Vending machines are one of the most accessible businesses to start. Low overhead, flexible hours, and scalable income make it attractive for side hustlers and full-time entrepreneurs alike.
But there's a lot of bad advice out there. This guide cuts through the noise and gives you the real, practical steps to start a vending business that actually makes money.
Is Vending Right for You?
Before diving in, let's be honest about what vending requires:
- Physical work: You'll be lifting cases of drinks, restocking machines, and driving routes
- Upfront capital: Plan for $2,000-5,000 minimum to start with one machine
- Sales skills: You need to pitch locations and negotiate deals
- Patience: It takes 6-12 months to build meaningful income
- Flexibility: Machines break, products expire, locations change
If you're looking for passive income with zero effort, vending isn't it. But if you're willing to put in the work, it's a legitimate path to $50K-100K+ per year.
Step-by-Step: Starting Your Vending Business
Decide Your Niche
Not all vending is the same. Choose your focus:
- Snack & Beverage: Most common, easiest to start
- Healthy Vending: Higher margins, but pickier locations
- Specialty: Coffee, ice cream, electronics (higher investment)
- Bulk Vending: Gumballs, toys (low cost, low return)
For beginners, I recommend starting with snack and beverage machines. They're proven, parts are available, and locations are plentiful.
Set Up Your Business Legally
Get the basics in place before buying machines:
- Business structure: LLC is recommended for liability protection ($50-500 depending on state)
- EIN: Free from IRS, needed for business bank account
- Business bank account: Keep personal and business finances separate
- Insurance: General liability ($300-600/year) protects you if someone gets hurt
- Licenses: Check your city/county for vending permits (varies by location)
Buy Your First Machine
You have three options:
- New machines: $3,000-6,000. Reliable, warranty included, but expensive
- Refurbished: $1,500-3,000. Good middle ground from reputable dealers
- Used: $500-2,000. Risky but cheap. Inspect thoroughly before buying
My recommendation: Start with a quality used or refurbished combo machine (snacks + drinks in one). Budget $2,000-2,500 for a reliable unit.
Where to buy: Facebook Marketplace, Craigslist, local vending distributors, or sites like UsedVending.com.
Find Your First Location
This is where most people struggle. Here's how to land locations:
- Target businesses with 50+ employees who don't have vending
- Walk in and ask for the manager or owner
- Lead with value: "Free service for your employees, no cost to you"
- Offer commission if needed (10-15% is standard)
- Follow up: Most deals close on the 2nd or 3rd contact
Good first locations: small manufacturing plants, auto shops, warehouses, laundromats, apartment complexes.
Stock and Price Your Products
Start with proven sellers:
- Bottled water, Coke/Pepsi products, popular chips (Lay's, Doritos)
- Candy bars (Snickers, Reese's), cookies, crackers
- Energy drinks if the location warrants it
Pricing: Check competitors in your area. Typical prices: $1.50-2.00 for snacks, $1.75-2.50 for drinks, $3.00-3.50 for energy drinks.
Where to buy inventory: Costco, Sam's Club, or local distributors for better margins.
Set Up Payment Processing
Cash-only machines leave money on the table. Card readers increase sales 20-35%.
- Popular options: Nayax, Cantaloupe (USA Technologies), Vendmax
- Cost: $300-400 per reader + 5-7% transaction fees
- ROI: Usually pays for itself in 3-6 months from increased sales
Create a Service Schedule
Consistency is key. Plan your routes:
- Service each machine 1-2x per week depending on volume
- Track inventory levels so you know what to bring
- Group nearby locations into efficient routes
- Service during off-peak hours when possible
Startup Costs: What to Expect
Here's a realistic budget for starting with one machine:
- Machine: $2,000-2,500 (used/refurbished combo)
- Initial inventory: $200-300
- Card reader: $350-400
- Business setup: $200-500 (LLC, permits)
- Insurance: $300-600/year
- Misc (locks, dolly, tools): $100-200
Total: $3,150-4,500 to start properly with one machine.
Timeline: What to Expect
- Month 1: Set up business, buy machine, find first location
- Months 2-3: Learn the ropes, optimize product mix, find 1-2 more locations
- Months 4-6: Dial in operations, aim for 3-5 machines
- Months 6-12: Scale to 8-10 machines, consider hiring help
- Year 2+: 15-25+ machines, potential for $50K-100K+ annual profit
Common Mistakes to Avoid
- Buying cheap junk machines. A $500 machine that breaks constantly costs more than a $2,000 reliable one.
- Placing machines in bad locations. A machine in a low-traffic spot will never make money, no matter how good it is.
- Not tracking your numbers. If you don't know your costs and revenue, you can't improve.
- Overpaying for "vending routes." Most route sales are overpriced. Build your own.
- Giving up too early. The first 6 months are the hardest. Push through.
Tools You'll Need
- Dolly/hand truck: For moving machines and inventory
- Basic tools: Screwdrivers, pliers, flashlight
- Reliable vehicle: SUV, van, or truck for hauling
- Inventory tracking: Spreadsheet at minimum, dedicated software is better
- Route planning: Google Maps or dedicated route software
Manage Your Vending Business the Smart Way
VendHub helps you track inventory, manage locations, and see your profits in real-time. Built by an operator who got tired of spreadsheets.
Final Thoughts
Starting a vending business isn't complicated, but it does require work. The operators who succeed are the ones who treat it like a real business—tracking numbers, optimizing operations, and constantly improving.
Start small, learn the fundamentals, and scale from there. One good machine in a good location is worth more than five mediocre machines in bad spots.
Good luck, and welcome to the vending industry.