How To Own Vending Machines
Have you ever dreamed of leaving the labor force, retiring early, and getting your freedom? If you have, then you should consider passive income.
Passive income doesn?t fall from the sky as a gift. You have to earn it by putting some effort ahead of time. But once you?ve earned it ? it can last for a lifetime.
There are so many ways of how to earn a passive income (From renting out a property to starting a blog or even storing people?s stuff)
But you shouldn?t worry if you have neither an apartment to rent or writing capabilities to start a blog, because there are yet other ways on how to do it. One of those ways is by owning a vending machine.
STARTING A VENDING MACHINE BUSINESS
Commercials and ads make people think that all it takes to start a vending machine business is to buy the machine, find a location, install the machine, ensconce themselves on a sofa, and watch TV while the machine does all the hard work.
A vending machine is not the perfect get-rich-quick option.
But it?s the perfect start-your-own-business option, which income can considerably increase in the long run.
WHY START A VENDING MACHINE BUSINESS?
Everyone wants to start his own business. Who doesn?t?
Some motivational speakers would say – ?Don?t be afraid! Jump! Jump from the hill and grow your wings on the way down,? – which is not a false statement.
But sometimes it?s good to have a parachute on your back. Just in case something goes wrong and not according to plan.
Why am I saying this? You can start a vending machine business for as little as $1.200 to $3.000. That?s how much one vending machine costs. And that?s naught compared to how much you?d need to invest in starting an own company, for instance.
TYPES OF PRODUCTS IN A VENDING MACHINE
You?d be even surprised of how many products can one put in a vending machine nowadays (Hot food, cold food, fitness supplies, newspaper, water bottles, coffee, candy bars, crackers, nuts, and even DVD).
Now, one thing you should bear in mind when choosing the products for your vending machine is the location. You can put a DVD vending machine in a hospital cafeteria. Not that you can?t. But believe me, it won?t work (Smile).
DO YOUR RESEARCH
Like in any other business, research is an essential ingredient in owning a vending machine business.
First of all, you have to get familiar with the licensing process, which differs from state to state.
Do you think someone would let you sell medical products without obtaining a proper license for that first? Of course, you don?t.
The second thing you should pay attention to is the location.
- Go to some companies.
- Talk to the owners.
- Offer them a share.
- Fight the competition.
- Go down the square.
- Go in high-traffic areas.
Learn how the other vending machine owners have obtained the right to put their vending machines there. You?re about to start your own business, so get ready to deal with the competition. Embrace the laboriousness Don?t be afraid to ask, seek, and learn.
HOW MUCH CAN YOU EARN?
There are over 5 million vending machines in the U.S. ? These machines make more than $20 billion in sales every year. But don?t get overexcited, because in the 5 million number are also included the vending machines in the most exclusive places like Beverly Hills where you can find caviar and escargot.
Picture is Caviar vending machine at Topanga Mall; Credit: Emily Dwass
Nevertheless, the profit of the vending machines mainly depends on the machine?s placement, the products in it, and all the expenses.
But let?s say that you?re an entrepreneur who?s just started a vending machine business.
And let?s say that you have found a prime location for the machine.
The average sum, according to all sources, you should expect is $50 to $100 per month, which not always is the case.
Sometimes these numbers go up and sometimes they go down.
START SMALL AND GROW BIG ALONG THE WAY
It?s true that the more vending machines you have ? the more money you?ll make.
But it?s near insanity to invest and buy 100 vending machines without previous experience and super knowledge of the job. Sometimes, one hundred vending machines can generate $1000 a day.
But operating one hundred vending machines is a huge amount of work that one person can?t manage alone.
You?ll need to hire people and make sure that every machine makes more than its location?s renting price because the net profit is not the same as the gross profit.
You have to subtract all the expenses from the gross profit so as to calculate the net profit, which represents your total earnings.
WHEN IS RIGHT TIME FOR STARTING A VENDING MACHINE BUSINESS?
If you have a day job that you love and have no intention to resign, then start the vending machine business whenever you have the money and time.
- Don?t hesitate.
- Do it whenever you want.
Besides, you shouldn?t worry too much (Even if you fail) because you can always resell the machine for a reasonable price and return a big chunk of your money back.
But if you want to quit your day job, however, and start a vending machine business, I don?t suggest you do that until you?ve built a nest egg that is big enough to keep you afloat during the next five or six months.