A vending machine is a passive income business that makes money even if you are walking your dog, sleeping, or doing other things. You do not need to always be present at the business location to earn money. You might be wondering if online vending machines are good for passive income.
Depending on its location, and niche, a well-placed vending machine can make you more than $100 per week or even hundreds of dollars daily. In 2019, the global vending machine market was estimated to be $18.28 billion, and it is anticipated to reach $25.25 billion by 2027, with a compound annual growth rate (CAGR) of 6.7% from 2021 to 2027 (Source: Allied Market Research)
You see vending machines everywhere selling potato chips, candy bars, and soda. Vending machines selling healthy foods are also gaining popularity as people aspire to improve their health.
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What Actually is a Vending Machine Business?
Vending machines are coin-operated machines dispensing goods to consumers. Consumers need to pay for the goods within the machine to use the vending machines and use the items dispensed. The vending machine business owner earns money by putting machines in private businesses or public places to attract customers to make a purchase.
Running vending machines business involves frequent inspection of the machines to reload the machines with inventory and any coins required for change (if needed). There is no need to stock coins for online vending machines.
Generally, vending machines offer snacks or drinks. Nowadays, online vending machines stocking healthy food alternatives are also gaining popularity.
You can increase your income with vending machines by buying vending machines online and goods in bulk. You can place your vending machines in schools, military bases, nursing homes, or even small local businesses.
However, remember that starting a vending machine business will require hard work, persistence, and patience.
Benefits Of Running A Vending Machine Business
Vending Machine Business can be an excellent source of passive income. In addition, a vending machine business is easy to manage while generating revenue quickly.
Here are a few benefits of running a vending machine business:
- Running a vending machine business offers flexible working hours and doesn’t require much experience.
- The vending machines business is easy to start; you need to find an excellent, high-traffic location and products to sell. It generally doesn’t require special training.
- With a vending machine, you generate sales 24 hours and seven days per week, depending on its location.
- Vending machines business is easy to run and maintain. You need to ensure that your machines are adequately stocked and offer goods that are in high demand.
- You will be your own boss and can work full or part-time. You can choose how many hours to devote to your business daily and when you might want to grow with another vending location. You will indeed have lots of responsibilities, but it’s also gratifying.
- Low overhead and an excellent return on investment.
- In some instances, running a vending machine business offers Tax advantages.
How Do You Establish a Vending Machine Passive Income?
Even though running a vending machine business will require you to regularly stock and inspect your vending machines and ensure they are working correctly and don’t have money jams or any product, vending machines’ income is passive income because it does not require you to manage the asset generating it actively.
- You can have one or more of these machines in various locations to tap into customer groups. If you plan to start a vending machine business as a passive income project, you should plan and budget to succeed.
- Start with used vending machines as they are less risky and require lower investment.
- Have a snack and drink vending machine at every location to maximize revenue.
- Place enough at locations with high traffic. If you need to go back several times a week (or even a day) to refill a machine, it indicates that you don’t have enough vending machines placed. Add more machines to handle the traffic and sales volume as your sales increase.
- The more people at a location, for example, at schools or hospitals, the greater variety of goods you sell to appeal to a greater variety of people.
- Do proper product research, and choose products based on your customers’ preferences, not products you like.
- Check grocery and convenience store pricing, particularly those around your vending machines’ location. Try to match or be little under-recognizable stock items, such as brand-name snacks and candy.
- Try to avoid generic brands that people can buy in bulk at the big boxes like Walmart or Costo. People generally don’t like to pay a premium price for a brand they can buy in bulk.
- Whenever possible, particularly for beginners should avoid coffee vending machines.
- Do you have the money to buy the vending machine? Follow through and register the business with the state for a vending permit. You do not want to rub the state the wrong way by operating an unlicensed vending machine business!
- Are vending machines profitable? Since they are easy to operate and do not take much of your time, this business is profitable. You can earn $5 to$100 a week, depending on the machine’s location. It is essential to do market research to establish the type of merchandise that can move in a given area.
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How Do Online Vending Machines Work?
In the past, you could only see offline vending machines that required routine physical checks by the operator to determine the stock levels of each machine. However, the Internet of Things (IoT) changed how vending machines operate.
Like most devices connected to the Internet, modern vending machines are also connected to the Internet. This technological advancement makes it easier for the operator to check stock levels, machine status, and sales data.
The operator can tap into this real-time information to enhance customer service and sales and reduce operational costs.
You can stock your online vending machine with appropriate inventory and wait for customers to buy. The machine allows for smart payments such as Google Wallet and credit cards, thus lowering transaction costs.
Online vending machines allow consumers to use smartphones to build profiles, receive promotions, identify themselves, and connect with the network. Furthermore, online vending machines allow operators to engage with customers personally.
The connected platform also allows distributors and manufacturers to track machine shipments. You can collect consumer data to monitor their usage. This information helps you track sales by location and time of the year. You can also troubleshoot any problems with the machine’s system remotely.
Vending machines’ intelligent software solutions can help you utilize the screen as billboards for advertising. The screens can also provide custom content where you can display videos, promotions, TV commercials, and games.
You can place your online vending machines at high-traffic places such as theaters and stadiums, enabling you to connect with consumers immediately. You can generate advertising and content revenues that could be distributed among various stakeholders.
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Type Of Vending Machines that Make the Most Money
If you are contemplating starting a vending machine business to generate passive income, now is the ideal time to do so. Industry statistics show that vending machines’ global market will hit $25.25 billion by 2027, growing at a CAGR of 6.7%.
Though owning a single vending machine may not make life-changing profits. If your machine is well-placed, it can generate a decent revenue stream. Reports from Brandongaille.com show that, on average, people spend approximately $27 per year on vending machine products.
A strategically placed vending machine can generate $76 weekly, equating to over $300 monthly. Good revenue for a passive income venture.
So, what types of vending machines are most profitable? Consider a few of these:
1- Branded Sodas
Branded soda vending machines are probably among the most popular dispensing machines, especially during warm or hot weather. These machines are branded with the names and logos of the soda brands they stock.
Since the range of sodas is smaller than snacks, keeping your item selection at a minimum is easier. If the machine offers Coca-Cola products, you cannot stock Pepsi sodas in them. You can keep various sizes of soda on the machine to meet demand.
These machines can make you good money during the hot summer, with many people looking for chilled drinks to quench their thirst.

