How to Start a Vending Machine Business in 2025 : Step by Step Guide

Must-Know Insights

    • Start small with 1–2 machines in high-traffic locations like gyms or schools to learn what sells before expanding.
    • Expect average earnings of $300–$500 per machine per month, with 15%–30% profit after expenses.
    • Match products to the location—offer snacks and drinks in offices, healthy items in gyms, and essentials in laundromats.
    • Choose an LLC for legal protection and get required permits like business licenses and sales tax IDs before operating.
    • Use a simple business plan and track sales to adjust stock, reduce waste, and grow smartly.

If you’re looking to learn how to start a vending machine business, you’re probably hoping to make extra income without quitting your day job or maybe you’re ready to run something full-time that doesn’t tie you to a desk. Either way, vending machines can be a smart way to earn money around the clock with low startup costs and no need for a storefront or staff.

 

But let’s be honest: not every machine makes money. The real challenge is knowing what to stock, where to put your machines, and how to get everything up and running without overspending or burning out.

 

In this guide, I’ll walk you through exactly how to start a vending machine business from scratch. I’ll cover what it costs, where to place your machines, what products work best, and how to grow at your own pace, without all the guesswork.

Table of Contents

How to Start a Vending Machine Business

In this section, I’m going to walk you through each step in plain language, so you know exactly what to do, what to avoid, and how to set yourself up for success without wasting time or money.

Step 1: Research the Market First

Before you buy anything, you need to know if there’s actually demand where you plan to place your machines. This step isn’t just busywork, it’s the part that helps you avoid wasting money on a machine that ends up sitting in a dead location.

 

Start by looking for places where people are already spending time and might want a quick snack or drink. Think office buildings, gyms, laundromats, schools, hospitals, apartment complexes, and break rooms. Walk through these places. Pay attention to the foot traffic. Are people standing around? Waiting? Looking bored or hungry? That’s where a vending machine works best.

 

You also want to look at what’s already there. Are there other vending machines? Are they stocked well or always half-empty? Do they only take cash? Outdated machines can mean opportunity, if you offer something more convenient.

 

If you’re not sure where to start, talk to business owners. Ask what kinds of snacks their employees or customers like. Most people will tell you straight up if they’d use a machine and what they’d want in it.

Pro Tip: Use Google Maps to Spot High-Traffic Locations

Search for places like gyms, schools, offices, and laundromats.

Look at business clusters and reviews to see how busy they are. It’s a fast way to build a list of potential vending spots without leaving your house.

Step 2: Decide What to Sell in Your Machines

This part matters more than most people think. What you put in your vending machine determines how often people use it, and whether you make a profit or not. The right products in the right location will keep your machine busy and your cash flow steady.

 

Here’s a breakdown of the most common types of vending products and how to know which one makes sense for you:

 

Food and Beverage Vending: This is the most popular option for a reason, it works. Chips, candy, soda, water, and energy drinks sell almost everywhere. Combo machines that offer both snacks and drinks are a solid starting point if you’re placing just one or two machines.

 

If you’re placing a machine in a school or gym, consider healthier options like granola bars, protein shakes, and flavored water. Those may cost a little more to stock, but people will pay for convenience and quality.

 

Bulk Vending: If you’re short on startup cash or time, bulk vending might be the way to go. These machines usually sell gum, gumballs, toys, or stickers for 25 to 50 cents. They’re low maintenance and don’t even need electricity.

 

They’re perfect for high-traffic, family-friendly areas like arcades, malls, amusement centers, and laundromats. You won’t get rich from one machine, but you can build steady income with a handful.

 

Specialty Vending: Specialty vending machines sell items outside of the usual snacks and drinks. These can bring in higher profits, but they work best in very specific locations.

Here are a few options to consider:

 

    • Hot Beverages – Coffee machines do well in offices, college campuses, and conference centers. People expect convenience, especially if there’s no café nearby.
    • Retail Items – Things like phone chargers, earbuds, and neck pillows sell fast in airports or busy transit stations. Some upscale machines even sell skincare or beauty products in malls.
    • Laundry Supplies – Think detergent pods, dryer sheets, and fabric softener in apartment buildings or dorms. These items meet a real need at the right time.

Pro Tip: Match Products to the Location

Don’t overthink trends solve a problem.

If your machine is in a gym, sell protein bars and water. If it’s in a laundromat, offer dryer sheets and snacks. When your machine meets a real need, it sells itself.

Step 3: Choose a Good Location

What you’re really looking for is consistent foot traffic. The more people who walk by your machine each day, the more chances you have to make a sale. But it’s not just about volume, it’s about the right kind of foot traffic. You want people who are likely to be hungry, thirsty, waiting around, or in need of something convenient.

 

Here are a few types of places that usually work well:

 

    • Gyms – People finish workouts and want quick snacks or recovery drinks.
    • Office Buildings – Employees want coffee, water, and snacks without leaving the building.
    • Laundromats – Waiting customers are a captive audience for snacks, drinks, and laundry items.
    • Schools and Colleges – Students are constantly on the go and will grab what’s easy.
    • Hospitals and Medical Offices – Visitors and staff often need something fast and accessible.
    • Transit Stations and Airports – Travelers want grab-and-go convenience.

