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How to Start a Vending Machine Business: Cost, Tips, Pros and Cons
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Vending machines are by no means a novel business idea—they’re basically everywhere, after all. But for those of you looking to start your own business, there is a lot to like about the vending industry. Consider that there are millions of machines in the U.S. alone—and the vending machine industry generates over $23 billion in annual revenue. That's enough reason to explore how to start a vending machine business of your own.
How to start a vending machine business in 6 steps
Consider all of your vending machine options: This includes food and drink machines, bulk vending, and specialty vending.
Find the right location for your vending machines: Consider locations where you feel motivated to use a vending machine. Then work out an agreement with the proprietor.
Find your vending machine: Vending machine sellers include manufacturers and wholesalers, secondary market retailers, and online resellers.
Stock your vending machine with inventory: Consider site-specific needs when purchasing inventory for your machine. Also, don't over-order stock in the beginning.
Explore your vending machine business financing options: The best financing options include a short-term loan, equipment financing, and inventory financing.
Make the right investments in vending machine tools: A successful operation requires you to invest in tools that will help you run your business more efficiently, as well as prioritizing customer service.
The vending machine industry is an attractive option for both new and experienced entrepreneurs. Other than its surprising profitability, running a vending machine business is pretty versatile. It can be a great weekend side hustle, a low startup-cost business, or an interesting new way to expand your portfolio.
Ready to make your fortune off grab-and-go snacks and beverages? Here’s everything you need to know about how to start a vending machine business.
Vending machine costs
The majority of the costs to start a vending machine business comes from the vending machines and the stock items. With as little as a $2,000 investment, you can generally get a basic vending machine business up and running. Many vending machine operators recommend buying used or refurbished machines, which you can find between $1,200 and $3,000. A new vending machine will cost anywhere from $3,000 to $10,000, depending on its size and features.
Besides the machine itself, you'll also want to consider the cost of inventory to stock your machines. Depending on how many machines you plan to own and what kind of inventory you'll stock, this could span a few hundred to thousands of dollars.
How Much Do You Need?
How to start a vending machine business: A step-by-step guide
Any advantage or insight you have on vending machines is a great way to get in on this niche business. For example, if you’ve already identified a need for a snack machine near you, reach out to property owners you know and gauge their interest in placing vending machines at their locations.
But even without personal connections, you can start a vending machine business—and make money doing it. Here's how to start a vending machine business in six steps.
1. Consider your vending machine options
While most people may think vending machines only come in the standard snack-and-soda variety, if you've thought about how to start a vending machine business, you likely know there are more options. In general, there are four different categories of vending machines (which we'll outline below). Consider all four types when choosing the machine whose products would be the biggest hit with your target market.
Whichever type of vending machine you choose, start out with one or two machines with a specific market focus. That way, you can gradually learn about popular stock- and site-specific patterns, and add new machines accordingly.
Food and beverage vending
According to Vending Market Watch’s 2019 annual report, food and beverage vending machines with snacks, soda, and candy make up the majority of the vending market share in the U.S., with beverages alone accounting for nearly a third of vending sales. If you're wondering how to start a vending machine business, you can’t go wrong with this old standard.
Of course, there are variations on this standard—you can get a machine that just offers drinks, snacks, or snack-and-drink combinations. Some vending machine entrepreneurs choose to purchase different types of machines for one location, or place one kind of machine in multiple locations.
Whatever you decide, it’s a good idea for new vending operators to start with a specialty—be it healthy snacks, beverages, or even fresh food—until you learn more about the industry.
To make the most sales, cater your offerings to a specific, location-driven market. For instance, you might stock your food and beverage machine at a gym with protein bars and shakes, or stock a school vending machine with juice and granola bars. You may think of soda and chips when you think vending machine, but there is money to be made offering equally convenient healthy alternatives people want—and will pay for.
Starting a vending machine business with machines that stock gumballs, stickers, or rubber balls—also known as bulk vending—requires very little capital and low maintenance costs.
These typically low-maintenance vending machines might not be glamorous, but the quarters do add up. A refurbished vending machine could cost you less than $50, and bring in as much as $30 per month. The products you’re offering have incredibly low overhead. In the right market—like a school or amusement park—this modest investment offers the potential for a reliable, passive income source.
Most bulk vending machines are mechanical devices and don’t require electricity or battery power to operate, which means the cost of operation is low to nonexistent. That said, many candy and toy vending machines are older, so a used device might require minor repairs before it’s functional.
You're not just limited to food and drinks when starting a vending machine business. Large public places like arenas, airports, and malls often have machines offering goods like tech accessories, beauty products, or other specialty items. Some of these vending machines use the same technology as standard vending equipment, and some are differentiated as Automated Retail Machines.
Some specialty vending items include:
Hot beverages: Coffee or hot beverage vending is typically most successful in offices, but universities and conference centers are also good locations for this kind of vending machine business. Manufacturers often produce both specialty beverage equipment and traditional machines, so you may be able to combine your purchases.
Retail: Essential travel items like phone chargers, headphones, and neck pillows can be lucrative vending products if you’re able to negotiate a contract with a local transit station, or even an airport. Upscale vending machines in malls and airports often contain luxury skincare products or electronics.
Laundry products: Individually packaged detergent, fabric softener, and dryer sheets make great vending products if you identify the right market for it—like laundromats, apartment complexes, or dormitories.
Tobacco: Tobacco vending is legal in many states , and can be lucrative depending on the state taxes. Even cannabis vending machines are also becoming available, but with a much more limited market.
If you don’t want to build your business from scratch, you may want to consider buying a franchise to start your vending machine business. As a franchisee, you will be able to work within a proven business framework and receive extra support and training to get your vending business set up. You’ll also be able to decide how many or how few machines you want to invest in. However, keep in mind that as a franchisee, you will be responsible for paying a portion of your profits to the franchisor.
2. Find the right location for your vending machine
The type of vending machine you choose is crucial, but where you decide to put that machine is the most important factor in earning a profit from your vending machine business. For instance, an upscale food and beverage vending machine might fail in a strip mall full of restaurants, but that same machine might flourish in an office park.
When starting a vending machine business, think about the locations where you have personally purchased something from a vending machine, as well as the times when people are most likely to purchase a beverage, snack, or other items. There’s a good chance your restaurant selection was limited, you were in a hurry, or you were waiting somewhere like the airport or DMV.
Some other location ideas for your vending machine include:
Hospitals or medical centers
Airports and shopping malls
The next step is securing your location. A good salesperson might feel comfortable cold-calling a property or business owner, or soliciting them in person. This approach can work for smaller locations, especially if you’re a frequent patron or already know the owner.
You can also try visiting your local Chamber of Commerce. They can give you information about major businesses in your area, which might give you some ideas for potential locations. Ideally, try to place your vending machine at companies with at least 100 employees or considerable foot traffic, like a multi-business office park.
If you already have locations in mind, reach out to proprietors, or work on getting contact information for the relevant manager. Talking to prospective partners about location needs can help you get a better understanding of local demand and inform your vending machine and product selection.
Understand state-specific vending laws, regulations, and compliance
Different rules apply to various types of vending machines, and vending regulations vary by state. Before starting a vending machine business and reaching out to prospective location proprietors, find out how your state governs vendors by contacting your local Chamber of Commerce or looking up your state’s small business regulations online.
Also, any vending machine you put in a public place may be subject to certain ADA compliance standards , and it’s a good idea to keep accessibility in mind when considering vending machine options.
Know commission requirements and prepare a proprietor contract
Before pocketing the profits of your vending machine, you’ll need to pay commission to the proprietor who provides the location and the electricity required to operate your machine. Generally, you’ll pay the property owner 10% to 25% of the revenue from your vending machine.
Whether or not you hope to establish an exclusive partnership with a location, draw up a contract with the proprietor stating your agreed compensation rate, contract length, and terms you have with the owner.
Include provisions for breach of contract, too. It’s also smart to include expectations and obligations regarding servicing and restocking your vending machines, vandalism or theft, and the possibility of unprofitability. As always, have a lawyer look over the contract before signing.
3. Find your vending machine
You can't start a vending machine business without first obtaining a machine. Luckily, finding your vending machine can be as simple as an online search. To get an idea of the different vending machine offerings and price points out there, search both locally and from national suppliers. You should also consider the cost of inventory when looking at vending machine prices.
To find the vending machine of your dreams, start your search with these three types of sellers:
Manufacturers or wholesale vending suppliers have the widest selection of vending machines for sale, the newest technology, and the most end-to-end services for delivery, repairs, and training. This is the most expensive option, though—equipment through vending franchises might require a minimum order of multiple machines or other fees that go toward machine servicing and entrepreneur development programs.
Secondary market sellers or specialty online retailers allow you to browse multiple brands and models of vending machines and often have helpful resources for business owners.
Consumer-to-consumer platforms like Craigslist and eBay have thousands of vending machines for sale. Save time by filtering by merchant or owner location, so you don’t have to worry about major shipping costs. This may be the best option for first-time vending entrepreneurs who don’t want to spend thousands on a new or refurbished machine.
As you’ll quickly find once you start your search, vending machines come with a range of features and capabilities, all at different price points.
Some of those special features include:
Snack/drink combination machines
Credit card and large bill functionality
Touch or voice accessibility
Remote monitoring software and low-stock alerts
Branded “wraps” for the front of your machine
Try not to be too tempted by these special features, though, since they can become costly. Choose the vending machine that best fits the products you want to offer, and what you can afford at the moment.
4. Stock your vending machine with inventory
Once you’ve landed on a vending machine, you're well on your way to starting a vending machine business. Next, you have to stock it with inventory.
Product selection is an excellent opportunity to boost sales. Rather than choosing to stock items based on wider food and beverage trends, pay attention to local, site-specific needs. To stay on the safe side, don’t over-order stock in the beginning, and adjust your offerings based on demand.
If you choose to provide combined food and beverage services in your vending machine business, drinks will make up most of your sales. As the growing refreshments market expands from soda to coffee, flavored water, and healthier beverages like coconut water, it’s worth considering what your location can support in terms of pricier specialty foods and drinks.
Drink size and shapes will affect your range of machine choices, so if you feel strongly about selling cartons or irregularly shaped products, try to find a machine with adjustable product sizing.
5. Explore your financing options
Starting a vending machine business doesn’t require nearly as much startup capital as most other small businesses do—some businesses can cost hundreds of thousands of dollars to start.
Still, a few thousand dollars isn’t exactly pocket change. If you need a loan to purchase your vending machine, consider these two options:
If you’re already a business owner, and you have the business financial history to prove it, securing a short-term loan to finance your vending machine might be your best course of action.
Like traditional term loans, short-term lenders deposit a lump sum of cash directly into your business bank account, and you’ll repay your loan, plus interest, over a predetermined amount of time. As you can guess based on their name, repayment terms for short-term loans are considerably shorter than their long-term counterparts—usually 18 months or fewer. And interest rates are a bit higher than longer-term loans. For those reasons, though, short-term loans are generally easier to qualify for than long-term loans.
But this is a small business loan, so short-term lenders need to review and approve your business’s financials before agreeing to extend you a loan. If possible, you'll want to bring a good business revenue history and good personal creditworthiness to prove your candidacy.
You don’t necessarily need tons of capital on hand to start a vending machine business that makes money. But if you need a little help, you can shoot for an equipment financing loan . The terms of these loans depend on the value of your equipment, which also acts as collateral in case you default on your loan payments.
Cared for properly, vending machines can last upwards of 10 years, which might help assure lenders. In addition to your own financial information and business plan, you will need equipment quotes for the machine(s) you plan to purchase if you choose to apply for an equipment loan. Additionally, if you need capital to purchase inventory, you may want to consider inventory financing.
6. Make the right investments
With a location selected, machine purchased, and placement terms taken care of, you’re ready to start a vending machine business—now it’s time to focus on making the business profitable.
Invest in a vending management system (VMS)
Depending on the technology in your machine, your vending equipment may come pre-programmed with management software, which you can use to streamline operations, record inventory, and track revenue.
But most standard machines require you to manually manage your inventory, which might be doable if you own just a couple of vending machines. Once you have five to 10 separate vending machines, though, it’s probably a good idea to invest in a vending management system to help you stay on top of your inventory remotely. VMS software allows you to remotely manage your vending machines from an internet-enabled device. Most VMS systems provide real-time inventory updates and reporting tools.
Invest in customer service
Even if you only have one or two vending machines, it’s worthwhile to emphasize customer service from the beginning of this (or any) venture. To make sure your vending machine is optimized for your customers, you just need to follow a few best practices.
