Are you curious about starting a vending machine business? I’ve been hearing a lot about this side hustle lately, and it seems like a great way to earn some passive income. So, I decided to dive in and learn more about it. I spoke with Lakinya Francis from iKrave Vending, who makes $7,000 to $10,000 a month from her vending machines, to get her insights on how to start your own vending machine business.
You might have questions like:
– Is there room for new people in the vending machine business?
– How much does the average vending machine make daily?
– What types of vending machines are most profitable?
– What does a vending machine cost?
– How many hours a week does it take to manage a vending machine business?
– What are the downsides of owning a vending machine business?
This interview aims to help you get started and perhaps find a new way to earn extra income.
Let’s start with some background on Lakinya. She’s from Miami, Florida, and after graduating from the University of South Florida, she worked as a middle and high school teacher for four years. Seeking a more secure job, she joined the State government but wanted a side hustle that wouldn’t interfere with her day job. In 2016, she discovered vending machines, which weren’t very popular at the time. She bought five used machines and placed them in a tile manufacturer and a mechanic shop. After two years, she sold these machines for $2,000 more than she paid.
Later, she landed a deal to place eight machines in a new entertainment district in her city. This location, filled with teenagers and families, generates $7,000 to $10,000 a month. The key to success in vending is finding the right location with plenty of foot traffic.
Lakinya is now looking into specialty vending, like placing live bait and tackle vending machines in Key West, Florida, thanks to her brother’s idea. Her goal is to focus entirely on these specialty machines in prime fishing locations.
What does Lakinya like about the vending machine business? She calls it a safe investment because people will always need to eat and drink. It’s not 100% passive, but the machine acts as your employee, eliminating many traditional employee-related concerns. Vending is a billion-dollar industry that continues to grow, especially with new automated and contactless features.
Is there room for newcomers in the vending machine business? Absolutely. Cities are always developing, meaning more schools, hotels, and shopping plazas, which all need vending machines.
How much can you make from a vending machine? If placed in a high-traffic area, a machine can make $500 to $600 a month on average, with some locations generating that amount weekly.
What types of vending machines make the most money? While snacks and drinks are staples, there are many other options. For example, a beauty supply vending machine in a busy hotel or college dorm could make at least $1,500 a month. Other ideas include laundry products, live bait and tackle, CBD, and school supplies.
How much does a vending machine cost? Prices vary. A used machine with a credit card reader can cost about $2,000, while a new one with all the features can be around $5,000.
Where’s the best place to put vending machines? Anywhere with people—office buildings, apartment complexes, laundromats, churches, schools, and more. The key is foot traffic.
How many hours a week does it take to run a vending machine business? Most people manage it as a side hustle with just a few hours a week. For example, maintaining five machines in two locations might take about 2 to 3 hours weekly, including travel and restocking.
What are the downsides? Vending can be fun but also requires work. You need to stock machines regularly and may face issues like underperforming locations or vandalism. Some locations may also require you to share profits or pay rent. It can take six months to a year to make your investment back.
What steps are needed to start? First, decide what type of vending you want to do and find a high-traffic location. Determine what products to sell and where to buy them.
Any tips for beginners? Don’t wait for opportunities; create them. Vending can fit into anyone’s lifestyle. Start by scouting potential locations.
Lakinya offers three course packages to help people get started. The Starter package includes a course on getting started, finding locations, and more. The Standard package adds a one-on-one consultation. The Ultimate package includes additional courses on specialty vending and 30 days of mentoring.
Are you interested in starting a vending machine business? Why or why not?