How would you like to set up a system once and earn passive income repeatedly? Then, keep reading! We have five machines that make money automatically!
One of the best ways to elevate your work at home lifestyle and help mitigate the grind factor is by finding ways to generate passive income.
While some of the best ways to generate passive income require a bit of an initial investment, there are quite a few vending machine business ideas you can kickstart with relatively low startup costs, few expenses, and decent profit margins.
Many successful small business owners start by purchasing business machines that do most of the work for them. With a little creativity and a solid business plan, you could quite literally be raking in the coin.
Start a Home-Based Vending Business
Once you get things going, a vending machine business can be one of the easiest passive income ideas to manage. Even though it might not seem like a vending machine could generate much money compared to something like a restaurant or a storefront, the profit it generates can start to add up fast when you’re reinvesting it and expanding your vending machine empire.
And unlike most startups, a vending machine doesn’t require a lot of overhead or constant attention from machine owners. After the initial startup phase, most of the job consists of restocking your machines, clearing out cash, and dealing with any maintenance issues that arise.
Getting Started in the Vending Business
To break into the vending industry, start by doing a little market research in your area. This can be as simple as driving around town to scope out what types of machines you find in high-traffic areas and getting a sense of local businesses that might be open to working with you. Check out machines in areas with a lot of foot traffic and keep a record of what types of products seem to be doing well.
Choosing a Vending Machine Type
Your next step is to decide what vending machine type you want to invest in and whether you want to purchase a brand-new machine or start with used equipment. If you’re looking to save on your startup expenses, you can find pieces of equipment via online marketplaces like Facebook Marketplace, eBay, and Craigslist. On the flip side, investing in new vending equipment may save you on maintenance costs in the long run.
Every one of these is a potentially lucrative idea for your vending machine business:
1. Candy vending machines
If you’re on a tight budget but you love the idea of building a vending machine business, start with a small candy machine just big enough for something like gumballs or a handful of bulk candy like Skittles or Reese’s Pieces, all of which can be easily replenished at grocery stores that sell candy in bulk like WinCo. In fact, bulk candy machine maintenance is so easy that it’s not uncommon for teenagers to own them as a first business.
Bulk candy machines are just small enough that they don’t take up a lot of space, which can make it much easier to convince local business owners to let you plant one in their business. That’s especially true if you’re giving them 20% to 30% of your profit just for letting you stick a candy machine in their entryway or lobby.
Simple candy machines containing three compartments can be picked up for as little as $200 brand new. And for the same amount of cash, you can pick up an even bigger, sturdier machine second-hand.
While these small candy machines don’t generate a ton of cash individually, the minimal maintenance can make them worthwhile once you’ve got several going. One machine can pull in up to $15 to $40 per month if placed in the right location — especially places where parents will happily dig through their glove box to appease restless children. Think barber shops, convenience stores, skating rinks, and airports or bus or train stations.
2. Vending machines containing toys
Remember the thrill you got as a kid when your parents shelled out a handful of quarters for a little clear plastic capsule with a criminally tiny toy or sticker inside? Sticky hands, tiny skateboards, holographic stickers — they were cheap as heck and yet some of the coolest things we ever got to spend our allowance on.
Kids still love these things, and they’re still an effective incentive for leveraging good behavior while Mom or Dad shops. And it’s not all disposable junk these days. Named for the sound they make when vending, Gashapon machines vend quality collectible branded Japanese toys like Sanrio, Pokémon, and Nintendo products for around $2 to $5 per item. Gashapon-style vending is also popular among teens, tweens, and even some adults, greatly broadening your customer base beyond the “sticky hand” market.
Gashapon machines and other toy capsule machines can be placed just about anywhere, but they do particularly well in places kids and teens frequent. Any place that sells manga or hosts gaming events like Pokémon video game tournaments is a great spot for your Gashapon machine. They can also perform well at flea markets, antique malls, and comic book stores known for selling a lot of pop culture collectibles, since $2 is not much to shell out compared to some of the more expensive items around. Gashapons are also a good fit for boba tea shops.
Gashapon machines start around $400 each and come in stackable models. A single machine can also be quite profitable, pulling in hundreds of dollars per month. Capsule toy machines can also be profitable, particularly when placed in a good location for foot traffic and restless kids, like a shopping mall or flea market food court.
3. Snack machines
Snack vending machines require a much higher startup investment—anywhere from $1,000 to several thousand per piece of equipment—and require more maintenance than toy capsules or gumball machines since their inventory usually has to be checked more frequently. But if you do well when selecting your machine locations, your snack machines could easily generate several hundred dollars a month. And vending machines with card readers will amplify your profits by making it easier for anyone to grab a bag of chips without digging around for change.
Any place people are likely to get caught between meals is usually a good spot for a snack vending machine—places like laundromats, tag agencies, and strip malls, for example. Snack vending machines can also do really well at apartment complexes and office buildings, and many property owners are happy to pull a profit for the minimal effort of hosting a vending machine company on their grounds.
4. Soft drink machines
Soft drink machines tend to do well in all the same places you’d consider placing a snack machine. Coca-Cola, Pepsi, and other soda products are always popular among Americans, but other beverages can sell, too. Ice cold water bottles can be a welcome sight at busy shopping centers or even the gym, and machines with credit card readers ensure you don’t miss out on transactions for the want of a few quarters or a perfectly smooth dollar bill.
Profits for soda machines tend to run fairly close to what you’d make with a snack machine. And like snack machines, soft drink vending machines can cost anywhere from around a grand to several thousand on the high end.
5. Other types of machines that make money
These days, many vending machine business owners are branching out beyond the big four: candy, toys, snacks, and soda. Vending machines stocked with necessities like bandages, over-the-counter medications, and sample-sized laundry soap, mouthwash, and toothpaste can be strong earners on college campuses or extended-stay motels.
T-shirt and souvenir vending machines are also becoming more popular in tourist areas. With a good vinyl printer, a few clever slogans, and the right placement, someone could make a killing this way.
The Business Side of Money-Making Machines
Before purchasing your vending machines, take time to research your community’s regulations and how they will impact your business. Obtain any necessary permits or business licenses and determine how things like taxes and fees to property owners will affect your bottom line.
If you’re purchasing a brand-new vending machine, take time to understand the manufacturer’s obligations in terms of maintenance and warranties. You will also need to source suppliers for your inventory. And no matter how small your business is, be sure to keep clear and organized records on everything.
Machines That Make Money Wrapup
Whether you’re just dipping your toe in the vending machine biz with a few gumball machines or you’re thinking of going all in with a handful of high-end cola vending machines, vending machine ownership can be a lucrative side hustle or even the cornerstone of an entrepreneurial empire.
And since maintaining machines only takes a few hours each month, there’s plenty of time left for working your other work from home jobs or just getting out there and living your best life.
If you’ve got a great vending machine idea or something to share about how to start a vending machine business, let me know in the comments!