Like many location-based businesses, vending operators are often dependent on word-of-mouth referrals and in-person connections. Foster relationships with business owners, look up your state’s vending association , or join local networking groups for entrepreneurs.
Most importantly, ensure that your vending machines are stocked and functioning on a weekly or biweekly basis. You can also consider providing an 800-number for service requests and comments, which is a great way to get useful feedback.
Invest your time
Just like any other venture, starting a vending machine business requires more than just capital investment—you’ll have to invest at least some of your time and attention to your vending machine business, too.
A full-size vending machine might require you to collect money weekly, which is important to keep in mind when determining how much time you can realistically spend traveling to locations. In addition to the time it takes to purchase inventory, visit locations, and restock, operating a vending machine business requires you to spend time researching trends in sales, new products or locations, and talking to peers.
The typical service cycle for bulk vending—think non-perishable candy or stickers—is between four to eight weeks. So, if you can’t get away from your full-time commitments often, bulk vending might be a good way for you to break into the vending machine business without sacrificing too much of your time.
Advantages and disadvantages of starting a vending machine business
With just a few thousand dollars to invest, a vehicle, and determination, you’re completely capable of starting a vending machine business and turning a profit. But starting a vending machine business isn’t all fun and games (though you can vend fun and games in your machine). Like any new venture, there are advantages and disadvantages to consider.
Vending machine business advantages
Easy to scale: Scaling your vending machine business is incredibly easy. You can start off with a few vending machines, and as you become more successful, expand locations.
Variety of choices: These days, there are all types of vending machines. Vending machines now serve healthy foods, gourmet options, and sometimes options completely unrelated to food.
Little to no overhead costs: There are little to no overhead costs of running a vending machine business, especially if you're running the business on your own. Since vending machine businesses don't require many employees or office space, you don't have to worry about making payroll, benefits, or spending thousands on rent.
Vending machine business disadvantages
Time commitment: Operating a vending machine business will require you to commit some time and energy into stocking, servicing, and collecting money from your machines on a regular basis.
Theft and vandalism: Vending machines are an easy target when it comes to theft and vandalism. Ensure that your machine locations are located in secure and safe areas to avoid a loss in profits.
Frequently asked questions
1. are vending machines profitable.
Yes, vending machines can be profitable. The average vending machine earns $35 a week, but vending machines that are well-stocked and placed in safe, high-traffic locations can generate over $400 a month.
2. Do vending machine owners pay rent?
Yes, vending machine owners pay rent or commission to the owner of the building. Vending machine owners generally pay between 5% to 20% of their vending machine sales.
3. Are vending machines taxed?
Yes, vending machines are charged sales tax on the revenue they generate. The amount of sales tax varies depending on your state.
4. Where can you place vending machines?
You can place vending machines in most commercial spaces such as offices, retail shops, bowling alleys, and more. But you'll need to sign a contract with the property owner first.
The bottom line
The vending machine business drives billions of dollars globally each year. You may be able to break into this lucrative market with less than $1,000, the right market research, informed decision-making, and entrepreneurial energy.
Invest incrementally as you learn about your vending machine’s demand patterns, and start generating a passive income without taking out a massive loan or going into debt. Depending on whether or not you'll continue to work another job, increasing the scope of your vending machine business gradually will allow you to take on more when you’re ready, or scale back if necessary.
No matter where you are financially, the vending industry offers an opportunity to operate your own business, while only risking as much as you’re comfortable investing.
This article originally appeared on JustBusiness, a subsidiary of NerdWallet.
On a similar note...
How to Start and Finance a Vending Machine Business in 2023
- The vending machine industry is booming and expected to reach over $25 billion value by 2027, according to Allied Market Research.
- Vending machine businesses have low startup costs and can be highly profitable if managed effectively.
- You don’t need to have the funding saved up and may qualify for small business loans or business credit cards for a vending machine business.
- Learn what a vending machine business is, the types you can run, the pros and cons, how to get into the vending machine business, and what funding is best for this type of small business in this article from Nav’s experts.
What Is a Vending Machine Business?
A vending machine company is run by a business owner, often called a vending machine operator. The vending machine operator purchases one or more vending machines, scouts out locations to place them, negotiates with property owners, and maintains the stock inside of the machines themselves. The operator doesn’t always restock the machines themselves; they may hire employees for that, but it depends on the scale of the vending business.
A successful vending machine business depends on your goals. You may not want to go full-time. Owning a vending machine business can also be a lucrative side hustle. Small business loans and credit cards can help with upfront costs, but the initial vending machine costs don’t have to be huge. You can choose refurbished equipment and start with a single machine to keep costs reasonable.
Types of Vending Machine Businesses
You don’t have to sell soda if you don’t want to — you have options. Although drink machine sales still tend to be the most profitable , there are countless kinds of vending machine businesses you can run. Here are the four main categories of vending machine businesses:
- Food and beverage vending
- Franchised vending
It’s important to research the hurdles of each type of business before you decide which route you want to go. Choosing one kind and sticking to it in the beginning can make ramping up your business easier and decrease how much you have to learn as you go. What you choose to sell will impact the type of machine you buy, as some products need refrigeration and electricity while others only need a quarter and a turn.
We go into more detail about each vending machine business type in the next section.
Vending Machine Business Ideas
The type of machine business you choose should be easy for you to manage, sell well in your area, and fit within your budget. Feel free to use your imagination. For example, the company SouveNEAR brings locally made gifts to airports and travel hubs that customers can purchase out of vending machines while they’re on the go. Keep in mind that inventory costs money, so make sure you can afford to restock.
Snacks, food, or beverage vending
Many vending machines sell drinks or food. For beverage vending machines, you can choose to partner with and sell a specific brand, like Coca-Cola. Or you can stock it with what you want to sell. It’s best to choose drinks only or snacks only in the beginning to limit the amount of education you need from the start.
With food or snack vending machines, you also have options on what you can sell. For example, placing a healthy snacks vending machine in a private gym might be a success. As long as you do your market research and place the machine in the right location, it has a good chance of creating income.
Bulk vending is often the most affordable type of vending to get into since you’re selling nonperishable items like small toys, stickers, or gumballs. You don’t need to worry about keeping your stock refrigerated. And many bulk vending machines only need the customer to put in a quarter and turn the knob, so you also may not have to worry about electricity. These machines are typically cheaper to buy and stock than other options, as well.
Specialty vending machines run the gamut. You can sell anything from local gifts to portable electronics to laundry products (placed in laundromats or dorms). Selling coffee and hot chocolate from a hot beverage vending machine is another option. These types of vending products may be more complicated if you’re new at running a vending machine business, but that doesn’t mean it’s impossible.
Get into a franchise
If you’d prefer more support and training than starting your own business, you can look into franchising a vending machine business. You’ll be able to take a business model that works and run with it rather than starting from scratch. However, keep in mind that you’ll have to pay part of your income to the franchiser, which may not make the higher support worth it.
Pros and Cons of Owning a Vending Business
There are positives and negatives to starting any business. Here’s a breakdown of what to think about before starting your own vending machine business.
- Low startup and overhead costs
- Potential for high profit
- Doesn’t need to require a lot of time
- Can be passive income
- Takes quite a few machines to become highly profitable
- Requires you to track stock
- The machines may require maintenance
- Have to consider vandalism and theft
How Profitable Is Owning a Vending Machine?
Your profit margin per vending machine will depend on the type of machine, the cost of your inventory, and the vending machine location. A good location and a desirable product that fits into your budget make it more likely that you’ll be successful.
Your overall profits depend on how many machines you operate. You typically need quite a few machines to be able to take this business full time. Owning a vending machine business is not a get-rich-quick scheme. Each machine brings in between $5 and $100 per week , on average. You might only be making $20 per month on a single vending machine, but remember that it’s passive income. If your business has many vending machines, you’ll have a lot more work on your plate — but also the potential to make up to $400 per month on average on every one.
How Do You Fund a Vending Machine Business?
The method you choose to fund your vending machine business depends on your personal circumstances and the type of machines you want to operate. If you have savings, you might be able to fund a standard machine from your own money. For mechanical machines, you’ll spend an average of $2,000 to $3,000, while an electronic machine will usually cost more than $3,000. You can often find refurbished machines for less than that, too.
If you don’t have savings, however, you can still start a vending machine business. There are business credit cards and small business loans that you may qualify for to fund your vending machine startup or expansion costs.
Are Credit Cards a Viable Option for Financing a Vending Machine Business?
Yes. You can use business credit cards to fund a vending machine business. Because the price of a single vending machine is relatively low, the credit limit on business credit cards can often cover the cost. You may even be able to get a credit card with a limit high enough to cover multiple machines at once.
Your credit limit depends on factors like your personal credit score, however, so make sure to check yours before applying.
Best Business Credit Cards for Vending Machine Owners
Here are some of the best credit card options for your vending machine business. Work with Nav to get personalized card recommendations based on the details you enter securely about your business. The more information you provide, the better your recommendations.
Can You Get a Small Business Loan to Buy a Vending Machine?
Business loans are another option when you’re looking to fund your vending machine business. Typically, business loans are used for larger purchases, but you may be able to qualify for a loan if you want to purchase multiple vending machines at one time.
Here’s a shortlist of items you’ll need before you apply:
- Your business’s details, like your business name, business address, an employer identification number or federal tax ID number, and formation documents
- A business bank account , along with bank statements proving revenue
- A business plan
- Business license
It is usually difficult for a brand-new business to get a traditional bank loan, but there are alternative lenders (see the list below) that require only six months to one year in business.
Some lenders also look at your business credit. Learn how to establish business credit in this guide from Nav.
Can You Get a Loan to Start a Vending Machine Business?
Here are some of the best small business loan options to use to launch or upgrade your vending machine business.
What to Know Before Buying a Vending Machine
Before diving into your own vending machine business, there are a few things you need to understand. You’ll need to research local regulations to see how to remain compliant. You’re technically a vendor, so check with your local Chamber of Commerce to learn how your state regulates vendors. You’ll probably need to obtain a vending machine license — and one for each machine. This shouldn’t be a dealbreaker because they’re inexpensive and relatively easy to get, but it is one more to-do item on your list. You’ll want to make sure you have your machines licensed so you are operating legally. Additionally, your machine must follow ADA standards, so make sure the machines you buy are accessible to all.
Also, you’ll likely pay sales tax on everything you sell. The amount of sales tax you’ll owe will depend on your location, but it can eat into your profits.
Finally, you’ll usually pay part of your commission to the person or company that owns the property or properties you choose for your vending machine location. The property owner wants to get something in return for allowing you to use their property, as well as cover any electricity costs that add up from your machine. Expect to pay 10% to 25% of your profits to the property owner.
Should I Purchase a New or Used Vending Machine for My Small Business?
Buying a vending machine is daunting. Whether or not you might choose a refurbished machine or a new machine depends largely on which stage your business is in. Used vending machines are a good place to start for new businesses. You’ll decrease your investment, and therefore your risk, because refurbished machines cost less. They may or may not require fixes before you use them, so be sure to inspect it carefully and ask for demonstrations from the vendor.
Meanwhile, experienced vending machine business owners might choose a new machine if they have access to the capital. New vending machines are more expensive but will probably require less frequent maintenance.
Questions to Ask Before Buying a Vending Machine
You might be brand new to buying something like a vending machine and aren’t really sure where to start. Here are the questions you’ll likely need to ask when starting a vending machine business:
- What kind of machine do I need? Once you decide what you want to sell, that will help guide you toward the type of machine you need. Beverages need refrigeration, while snacks may not, for example.
- What’s my budget? Consider new vs. used, as well as whether you need a card reader. Think about whether or not you need a card reader (and its associated fees) for customer convenience.
- Where do I buy a vending machine? As always, the internet comes in handy. Search for manufacturers or wholesalers for new machines or for secondary market sellers (or even on Craigslist or eBay) for used machines.
- Do I need to store it? Factor storage costs into your budget if necessary.
- Where will I get my inventory? Make sure you have a plan for where and how you’ll get the products to restock your vending machines.
- Who will stock the machines? Figure out whether you’ll restock your machines yourself or you need to hire someone to take care of that work. Calculate any payroll into your budget.
Scouting Locations for Your Vending Machine
When figuring out potential locations for where to put your vending machine, look at foot traffic. High-traffic areas like airports or train stations are more likely to be successful than locations that don’t get as many people walking by. These locations may be more difficult to get into, but it could be worth trying.
