How to Make Money with Vending Machines ($300 or More Per Month)

From schools to gyms to office break rooms, vending machines are everywhere. Not only do these provide snacks, beverages, and other items to people on the go, but they can also be a profitable business for the individuals who own them. In fact, starting a vending machine business can be a relatively low-cost small business with decent profit margins. 

We most recommend a vending machine business to people who have a little spare time for restocking and enough capital upfront — typically at least $2,000 to $3,000 but often more — to purchase a machine or the ability to get it. This side hustle requires a bit of legwork to set up, but once you've made a business plan, found the perfect location, and crossed all your t's and dotted all your i's with contracts and licenses, it can be a source of steady earnings for years to come.

If you've been wondering how to make money with vending machines, here's what you need to know about starting this business.

What is a vending machine business?

If you run a vending machine business, you own one or more vending machines and make passive income when people purchase your inventory. Unlike many small businesses, you won't need to rent office space, but you will need to secure a location for your machine and likely need a contract.

The majority of vending machines sell snacks and beverages, according to Vending Market Watch, but you're not limited to food. We've seen machines selling everything from electronics to laundry detergent to face masks and hand sanitizer. As it turns out, people will buy nearly anything if it's conveniently available in a machine.

Overall, it's a good idea to choose one type of product, as customers tend to respond best to a target niche. Think about where your vending machine will be located, who visits that location, and what your supply costs will be when determining how to stock your vending machine(s).

Learn more: 10 Low-Maintenance Business Ideas

How does a vending machine business work?

Starting a vending machine business is one of the best side hustles for keeping startup costs low and maintenance minimal. Your main startup costs will be the vending machine itself, your inventory, and any location costs or contracts. Most vending machines cost $2,000 or more, but you could easily pay up to $10,000 for top-of-the-line models.

Once you've selected your location and set up the machine, you can typically leave it alone until it's time to restock inventory or fix any malfunctions. Smart-technology vending machines, which are increasingly popular with both business owners and consumers, can alert you when you're low on supplies, whereas more basic models will require you to check them manually.

You can either check the vending machine yourself on a weekly or biweekly basis to restock and collect your earnings, or you can hire others to carry out these tasks (just remember to factor in these costs, too).

How much can you earn with a vending machine business?

The vending machine industry is far from slowing down. According to Market.us, the global vending machine market is expected to earn over $41 billion in gross revenue by 2033. This represents steady growth year over year, and machines are most prevalent in the U.S. Exactly how much you earn from a vending machine, however, depends entirely on what you sell and where you sell it.

BottomsUp Vending, a Chicago-based company offering vending services and markets, estimates that the average vending machine earns between $10 and $100 per day, with those in low-traffic areas bringing in $10 to $20 and those in high-traffic areas bringing in closer to $50 to $100. It also notes that niche, well-placed machines tend to earn more than typical vending machines stocked with generic items like canned drinks and bags of chips. The better your vending machine meets your clientele's specific needs, the more you'll make.

As mentioned, vending machines can offer a wide variety of products, from popular snacks to high-end electronics. Drink machines tend to make less than ones that sell headphones — but the startup and restocking costs are often a lot less, too.

How to start a vending machine business

Here are our tips for getting started with a vending machine side hustle, starting with finding a Goldilocks spot.

1. Find a location

When figuring out a location, think about what you plan to sell and how much foot traffic the area has. Some examples of locations where you might be able to put a vending machine include:

• Office buildings
• Schools
• Hospitals
• Shopping malls
• Apartment complexes
• Airports

Once you've researched your business plan, you'll need to draw up a contract with the building owner to rent space for your vending machine. You might pay a fixed fee or a percentage of your earnings in exchange for the space and electricity to run the machine.

2. Look at all your options

Although you might choose to go with a straightforward snack and soda vending machine, it's useful to consider all the options out there. Most vending machines fall into three main categories:

• Food and beverage: Drink and snack machines make up the majority of the vending market. You can find machines that sell only drinks, snacks, or a combination of both. You might stock your machine with non-perishable items or upgrade to a machine that can store and sell fresh food. There are even some vending machines that can make and cook a pizza in just a few minutes.
• Bulk vending: Your vending machine inventory doesn't have to be edible. You could also sell items like stickers, toys, or other novelty products.
• Specialty vending: Finally, your machine could fall into the specialty vending category if it sells hot beverages, retail items like face masks or neck pillows, or toiletries like toothpaste or laundry detergent. These specialty machines can make sense for specialized locations, such as a laundromat or an airport.

Remember that the inventory you choose should make sense for your location and the people who see your vending machine. If you want to place your vending machine in an ice hockey rink, for instance, opting for a machine that provides hot beverages could make more sense than one that sells ice cream.

Make sure to do market research as you're considering your vending machine options so your choice of machine, inventory, location, and clientele all complement one another.

3. Consider your financing needs

When you're exploring how to make money with vending machines, you'll find that starting a vending machine business has relatively low startup costs. Your main expenses will be the machine, inventory, and any fees you must pay to a property owner to host your machine. 

