Do you want to learn how to start a vending machine business?
Lately I’ve been hearing a lot about starting a vending machine bustle and how it can be quite a passive income.
So I wanted to do some research and see what I could learn about this topic.
Lakinya Francis, of iKrave Vending, is an expert in this field, making $7,000 to $10,000 a month from vending machines, and I interviewed Lakinya about how to start a vending machine yourself.
Do you have questions such as:
Is there room for new people to have a vending machine in 2022? How much does the average vending machine make in a day? Which type of machine makes the most money? How much does a vending machine cost? How many hours per week does it take to run a vending machine business? What are the disadvantages of owning a vending machine business?
Today’s interview will get you started and maybe even introduce you to a new way to earn extra income.
You can click here to learn more about the Vending Machine Business Online Training Courses that Lakinya offers.
How to start a vending machine business?
Give us some background about yourself and how you got started.
Hi, I’m Lakinya from Miami, Florida. My background is quite simple, I went to college in Tampa FL at USF (University of South Florida) when I graduated, I moved back home and was a high and high school teacher for 4 years. I decided to change course and get a safer job with the state government. This is when I got the urge to find something on the side to do!
I researched many things that were realistic to start with, affordable, and wouldn’t jeopardize my day job. I discovered vending in 2016, when vending was not a popular topic yet. So literally one day I decided to buy some machines and move on from there.
If you start something without knowledge or guidance, of course you have to learn from your mistakes.
I started out with five used vending machines at a major tile manufacturer and a mechanic shop in Downtown Miami. I sold these machines after two years with the location included. I was able to sell the machines with the location for $2,000 more than what I initially paid for them.
After that, there was a time when I didn’t have machines until I saw the groundbreaking in my local town of a new nightlife area. This center would be a movie theater, bowling alley, restaurants, family entertainment with indoor entertainment.
I did my research and found the project manager and pitched my sales services and that’s how I got this great deal with eight machines. As this was a large upfront investment, I worked with a family member to help with costs and enable him to maintain the site.
This location is made up of a lot of teens and families every weekend of course, so it’s always packed with people, these machines generate $7,000 to $10,000 a month on average.
Vending is all about the right location! The key is to find a location where there are always people.
In the coming months we want to maneuver in special vending machines. This is where you can really generate huge opportunities in vending. My brother is an active fisherman and came up with the idea of installing live bait and tackle vending machines all over Key West, Florida. We are currently working on this, of course finding a location is the most important part.
My end goal is to switch completely from snacks and drinks and focus on live bait and tackle vending machines in Key West and other prime fishing spots in South Florida.
What do you like about having a vending machine business?
Having a vending machine is what I like to call a safe investment.
Why? Because people will always eat and drink.
It’s not 100% passive, but the best thing about a vending machine business is that the vending machine is your employee! You don’t have to worry about someone calling or any of the traditional worries with having employees.
Vending is a multi-billion dollar business and will continue to grow, especially with all the automated and contactless features vending machines have to offer.
Is there room for new people to have a vending machine in 2022?
Take a moment to think about where you live. Cities continue to develop more and more every year.
This means more schools, more hotels, more shopping plazas and the list goes on.
Yes, there is room for new people in the vending industry.
How much does the average vending machine make in a day? How much does a vending machine earn per month?
When it comes to how much you can earn from a vending machine, the first thing to consider is that the vending machine be placed in a location with adequate foot traffic.
If the machine is in a location with a lot of foot traffic, you should be making between $500 and $600 per month. That’s average.
There are some locations that can produce that on a weekly basis. It’s all about foot traffic where the machine is.
How profitable is owning a vending machine?
You can literally make thousands a month with vending machines selling the right products in the right location!
Which type of machine makes the most money?
When people think of vending machines, they often think of snacks and drinks. While this traditional type of vending machine will always be around, there are many other options for making really good money.
Imagine you are on vacation on South Beach and you forgot your iron. The first thought would be to find a beauty salon and buy one. But what if the hotel had a beauty product vending machine? Sale of items such as irons, hair extensions, combs, brushes, hair gel, etc. You just buy from the vending machine, right? Now consider how hotels in certain cities are always occupied, such as Miami Beach. You can easily earn at least $1,500 per month from one beauty supply vending machine.
Another ideal place to place a beauty product vending machine is on a college campus in the dorm rooms. You could even add beauty products for men. Consider the number of students who do not have a car.