You’ll also want to consider what you’re selling. If you’re selling bulk items like small toys, outside of grocery stores and convenience stores could be a good spot since children often accompany parents to these places. On the other hand, if you’re selling hot coffee, looking into office buildings and motels might be a good idea. Get creative with your location scouting and don’t be afraid to pitch your vending machine to the property owner.
Additionally, consider the safety of your location. Vandalism and theft are issues for vending machines since they are often left out in the open, so try to make sure the spot is well lit and in a populated area. You could even choose to place your machines inside of buildings that are locked at night if vandalism is a big concern.
Stocking and Replenishing Inventory
Keeping up with your inventory is essential for your business’s success, so come up with a plan to track it. Rather than personally driving around to each of your vending machines (which would take a lot of time), you can use inventory management software to stay on top of your restocking needs. Then you’ll know when you need to go back and replenish your inventory — and you’re never losing out on a potential sale. There are also specific vending management systems that are worth looking into since they specialize in vending machines.
You may want to hire employees to do the physical restocking for you, or you may be happy to do the work yourself (at least while it’s manageable).
Tax and Compliance Considerations
There are a few things that are important to plan for before starting your own small business. Keep in mind: Even if you only run one vending machine, you’re legally a small business and must file business taxes if you make over $400 per year .
Business structure and formation
First, you’ll need to think about what business entity you want to run as. If you want to protect yourself from personal liability as a vending machine owner, it’s best to not operate as a sole proprietorship. Becoming a limited liability company (LLC) gives better liability protection and more options for how you’re taxed than a sole proprietorship. You can also consider becoming an S-corp or a C-corp .
Setting up an LLC is much easier when you use a business formation service . These services know the laws based on where you’re located and make sure you’re compliant — without you having to do all the research yourself. Use Nav to find the best business formation service for your business quickly and efficiently.
Tax and accounting software
You’ll probably have to pay sales tax on what you sell out of your vending machines, unless you’re stationed in one of the five states that doesn’t charge sales tax . The percentage of tax you pay depends on the sales tax rate in the state. Turning to a professional to file your business taxes can help you stay compliant with all local, state, and federal laws, as well as get you the highest possible return.
Additionally, having an organized accounting system from when you form your business is ideal (although it’s not too late to organize it if you’re already up and running). Bookkeeping and accounting on a spreadsheet for all of your vending machine sales can quickly get out of hand. Instead, use accounting software to keep everything in one place and to be able to pull financial statements quickly that tell you how your machines are performing.
POS Systems: How to Accept Payments
You have several choices in how you accept payments: coins only, cash and coins, and credit cards. Accepting cash means you’ll have to keep your machine stocked with change.
Allowing credit card payments is a great way to boost your sales since most customers expect to be able to pay for items with a card. Machines with card readers cost more up-front, but it may be worth it to increase sales. You will have to sign a contract with a payment gateway and pay various fees to the payment gateway provider, so do your research before choosing one to make sure you’re paying a fair amount.
How to Optimize Profits
The location of your vending machines and the items you’re selling are the biggest indicators of how well your products will sell. If there is a lot of foot traffic — and it’s the right kind of foot traffic — you’re likely to make money. Think about who the regular clientele is in the area and make sure it matches up to what you’re selling, like to-go snacks in dormitories and coconut water in a gym.
Additionally, make sure you negotiate a fair rate with the property owner so you aren’t giving up too much to place the machine in that location. If the property owner isn’t willing to work with you, it may be worth looking elsewhere. Ensuring you aren’t overpaying for your payment gateway (if you have one) is another way to maximize your take-away income.
Protect Vending Machines With Business Insurance
Owning a business is inherently risky, and a vending machine business is no different. Business insurance can provide you with protection and peace of mind so you can get back to operating your business. Having insurance covers you if one of your vending machines is vandalized or there is a liability claim against your business. Nav partners with Mylo to provide personalized business insurance tailored to your unique business’s needs.
The vending machine industry is great for new or first-time business owners, because the overhead and startup costs are smaller than many other businesses and each machine shouldn’t require daily attention. Opening a vending machine could provide passive income on the side — or become a full-time business. Whether you use business funding or open it with your savings, a vending machine business could be a great path to making more income.
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Is the vending machine business still viable in 2023?
Yes. Vending machines are a profitable business idea that can provide passive income or become a full-time gig. You can have one machine or 100+ machines — how much you scale is completely up to you. A single vending machine alone will not make you a ton of money (the average is between $5 and $100 per week), but if you don’t have much time or you want to add multiple machines, it could be worth it.
How to handle vandalism to a vending machine?
The first consideration for vandalism is to choose the right location. Picking a spot that has a lower crime rate and is in a well-lit or populated area is a good defense against vandalism. However, nothing is foolproof, so your best bet is to get business insurance in case vandalism does happen.
Is a vending machine business considered passive income?
Yes. Operating a vending machine does require work, but it is considered passive income, because you won’t have to work on it full time. How often you have to restock inventory depends on the location and what you’re selling, but you’ll probably have to restock between once a week and once a month.
What credit score do I need to get a business credit card for a vending machine business?
Business credit card providers usually want your personal credit score to be above 600, and sometimes higher. It depends on the credit card, but they are typically looking for a good to excellent credit score. Credit card companies don’t usually look at your business credit score when determining whether you qualify for the card. If you need to build up your personal credit score, you can do so by making on-time payments and lowering your debt. Over time, this can help improve your credit.
This article was originally written on February 7, 2023.
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Tiffany Verbeck is a Digital Marketing Copywriter for Nav. She uses the skills she learned from her master’s degree in writing to provide guidance to small businesses trying to navigate the ins-and-outs of financing. Previously, she ran a writing business for three years, and her work has appeared on sites like Business Insider, VaroWorth, and Mission Lane.
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Vending Machine Business Plan Template
Vending machine business plan.
You’ve come to the right place to create your vending machine business plan.
We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their vending machine companies.
Below is a template to help you create each section of your Vending Machine business plan.
Healthy Snacks Vending is a startup vending machine company based in the city of Buckeye, Arizona, a growing Phoenix suburb. The company is founded by Chris Garcia, a recent University of Arizona graduate with a Bachelor’s degree in Marketing and Sales. Now that Chris has obtained his degree, he is equipped with the skills and know-how to start his new company, Healthy Snacks Vending. Chris is confident that his ability to effectively communicate the value of his company and network with proprietors will ensure his new vending machine business will be a profitable venture.
As its name implies, Healthy Snacks Vending will stock healthy options in its vending machines. Chris will target several proprietors in a new commercial development that has just been built in a growing area of town. New developments include an array of corporate offices, a high school, a hospital, and several retail establishments.
The following are some of the healthy snack products that Healthy Snacks Vending will carry:
- Bottled Water
- Fruit Juice
- Fresh Fruit
- Granola Bars
- Cereal Bars
- Nuts and Seeds
Healthy Snacks Vending will target all proprietors in the new Buckeye commercial development. It will target the owners of the commercial buildings as well as the school and the hospital. Healthy Snacks Vending’s end-users will be people in the area looking for a healthy alternative to traditional vending machine options (e.g., soda, candy, and chips).
Healthy Snacks Vending will be owned and operated by Chris Garcia. Chris is a University of Arizona graduate with a Bachelor’s degree in Marketing and Sales. Chris has most recently been working as a manager in a local convenience store while pursuing his degree. He has over ten years of experience in the retail industry, working his way up from a sales associate to manager in the first two years. Chris is confident that his skills in management, communications, marketing, and sales will help him establish himself as a successful vending machine owner/operator. Chris will handle all marketing and sales for the company as well as manage the relationships and contracts with business proprietors, source and purchase the vending machines, and continually seek out opportunities for new locations to place vending machines.
Chris has recruited fellow University of Arizona graduate, Stephen Smith, to manage the vending machine inventory. Stephen has a Bachelor’s degree in Business Administration and is skilled in purchasing, budgeting, and controlling inventory. Chris relies on Stephen’s ability to source the most cost effective healthy snack products as well as his ability to ensure there is the right amount and mix of products available to ensure profitability.
Healthy Snacks Vending will be able to achieve success by offering the following competitive advantages:
- First-mover advantage in this new Buckeye development. There are currently no other vending machines in or near these recently built establishments.
- Healthy snack options will be offered, giving people a healthier option over typical vending machine snacks.
- Healthy Snacks Vending is investing in new vending machines that will take multiple forms of payment including credit cards, debit cards, and contactless payment options to give people more flexibility in the way they can pay.
Healthy Snacks Vending is seeking $100,000 in debt financing to launch its vending machine business. The funding will be dedicated towards purchasing the initial vending machines and inventory. Funding will also be dedicated towards three months of overhead costs to include payroll, sales, and marketing costs. The breakout of the funding is below:
- Vending machines: $50,000
- Inventory: $10,000
- Three months of overhead expenses (payroll, sales, and marketing): $30,000
- Working capital: $10,000
Who is healthy snacks vending .
Healthy Snacks Vending is a startup vending machine company based in the city of Buckeye, Arizona. The company is founded by Chris Garcia, a recent University of Arizona graduate with a Bachelor’s degree in Marketing and Sales. Chris is confident that his ability to effectively communicate the value of his company and network with proprietors will ensure his new vending machine business will be a profitable venture.
Healthy Snacks Vending will stock healthy options in its vending machines. Chris will target all proprietors in a new commercial development that has just been built in a growing area of town. New establishments include an array of corporate offices, a high school, a hospital, and several retail stores.
Healthy Snacks Vending History
Healthy Snacks Vending is a new vending machines business that will be owned and operated by Chris Garcia. Chris is a University of Arizona graduate with a Bachelor’s degree in Marketing and Sales. Chris has most recently been working as a manager in a local convenience store while pursuing his degree. He has over ten years of experience in the retail industry, working his way up from a sales associate to manager in the first two years. Chris is confident that his skills in management, communications, marketing, and sales will help him establish himself as a successful vending machine owner/operator.
Since incorporation, Healthy Snacks Vending has achieved the following milestones:
- Registered Healthy Snacks Vending, LLC to transact business in the state of Arizona.
- Reached out to multiple proprietors in the area to initiate the process of negotiating contracts to put vending machines in their buildings.
- Has secured contracts with two proprietors.
- Recruited Stephen Smith to be the Inventory Manager and Kim Miller to be the Accountant.
Healthy Snacks Vending Services
The following are some of the healthy snacks that Healthy Snacks Vending will provide:
The U.S. Vending Machine Operators industry is a $8.9B market in 2022 and is expected to increase by 3.5% this year. Rising per capita disposable income and increased consumer spending have helped drive industry growth.
The primary challenge for industry operators is high competition. If there are multiple vending machines in a small area, a company’s ability to differentiate its products, pricing, or payment options will be the key to success.
Changes in consumer behavior have posed a challenge for many industry operators. A growing number of consumers are seeking healthier snack choices. For this reason, vending machines that offer junk food items are seeing less revenue than those offering healthy alternatives. Additionally, less consumers are carrying cash, while a growing number prefer contactless payment options. New vending machines that take card and contactless forms of payment are likely to bring in more revenue for industry operators than cash-based machines.
Demographic profile of target market.
Healthy Snacks Vending will target proprietors in a new commercial development that has just been built in Buckeye, Arizona. Establishments in the area include an array of corporate offices, a high school, a hospital, and several retail stores.
Healthy Snacks Vending’s end-users will be people in the area looking for a healthy alternative to traditional vending machine options (e.g., soda, candy, and chips).
The precise demographics for Buckeye, Arizona are:
Healthy Snacks Vending will primarily target the following customer profiles:
- Proprietors of businesses in the area
- Staff and visitors of corporate offices, the hospital, and retail establishments
- Students, teachers, and administration staff at the school
Direct and indirect competitors.
Healthy Snacks Vending will face competition from other companies with similar business profiles. A description of each competitor company is below.
Snack Food Vending, LLC
Snack Food Vending, LLC is an established vending machine company that operates in Phoenix, Arizona and surrounding areas. Snack Food Vending, LLC provides a wide variety of snack options in vending machines throughout the region. Most of Snack Food Vending, LLC’s vending machines are located in busy retail locations, schools, and hotels. This vending machine company stocks traditional snacks and healthy snacks. Snacks include soda, water, candy, chips, apples, granola bars, gum, tea, fruit cups, and energy drinks. Most of Snack Food Vending, LLC’s machines have been in service for several years and are cash-based machines.
SNACKS! Vending is a Phoenix-based vending machine company that stocks healthy snack food options including applesauce, sandwiches, tea, water, crackers, and fresh fruit. SNACKS! Vending machines are primarily placed in areas around downtown Phoenix including hospitals, office parks, and shopping malls. SNACKS! Vending has established itself as the reliable source for healthy snack options in the city.
