What if I told you that Adam Hill makes $58K monthly with vending machines? It sounds too good to be true, but starting a new Vending Machine business can be a great way to make passive income with low startup costs.
In our exclusive interview, Adam Hill, founder of Hill Vending, told us:
The corporate world was trying to make me bounce around a lot and I wanted to stay in my strip of paradise. I decided to leave my job, buy a vending machine route, and have been doing this ever since.
He bought his first vending machine operator route for $120K in 2014 and Hill Vending was born.
The business lost its biggest client shortly after the change in leadership because the location wanted to start running its own vending machines. That didn’t stop Adam!
He rose above the discouragement to grow the business into a $600K passive income-generating machine. He’s even started his own vending training course. In this guide, we share the secrets of his success.
Vending machine operators can easily manage several hundred vending machines fairly easily. You can purchase an existing vending machine business and have revenue from day one.
Alternatively, a vending machine business requires startup costs as low as the cost of a single snack or beverage vending machine and the products to stock them.
Then you can grow to multiple machines or expand your offerings as your vending machine sales increase. Additionally, the vending industry is a largely passive income play because vending sales only require that you maintain, restock, and collect money—essentially whenever you want to—to run your own business.
Adam was tired of the corporate life and decided to start a vending machine business. He decided to buy a vending route in 2014 for $120K, and 10 years later, he’s making that every two months.
Adam started off by losing his largest client but overcame the challenge and learned to optimize his business by buying interchangeable equipment, optimizing vending routes, and using a strategic pricing structure for products.
Check out our interview with him below to hear how to become a successful business owner in the vending industry.
Adam Hill is a major success story in the vending machine industry, and he’s not keeping his strategies a secret.
ATTENTION: We partnered with Adam Hill to unravel his 10-plus years of experience and help you launch a six-figure vending business. Learn everything in less than an hour in his free masterclass.
Vending machine business owners have the ability to make a ton of money if they can land their vending machines in the right places, but you need to understand the market to play the game right. We’ll give you some background information.
If you want your own vending machine business, you’ll need to do everything to run it legally. Given your vending equipment will likely be on other property owners’ locations, you’ll want to make sure you have (or comply with) the following:
Get an LLC or corporation. Check out our blog about how to
register a business
. Then get an Employer Identification Number (
EIN
) as needed.
You’ll need state, county, and city
business licensing
.
Make sure to
open a business bank account
.
UpFlip recommends getting bids from multiple providers using
Simply Business
.
Just search “
health codes near me
,” and your search should bring up local health codes that apply to any business entity in your location.
Pro Tip: All of these have legal and tax implications, so I’d highly recommend talking with your local Small Business Administration office or a lawyer before starting a vending machine company.
Keep reading for more on how to become a vending machine business owner.
Starting a vending machine business doesn’t have to be hard. Just follow the steps below.
Choose the right products.
Find the right location.
Buy the best vending machines.
Place your vending machines in high-traffic areas.
Stock products.
Maintain your machines.
Expand to new locations.
Read on to learn more bout how to start a vending machine business.
Part of learning how to start a vending machine business is buying the products to sell. Most people will buy their products from places like Sam’s Club or Costco, but depending on how many machines you have, you may qualify to work with a distributor.
Given the speed of Amazon, you might also look for deals there. We put together a shop of vending machine products inspired by this blog. Check it out.
Adam told us:
I got a warehouse to have distributors ship to once I started going to Sam’s Club twice a day. It’s really saved me time and money, but you don’t need it when you first start. You can store the product in your living room.
Additionally, he told us you should:
Check on a daily or weekly basis to see who has the best prices… Don’t forget to check wholesale restaurant warehouses and your local store promotions.
He also suggested using online order functionality so you can pick product up whenever you’re ready.
Pro Tip: If you want to sell Coca-Cola products, go to the Coke Solutions website to get registered to purchase from distributors. PepsiCo Partners website is the link for Pepsi. For other providers, go to ThomasNet.com.
The next step in starting a vending machine business is finding places to put your machines.
You might be wondering, Where can I put a vending machine?
You can put a vending machine anywhere a property owner will give you permission. Common locations for a vending machine include:
Buildings with office space
Grocery stores
Malls
Hotels
Hookah lounges
Hair salons
Gas stations
Fitness centers
Barbershops
Apartment buildings
Airports
Hospitals
Concert venues
Adam told us:
Start by asking friends and family. Then just go talk to the management of places that have a lot of people.
He also told us:
We look for locations that make $2,000 a month.
You also want to look for locations that have:
50 to 100 people walking by per day
40 or more employees
Ideally, no competition within two miles (think grocery stores, gas stations, and restaurants)
Pro Tip: Almost anywhere with lots of people is a great place to put a vending machine. That’s good to know, but how can you find specific places that need a vending machine? For a deeper dive, bookmark our list of the absolute best locations for vending machines, also inspired by Hill Vending’s success.
Adam suggests buying from either AMS or Vendo. When buying a vending machine, remember to evaluate vending product options to establish which vending machine is best for your vending machine company goals. Then, odds are you’ll want to inspect used and refurbished machines.
