing, Rhea enjoys reading mangas and exploring money-making breakthroughs.

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Vending Machine Business Opportunities in the Philippines

If you have ever been to hospitals, malls, or convention centers, then you have seen one of those huge machines where you insert a few bills or coins, and it sells you something. Usually in the form of refreshments.

We all have seen a vending machine at least once in our lives, and we all have been enticed at how low maintenance vending machines are. It does not require an employee and supervision. It just needs a stock of inventory and change and electricity. 24-hour vending machines also guarantee income that never sleeps.

If you have studied your location and checked out the potential for a vending machine, then check out this article as it shows you your options on vending machines in the Philippines.

Coffee Vending Machines in the Philippines

Pinoys love coffee! We drink coffee when it is cold, and we drink coffee when it is hot! It only makes sense to build a business based on out caffeine addiction!

A vending machine that sells coffee is perfect for locations:

• Near call centers, BPO companies, and hospitals. Employees who work night shifts need a lot of pick-me-ups, and a vending machine near their place of work is a sure-fire way to make it rain P10 coins.
• Near construction sites, eateries, offices of construction firms, and sari-sari stores near subdivisions that are being developed. These sites are known areas where blue-collar workers converge, and these people need a caffeine boost to combat tiredness and sugar for extra energy. All are found in coffee mixes.
• Train stations and jeepney terminals. Just about anywhere people can get stuck if there is heavy rain.

Some coffee vending machine opportunities in the Philippines

• Barista Choi – This is one of the more popular coffee vending franchises in the Philippines and the investment for each machine is around P12,000.00 which is a good place to start for starting entrepreneurs.
• Chong Café – This is another coffee vending machine with good standing in the Philippines. A coin-operated machine is P17,000.00, which has an automatic cup dispenser with it.
• Buy from Alibaba – Another good potion if you do not want to start with a brand and maybe start your own.

Soft Drinks, Iced Tea and Snack Vending Machines

We have seen these form malls! Those that dispense “kokinkan” (a slang for Coke in can) and Iced Tea bottles.

These are perfect in:

• Parks and malls.
• Near hospitals.

Some soda and iced tea vending machine opportunities:

• Official Coke Vending Machines – these can be quite expensive but are very reliable.
• Juicy Fresh – Imported from SG, which can be shipped to the Philippines
• Philippine Vending Corporation – For local source, PVC also have soft-drink and snack vending machines, which you can avail. They also have a “on-loan” program where you can avail of the machines free of charge provided you house a large number of potential customers and have a target sales quota.
• Buy from Alibaba – Same as from the coffee vending option. Brandless or your can make your own brand.

More Vending Machine Ideas

Those two are the more popular and profitable ones, but here are more vending machines that can be tremendously profitable in the Philippines:

• Hygiene and personal effect vending machines – Tissue, alcohol packs and sanitary napkins.
• Candies and toys – Kids love them! Perfect in malls if you own a store or a restaurant.
• Loading machines – Load is one of the new necessities of today’s modern age, along with internet and a Facebook account!
• Mobile charging stations – People can lose their mobile charge at the most unfortunate time. This is a lifesaver.
• Pisonet – Some people still cannot afford a good computer and a stable internet connection, especially in indigent areas.

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Customized Vending Machine Philippines To Start Your Vending Business

Vending is a good business model if you want to do something with your savings without spending too much effort in a traditional business. Finding a customized vending machine Philippines isn’t hard, in fact, there are so many choices to consider that you may feel overwhelmed at first.

So to help you navigate all the extra choices, Corner4men has compiled a list of customized options for you to choose from:

List Of Customized Vending Machine Philippines For Food And Beverage

Xy snacks and drinks vending machine (with hot water dispenser).

The manufacturer allows users a high level of customization with this machine

The manufacturer allows users a high level of customization with this machine. It comes in black, white, or any shade you want it to. The vending machine is sturdy with a stainless steel body but it should be placed under shelter.

This machine can be used to sell instant noodle and it takes bill, coin, as well as credit card.

CSCPower Beverage, Snacks and Food Vending Machine 

One of the best features of the vending machine is that you can get its updates any time of the day online

This is another customized vending machine Philippines and it is capable of serving up to 23 types of drinks with a maximum capacity of 420 bottles.

One of the best features of the vending machine is that you can get its updates any time of the day online. Plus, when you order more than 2 machines, you can purchase its LCD touch display. Under the hood, it features an imported compression refrigeration system capable of both heating and refrigerating.

It supports customization, coins, and also paper money.

People who are in short of time and patience don’t always appreciate queuing up at restaurants to have a meal. In this case, a vending machine that serves drinks and light snacks will come in handy.

Where To Find Customized Vending Machine Philippines?

Finding a vending machine for sale Philippines is easy but let’s face it, it will definitely be manufactured in China. There is nothing wrong with that though because the country is the world’s number one manufacturer.

You have the choice to acquire these machines in different colors, functions; you can also choose what it serves. Most of the machine’s parts are automated so there is no need to worry about running it.

Alibaba is where you should go for the best selection of customized vending machine Philippines online. A rule of thumb is to choose a manufacturer with good review and years of experience. These suppliers are more likely to be professional and they know how to handle customers’ request.

Franchise Coffee Vending Business

If stability is what you are looking for, you can’t go wrong with Barista Choi coffee vending franchise. As the number of people drinking coffee is on the rise, some even have a few cups a day, selling this beverage is a promising idea.

If stability is what you are looking for, you can’t go wrong with Barista Choi coffee vending franchise

The franchise model is a relatively safe bet for beginners and there is also a wide range of choices available for aspirational entrepreneurs. In case you want another option to consider besides vending, a lugaw business is a good idea for those with a tight budget.

Barista Choi has been doing franchises since 2012 and you can count on their experience. They provide you with supplies and the machines at the price of approximately PHP 12,800.

What they provide isn’t exactly customized vending machine Philippines but you may not want the customization option as this is a franchise model.

Each cup of coffee comes at the price of PHP 5, so you can expect a profit of PHP 2.15. Owners can expect a return of investment after two months if they manage to sell around 100 cups of coffee per day. Since these machines operate on electricity, maintenance is another factor to think about.

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