Healthy Eating Vending Machine Co.
Healthy Eating Vending Machines Co. offers a wide variety of healthy snacks for patrons on-the-go. Snacks include fresh fruit and vegetables, salads, sandwiches, juice, tea, water, and sunflower seeds. Healthy Eating Vending Machine Co. is a fairly new establishment with just a handful of machines placed in a few commercial locations in Buckeye, Arizona. This vending machine company offers premium healthy snacks at relatively higher prices than competitors.
Healthy Snacks Vending will be able to offer the following advantages over its competition:
- All Healthy Snack Vending machines will be the newest models, with multiple payment options including credit, debit, and contactless payment choices.
- Healthy Snack Vending will offer patrons a wide range of affordable, healthy alternatives to traditional junk food available in most vending machines.
- Healthy Snacks Vending will target all proprietors in the new commercial development in Buckeye, Arizona enabling the company to have the first vending machines placed in these buildings.
Brand & value proposition.
Healthy Snacks Vending will offer the unique value proposition to its customers:
- The only vending machines offering affordable, healthy snacks in the area.
- Multiple forms of payment accepted including credit, debit, and contactless pay for flexibility in payment options.
- Moderate pricing that is on par or slightly less than the competition.
The promotions strategy for Healthy Snacks Vending is as follows:
Word of Mouth/Referrals
Chris Garcia will leverage his effective communication and word of mouth marketing skills to create interest among local proprietors to get his vending machines placed in their buildings. He has already obtained commitments from two such proprietors who will spread the word to others.
Professional Associations and Networking
Healthy Snacks Vending will become a member of the local vending association and participate in industry events to network and build relationships with other industry professionals in the area.
Healthy Snacks Vending will invest in professionally designed print ads to display in local magazines, newspapers, and direct mailers targeting local business owners that could benefit from putting a vending machine with healthy snacks in their establishments.
Website/Social Media Marketing
Healthy Snacks Vending will create and maintain an informative website that will list the products that Healthy Snacks Vending is able to provide and the locations of its vending machines. The website will also list their contact information for proprietors that may be interested in putting a Healthy Snacks Vending machine in their establishment.
In addition to the website, Healthy Snacks Vending will maintain an active social media presence on multiple channels including Facebook, Instagram, Twitter, YouTube, and TikTok to promote its business.
The pricing of Healthy Snacks Vending will be moderate and on par or slightly below that of competitors to ensure Healthy Snacks Vending won’t be overlooked as being too expensive if other vending machine operators place their machines nearby.
The following will be the operations plan for Healthy Snacks Vending.
- Chris Garcia will be the Owner and Marketing Director of the company. He will oversee all marketing and sales efforts as well as manage all contracts and client relations. Chris has spent the past year recruiting the following staff:
- Stephen Smith – Inventory Manager who will source, purchase, and stock all vending machine inventory.
- Kim Miller – Accountant/Bookkeeper who will provide all client accounting, tax payments, and monthly financial reporting for the company.
Healthy Snacks Vending will have the following milestones complete in the next six months.
7/1/2022 – Finalize contracts with two initial proprietors to place vending machines in their establishments.
7/15/2022 – Finalize personnel employment contracts for Stephen and Kim.
8/1/2022 – Purchase initial vending machines for the first two locations.
8/15/2022 – Install vending machines in the first two locations.
8/22/2022 – Source products and stock the vending machines.
Healthy Snacks Vending will be owned and operated by Chris Garcia. Chris is a University of Arizona graduate with a Bachelor’s degree in Marketing and Sales. Chris has most recently been working as a manager in a local convenience store while pursuing his degree. He has over ten years of experience in the retail industry, working his way up from a sales associate to manager in the first two years. Chris is confident that his skills in management, communications, marketing, and sales will help him establish himself as a successful vending machine owner/operator. Chris will handle all marketing and sales for the company as well as manage the relationships and contracts with business proprietors, source and purchase the vending machines, and continually seek out opportunities for new locations for his vending machines.
Chris has recruited fellow University of Arizona graduate, Stephen Smith, to manage the vending machine inventory. Stephen has a Bachelor’s degree in business administration and is skilled in sourcing and budgeting. Chris relies on Stephen’s ability to source the most cost effective healthy snack products and ensure there is the right amount and mix of products available to increase profitability.
Key revenue & costs.
The revenue driver for Healthy Snacks Vending is the payment received for each product purchased from one of its vending machines. Prices will range from $1.00-$5.00 per healthy snack item.
The cost drivers will be the fees paid to proprietors. Each proprietor contract will have its own fee schedule. However, in general, Healthy Snacks Vending will pay between 5%-15% of its revenue per vending machine to the proprietor. The expenses will be the payroll cost, vending machine maintenance cost, and marketing materials.
Funding Requirements and Use of Funds
- Inventory: $10,000
- Three months of overhead expenses (payroll, sales, and marketing): $30,000
- Working capital: $10,000
The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.
- Number of Vending Machines in Operation: 10
- Total Average Revenue from All Machines Per Month: $5,000
- Average Fees Paid to Proprietors Per Year: $6,000
Income statement, balance sheet, cash flow statement, vending machine business plan faqs, what is a vending machine business plan.
A vending machine business plan is a plan to start and/or grow your vending machine business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.
You can easily complete your vending machine business plan using our Vending Machine Business Plan Template here .
What are the Main Types of Vending Machines?
There are a number of different kinds of vending machines, some examples include: Candy Vending Machines, Snack Vending Machines, Ice Cream Vending Machines, Beverage Vending Machines, Coffee Vending Machines, Specialty Vending Machines, Custom Vending Machines, and Bulk Vending Machines.
How Do You Get Funding for Your Vending Machine Business Plan?
Vending Machines are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.
What are the Steps To Start a Vending Machine Business?
Starting a vending machine business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.
1. Develop A Vending Machine Business Plan – The first step in starting a business is to create a detailed vending machine business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.
2. Choose Your Legal Structure – It’s important to select an appropriate legal entity for your vending machine business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your vending machine business is in compliance with local laws.
3. Register Your Vending Machine Business – Once you have chosen a legal structure, the next step is to register your vending machine business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.
4. Identify Financing Options – It’s likely that you’ll need some capital to start your vending machine business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.
5. Choose a Location – Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.
6. Hire Employees – There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.
7. Acquire Necessary Vending Machine Equipment & Supplies – In order to start your vending machine business, you’ll need to purchase all of the necessary equipment and supplies to run a successful operation.
8. Market & Promote Your Business – Once you have all the necessary pieces in place, it’s time to start promoting and marketing your vending machine business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.
Learn more about how to start a successful vending machine business:
- How to Start a Vending Machine Business
Where can I get a Vending Machine Business Plan PDF?
You can download our example vending machine business plan PDF template here . This is a business plan template you can use in PDF format.
Vending Machine Business Plan: The Ultimate Guide
You’ve looked into the steps of starting a vending machine business, but you haven’t developed business plans. We’ll help you create a vending machine business plan.
Adam Hill has owned and operated Hill Vending since 2014, when he bought a $120 vending route. Now he’s making over $600K in annual sales. He’ll share vending machine tips so you know how to estimate vending machine profits and other costs.
We’ll explain everything you need to know to communicate your business plan. These vending machine business links will send you directly to the section of the blog you want to read:
What Is a Vending Machine Business Plan?
Why you need a vending business plan, how to buy vending machines, vending machine business plan template, executive summary, company analysis, vending machine industry analysis, customer analysis, competitive analysis, marketing plan, operations plan, management team, income statement, balance sheets, cash flow statement, how much are vending machines, how to start a vending machine business, how much does a vending machine make, what do i need to start a vending machine business, write your vending machine business plan.
A vending machine business plan provides a snapshot of where your business is, where it’s going, and how you will achieve the business goals over the next three to 10 years.
Vending business plans will include market research on the vending machine industry, local vending machine associations, a marketing plan, an operations plan, and a financial plan to provide a clear path of how you expect your vending machine company to make money and grow.
Your chances of starting a successful vending machine business double by writing and following a vending machine business plan. Plus, companies that follow their business plans grow nearly 30% faster and get more funding than those without a business plan.
Make sure to update your vending machine business plan annually as your company grows and achieves its goals.
The main ways to buy a vending machine business are personal savings, credit cards, private loans from the current business owner, bank loans, and angel investors.
One of the top ways to get into the vending machine industry is to buy an existing vending machine business. Business owners will often agree to owner financing, where you pay 0-20% down and then pay off the remainder over one to five years.
Banks will want to review your vending machine business plan and decide whether they believe you can accomplish the goals you’ve included. More specifically, a loan officer will want to see a professional vending machine business plan to verify that your financial assumptions are reasonable.
Another way to fund a vending machine business is by taking a loan or equity deal from angel investors. An angel investor is just a wealthy individual who helps people start businesses in exchange for a share of the profits.
Learn more about buying a vending machine .
You’ll want a business plan template for your vending machine business. Download our free vending machine business plan template below.
You’ll also get our How to Start a Vending Machine Business PDF.
Check out our other business plan templates for more resources or watch our interview with a business owner who started one of the fastest growing franchises in North America to learn how he writes a business plan.
What Should I Include in a Vending Machine Startup Business Plan?
A business plan for a vending machine company should include:
- Competitor Analysis
- Vending Machine Marketing Plan
- Vending Machine Operations Plan
- Vending Machine Financial Plan
Keep reading to learn what vending machine operators should include in their business plans. We’ll also provide examples of what key parts of a vending machine business plan might look like.
Vending machine operators should start their business plan with an executive summary. All an executive summary does is summarize what the rest of the document is about.
The executive summary should be under a page long and should include a sentence or two about each section so that people can get the main points quickly.
This section of your vending machine business plan should include:
- An introduction to your company
- Your company’s mission and values
- The vending machine services you’ll offer
- Your competitive advantage
In your industry analysis, you need to provide an overview of the vending machine business. Your research will help you understand the market, improve your strategy to utilize market trends, and prove to readers you know what you’re talking about.
Your vending machine business plan should answer the following questions about the vending industry:
- How much do vending machines make a month? (Both as an industry and per machine)
- How much of the industry revenue is in the local market? Use the industry revenue multiplied by your location divided by the U.S. population.
- Is the market growing or shrinking?
- Who are the market leaders in the industry?
- Who are the primary vending machine manufacturers and suppliers of products?
- What vending machine business trends will impact the industry?
- What is the vending industry’s 5-10 year growth forecast?
I suggest using the IBIS World report we linked to earlier because it includes all the information about the U.S. vending machine market. You may need to purchase a local plan as well.
Industry Analysis Example
The vending machine industry makes $10 billion per year across 17,739 vending operators in the U.S. That means they make an average of $563,729 per year.
The average monthly revenue of a vending machine is approximately $2,000, which means a company needs 24 machines to earn the average across the industry.
The Las Vegas vending machine business market is approximately $69,343,972.03, and there are 99 vending machine operators , which means each vending machine operator is making approximately $140K per year more than the national average.
The market is expected to slightly decline in revenue, but companies that capitalize on existing trends like Apple Pay, Google Pay, and specialized vending machines are able to see growth by creating new markets in high-traffic areas.
According to ThomasNet , the major vending machine equipment manufacturers and suppliers are:
Adam suggested two manufacturers of vending machines he prefers to use.
In addition, snack foods and drinks are available from stores like:
- Coke distributors
- Pepsi distributors
- Other distributors
Your vending machine business plan should describe the target market you will be providing vending.
Your target market will impact the pricing and product options you carry. Make sure to understand the demographics of the customers in each type of facility you serve. You won’t want to offer the same vending machine products in a gas station as you would a cardiac wing in a hospital.
Analyze customer demographics. You’ll want to discuss the age, gender, location, and income levels of decision-makers, their customers, and where you want to place your vending machines .
You’ll also want to include psychographic profiles, meaning the details of your customers’ wants and needs. You wouldn’t want to offer all candy and soda in a yoga studio vending machine because the students will probably want water and healthier snack choices.
Your vending machine business plan should include a competitive analysis that shows your understanding of the direct and indirect competitors you will be competing with for your target customers.
Direct competitors are limited to vending machine operators in the local area, while indirect competitors are any type of business where your target customers can get the same products.
A vending machine business will have indirect competitors, including grocery stores, convenience stores, delivery apps, pharmacies, and fast food restaurants.
Not mentioning these vending machine competitors may show lenders that you don’t realize there are other places where someone can buy the same products even when in a rush.
