A vending machine side hustle is frequently toted as a gold mine for passive income that’s constantly earning even when you’re not around. However, it’s not as sexy as being an influencer or setting-up a money-making venture online. Although many side hustlers shy away from service based businesses, vending machines are relatively easy to scale from just one gum ball or soda machine to a premium machine in a location with high foot traffic. However, that doesn’t mean vending machine side hustles are fail-proof. They still require a strategy to attract customers and convert to sales.
Research Your Competition
Before you rush out to buy new vending machines for your side hustle, research your competition first. Visit high-trafficked, commercial areas and look at vending machines. What do they stock? How much are their prices? What are their machines like? You can ask the manager of the location who owns the vending machines, or look for clues. The vending machine likely has a sticker with contact information for the vendor in case servicing is needed. Do a little Google sleuthing and see if they own other locations. If you’re feeling brave, call them up and ask if you can pick their brain about launching a vending machine side hustle.Â
Pick Your Location and Products
Remember vending machines can get expensive quickly and it’s a savvy strategy to test the waters and start small like at a local pizzeria with a gum ball machine that might earn $25 to $50 a month. More popular areas like malls and outdoor plazas will earn more, but are often stocked by corporate vending machine businesses with multiple locations. Look for a sweet spot that’s somewhere between a small mom and pop shop and a giant retail complex.
The location will also help determine the products you sell. Stocking snacks next to a playground may command a high return on your investment, but probably won’t yield the same results next to a fitness center. Instead, the plaza next to the gym probably needs sports drinks and water to keep the dollars coming. The best part is you can actually get creative with a vending machine side hustle. Did you know there are cupcake vending machines that work like ATMs?
Remember Your Profit Margins
Stocking up your inventory is just one expense in running a vending machine side hustle. You’ll need a good wholesale supplier or can get started on your first few runs with Sam’s Club or Costco. Other than the physical inventory required, you’ll need to consider gas spent hauling your products, vending machine repairs, and new parts if you’re machine isn’t under warranty, lost revenue if your machines need to be repaired with out of stock parts, and administrative expenses like general liability insurance.
Explore Existing Vending Machine Businesses
Figuring out the right equipment is also a challenge for new vending machine side hustles. Remember there’s no reason to reinvent the wheel when it comes to vending machine businesses. Instead, look for an existing business looking to sell its machines or entire route. The caveat is you need to really test the machines, route, and ask lots of questions to the existing owner. The best case scenario is they’re tired of running the business and want to move on or are leaving the state. In this case, you just need to take over with your stock and ready to go. The worst case scenario is you’re inheriting a lot of equipment that isn’t up to professional standards and requires expensive maintenance.
You can find more resources for your vending machine side hustle on sites like Vending.com, Facebook Groups, or even Sam’s Club.
Assist a Vending Machine Business Owner as a Virtual Assistant
This is an unconventional idea, but you can assist a vending machine business owner as a Virtual Assistant and get paid while learning more about the business. It’s like paid training and you gain the confidence and connections you need to get up and running. Just about every small business, including vending machine owners, needs help with areas like:
- Customer service
- Email inbox management
- Light bookkeeping
- Calendar scheduling
- Working with vendors
- Inventory restocking
There’s also no overhead as a virtual assistant except a laptop and strong Internet connection. You really don’t need a website or tons of connections to get started and can earn $25 on up an hour that will also help you learn the vending machine side hustle business in and out. The best part is you’re earning money as a Virtual Assistant that will ultimately fund your first vending machines.
Talk to Vending Machine Side Hustle Pros
You can dramatically reduce information overload and conflicting information by talking to someone in the vending machine business first. Find an owner through MeetUp Groups, Rotary Clubs, Facebook Groups, or sites like Nextdoor. It’s best if you find someone in a nearby town who won’t worry about competing with you. Chart out your questions in advance like:
- How did you get started?
- What kind of products do you stock in your vending machines
- Why did you pick your particular location(s)?
- What are your biggest headaches?
- How long does it take you to stock your vending machines?
- What do your profit margins and earnings look like?
Once you have a better idea of what works and what doesn’t, you can start thinking about expenses, potential profits, location, and profits. If you need help funding your vending machine side hustle, get help with these ideas on how to sell stuff online for cash.
Starting a vending machine side hustle can be a steady passive income to scale into big profits. It’s realistic that you’ll start small at around $300 a month per machine as you build up your business, find better locations, and gain confidence in your new weekend side hustle. Before long, you can scale your vending machine side hustle to thousands of dollars a month.
Vending Machine Side Hustle: Next Steps
Launching a vending machine side hustle doesn’t have to be difficult, but you should have a strategy in place for insurance, expenses, products, and sales. Learn everything you need to know to get started with the resource, Starting a Vending Machine Business.