Some other options include laundry products, live bait and fishing tackle, CBD, school supplies, and much more.
How much does the average machine cost? Where do you buy a machine?
The prices of vending machines vary depending on whether you want a refurbished or brand new machine.
Do you want to have a credit card reader on it or not?
Let’s say you want to sell beauty products from a vending machine. You can get a used snack vending machine and add a credit card reader to it for about $2,000.
Now if you want to brand your machine with your logo or brand colors, add another $500.
If you want a brand new machine with all the bells and whistles, that will cost you about $5,000 including a credit card reader installed.
Where is the best place to place the machines?
Everywhere where people are!
Office buildings, apartment complexes, laundromats, churches, summer camps, boys’ and girls’ clubs, schools, doctor’s offices, break rooms of companies with at least 50 plus employees.
The name of the game in vending is foot traffic.
What is your typical work schedule? How many hours per week does it take to run a vending machine business?
Most people with vending machines have 9 to 5’s and this is an afterthought. The great thing about this is that it can be maintained with just a few hours a week.
For example, maintaining five machines in two separate locations would take about 2 to 3 hours in total. That is traveling to the locations and supplying the machines.
Something to consider when looking for a location is whether this location fits your work schedule. So if you work 9 to 5 and the location operations are 8 to 6, this may not be a compatible location unless you have someone to help you resupply the machines.
What are the disadvantages of owning a vending machine business?
Vending can be fun, but it’s also work.
You need to consider your schedule and ask yourself if you have the time to stock a machine on a weekly basis? Sometimes you make the effort to put your machine in a location and it underperforms.
This means that you are not making the money you expected.
In such a situation, you need to find another location for the machine.
Depending on where the machine is located, there may be a high risk of vandalism. Although it is not common, it does happen. But that’s what insurance is for.
Another drawback is that you may have to share a portion of your winnings if the location calls for it. In some places you have to pay rent, such as a shopping center.
Vending machines make money from day one, but it will take some time to recoup your investment. Realistically, it could take six months to a year.
In general, the vending machine business is just like any other business with the right location and proper preparation you can be successful.
Can you list the steps required to get started with a vending machine business?
The first thing would be to determine what type of vending you want to get started with.
Based on that type of vending, you then want to focus on securing a location that is tailored to that type of vending.
The most important part of the business is placing a machine in a location with high foot traffic.
You also need to determine what products you will be selling and where you are buying them from.
Are there any other tips you have for someone looking to start a vending machine business?
Don’t wait for the opportunity, create the opportunity.
Vending fits into everyone’s lifestyle, regardless of age, economic status or location. If this business model interests you, the biggest tip would be to start looking at possible locations to place a vending machine.
Can you tell us more about the course you offer?
Yes, I offer packages to help people get started. I have three packs, starter, standard and ultimate.
The Starter Package includes a course to get started in the vending machine industry. A course on finding a location with a location proposal and agreement template. I’ve included a 30-day startup plan to help set goals as I get started. There is a document with a list where you can buy vending machines, including direct contact with distributors who build the machines in the US and who offer financing to those seeking financing. In addition, a document is attached on how to price your product with more than fifty product samples and where to buy the product. There is also a document that refers to the requirements for vending machines in all states and how to set up a business in each state.
The Standard package includes everything from the starter package, but also a one-time one-on-one consultation. Most people like a conversation to put all these things in place.
Finally, the Ultimate package is the most popular because it just makes sense to go with this package. The Ultimate Pack includes everything from the Starter Pack, but it also includes additional courses on starting a school supplies vending machine, beauty product sales, and CBD sales. It also includes location suggestions and agreement templates for these special types of vending machines. I help find a machine and offer 30 days mentorship. During the 30 days, the person can access my calendar to book phone calls, text, and email support.
To highlight some of the individuals who have worked with me, machines have been successfully started and placed in many different locations. Such as schools, shopping malls, apartment complexes, gyms, colleges, banks, amusement parks, barber shops, hair salons, laundromats, outlet malls, assisted living apartments, manufacturers, construction sites and many more.
You can click here to learn more about the courses I offer.
Are you interested in learning how to start a vending machine business? Why or why not?
This post How to start a vending machine business
was original published at “https://www.makingsenseofcents.com/2022/04/how-to-start-a-vending-machine-business.html”