You want to describe in greater detail the other vending machine businesses you’ll compete with. Your direct competitors will be other vending machine locations within a mile of your machine.
Create an analysis of each local vending machine company that answers the following:
- What locations does each business serve?
- What items do they sell in the vending machines?
- How do they price each item?
- What are the machine owners’ competitive advantages?
- What opportunities do they leave open?
After you’ve done this, you should be able to answer questions like:
- How can I provide superior products?
- What products can I offer that competitors do not?
- How can I create an excellent customer service culture?
- Can I beat their pricing?
Finding ways to provide better customer service at a similar or lower cost will provide a competitive advantage. Just make sure the pricing is correct for your vending machine business to be successful.
Have you ever heard of the 4Ps of marketing?
Every vending machine business should include them in its marketing plan.
This section of your vending machine business plan should remind the reader what type of vending machine business you are. Make sure to be specific about the products you’ll be offering in your vending machines. You’ll want to keep the product list consistent across vending machines.
You should have already analyzed how other vending machine businesses sell their products. Now it’s time to create your pricing guide. Adam suggests pricing the products at twice what you pay for them.
If you buy a 12-pack of soda from Sam’s Club for $12.99, then your vending machine company should be selling each can for $2.25 if the market will allow it. At the very least, factor in 50 cents profit per item.
Where will you be placing your vending machines? Document every location, the types of vending machines at the location, and how often you’ll need to check it.
You should also explain why each location is a good spot for a vending machine in your vending machine business plan. Learn more about vending machine placement .
The promotion section of a vending machine marketing plan documents how you will help people find your vending machine company and the locations where you have placed a vending machine.
Some promotional methods you might use for a vending machine company include:
- A vending machine website
- Adding your branding to your vehicle
- Creating brochures for business owners
- Focusing on vending machine experience and user experience (UX)
- Keeping your vending machines clean and branding them to help people recognize your brand
- Placing vending machines in strategic locations
- Providing maps that show where your vending machine business is located
- Sharing cool features of your vending machines on social media
You could also create a course to help other people learn how to start a vending machine business. That’s one of the ways that Adam has built upon his vending machine business. Check out our free vending machine training .
An operations plan is part of your vending machine business plan that explains your daily operations. Your operations plan should include two sections:
- Long-term goals
- Processes for operational excellence
What milestones do you want to achieve in your vending machine company?
Your long-term goals might include the number of machines you want by a certain date, when you want to hire employees, and how much revenue you want within five years.
Make sure to add these details to your vending machine business plan.
Processes for Your Vending Machine Business
Your processes are the steps you will take during the day to keep your vending machine business running smoothly. Your main tasks will include:
- Buy vending machine products
- Store vending machine products
- Deliver machines
- Restock vending machines
- Clean vending machines
- Buy new vending machines
- Secure contracts for vending machine placement
- Buy vending machine routes
- Provide customer service
You should also include your management team and business structure in your vending machine business plan. Planning for a team shows that you have thought through starting a vending machine business and realize that you can’t do everything.
While vending machine businesses are typically able to be run by a single person, that doesn’t mean you won’t need help from other professionals including:
- Vending Machine Repair Person
- Sales and Marketing
Hiring people to manage portions of the company you don’t understand will make starting a vending machine business much easier. Emphasize how your leadership team is going to make you more successful by touting their past experience.
Direct experience in the vending machine business is best, but if your team has experience in other areas that are related, it works well, too. An advisory board familiar with vending machines is also an option.
When you own vending machine business assets, you need a financial plan. Your financial plan should cover one to five years from your vending machine business starting.
Three financial statements should be included with your business plan:
- Income statement
- Balance sheet
- Cash flow statement
A Profit and Loss statement, P&L, or income statement shows your revenues and expenses to show how much money you made or lost.
You’ll have to make some assumptions when you create an income statement. Vending machine owners will need to make and document assumptions that answer the following:
- How many products will you serve?
- What will inflation be?
- How much will revenue grow each year? How?
Example Vending Machines Income Statement
Let’s assume the following:
- We bought 10 vending machines for $20,000 with $0 down and one year to pay $25K.
- Revenue is $2K/month per machine .
- Gross margins are 50% .
- Taxes are 20% .
- Marketing costs $1,000 annually .
Note: EBITDA = Earnings before interest, tax, depreciation, and amortization
Balance sheets are used to compare your assets and liabilities. Your balance sheet will show five sections:
- Current Assets: Cash and items that can be turned into cash within a year, including accounts receivable, inventory, prepaid expenses, and marketable securities.
- Long-Term Assets: Items that cannot be sold fast, like land, patents, brands, trademarks, goodwill, and vending machine equipment.
- Current Liabilities: Any debt due within a year, including accounts payable, debt financing, payroll, rent, utilities, and other accrued expenses.
- Long-Term Liabilities: Any debts that last longer than a year, including bonds payable, deferred taxes, leases, loans, and pensions
- Shareholder Equity: Shares, reserves, and retained earnings are all parts of owners’ equity
Effectively, you are aiming to balance the equation:
Current Assets + Long Term Assets = Current Liabilities + Long-Term Liabilities + Shareholder Equity
Learn more about balance sheets .
Your cash flow statement shows how much money you need in your business bank account to cover startup costs and operating expenses until you are fully self-sustaining.
Your cash flow statement adjusts the net income to add:
- Decreases in accounts payable
- Increases in taxes payable
- Increases in accounts receivable
Then you’ll want to subtract the cost of any inventory to get the cash from operations. You’ll also want line items for any investment or financing you need for the following items:
- Cost of equipment like vending machines, refrigerated delivery trucks, etc.
- Cost of maintaining an adequate amount of inventory
- Payroll or salaries paid to staff
- Business insurance
- Taxes and permits
- Legal expenses
The final part of your vending machine business plan should be an appendix that includes all the supporting documentation for your business plan. You’ll want to include tables, links, and citations so that anyone reviewing your vending machine business plan can verify your facts.
For the sake of brevity, in this Example Appendix, I am only including the formula I used for the Las Vegas Vending Machine Industry calculation.
Example Appendix Calculation Used for Las Vegas Vending Machine Industry $10,000,000,000 X (2,322,985/334,994,511)= 10,000,000,000 x 0.0069343972027052= $69,343,972.03 Revenue Source: https://www.ibisworld.com/united-states/market-research-reports/vending-machine-operators-industry/ Population Source: https://www.census.gov/quickfacts/fact/table/clarkcountynevada/PST045222
Vending machine business faqs.
Buying a vending machine will cost anywhere from $100 for a small candy vending machine to a few thousand dollars for new and used drink or snack machines. The custom vending machine cost can reach $20,000.
Starting a vending machine business requires:
- Establishing if the vending machine business will be profitable
- Creating financial projections
- Writing a vending machine business plan
- Forming your vending machine business
- Buying a vending machine
- Getting products to fill your vending machine
- Finding a location for your vending machine
- Storing vending machine products
- Maintaining vending machines
- Restocking and collecting money from your vending machine investment
According to Adam, most vending machines make around $2,000 per month if they are in good locations.
Market research may show that other vending machines can have even better results, but use $2,000 a month per machine in financial projections for your business plan unless you can document that your machines will have better returns.
Of the $2,000, approximately 30% should be profits or wages.
The vending machine business model normally requires a:
- Vending machine
- Business license and LLC
- Location for the vending machine
- Way to handle refunds
Whether you decide to offer ice cream vending machines, coffee vending machines, or bulk vending machines, a vending machines business plan will help you make the most out of your new venture.
If you haven’t already, don’t forget to download your free business plan.
What will be your vending machines business model?
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Brandon Boushy started his company after years of working in customer service, engineering, and project management. After receiving his MBA, he turned his diverse skills into a business helping other small business owners find resources and strategies that further their business objectives. He focuses on assisting businesses with their marketing, communication, and research needs.
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Vending Machine Business Plan Template
Written by Dave Lavinsky
Over the past 20+ years, we have helped over 3,000 entrepreneurs and business owners create business plans to start and grow their vending machine businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a vending machine business plan template step-by-step so you can create your plan today.
Download our Ultimate Vending Machine Business Plan Template here >
What Is a Business Plan?
A business plan provides a snapshot of your vending machine as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.
Why You Need a Business Plan
Source of Funding for Vending Machines
With regards to funding, the main sources of funding for a vending machine business are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.
The second most common form of funding for a vending machine business is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan. Venture capitalists will not fund a vending machine business.
Your business plan should include 10 sections as follows:
Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.
The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of vending machine business you are operating and the status; for example, are you a startup, do you have a vending machine business that you would like to grow, or are you operating a chain of vending machine businesses.
Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the vending machine industry. Discuss the type of vending machine business you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.
For example, you might operate one of the following types:
- Food and snacks : this type of vending machine business typically offers pre-packaged snacks such as chips, cookies, etc., as well as perishable products such as sandwiches, ice cream, and fruit
- Beverages : this type of vending machine can be for hot drinks (coffee, cocoa), or cold (soft drinks, water)
- Candy : this type of vending machine is stocked exclusively with candy and gum
- Other products : this could be healthy food options (granola, fruit, hummus, etc.), or consumer products such as electronics, movies, condoms, souvenirs, etc.
In addition to explaining the type of vending machine you operate, the Company Analysis section of your business plan needs to provide background on the business.
Include answers to question such as:
- When and why did you start the business?
- What milestones have you achieved to date? Milestones could include sales goals you’ve reached, new machine locations, etc.
- Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.
In your industry analysis, you need to provide an overview of the vending machine business.
While this may seem unnecessary, it serves multiple purposes.
First, researching the vending machine industry educates you. It helps you understand the market in which you are operating.
Secondly, market research can improve your strategy particularly if your research identifies market trends. For example, if there was a trend towards selling advertising on vending machines, it would be helpful to ensure your plan calls for varying ad types and sizes.
The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.
The following questions should be answered in the industry analysis section of your vending machine business plan:
- How big is the vending machine business (in dollars)?
- Is the market declining or increasing?
- Who are the key competitors in the market?
- Who are the key suppliers in the market?
- What trends are affecting the industry?
- What is the industry’s growth forecast over the next 5 – 10 years?
- What is the relevant market size? That is, how big is the potential market for your vending machine. You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.
The following are examples of customer segments: hotels, office buildings, correctional facilities, etc.
As you can imagine, the customer segment(s) you choose will have a great impact on the type of vending machine you operate. Clearly correctional facilities would want different pricing and product options, and would respond to different marketing promotions than office buildings.
Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve (both the end customers (who purchase items in your vending machines) and the decision-makers (who approve your desire to place a vending machine in their facility).
Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.
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Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.
Direct competitors are other vending machines.
Indirect competitors are other options that customers have to purchase from you that aren’t direct competitors. This includes convenience stores, grocery stores, pharmacies and restaurants that offer quick food. You need to mention such competition to show you understand that not everyone who purchases convenience items uses a vending machine every day.
With regards to direct competition, you want to detail the other vending machine businesses with which you compete. Most likely, your direct competitors will be vending machines located very close to your location.
For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:
- What types of customers do they serve?
- What products do they offer?
- What is their pricing (premium, low, etc.)?
- What are they good at?
- What are their weaknesses?
With regards to the last two questions, think about your answers from the customers’ perspective.
The final part of your competitive analysis section is to document your areas of competitive advantage. For example:
- Will you provide superior products?
- Will you provide products that your competitors don’t offer?
- Will you make it easier or faster for customers to purchase your products?
- Will you provide better customer service?
- Will you offer better pricing?
Think about ways you will outperform your competition and document them in this section of your plan.
Product : in the product section you should reiterate the type of vending machine business that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to snack machines, will you offer machines that sell items such as coffee or other consumer products?
Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the items you offer and their prices.
Place : Place refers to the location of your vending machine. Document your location and mention how the location will impact your success. For example, is your vending machine located inside a heavily trafficked office building, or gym, etc. Discuss how your location might provide a steady stream of customers.
Promotions : the final part of your vending machine marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:
- Making your vending machine clean and visually appealing to attract passing customers
- Focusing on machine design and technology for a better user experience
- Placing vending machines in strategic locations
While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.
Everyday short-term processes include all of the tasks involved in running your vending machine such as procuring products, delivering and restocking, keeping the machines clean, etc.
Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to place your 10th machine, or when you hope to reach $X in sales. It could also be when you expect to hire your Xth employee or launch a new location.
Ideally you and/or your team members have direct experience in the vending machine business. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.
If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in vending machines and/or successfully running retail and small businesses.
Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.
Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.
In developing your income statement, you need to devise assumptions. For example, will you serve 50 customers per day or 100? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.