2- Bulk Vending Machines
If you are looking for affordable vending machines that promise a high-profit margin, consider bulk vending machines. They are low-tech dispensers that stock candies, gumballs, and toys used at playgrounds, restaurants, or parks. Since they are not costly, they allow you to enter the market at low risk.
You may need to invest $100 or less to purchase the machine and then fill it with gumballs for less than $35. With each gumball costing $0.25, you can garner $2,000 in revenue from the machine in no time. The ideal locations are places where kids meet, such as parks.

3- Ice Vending Machines
Ice on a vending machine can prove very profitable since it does not cost a lot of money to produce. You only need to identify an ideal location with high traffic, such as near a gas station or convenience store, and the rest will be easier.
Ice has an unlimited sell date period, eliminating the worry of stock going bad before you sell. You will likely register high sales during summer, although ice is often demanded yearly.
Though you will need constant refrigeration, maintaining an ice vending machine is not expensive. The utility and water costs for 100 lbs of ice are approximately $0.25. Assuming that a 20-pound bag of ice fetches $1.75, it means you will make a profit of $1.6 per bag.

4- Snacks Vending Machine With a Coil System
A vending machine dispensing snacks is undoubtedly profitable. Although popular snacks vary from location to location, some snacks are popular everywhere. For instance, chocolate bars and chips like Twix, Snickers, Baby Ruth, Doritos, Lays, and Cheetos are common snacks you can sell at a vending machine.
The glass in front of the machine acts as an advertisement display, meaning you do not need to brand the machine. The vending machines arrange snacks in a single or double-coil system, allowing customers to get what they have paid for.

5- Cold Food Vending Machines
You can also sell cold foods like sandwiches, salads, and breakfast items. Most of the food in these machines is ready for eating, while some require reheating.
Vending machines selling cold or frozen food should keep them fresh, meaning they need limited investment.
Frozen foods act as a buffer for fresh foods because if fresh foods are depleted, you can sell frozen ones before restocking.

Is Online Vending Machine Good for Passive Income?
Vending machines are a viable passive income option since it requires minimal upkeep. You will need to restock the vending machine maybe once or twice a month, thus considered a passive income.
Other times you take care of the machine is fixing them during break down, which won’t consume much of your time. You can earn money with vending machines even if you are not at that location.
Some vendors have more than one vending machine location with different items, allowing them to diversify their passive income.
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Final Thoughts
The Internet of Things has revolutionized vending machines. You can monitor sales, track inventory, and collect relevant customer data with an online vending machine, thus allowing you to customize sales.
Online vending machine businesses can generate passive income; your presence is only needed when restocking or conducting regular maintenance. It is important to research the ideal location with high traffic to station the machine.
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