Once you’ve got a few strong candidates, it’s time to approach the property owner or manager. You’ll need to get permission to place your machine, work out the details (like electricity access), and agree on a commission, usually 5% to 25% of your monthly sales.

Pro Tip: Start Where You Already Have Access

Your first location doesn’t need to be perfect.

If you know someone who owns a business or property, ask if they’ll let you place a machine. It’s a great way to start earning and learning while you build toward better locations.

Step 4: Pick a Business Structure

You might be tempted to skip this part and just get going, but trust me, choosing the right business structure up front can save you a lot of headaches down the road. It’s not just paperwork. It’s about protecting yourself.

 

As a vending machine business owner, you’re placing equipment in public spaces and probably selling food or beverages. That means you’re taking on some legal responsibility, whether you realize it or not. Here are a few things you’ll need to account fo:

 

    • Public liability – If someone trips over your machine or it malfunctions and causes an injury, you could be held personally responsible if you don’t have the right protections in place.
    • Product liability – If a customer gets sick from expired food or a damaged item, you’re the one they’ll come after.
    • Equipment investment – Your machines cost money. If something goes wrong in your business, you want to make sure your personal bank account, car, or house aren’t on the line.

That’s why choosing the right structure matters. A sole proprietorship might feel like the fastest path, but in my opinion, forming an LLC gives you the protection and flexibility you need without adding a bunch of stress or complexity.

Pro Tip: Think Ahead, Not Just for Today

The way you set up your business now affects everything

Even if you’re starting small, plan like you’ll succeed. That mindset can save you from costly fixes later.

Step 5: Write a Simple Business Plan

This doesn’t need to be overly complicated, but writing a simple business plan will help you get clear on your goals and figure out whether things are working the way you expected. Think of it like your roadmap, it keeps you focused, especially when you’re just getting started and there are a million decisions to make.

 

Here’s what I suggest you include (and why it matters):

 

    • What You’re Selling:  List the types of vending machines you’ll operate (snacks, drinks, specialty items) and the kinds of products you plan to stock. This helps you think through costs, restocking needs, and what equipment makes the most sense.
    • Where You’ll Put Your Machines:  Write down the types of locations you’re targeting—like gyms, schools, or office parks, and what makes those places a good fit. You can even list a few specific addresses you’re looking into.
    • How You’ll Make Money:  Estimate how much you think each machine can earn per month, how much your products will cost, and what your profit might be after commissions and supplies. 
    • Who’s Handling What:  Even if it’s just you, include details like who’s responsible for restocking, maintenance, bookkeeping, and communicating with property managers. If you’re working with a partner, be clear about the split.
    • What It Will Cost to Start:  Add up the cost of your machine(s), first round of inventory, any licenses or permits, and business setup fees. Knowing your upfront costs gives you a clear starting point.

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Step 6: Get the Permits You’ll Need

Before you place your first machine or sell your first snack, you need to make sure everything is legal. Skipping this step can lead to fines, shutdowns, or even losing access to a great location. I know paperwork isn’t exciting—but this part protects your business and builds trust with property owners.

 

Here’s what you’ll likely need in the U.S. (requirements can vary by state and city):

 

    • Business License:  This gives you legal permission to operate. You’ll get it through your city or county, and it’s usually one of the first steps in setting up a legit business.
    • Sales Tax Permit (Seller’s Permit):  You’re selling products, which means you’re collecting sales tax. This permit allows you to do that legally and report it properly to your state.
    • Vending Machine License or Decal:  Some states or cities require a separate license or sticker for each machine you place. The fees are usually small, but you have to stay current.
    • Food service license (if selling food or beverages):  If your machine offers perishable items or anything regulated by your local health department you may need a food handler’s permit or inspection.
    • Location-Specific Permits:  If you’re placing machines in government buildings, schools, or public parks, extra approvals or background checks might be required.

Pro Tip: Call Your Local Business Office Before You Start

A 10-minute phone call can save you weeks of hassle.

Ask what permits you need for a vending machine business in your area. You’ll get answers straight from the source, and avoid rookie mistakes.

Step 7: Buy a Vending Machine

Now that you’ve done the groundwork, it’s time to get your first machine. This is one of the biggest upfront costs in your business, so take your time and choose the right one based on your budget, your location, and what you’re planning to sell.

 

If you’re just starting out, you don’t need the newest, flashiest machine. In fact, many first-time vending owners start with a used or refurbished machine to save money. A used machine in good condition can cost between $1,200 and $3,000. New machines can run anywhere from $3,000 to $10,000 depending on features.

 

Here’s what to look for when picking a machine:

 

    • The right size for your location
    • The ability to stock the items you’ve planned
    • Payment options like cash, credit card, and mobile
    • Easy access for restocking and cleaning
    • ADA-compliant design if it’s going in a public space
    • Remote monitoring if you want to track sales or stock levels from your phone

You can find machines from vending equipment manufacturers, wholesale suppliers, or resale platforms like Craigslist, Facebook Marketplace, and eBay. If you’re buying used, always ask for a demo or video showing that everything works before handing over any money.