Balance Sheets : While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities. For instance, if you spend $100,000 on building out your vending machine business, that will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100.000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.
Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.
In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a vending machine:
- Cost of equipment like vending machines, refrigerated delivery trucks, etc.
- Cost of maintaining an adequate amount of inventory
- Payroll or salaries paid to staff
- Business insurance
- Taxes and permits
- Legal expenses
Vending Machine Business Plan Summary
Putting together a business plan for your vending machine business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the vending machine business, your competition and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful vending machine business.
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You can download our vending machine business plan PDF here . This is a business plan template you can use in PDF format.
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Vending Machine Business Plan FAQs
What is the easiest way to complete my vending machine business plan.
Growthink's Ultimate Vending Machine Business Plan Template allows you to quickly and easily complete your Vending Machine Business Plan.
Where Can I Download a Vending Machine Business Plan PDF?
You can download our vending machine business plan PDF template here . This is a business plan template you can use in PDF format.
Other Helpful Business Plan Articles & Templates
How to write the business plan for a vending machine company
Are you looking to start a vending machine business or grow an existing one? Writing a business plan is essential for success in this competitive industry.
A well-crafted business plan can help you identify potential opportunities and challenges, establish realistic goals and objectives, and secure financing from investors or lenders.
This guide provides an in-depth look at how to write a comprehensive business plan for your vending machine company.
We cover why it's important to have one, what information you need to include, the components of the plan itself, as well as some useful tools that will make writing your business plan easier.
So, let's get started!
In this guide:
Why write a business plan for a vending machine company?
Information needed to create a business plan for a vending machine company, how do i build a financial forecast for a vending machine company, the written part of a vending machine business plan, what tool should i use to write my vending machine business plan.
There are several reasons to write a vending machine business plan. Below, we cover some of the most important ones!
To draw up a roadmap
Writing a business plan for a vending machine company is an important step for entrepreneurs looking to start or grow their businesses.
A well-crafted business plan will help you identify and set objectives that are achievable over the next 3 to 5 years.
For existing businesses, writing a comprehensive business plan can be beneficial in evaluating current operations and planning to ensure continued success.
Not only does it provide direction and help focus on short-term goals, but it also helps you anticipate future challenges and opportunities so you can adjust accordingly.
To compare financial performance
It also enables you to regularly compare your financial performance against what was initially planned and adjust future financial forecasts accordingly.
This way, you can continually assess whether business finances are headed in the right direction and make adjustments as needed to stay on track with achieving long-term goals.
To raise financing from investors or banks
When looking for financing from an equity investor or a bank to start or grow a vending machine company, it is essential to have a comprehensive business plan.
This document will provide lenders with key information about your company and its prospects for growth and profitability.
The plan should demonstrate that investing in your vending machine business is likely to generate a good return on investment. Lenders will use your financial forecast to calculate metrics and ratios.
It should include details of how you intend to drive sales, manage expenses, manage cash flow and build value over time.
An effective business plan can be the difference between success and failure when seeking funds from investors.
Now that we understand why it is important to write a business plan for a vending machine company, let's look at the information needed to create such a plan.
Create your vending machine business plan online!
Think your vending machine business could be profitable? Find out how with a business plan!
Writing a vending machine business plan requires research so that you can project sales, investments and cost accurately in your financial forecast.
In this section, we cover three key pieces of information you should gather before drafting your plan!
Carrying out market research for a vending machine company
Carrying out market research is an important step before writing a business plan for a vending machine company.
Market research helps identify potential customers, understand their needs and preferences, and accurately forecast revenues.
It can also provide valuable insights into the competitive landscape that will enable you to develop strategies for success.
By carrying out market research, you'll be able to create a realistic financial forecast which is essential when trying to raise financing from investors or banks.
Developing the marketing plan for a vending machine company
Developing an appropriate sales & marketing plan, and budget, for your vending machine company is crucial before writing a business plan.
This will ensure that you have a clear go to market strategy in place, and that you allocate sufficient resources to hit your sales target when you incorporate these numbers in your financial forecast.
The staffing and equipment needs of a vending machine company
When writing a business plan for a vending machine company, it is important to include a thorough recruitment plan and investment strategy.
To do this effectively, you will need to think how the business will operate from a practical point of view. Where will you buy or manufacture the vending machines? How will they be delivered to customers? Who will service them? Etc.
This helps to ensure that you can realistically plan for the cash outflows required to hire personnel and purchase necessary equipment.
After gathering the necessary information to create a business plan for a vending machine company, the next step is to create your financial forecast.
A vending machine financial forecast has three key statements to it: the profit and loss, balance sheet and cash flow forecast. It also has a source and uses a table that details startup costs and expenses.
In the following sections, we explain each one in more detail.
The projected P&L statement
The projected P&L statement of a vending machine business shows how much income it will generate and how profitable it will be in the future.
The projected balance sheet of your vending machine company
A vending machine balance sheet is one of the most important financial documents because it reveals the current financial position of a business.
It is a statement that shows the assets, liabilities, and equity of the company at a specific point in time.
- Assets, such as cash are owned by the vending machine company and can provide future economic benefits.
- On the other hand, liabilities represent debts and other obligations the company has to pay in the future.
- Equity includes capital contributions from owners and retained earnings, which is the profit the company has accumulated since its inception.
The balance sheet is used to assess the financial position of your vending machine company.
It helps to gauge the company’s ability to pay its current liabilities, such as accounts payable and other short-term debts by calculating key metrics such as the current ratio or quick ratio. And to assess its borrowing capacity.
The projected cash flow statement
A projected cash flow statement is a helpful tool for a vending machine company. It shows how much cash the company expects to generate or consume each month, as well as how much cash it will have left in the bank at any given time.
This helps the company plan ahead and budget its outflows so that it can make sure it has enough cash.
Knowing this information helps you decide when to invest and purchase more vending machines, or when to seek financing to avoid cash shortfalls.
The initial financing plan
An initial financing plan, also known as a sources and uses table, is a helpful tool which shows how you will finance the creation (or expansion) of your vending machine business.
Now that we have discussed the financial forecast of our vending machine company business plan, let's look at the content of the written part of the plan, which provides the context needed to interpret the figures of your forecast.
The written part of a vending machine business plan has seven key sections.
From drafting an executive summary to presenting your financials, let's have a look at each of them!
1. The executive summary
The executive summary of a vending machine company business plan should provide a comprehensive overview of the company's operations, objectives, and strategies.
It should start with a concise description of the business, including its history, growth prospects and competitive advantages.
The market overview should then outline the size, scope and outlook of the vending machine industry, plus any key trends that could affect the business.
Following this, the summary should include a brief overview of key financial information, such as projected revenue and profits, capital requirements, and sources of funding.
2. The presentation of the company
The presentation of a vending machine company's business plan should focus on the structure and ownership, location, and management team of the company.
The structure and ownership part provides an overview of the legal structure, key stakeholders, and any partners or investors. It is important to clearly define each partner's stake in the business.
The location part should give an overview of where the company is implanted and what serviceable area it targets.
The management team should be given special attention in a vending machine business plan. This section should provide an overview of each member of the management team, including their background and experience.
It is also important to emphasize any past successes that the members of the management team have achieved, as this will help potential investors understand why they should trust in their leadership.
3. The products and services section
When writing the products and services section of your vending machine business plan, you should list all of the items that you will offer to customers.
This will depend of whether you are a manufacturer of vending machines or an operator.
If you are an operator, this will includes both food and beverage options as well as any other services or features that may be available to vending machine customers.
Most vending machines store soft drinks, crisps, chocolate and confectionery but yours doesn't have to!
You need to explain how your product offerings differ from those already in the market, so investors can understand why it is worth investing in your business.
If you are a manufacturer you will need to detail the key features of your machines.
4. The market analysis
When presenting the conclusion of your market analysis in a business plan, you need to include key aspects such as demographics and segmentation, target market, competition, barriers to entry, and regulation.
Demographics and segmentation are essential factors to consider when analyzing the potential success of a vending machine company. Knowing who your target customers are, how much they can afford to pay and their product preferences can help inform decisions about where to place machines or what type of products should be sold inside them.
Additionally, understanding which segments make up the overall customer base can also be beneficial when crafting marketing campaigns that reach those specific groups.
Knowing who the competition is will also help you shape your strategy for gaining market share. Additionally, researching any existing barriers to entry in the vending machine industry can provide invaluable information on the competitive landscape.
Be sure to also detail any applicable regulations or laws related to the vending machine industry because financier will want to check that your business is compliant with them.
By including these key aspects of your market analysis in your business plan, you can provide readers with a comprehensive understanding of the market conditions in which you operate.
5. The strategy section
A vending machine company should include an effective strategy section in their business plan that outlines pricing, sales & marketing approaches, milestones, risks and mitigants.
When creating a pricing strategy for your vending machines, you should consider the cost of producing machines and the cost of contents inside to help establish competitive prices.
When developing a marketing plan, you should consider where and how to advertise your product to reach the target customers.
The strategy section should also include milestones that can be used as markers of success along the way. Your aim might be to reach your break-even level of output within 6 months of launching the business or entering a new market, for example.
Finally, any potential risks associated with starting the business should be addressed along with specific mitigants for each risk identified.
6. The operations section
The operations section of a vending machine company business plan should detail the staffing team, roles of staff members, and recruitment plan.
The recruitment plan should include information such as the method of advertisement, the expected response rate, and the selection standards that prospective candidates need to meet.
It is also important to specify how many people are needed in each role and the qualifications they need to have.
In addition, the operations section of a vending machine company business plan should include details about the key assets and intellectual property that the business needs to operate.
This could include items such as software, hardware, or even trademarks and patents.
It is important to make sure that these assets are fully protected and that any legal documents are in place before the business starts operating.
Also, list the suppliers that you plan to work with to fill the contents of the vending machine and purchase or manufacture the machine itself. Mention why you chose to work with those suppliers (past relationships with them for example).
7. The presentation of the financial plan
This is where you will present the financial forecast that we talked about earlier in this guide.
Now that you have a better understanding of what should be included in your vending machine business plan, it’s time to look at the solutions that can help you create one.
In this section, we will be reviewing several solutions for creating a business plan for a vending machine company, including using Word and Excel, hiring a consultant to write the plan, and utilizing online business planning software.
Create your vending machine company's business plan using Word or Excel
Using Microsoft Word or Excel to create a business plan for a vending machine company has its pros and cons.
On the one hand, using Word and Excel are cost-effective options as they are widely available and familiar to many business owners.
However, it can take a significant time to create a financial forecast accurately, making it a tedious process. This is because modelling will be spread across hundreds of rows and multiple tabs.
And it is hard not to make mistakes unless you have significant experience in financial modelling.
You'll also need to format the document (on Word) once you are done.
Hire a consultant to write your vending machine company's business plan
Outsourcing the vending machine company business plan to a consultant or accountant can be advantageous and disadvantageous in equal measure.
On the plus side, consultants are used to writing business plans, while accountants have the financial acumen to create accurate financial forecasts without errors.
This can be invaluable in ensuring that investors and banks are presented with a comprehensive and accurate business plan.
However, outsourcing a vending machine company's business plan comes with its own set of drawbacks.
Accountants lack industry expertise to accurately forecast sales figures. Additionally, hiring consultants or accountants will be expensive, and there may be extra costs associated with any updates or modifications that need to be made.
Use an online business plan software for your vending machine company's business plan
Another alternative is to use online business plan software. There are several advantages in doing so.
- You are guided through the writing process by detailed instructions and examples for each part of the plan
- You can be inspired by already-written business plan templates and examples
- You can easily make your financial forecast by letting the software take care of the financial calculations for you
- You get a professional document, formatted and ready to be sent to your bank or investors
- You can easily compare your forecast against your accounting data to make sure you are on track to deliver your plan, or make adjustments if needed
If you're interested in using this type of solution, you can try our software for free by signing up here .
We hope that this article has helped you to better understand how to write the business plan for your vending machine company. Do not hesitate to contact us if you still have questions!
Also on The Business Plan Shop
- Practical example of a business plan outline
- How investors analyse business plans
- How to do a market analysis for a business plan
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How to Write a Winning Vending Machine Business Plan + Template
Creating a business plan is essential for any business, but it can be especially helpful for vending machine businesses that want to improve their strategy and/or raise funding.
A well-crafted business plan not only outlines the vision for your vending machine company but also documents a step-by-step roadmap of how you are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.
This article provides an overview of the key elements that every vending machine business owner should include in their own vending machine business plan.