There are four primary ways to buy a vending machine:
A new vending machine
Used vending machine offerings
Custom vending machines
Refurbished machines
We’ll discuss these in detail below.
After you have found a location for your vending machine, you’ll need to place them. That means you’ll need a truck and a dolly to move it. Vending machines are much lighter if you move them while they are empty. Don’t forget to bring the products with you to stock them once they are positioned and plugged in.
Most locations will need to be stocked weekly or every other week. If you have a machine in a busy location, you may need to check it even more frequently. When you first get a new location, Adam told us:
You want to go at least a couple times a week until you get a feel for how busy it is. The best way to lose a location is for them to have to call you because they ran out of stock. Once you understand the traffic flow, you’ll be able to go less.
When you start a business, you’ll need to maintain your machines. You can either learn to do this yourself or pay subcontractors to monitor them. Join the National Automatic Merchandising Association and take some of their certification courses to learn about:
• Level 1: Job fundamentals
• Level 2: Refrigeration
• Level 3: Electronics
They also have selling and business courses.
Pro Tip: Be aware that you’ll need vending machines with credit card or analytics software to make the most profit. If you are buying a route that you cannot personally service, this is even more important because it helps protect against employee fraud. Given many machines are cash businesses, it would be easy for employees or subcontractors to steal from the machines. Investing in tech that will help you prevent this is essential.
You’ll want to place machines in new locations as you grow. There are a lot of strategies for choosing locations. Adam told us:
You have two (main) choices: Go door-to-door or purchase an existing route.
In either scenario, you’ll want to consider traffic at the location. Adam told us:
You need at least 50 people to pass by the machine to make money. Less than that I consider low traffic, meaning 50 people and $500 per month.
Adam also warned us:
Don’t put machines outside. It wears them out faster.
He also gave us some advice about whether to go door-to-door or find an existing route. We’ll discuss each next.
When buying a vending machine, your options are as diverse as the vending industry itself. I’ve dedicated a section to each of the following:
Buying a new vending machine
Considering used vending machine offerings
Investing in custom vending machines
Going for refurbished vending machines
If you want to buy a new vending machine, you’re probably in luck because there are plenty of sellers. Most of them will offer to finance as well. Adam encourages buying new vending machines from an authorized AMS Vending dealer.
Given the benefits of selling snacks over drinks, I would probably go for a machine like the AMS Multitasker or Low Low Temp Combo.
You’ll want to compare the vending machine price and features before deciding where to buy one, but some of the places you can buy machines include:
has the largest variety of machines, including specialty vending. The only option that isn’t on their list is ice machines, which makes
Vending.com
a great place to start.
currently offers
twelve vending machines
for snacks, beverage vending machines, combo, and single-brew coffee (coffee maker not included). Based on the product listings, they don’t sell chilled, refrigerated, or freezer vending machines.
has
two main vending products
and lockers. These are high-tech, specialty vending machines with analytics, inventory management, and multiple cameras. They are meant for locations doing $36,000 in business or more. Swyft also offers placement assistance and maintenance services.
has hot and cold beverage machine options, plus food and beverage machines, and even specialty machines that allow vending of masks, gloves, sanitizers, and sanitation wipes. It definitely has the
most diverse options
of any of the 10+ suppliers we reviewed.
Alibaba also sells vending machines, and they are far less expensive, but that’s before shipping from China. I would only suggest using Alibaba if ordering in bulk.
You might want to try Vending World for refurbished vending machines. While reviewing vending machine information, their name consistently comes up as a great place to get affordable machines for sale.
Pro Tip: If you only need a few vending machines, I would go with one of the providers detailed above, but consider opting for used if you’re buying bulk vending machines. The reason I suggest this is because the savings can be tremendous as long as they all have interchangeable parts.
You can buy a used vending machine or even full routes. Places to buy a used vending machine include:
• Craigslist
• eBay
• Going out-of-business sales
• Government auctions
• Search the web for vending routes for sale
Adam told us:
When you’re just starting a vending machine business, you might want a used route. It will save you a lot of money when you start up. Make sure to test everything and negotiate prices based on repairs.
Make sure to inspect the machines very thoroughly when buying used. Business owners are notorious for poorly maintained machines. I actually have a story about this…
When I worked in HVAC, part of the job included maintaining and repairing ice vending machines for motels, schools, universities, hospitals, and other locations.
Business owners wanted to keep their profit margins as high as possible, which meant they didn’t regularly sanitize their ice vending machines.
That’s great for maintaining your overhead costs, but it can (and does) allow mold to grow. Mold remediation is far more costly than routine maintenance by a few thousand dollars.
The moral of the story is to maintain your machines to provide top-notch customer service.
Make sure you check the vending machines before you buy them. Test:
Each dispenser
The coin and bill acceptor
The credit card reader (if there is one)
Compressor and fan for cooled machines
Confirm:
Whether the unit is meant for indoors or outdoors
That the machine feels cool (You can’t have candy and Coke machines in the heat without a cooling system!)