Step 8: Stock It and Keep It Running

Once you’ve got your machine in place, the next step is filling it with products people actually want and keeping it in good shape so they keep coming back.

 

Start simple. Choose popular items like bottled water, soda, chips, candy, and maybe a few healthier options if the location calls for it. You don’t need to overfill the machine on day one. It’s smarter to start with a small mix, see what sells, and adjust from there.

 

Keep an eye on expiration dates, especially with snacks and drinks. Nothing turns people off faster than buying something stale or outdated. And remember, different locations have different preferences. A gym might move protein bars and flavored water fast, while an office building might lean more toward coffee, chips, and soda.

Step 9: Launch and Run Your Business Smartly

You’ve done the setup, now it’s time to actually run your vending business. This is where your habits, not just your machines, determine how successful you’ll be.

 

The most important thing you can do is stay consistent. That means checking your machines regularly, keeping them stocked, staying in touch with your locations, and tracking your income and expenses. You don’t need fancy systems, just something that helps you stay organized and see what’s working.

 

If you haven’t already, make sure these basics are in place:

 

    • A business bank account to separate personal and vending income
    • A simple spreadsheet or tool to track sales and inventory
    • A restocking schedule that fits your week

 

As you start collecting sales data, use it to make better decisions. Maybe one machine needs more trips each week, or maybe a product you thought would be popular isn’t moving at all. Your goal is to keep adjusting until each machine is making consistent, reliable income.

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Pros and Cons of Starting a Vending Machine Businesses

Like any business, vending has its ups and downs. If you’re thinking about doing this long term, it helps to know both sides before you invest your time and money. I’ll walk you through the real pros and cons, based on what most new owners experience.

Pros of Starting a Vending Machine Businesses

    • Low Startup Costs: Compared to most businesses, you don’t need a huge budget to get started. A single machine, a bit of inventory, and a solid location can get you going.
    • Flexible Schedule: You can run this business in the evenings, on weekends, or in between other commitments. It’s one of the few businesses that works while you’re not around.
    • Scalable: Start with one machine, then add more as you learn what works. You can grow at your own pace without hiring staff or renting a storefront.
    • Simple Day-to-Day Tasks: Restocking, cleaning, and collecting money aren’t complicated. Once you get your routine down, most machines take less than an hour a week to maintain.

Cons of Starting a Vending Machine Businesses

    • Time Commitment: It’s not totally hands-off. You’ll need to refill stock, fix occasional issues, and check on locations regularly.
    • Theft or Vandalism Risk: Machines can be targets, especially in unsecured or outdoor areas. That’s why choosing safe, well-lit locations matters.
    • Location Dependence: A good machine in a bad spot won’t make money. You have to keep an eye on performance and be ready to move if a location doesn’t deliver.
    • Upfront Learning Curve: Until you’ve run a machine yourself, there’s a bit of trial and error. You’ll learn what products sell, how often to restock, and how to handle small maintenance problems.

Start Small, Stay Consistent, and Grow Smart

Starting a vending machine business might seem simple on the surface—but like any real business, success comes from planning, consistency, and learning as you go. If you’ve made it this far, you already have a solid understanding of what it takes to get started the right way. Whether you’re looking for a flexible side hustle or a full-time income stream, vending can give you a chance to grow on your own terms. Start small, stay consistent, and keep learning. The more you treat it like a real business, the more it will start to feel and pay like one.

Frequently Asked Questions

Are Vending Machines Profitable?

Yes, they can be, if placed in the right location and stocked with products people actually want. Most machines earn around $300 per month, but in high-traffic areas, that number can be much higher. After restocking costs and commissions, typical profit margins range from 15% to 30%. Profit depends heavily on location, product mix, and how well you manage the machine.

You can start with as little as $2,000 to $3,000 if you buy a used machine and stock it yourself. If you’re buying new or investing in multiple machines, you might spend $5,000 to $10,000 or more. Add in costs like business registration, permits, and inventory, and you’ll have a clearer idea of your true startup budget.

Usually, yes. Most property owners ask for a commission of 5% to 25% of your monthly sales. Some may charge a flat fee, but commission is more common. This is part of what you’ll negotiate when securing a location. Offering reliable service and sharing your earnings fairly helps keep location partners happy.

Your profits are considered business income and are subject to federal and state income tax. On top of that, you’ll likely need to collect and remit sales tax on the items you sell. To do this legally, you’ll need a sales tax permit from your state. It’s a good idea to talk to a tax pro when you’re setting up.

Anywhere with steady foot traffic and limited competition. Some of the best spots include:

 

    • Office buildings
    • Gyms and fitness centers
    • Apartment complexes
    • Schools and colleges
    • Laundromats
    • Medical facilities
    • Transit stations

You’ll need permission from the property owner, so be ready to pitch the benefits of your machine and negotiate terms.

Picture of Edgardo Ocampo

Edgardo Ocampo

Edgardo is a digital marketing strategist with over 15 years of experience in SEO, paid advertising, and content writing. He helps entrepreneurs grow service-based businesses through smart, practical marketing strategies that get results.

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