Download the Ultimate Vending Machine Business Plan Template
What is a vending machine business plan.
A vending machine business plan is a formal written document that describes your company’s strategy and feasibility. It documents the reasons you will be successful and your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.
Why Write a Vending Machine Business Plan?
A vending machine business plan is required for banks and investors. The document is a clear and concise guide to your business idea and the steps you will take to make it profitable.
Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.
Writing an Effective Vending Machine Business Plan
The following are the key components of a successful vending machine business plan:
The executive summary of a vending machine business plan is a one-to-two-page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.
- Start with a one-line description of your vending machine business
- Provide a short summary of the key points in each section of your vending machine business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast among others.
This section should include a brief history of your vending machine business. Include a short description of how your company started, the legal structure , and provide a timeline of milestones your company has achieved.
If you are just starting your vending machine business, you may not have a long company history. Instead, you can include information about your professional experience in the vending industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your vending machines business, mention this.
You will also include information about your chosen business model and how, if applicable, it is different from other vending machine businesses in your industry. For example, you will mention the types of vending machines you operate (e.g., snack machines, drink machines) and what type of accounts you serve (e.g., colleges, nursing homes, manufacturing plants, all of the above, etc.).
The industry or market analysis is an important component of your vending machine business plan. Conduct thorough market research to determine industry trends and document the size of your market.
Questions to answer include:
- What part of the vending machine operators industry are you targeting?
- How big is the market?
- What trends are happening in the industry right now (and if applicable, how do these trends support the success of your vending machine business)?
You should also include sources for the information you provide, such as published research reports and expert opinions.
The customer analysis section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, and interests). You will need to provide a profile of each customer segment separately, including their needs and wants.
For example, a vending machine business’ customers may include:
- Office workers who need a quick snack or drink during their break
- Students who want a convenient place to buy snacks and drinks in or near their school
- People who are looking for a healthier alternative to fast-food restaurants
You can include information about how your customers make the decision to buy from you, as well as what keeps them buying from you.
Develop a strategy for targeting those potential customers who are most likely to buy from you, as well as those that might be influenced to buy your products or vending machine services with the right marketing.
The competitive analysis helps you determine how your product or service will be different from direct competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.
For each of your direct and indirect competitors, list their strengths and weaknesses. Next, determine your areas of competitive differentiation and/or competitive advantages; that is, in what ways are you different from and ideally better than your competitors?
This part of the business plan is where you determine and document your vending machine marketing plan . Your plan should be clearly laid out, including the following 4 P’s.
- Product/Service : Detail your product/service offerings here. Document their features and benefits.
- Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your direct competition.
- Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
- Promotion : How will you reach your target customers? For example, you may develop marketing materials such as flyers and business cards to hand out in person or launch a direct mail campaign. You could also use digital marketing methods including social media, write blog posts, create an email marketing campaign, or use pay-per-click advertising. Or you may promote your vending machine business via word of mouth, or via PR.
This part of your vending machine business plan should include the following information:
- How will you conduct business to develop and secure new accounts? For example, will you do it in person or only over the phone?
- How will you install vending machines in the new locations?
- What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?
The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.
Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for a vending machine business include reaching $X in sales. Other examples include installing X number of vending machines or gaining a certain percentage of market share.
List your team members here including their names and titles, as well as their expertise and experience relevant to your specific vending machine industry. Include brief biography sketches for each team member.
If you are seeking funding in particular, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute your plan. If you are missing key team members, document the roles and responsibilities you plan to hire in the future.
Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix).
This includes the following three financial statements:
Your income statement, also called a profit and loss statement, should include:
- Revenue : how much revenue you generate.
- Costs : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
- Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss
Sample Income Statement for a Startup Vending Machine Business
Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:
- Assets: All of the things you own (including cash).
- Liabilities: This is what you owe against your company’s assets, such as accounts payable or loans.
- Equity: The worth of your business after all liabilities and assets are totaled and deducted from each other.
Sample Balance Sheet for a Startup Vending Machine Business
Cash flow statement.
Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:
- Cash Flow From Operations
- Cash Flow From Investments
- Cash Flow From Financing
Below is a sample of a projected cash flow statement for a startup vending machine business.
Sample Cash Flow Statement for a Startup Vending Machine Business
You will also want to include an appendix section which will include:
- Your complete financial projections
- A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
- Any other documentation which supports what you included in the body of your business plan.
Vending Machine Business Plan Summary
Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your vending machine business. It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it.
Be sure to include all the key components discussed in this article and tailor it specifically to your business. And, most importantly, remember that your business plan is a living document; meaning it should be updated regularly as your business grows and changes.
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FINANCE YOUR VENDING MACHINE PURCHASE!
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Soda and snack vending machines are all about convenience, and so is our process for buying a new machine. There is the simple Buy it Now option that works like any online store, if you are willing to purchase a new or used vending machine for sale up front. If you are looking to submit a credit application, there are two choices. You can download and print a traditional application, which can then be filled out by hand and faxed directly to us. If you prefer to keep things digital, we have a simple online application that can be completed in a few minutes. Once an application is received, it will be processed by our vending machine financing department and you will be contacted promptly about buying your combo drink and snack vending machine.
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Vending Machine Business Plan Template & Guidebook
Opening a vending machine business can be a great way to turn your entrepreneurial dreams into reality. To make sure you get off to the best start with the venture, having a comprehensive business plan is critical. Consider using the The #1 Vending Machine Business Plan Template & Guidebook to streamline the process of creating your plan and ensure you have all the important elements included. With this template and guidebook, you'll have all the tools and resources you need at your fingertips to get your business off the ground.
Get worry-free services and support to launch your business starting at $0 plus state fees.
- How to Start a Vending Machine Business [11+ Steps]
- 10+ Best & Profitable Vending Machine Business Ideas 
- 25 Catchy Vending Machine Business Names Business Names:
How to Write a Vending Machine Business Plan in 7 Steps:
1. describe the purpose of your vending machine business..
The first step to writing your business plan is to describe the purpose of your vending machine business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.
It also helps to include a vision statement so that readers can understand what type of company you want to build.
Here is an example of a purpose mission statement for a vending machine business:
Our mission is to be the leading provider of convenient and reliable vending machines, bringing quality snack and beverage products to our customers in an efficient and cost-effective manner. We strive to provide exceptional customer service and a positive user experience with our machines, while also setting a standard of excellence in the industry.
2. Products & Services Offered by Your Vending Machine Business.
The next step is to outline your products and services for your vending machine business.
When you think about the products and services that you offer, it's helpful to ask yourself the following questions:
- What is my business?
- What are the products and/or services that I offer?
- Why am I offering these particular products and/or services?
- How do I differentiate myself from competitors with similar offerings?
- How will I market my products and services?
You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.
3. Build a Creative Marketing Stratgey.
If you don't have a marketing plan for your vending machine business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals.
A good marketing plan for your vending machine business includes the following elements:
- Who is your target market?
- What do these customers have in common?
- How many of them are there?
- How can you best reach them with your message or product?
- Who are your current customers?
- Where did they come from (i.e., referrals)?
- How can their experience with your vending machine business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?
Product or service description
- How does it work, what features does it have, and what are its benefits?
- Can anyone use this product or service regardless of age or gender?
- Can anyone visually see themselves using this product or service?
- How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?
- Which companies are competing with yours today (and why)?
- Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
- What specific advantages does each competitor offer over yours currently?
- Which marketing channel do you intend to leverage to attract new customers?
- What is your estimated marketing budget needed?
- What is the projected cost to acquire a new customer?
- How many of your customers do you instead will return?
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4. Write Your Operational Plan.
Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations.
In it, you should list:
- The equipment and facilities needed
- Who will be involved in the business (employees, contractors)
- Financial requirements for each step
- Milestones & KPIs
- Location of your business
- Zoning & permits required for the business
What equipment, supplies, or permits are needed to run a vending machine business?
To run a Vending Machine business, the following equipment, supplies, and permits may be needed:
- Vending Machine(s)
- Small business license
- Permit to operate the vending machine (may vary depending on location)
- Products/Inventory to stock the vending machine
- Money drawer/Cashbox
- Change-making machine
- Card reader (if applicable)
5. Management & Organization of Your Vending Machine Business.
The second part of your vending machine business plan is to develop a management and organization section.
This section will cover all of the following:
- How many employees you need in order to run your vending machine business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
- The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
- How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!
6. Vending Machine Business Startup Expenses & Captial Needed.
This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.
Typically, expenses for your business can be broken into a few basic categories:
Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a vending machine business varies based on many different variables, but below are a few different types of startup costs for a vending machine business.
Running & Operating Costs
Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.
Marketing & Sales Expenses
You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your vending machine business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.
7. Financial Plan & Projections
A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your vending machine business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses.
Here are some steps you can follow to devise a financial plan for your vending machine business plan:
- Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
- Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
- Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
- Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
- Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
- Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.
Frequently Asked Questions About Vending Machine Business Plans:
Why do you need a business plan for a vending machine business.
A business plan for a vending machine business is important because it provides an outline of the goals and objectives of the business, as well as a detailed plan to reach those goals. It also helps determine a budget, identify potential areas of risk, and provide a timeline for launching and expanding the business. Additionally, having a business plan can help secure financing from investors or lenders.
Who should you ask for help with your vending machine business plan?
When creating a business plan for a vending machine business, it is best to seek the help of an experienced professional, such as an accountant or business consultant. Additionally, seeking out help from friends and family who have experience in the industry may be beneficial as well. Additionally, there are many reputable online resources and websites offering resources and advice for creating business plans.
Can you write a vending machine business plan yourself?
Writing a vending machine business plan is a complex process that requires research, analysis, and careful planning. Writing your own plan requires an in-depth understanding of the vending industry, a detailed knowledge of business fundamentals such as accounting, marketing strategies and start-up costs. It is also important to consider the location and type of vending machines that you are going to use when developing your plan. If you don't feel confident enough to write a business plan on your own, then it is recommended that you seek professional help from someone who has expertise in this field.
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I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.
Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.
From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.
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Vending Machine Business Plan Sample
Vending machine business plan for starting your own company
Starting a vending machine business is very easy and extremely profitable as well. If you don’t know how to start a vending business , just go through this vending machines business plan . It will guide you through everything which you need to know for starting this venture.
The first thing you should do is to develop a comprehensive plan for your business. The vending machines business plan will not only help you in startup but it will also help you in taking important decisions for your company over the next years. In case you don’t know how to write a good vending machine business plan , we are providing a detailed business plan of a vending machine business startup ‘Crunch & Cool’ to help you avoid the trouble of making a plan yourself.
2.1 the business.
Crunch & Cool will be a licensed and insured vending machine business whose main office will be located in Downtown Manhattan. The company’s warehouse for storing the products will be at a 10 minutes’ drive from the main office.
The business will be solely owned and operated by Jack Kith. Jack will hire a small team comprising of sales executives, drivers, technicians and assistants for helping him in his venture.
Our customers will primarily be the residential and working-class community living in Manhattan but with time, we also plan to increase our business in other cities as well.
2.4 Target of the Company
Our primary target is to become the best vending machine business in Manhattan within next 3 years of our launch. As per our vending machine business plan example , our secondary target is to achieve the net profit margin of $10k/month by the end of the first year, $15k/month by the second year, and $25k/month by the third year.
3.1 company owner.
Jack is a business graduate of Harvard University. After completing his Bachelor’s, he worked with a couple of fast-food restaurants business plan at executive positions. He is known for his sharp business acumen and exceptional management skills.
3.2 Why the vending machine business is being started
The main motive behind Jack opening a vending machine business plan is his intense passion for business. Jack has exceptional business skills and this venture is just his first step into the business world.
3.3 How the vending machine business will be started
The company will buy used vending machines for startup which will then be installed in several regions in Manhattan. Nearly 35% of machines will be located in the residential zone while the remaining will be distributed in the commercial zone as well as near schools, offices, and other institutions. The company’s financial experts have forecasted following costs for the start-up:
The detailed start-up information is as follows:
Services for customers
Before you move to starting a vending machines business plan , you must plan what type of vending machines will you install and what products will they provide to your customers because you can only plan the subsequent things after this stage. Our vending machines will offer following products:
- Snacks such as chips, cookies, cakes etc.
- Drinks and beverages including milk
- Hot served drinks including tea and coffee
- Frozen foods, chilled drinks and ice creams
- Cigarettes and lottery tickets
Marketing Analysis of vending machine business
The most important component of effective vending machine business plans is their marketing analysis that’s why Jack acquired the services of marketing experts to help him through this phase. It is only after this stage that a good vending machine marketing strategy for business could have been developed.
