When it comes to running a vending machine business, you need to carefully consider the type of machines you want and exactly what you want to sell.

It may be wise to stick to a popular niche and sell products that have proven popular and have a track record of success. However, some entrepreneurs have also done very well in testing new concepts and pioneering their introduction.

Let’s take a look at the variety of products sold in vending machines, both regular and non-conventional, and the profit potential of some of these products.

Food, Snacks and Drinks

According to the US National Auto Vending Association (NAMA), canned beverages represent 40% of the total vending market, snacks 19%, food 10%, hot beverages 8% and drinks in a cold glass 8%. Snacks and beverages together account for 85% of the vending machine market in the US.

While the opportunities are plentiful, many experienced operators find that it can be labor intensive as products are bulky and need to be replenished frequently. The profit can also be quite low due to the low price of products in this area. Even if you raise 100% of the purchase price, it can be hard to make money unless your machines work really well.

Experienced operators report that junk food and soft drink options are far more popular than health bars and fruit juices. So unless you’re located in a school or outside a gym, you might be better off with the former as it’s proven to be more profitable.

Gumballs and bulk candies

Gumballs and other carefully selected candies can offer much higher margins than the purchase price. A ball of gum that might cost three cents can have a profit margin of over 700% and sell for 20 cents or more. Although we are only talking about a small amount of money here, one of these machines can hold thousands of gumballs.

These types of machines don’t have to be replenished frequently, and when they do, the owner can usually pull out upwards of $500 of almost pure profit. Candy machines can fit anywhere, although they are best suited to areas with lots of children nearby.

An interesting confectionery-related niche market that some operators are getting into is small machines in restaurants that sell mints ‘after dinner’ to customers.

cigarettes

Cigarettes have traditionally sold well through vending machines in the right places and currently account for 2% of the vending industry according to NAMA. However, lately the market is changing with the gradual introduction of more anti-smoking regulations and therefore the cigarette sales business does not seem to have a bright future.

toys and stickers

Toys and trinkets that kids love, like bouncy balls and stickers, can also have a surprisingly high profit margin and don’t need to be replenished as often. In a place with a lot of “young family” traffic, these types of products can work very well.

newspapers

Newspapers have to be restocked daily, of course, since no one would want to buy yesterday’s paper. This makes newspaper vending machines a poor proposition for most vendors who would prefer to restock less frequently unless the location has a high volume of foot traffic. Suitable places for newspaper sales include busy street corners, train stations and airports.

bathroom related products

In the right environment, products like soap, sanitary pads, condoms, and perfume can be sold from small units attached to bathroom walls.

Arcade and Videogames

The entertainment market is huge and many entrepreneurs choose to specialize only in this area. With forms of entertainment sold, there is generally no product cost involved and the machines never have to be restocked, making this sector quite lucrative for those who know what they are doing.

Other Products and Services

Other products and services sold through vending machines include CDs, cameras, pantyhose, Internet services, DVD rentals, and photos. The Japanese, who are often the world leaders when it comes to vending machines, even sell cans of beer through a machine.

An example of an exciting new vending service concept is taking breath alcohol tests via a machine and placing them in or around bars or nightclubs.

New sales concepts are coming in all the time and there are huge profits to be made if you are able to embrace a new idea at the right time. But at the same time, new business owners would do well to focus on the vending machine products that make up the majority of the market share, such as snacks, candy, and beverages, as these are proven winners and are more likely to have success in any given location. .

Basically, any product or service should eventually be able to be offered through a machine at a favorable cost and with the greatest convenience. The vending machine industry definitely has a bright future.