How to Start a Vending Machine Route and Succeed
By some estimates, over forty billion dollars is dropped into vending machines by Americans every year. A vending machine business represents a great opportunity for entrepreneurs to start a home-based business with realistic profit potential. Smart businessmen and women realize that quarters and dimes can quickly add up to a lot of money when you own dozens of machines in good locations. This article looks at the vending machine industry in the US and offers an overview for those wanting to how to start a vending machine route that is profitable.
A Growth Industry
The vending industry in the US has grown at a phenomenal rate over the past few decades and that growth rate looks set to continue well into the future. This growth is driven by an expanding population, an expanding variety of new vending concepts and the increased need for convenience. An increasing variety of payment options also now means that consumers never have to pass up on a machines offerings due to not having any coins in their pockets.
Most sectors within the industry are seen as being insulated from economic downturns due to the fact that they are price competitive with retailers. Vended products such as coffee often represent a much cheaper option compared to retailers.
The industry is certainly competitive, like any business is, but competition is not always a bad thing. In some cases vending machines placed in the same location mutually support each other by forming blocks that offer better variety, value and convenience than nearby stores. vending machine supplier
A Seasonal Business?
The industry is not seasonal overall. Certain machines doing hot or cold beverages for example certainly will fluctuate in sales volume throughout the year. Some locations can be better in summer or winter. Don’t forget that some locations may completely close down for short vacation periods leaving you with no sales at all.
Start a Vending Machine Route – Regulations and Compliance
Some states require vendors to have a business license (usually around $100), sellers permit, a sales tax license, or all of these things. Before you set up your vending machine route you should inquire and find out how to comply with local regulations. Depending on what products you are vending you may also have to comply with your local health authorities.
Most vending business owners go for sole proprietorship but a limited liability company also has advantages to offer. It is best to speak to an attorney or an accountant and try to determine the best legal operating structure for your situation.