If you’re looking for a smart way to make reliable passive income, now is a good time to research your options.
Consider a vending machine business. If your parents ever bought bouncy balls or toy trinkets for you from vending machines in the grocery store, you probably associate vending machines with a treat.
But they’re much more than that. Today’s vending machines serve up a variety of products that can lead to real, lucrative profits.
Curious about the ins and outs of the fast-growing vending machine industry? Read on to learn everything you never knew you wanted to know.
The Vending Machine Industry Today
Vending machines have been around for a long time. Way back in 1615, English pubs sold tobacco from brass machines to their customers. The first coin-operated vending machines came to London in the late 1800s.
Vending has come a long way from the first tobacco dispensers of the 1600s. Cashless vending appeared in the 90s, when the first credit card vending machines hit the market.
Today the vending industry has evolved from selling junk food and cigarettes to offering healthy snacks, coffee, full meals, and even consumer goods.
In 2020, the outbreak of Covid-19 even led to testing kits being made available through vending machines. So, in addition to providing convenience goods, they can be adapted for use in public health emergencies.
What is sold in which locations will depend on the individual characteristics of the vendor’s target market- and to an extent, apparently current events have an impact as well.
Are Vending Machines a Good Investment?
Operating a cash-operated or cashless vending machine business is a great opportunity to make passive income, as long as you do your research. You’ll need to figure out which options will work for you and your location.
Most vending companies start small, with 2-5 machines, and do careful research to make sure they know the best locations for their machines.
In the beginning, you may not bring in more than $1000 a month, but it’s better to start slowly and gradually add new locations. Think of it as a slow and steadily growing investment.
Be sure to factor in hidden costs, like insurance, machine maintenance and repairs, and restocking expenses.
Knowing What to Sell and Where to Sell It
In this business, what you sell and where you sell it can make or break you. If you are planning to place your vending machines on a college campus, consider selling healthy snacks (as profiled in Healthy You Reviews), stationery supplies, personal care items, and coffee. At an airport, consider selling luggage tags, books, inflatable headrests, and phone chargers.
The best thing about a vending business is that it is based on common sense. Think of times when you’ve been somewhere and needed something desperately- a rain poncho after a subway ride, for example.
Let this guide you to pick the right products to sell. If you can master it, you’ll be successful in the vending business.
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