Look for:
Dates on the packaging
Frayed wires
Signs of bugs or rodents
Used healthy snack and drink machines have refrigeration units to check. Be careful when buying them second-hand. If you aren’t mechanically inclined, bring someone who is when you look at the machines. Used machines will typically be sold as-is.
Most of the companies that sell new machines also sell used ones. If you’re concerned about buying used vending machines, consider refurbished machines as an alternative.
Buying refurbished is an established business model where companies accept damaged products, fix them, and then resell them. If you’ve ever gotten a replacement phone with your warranty, it was most likely refurbished.
Buying a vending machine refurbishment is the best of both worlds for a business owner. You have low startup costs, but the warranty will typically be for only half as long as what you’d get when buying a new vending machine. Most vending manufacturers will offer refurbished options, but they will probably be much slimmer pickings.
If you need custom machines, your best options are Swyft, Vending.com, or reaching out to one of the manufacturers listed on ThomasNet. Lead times are longer for custom vending machines, and you’ll be paying more. If you want to develop brand recognition, it may be the way to go.
Yes, the majority of vending machine suppliers offer financing options. Their terms vary, but many give estimates of the cash flow or profit that will cover the machine’s price. Don’t forget that Adam suggests only using machines that accept and include:
Credit cards
Apple Pay
Tap/touchless payment
iVend (“Intelligent Vend” sensors that guarantee the product comes out)
He also prefers food machines because they allow for more profitable options.
Yes, a vending machine business can be profitable. Approximately 30% of the revenue goes to paying employees or profit when you start a vending machine business. For clarification, if you are an owner-operator with no employees you should be aiming for 30% profit. Those with employees should aim for profit of 30% minus the cost of employees.
An average vending machine business earns $35 per week for each vending machine, but vending machine businesses with high-traffic, safe locations can earn between $400 and $2,000 per machine each month.
In 2024, the global vending machine industry is expected to earn approximately $21.57 billion. The vending machine industry is expected to grow at a compound annual growth rate of 5.8% through 2029, when it will reach an estimated $27.77 billion in revenue.
A new vending machine costs between $3,000 and $10,000, but refurbished or used machines can be found for $500 to $3,000. The costs will vary depending on the size of the machine, the features, and its condition.
When you buy vending machines as part of a vending machine route, you may pay based on the revenue the vending machine business generates from the vending machines.
Many websites claim vending machines make under $400 per month, but the vending machine business owners we have interviewed state they look for locations that average around $2,000 per vending machine monthly.
You can put a vending machine anywhere that the property owner will allow you to place the vending machine. The best places for vending machines are high-traffic locations with captive audiences. That means a vending machine business should look for locations like:
Airports
Office buildings
Schools
Hospitals and doctor’s offices
Vending machine owners can store their products at home, in a warehouse, or even pick them up from a wholesale store just before going to refill the vending machines. Just make sure that the products are in an air-conditioned (or refrigerated, if necessary) space to prevent food spoiling and beverages exploding.
When you start a vending business, you’ll need to maintain your machines. You can either learn to do this yourself or pay subcontractors to monitor them. Adam suggests keeping commonly needed spare parts as a way to operate vending machines profitably.
Join the National Automatic Merchandising Association to learn your basic repair skills. They have three levels of certification courses to learn about:
• Level 1: Job fundamentals
• Level 2: Refrigeration
• Level 3: Electronics
They also have courses on business and sales skills.
When you start a vending machine business, check your vending machines and collect the money at least once a week.
Your new vending business will have to decide what vending machine offerings to provide. This decision will impact placing vending machines, pricing, and inventory. Some common types of vending machines include:
Snack and candy machines
Hot food vending machines
Cold food vending machines
Ice vending machines
Toy vending machines
Gumball machines
Bulk machines
Combo vending machines
Electronic vending machines
Pro Tip: Whether you want a franchise or not, get inspiration from our list of the best vending machine franchise opportunities.
We have everything you need to start a vending business in less than one hour. We’ve partnered with Adam to unravel his decade-long experience & help you launch a 6-figure vending business today. Access this free masterclass here.
Starting a successful vending machine business requires careful planning and execution. Adam’s journey with Hill Vending shows you can make vending machines profitable.
The steps outlined in this blog provide a comprehensive guide for aspiring entrepreneurs to find vending machines, complete their business registration, and negotiate placement with business or property owners.
Remember, selecting the right products and locations is critical to your success. High-traffic areas maximize profits for snack vending machines, hot beverage vending machines, and other automated vending companies.
Additionally, machine maintenance and restocking machines routinely quickens your business success.
Furthermore, obtaining the necessary business licenses and establishing a solid business structure are crucial for legal compliance and financial stability. Make sure to register the business entity, get proper permits and insurance, plus adhere to regulations.
Consider features and inspect the new, used, or refurbished machines you’re considering before purchasing vending machines. Financing options are available for automated vending, which makes entering the market easier.
Ultimately, the machine vending market offers promising opportunities for profitability. It requires diligence, strategic planning, and continuous effort. Follow the vending machine business plan and resources in Adam’s vending masterclass to build a successful and lucrative vending machine business.
What types of products will you sell in your vending machines?