A vending machine business is a great way to generate passive income and diversify your business portfolio. Start up costs are low, with many high quality used machines selling for less than $3 - $4k. However, getting money coming in is no walk in the park. You'll need to find a location with high foot traffic, good security and visibility, monitor inventory, and maintain the machines themselves.
Before you settle on a location and machine, use my free Vending Machine ROI Calculator to help you find out when your break even point is and your potential monthly profit.
The number of scams that run rampant in vending machine market should be studied one day. Like many industries people lie to inflate the sales of their locations, hide or gloss over mechanical issues with machines, and even use minors to conduct business transactions on their behalf to avoid liability.
When you're out shopping for vending machine locations be sure to follow these pro tips to avoid inheriting someone else's bad investment.
Verify all claims about revenue - Sellers keep income sheets, even if they primarily deal in cash. Its a big, glaring red flag if they do not have this.
Get the address of the location - If the location is a business, check out their reviews to get a feel for foot traffic. And if you can, discreetly go and observe the location at various times of the day to gaugue the potential customer volume.
Make sure their info matches the listing - This is important when using Facebook Marketplace to prevent yourself from being scammed. Most reputable businesses and people will use either their business name or personal name to list their locations. Newly created accounts or profiles with thin content should be approached with caution.
Ensure the property owner is aware of the transfer - Make sure you get a copy of the agreement and verify entity involved with the agreement is legit. People will sometimes attempt to sell locations with agreements that are close to expiry resulting in you being stuck with a machine with no location.
Prepare a bill of sale and profit guarantee - The bill of sale ensures you legally own the machine once the deal is done. A profit guarantee holds the seller accountable for their claimed revenue over a set period. If the numbers don't match, they agree to pay a penalty.
Here at Fueling Food, we love good, affordable, and mobile eats. If you're a fan of these types of snacks please check out our article on the best preworkout vending machine foods. And, if you want to make me the happiest vending machine owner in the world, please consider subscribing to my newsletter via the link below.
Posted by: Matt Irving on 01/08/2025
Subscribe to my blog!