The Cost of Starting a Vending Machine Business

Published: 09th February 2012
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One of the many advantages of starting up a vending machine company is that it's quite possible to be able to get it done with low startup costs. In the event that you have access to substantial financing, you might also opt to buy an existing business or start right with your very own company set up. Based on how you would like to start the business, a vending machine business could cost several thousand to hundred thousand dollars.

A small vending machine business could be started on quite a low budget therefore it is better to start out slowly and face a smaller amount of risk. After that you can choose to invest further to a great extent as soon as the business starts to earn a certain amount of income, and after you determine that vending is really the business that you desire to do.

In the event that you start out in a full time basis you might also have to budget for payments to pay for your own everyday living expenses for a time period of several months right up until your company gets profitable.

In starting a vending business, there would be some startup costs that you have to deal with and some of them are below.

The Vending Machines

How much startup funds required varies significantly based on the type of machines that you'd like to begin with.
A single strategy in order to take off on a tight budget is to begin with candy vending machines which could typically be purchased with a small outlay on auction sites for approximately US$100 or much less each.

These kinds of machines are usually inexpensive and easy to operate. Another thing is that the gum balls and candy machines provide a fantastic net margin for minimal effort. Slowly purchasing them in groups of one to three during a period of time and little by little increase your business while you look for other appropriate locations to put the vending machines.

Should you choose to begin with bigger, electronic vending machines that vend snack foods and cold or hot drinks, you might be contemplating on a much bigger start-up costs. Brand new machines for food or beverage range in price from around couple of thousand dollars to six thousand dollars per unit. If you are a first-time operator you'd be insane to purchase brand new machinery as it would be far better off leasing a number of these for a period of time if just for the purpose of trying out a number of vending machine locations. Purchasing used but high quality machines is also an option to reduce your initial cost.
Additional startup expenses related to vending machines consist of, safety locks, maintenance kit and tools as well as electrical cords used for extension. Don't forget to allow for machine parts and repairs if you are reliant on hiring a technician when the need arises.

Business Location

Many operators begin a home-based vending company and thus will not have to shoulder the extra cost of leasing an office. If you have an extra space for a business office plus some storage space in the garage to store the machines you will be fine. In any other cases, you need to look at leasing a space for safe-keeping.
Office and Administration

Based on exactly what machines you have already got and also based on the extent of the services you are offering, you will need to spend a certain amount on setting-up your home office. You'll probably need some office furniture like a desk, a computer and a printer, an Internet and phone connection, paper and perhaps additional equipments and supplies that you may think of later.

Transport Expenses

In order to ensure timely deployment of your machines and inventories, you will certainly must have an appropriate vehicle. Dependent on the type of machines that you choose to operate, you may very well not be able to survive using only a single vehicle. You will probably ought to consider renting another vehicle. A much bigger vehicle such as van or truck may be needed for moving machines and inventory. You may even need a vehicle having a cooling compartment.

Other Costs:

Some other things that you should consider are
- the cost of applying for business permits, licenses together with paying for the assistance of an attorney, an accountant or probably a business advisor which is expert on this type of business.
- the inventory or stocks of products that should go with the machines. It is advisable that these be bought in bulk to save money.
- the marketing cost which involves the expenses for advertising, some business cards and probably a company website.
- other start-up costs include insurance and the cost of employing other personnel like someone to handle the telephone calls, a web designer or someone that will market your site online.

Its always important to have everything within the budget as the success of your business always depends on your good planning and execution.

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