But although startup costs are low, you might not have enough in savings to cover them. In that case, you could consider a short-term loan or equipment financing loan.

Short-term loans could be a good option if you have strong enough credit and income to qualify for affordable terms. An equipment financing loan is another potential option, but you'll need to back this loan with the equipment — in this case, the vending machine — as collateral.

Whatever type of financing you choose, you'll likely need to pay it back with a fixed monthly payment and interest charges. Make sure you understand what repayment will look like and have a plan for paying those monthly bills before you take on debt.

4. Secure a vending machine license

As a vending machine operator, you might need a business license. Your local city's or county's small business administration should be able to guide you in the right direction. Fees for licenses will vary by location.

Some additional regulations to consider are whether you need to get a seller's license, collect and pay sales tax, or get a food or health permit. According to Naturals2Go, these licenses and permits can range anywhere from just $10 to a few hundred dollars.

5. Purchase your vending machine

Once you've finished your market research, it's time to purchase your vending machine. You can often browse a variety of models from a manufacturer, wholesale vending supplier, or secondary market seller. You might also be able to find a secondhand vending machine from a seller on eBay or Craigslist.

You can typically get a basic vending machine for as little as $2,000, though you might need to spend more for now-commonplace features such as credit card processing if you go with an older or simpler model. New vending machines with state-of-the-art features can cost as much as $10,000.

Each machine is different, so look for one that meets your needs and budget. Just note that many customers expect to be able to pay with credit cards or even tap-to-pay nowadays. 

6. Draw up a contract with the property owner

Once you've chosen a location and gotten permission from the property owner, you'll want to draw up a contract outlining the terms of your agreement. In this contract, you'll both agree to a compensation rate and a length of time.

You might also establish an exclusive partnership, which means the property owner can't place additional vending machines next to yours. You could also include what happens if there's a breach of contract or vandalism of your vending machine.

Because this contract is a legal document, it's a good idea to have a lawyer review it before anyone signs. Along with finalizing your contract, consider what customer service you'll provide for your vending machine, if any. For example, you could provide a phone number on the machine that people can call if issues arise.

7. Buy inventory and stock your machine

Once you've purchased your vending machine, it's time to stock it with inventory. As mentioned, it's important to choose products that are a match with your target customers and their spending habits.

To purchase your supplies, you could buy directly from a wholesaler, a cash-and-carry supplier, a specialty broker, or a membership club. If you're just starting out and only have one vending machine, a membership club like Costco or Sam's Club could be the most affordable option.

Tips to research your local area

When you're starting a vending machine business, it's important to research your area carefully to make sure there's demand for another machine and what that demand might be for. Will you stock sodas or candy?  Nonperishables or fresh fruit? What you choose to put in your vending machine — and where you put it — could make or break your business.

Read up on vending laws and regulations for your state

Before finding a spot for your business, make sure you've researched any vending laws and regulations specific to your state. You can often find this information at your local Chamber of Commerce. You might also need to consider how to meet any accessibility standards put in place by the Americans with Disabilities Act.

Look into high-traffic locations near you

Next, think about high-traffic locations in your area where you've purchased from a vending machine (or wish there had been a vending machine to buy from). If you're not sure, you could also contact your local Chamber of Commerce for information about local businesses.

Determine how many people will pass the machine on a daily basis

Look into foot traffic for the locations you're considering. If you're considering placing your machine in front of a business, such as a gym or laundromat, ask the business owner how many patrons come through their doors each day

Match your goods to your clientele

Consider what customers in your desired location will want most. If you place a vending machine in a gym, for instance, you'd probably be better off providing healthy snacks and hydrating drinks rather than gumballs or junk food. But if you put it in an arcade, junk food is likely a winner.

Funding your vending machine business

Getting your business off the ground will require you to purchase a vending machine, inventory, and more. Here's an excellent business credit card we recommend:

FAQs

Bottom line

When you're starting a vending machine business, you don't have to go it alone. You can use the National Automatic Merchandising Association (NAMA) website to find your state's vending associations and connect with other business owners. You might also expand your network by joining local or online groups for entrepreneurs.

As with any business, growing your network, making personal connections, and getting word-of-mouth referrals could help you succeed at making money from vending machines. As you learn the ins and outs of the vending industry, you might consider setting up additional machines to scale your business.

Trending Stories

6 Things To Do If You’re Barely Scraping By Financially

Save Money on Car Insurance: How To Lower Your Rate

11 Dumbest Things Smart People Waste Money On

7 Moves If You Want to Stop Living Paycheck to Paycheck

Best High-Yield Savings Accounts of March 2025

7 Clever Ways to Crush Your Debt

---

Subscribe Today

Learn how to make an extra $200

Get vetted side hustles and proven ways to earn extra cash sent to your inbox.

or

Subscribe Now →

By submitting this form you agree to receive emails from FinanceBuzz and to the privacy policy and terms