In the never-ending quest to make a buck, savvy entrepreneurs have bypassed the more glamourous paths of technology and social media for what might be considered a more mundane opportunity:

Vending Machines

You might have thought that the ubiquitous vending machine was yet another industry overwhelmed by multi-nationals and big businesses. But according to a 2020 IBISWorld report, the 2 million vending machines now in use across the USA are owned by 17,600 small businesses, most of whom employ only a few people at most.

According to a piece in “The Hustle,” the goods sold in these machines range from 50 cent gumballs to items as esoteric as Beluga Caviar, Hand Sanitizer and Masks, and even Live Earthworms (just $3.50 a dozen).

What makes this business so attractive to small business owners? Several factors:

Low Startup Costs – you can find a decent machine and fill it up with product for under a couple thousand dollars.

Mostly Passive Income – once you get things rolling, your workload involves keeping the machines fully stocked, which could only require attention a couple of times a month.

Flexible Schedule – it’s your machine, it’s your product, your hours are up to you.

Highly Scalable – the money you make from one machine can be leveraged to buy another, then another, and so on.

However, one of the key challenges for the business boils down to the classic refrain about real estate – location, location, location. Finding the perfect place to plant your wares can be tricky, especially if someone else has beaten you to the punch. According to the Hustle, some owners have had to make over 100 calls to find a decent location for their machine.

But the effort can pay off. A survey of 23 vending machine owners of various sizes found that the average operation owned 13 machines, each grossing $309 per machine, per month. Even when you subtract the cost of supplies, etc., this still produces a tidy income for minimal effort.

Investing in opportunities is what keeps this economy going and we’re always keeping our eyes open to new ideas – and we’re here to help you do so as well. Reach out to us at 513-563-PLAN (7526) or book online for your free 15-minute call.

Regards,
Nikki Earley, CFP®