After identifying the local market trends in Manhattan, the marketing experts and analysts helped him in developing a brilliant vending machine business model. If you are starting on a small scale then you can carry out a marketing analysis yourself by taking help from this vending machines business plan template.
5.1 Market Trends
The vending industry annually contributes about $30 billion in revenue to the United States. There are more than 7 million vending machines in the United States and nearly 100 million Americans use one of the installed vending machines each day. Considering the convenience they provide to the users, the number of installed vending machines have been increasing during the last few years. In short, this industry has a lot of potential and a business in this industry can yield immense profit provided that you plan it successfully.
5.2 Marketing Segmentation
Our marketing experts have identified following type of target audience which can become our potential customers.
The detailed marketing segmentation comprising of the company’s target audience is as follows:
5.2.1 Working Community:
The first category includes the workers and employees who work in the businesses or offices in Manhattan. This group leads a strenuous life, burdened with plenty of work and thousands of matters to think upon. Due to their busy routine, most of the time they can’t go to restaurants and hence use vending machines for grabbing a bite.
5.2.2 Residential Community:
The second group of our target customers will be the residential community. This group comprises of children, teens, adults and senior citizens. They also use vending machines to conveniently get their required products as compared to visiting the stores.
The third category includes those people who do not work or reside in our target areas but have come to for any business purpose or commercial activity. This group also often tends to stop by vending machines for having a quick snack, beverages or cigarettes. The detailed market analysis of our potential customers is given in the following table:
5.3 Business Target
Our business targets are as follows:
- To become the best vending machine business in Manhattan within next 3 years of our launch
- To recover the initial investment within next 1 year of launch
- To expand the business and install vending machines in 3 other cities within 5 years
5.4 Product Pricing
After considering the market demands, we have priced all our products in the similar ranges as of our competitors.
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Sales strategy is an important component of any startup plan hence it must be given proper attention before you think about how to start a vending machine business .
6.1 Competitive Analysis
Vending machine industry is one of the most competitive industries since there are more than 7 million vending machines in the United States so any startup in this industry has a really tough competition. To survive in such competitive environment, you must come up with some competitive advantage before thinking about how to open a vending machine business . Our competitive advantage is that our vending machines will be always full of fresh products and stock. We will make sure our every customer gets everything from our vending machines so that they don’t need to visit stores or other places.
6.2 Sales Strategy
We will install our machines at all those places where there are no prior vending machines installed. We will offer a 10% discount on all products for the first three months of our launch. We will also paint vending machines in various eye-catching themes for the purpose of attracting customers.
6.3 Sales Monthly
6.4 Sales Yearly
6.5 Sales Forecast
Our forecasted sales pattern is given in the following column chart:
The detailed sales forecast is given in the following table:
After deciding the strategy, you must prepare a personnel plan before you start your own vending machine business . The personnel plan of Crunch & Cool is as follows:
7.1 Company Staff
Jack will act as the CEO of the company and will initially hire following people:
- 1 Warehouse Manager for managing the operations at company’s warehouse
- 2 Sales Executives responsible for marketing initiatives
- 15 Assistants for filling vending machines with stock
- 4 Drivers for transporting products
- 2 Technicians for ensuring the vending machines keep working perfectly
7.2 Average Salary of Employees
The final thing to do before you think about how to open a vending machine business plan is to develop a comprehensive financial plan which will cover the detailed costs of startup.
8.1 Important Assumptions
8.2 brake-even analysis.
8.3 Projected Profit and Loss
8.3.1 profit monthly.
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
8.4 Projected Cash Flow
The following column diagram shows the projected cash flow.
The following table shows the projected cash flow:
8.5 Projected Balance Sheet
The following table shows projected balance sheet:
8.6 Business Ratios
The following table shows data about business ratios:
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Sample Vending Machine Marketing Plan Template
Here is how to write a vending marketing plan.
Are you looking to start a vending machine business ? Are you all fired up but having difficulties developing a great marketing plan? Then this vending machine marketing plan sample could be what you need.
We’ve simplified the process and provided you with a template to pattern your plan.
Vending Machine Marketing Plan
Writing an excellent vending machine marketing plan isn’t challenging once you know what is required.
Under each section, we’ve covered points considered vital to implementing your marketing strategies. So, without further delay, let’s get to business.
Kayla Vending Inc. is a vending machine business specializing in electronic and refrigerated vending. Our electronic vending machines target travelers who need convenient electronic devices for their journey.
Cellphone chargers, earphones, and phone accessories such as OTG cables are some of the in-demand devices needed by travelers.
On the other hand, our refrigerated vending machines offer various snacks and drinks. Both refrigerated and electronic vending machines are strategically positioned for easy access and patronage by our customers.
Our vending machines are positioned in public spaces like malls, airports, train stations, and sporting arenas, among others, for ease of access.
We have chosen the refrigerated and electronic vending machine business models for one primary reason. That is, the daily and continuous need for such services.
Refrigerated vending, for instance, caters to clients on the go. These categories of clients are usually in need of light refreshments. Our fully stocked refrigerated vending machines cater to such needs.
We’ve deliberately chosen locations that attract the most visits. Such include sports arenas, movie theaters, shopping malls, and parks.
People need some form of refreshment when they visit such places. This is where we come into the picture with our vending machines strategically located.
In the same vein, our electronic vending machines primarily serve travelers.
These are located at airports and train stations. Products such as earphones, charging cables, chargers, extensions, sockets, and other phones and laptop accessories are available for travelers.
We are in the business of making life more convenient for our customers when they go out.
Our refrigerated vending machines hold 15 drink choices and 30 snack variants. Our machines are also credit card compatible with Google and Apple Pay options.
Through these provisions (coin payments inclusive), our customers can easily purchase without worrying about payment compatibility.
The same applies to our electronic vending machines. We have made the process as easy as possible so customers won’t have difficulties operating or making purchases.
We are currently working on improving our vending machine services. This will include using combination vending machines where an assortment of snacks and foods can be purchased.
Products will include chips, cookies, pastries, and crackers, as well as drink offerings.
By providing more options, clients get better and more efficient services.
We are forward-looking and open to adopting innovative ideas to improve our services. This has led to developing a system where we learn about customer needs and preferences.
Over time, this data will be used to create various electronic vending services.
We can make available some of the most needed vending products and services through this method.
We are also a vending machine dealership. As wholesale suppliers, we provide both new and used vending machines for sale .
So, while providing vending services to end-users, we also offer equipment or vending machines to those interested in starting their own business.
This creates an opportunity for our business as well as for our partners.
Marketing And Promotional Strategies
For our vending machine business to be successful, our services will need to be effectively marketed.
We have chosen some of the most effective promotion methods to give us a significant edge in the market. The first step we’ve undertaken is to create a beautiful website for our business.
We will be writing press releases from time to time in related publications. These will disclose the advantages of using our vending machines.
As a business, we are focused on efficiency. We want our clients to be served as fast as possible without wasting their time. Because of this, our press releases will highlight the benefits derived from using our machines.
Business cards and brochures are marketing tools we’ll be printing to provide more detailed information about our services. Our clients get to quickly contact the business whenever they need answers to questions or want to make inquiries.
Vending business networking events provide platforms from which to promote our business.
Through such events, we can enter into valuable discussions with industry players, gain deeper insights, and enter meaningful and mutually beneficial partnerships.
This improves our chances of securing vending contracts .
Identifying And Understanding Competition
Competition is standard for all types of businesses.
The stiffness of such competition depends on how saturated the industry is. For vending machine businesses, the competition is quite intense.
Nevertheless, we see enormous opportunities as we’ve identified and understood our competition.
One area that makes us stand out from our competition is the inclusion of multiple payment options. This includes cashless payments such as credit cards.
In all, we are exploiting those areas ignored by most vending businesses.
We aim to cover more areas within the short, medium, and long term.
In the short term, we plan on fixing more vending machines within the locality. This will expand to cover more locations within the city in the medium term (1 to 2 years).
In the long term, we plan on becoming a national brand with a presence across all the states.
After the implementation of all our marketing strategies, we plan to sit down to evaluate what works and what doesn’t.
This is done to terminate or re-strategizing with measures that aren’t so effective.
By now, you should have learned some basic facts about a vending machine marketing plan. This is only a sample.
However, it provides information on what to do or include when drafting your marketing plan.
Don't bother with copy and paste.
Get this complete sample business plan as a free text document.
Vending Services Business Plan
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Market analysis summary how to do a market analysis for your business plan.">.
Revenue from U.S. vending consumable merchandise was $24.5 billion in 1999, an increase of 4.9% over 1998, according to the Automatic Merchandiser magazine’s State of the Vending Industry Report in August 2000. This figure includes both machines and products. Small companies, with sales of less than $1 million, accounted for 5.8% of the market and had projected sales for 1999 of $1.35 billion. Three quarters of all vending operators are classified in the small category.
Within the industry, snacks and cold beverages are the largest product segments, representing 29% and 25% of the industry, respectively. These two segments are the driving force of the industry. The food category grew at a rate of 7% last year, according to the Automatic Merchandiser. Cold storage machines grew at an even more impressive 42% in 1999, with this growth coming at the expense of shelf-stable products.
Broader economic and cultural trends are also positively impacting the industry. Food sales away from home have become a larger part of total food sales in the U.S. since the 50’s, according to the Department of Agriculture. Technomic, a Chicago-based research firm, reports an increase in demand for takeout meals as the percentage of two-parent households declines, along with the decline of the three regular sit down meals per day.
Consumer preferences about taste, price, nutrition, convenience, and technology are changing. These changes favor the vending industry, which now has the opportunity to spot these trends and develop their markets.
According to the National Restaurant Association, revenues from restaurants are expected to reach $321 billion in 1999. This is a large and healthy industry in our economy, and suppliers to this industry are expected to benefit from this growth.
4.1 Market Segmentation
Chef Vending will market its machines to three distinct market segments:
- Branded Sandwich Manufacturers and Branded Juice Companies – By working closely with these companies, we will customize our machines to meet their specifications and to allow them to “brand” our machines with their products. They will either supply the machines or sell them to their customers who will buy product supply for the machines from these companies.
We have two markets for our equipment business:
- Equipment Supply Companies – These are large supply houses that offer a variety of equipment to the food & beverage industry.
The following Market Analysis table and chart are broken down by general market segments, versus the specifics listed above.
4.2 Industry Analysis
The U.S vending industry is divided into three main segments:
- Distributors – The link between the manufacturer and the operator. Supplies the market with both machines and products for operators.
The food & beverage industry is divided into similar segments:
- Supply Houses – Acting as a distributor, these firms supply an area with their required supply needs.
4.2.1 Competition and Buying Patterns
Both the food & beverage and vending industries are highly competitive. Price, Return On Investment (ROI), reliability, and customer service are the factors most effecting a buying decision.
There are many large name brand companies with vending machines in the market. We will focus on creating a niche market for our innovative machines, to compete with larger more recognizable names. By being first to market, we have a unique opportunity to brand ourselves and our machines.
Buying patterns are fairly consistent across the year.
4.2.2 Distribution Patterns
Distribution in the vending industry typically runs through a distributor. These distributors will carry a brand of machine for sale in a defined geographic region. In some instances, manufacturers sell direct to operators or end users. Another form of distribution is to be a supplier to a nationally branded company. Similar distribution patterns are established in the food & beverage industry.
4.3 Target Market Segment Strategy
Chef Vending’s initial strategy is to offer all of our products to all segments of the market. We will focus on both the end user and the distributor initially, as the strategy to secure accounts with the nationally branded companies will take some time to realize. We will reach our target market in one of three ways. First, we have begun a small advertising scheme in industry trade publications highlighting the many features and benefits of our products. Secondly, we have joined the National Automatic Merchandiser Association (NAMA) and have introduced ourselves and our products to distributors and end users at the NAMA annual convention in October, 2000; we will also participate in their Southeast regional show in South Carolina and in their national show next year. Finally, we will pursue personalized relationships with contacts developed at these shows and with regional companies in the South and Central Florida area.
For equipment sales, we will focus on end users and distributors in the South and Central Florida regions. As we gain market share in these markets we will expand geographically.
4.3.1 Market Needs
The principle market need we will be addressing will be revenue. Each of our machines will act to expand existing sales for operators, and in many cases will create new markets entirely. For the operator that is already vending snacks, a high end sandwich will enable this operator to expand his or her sales without cannibalizing existing sales. For the coffee vendor, a perfect compliment to a gourmet cup of vended coffee will be a fresh cup of orange juice. By creating a new untapped market, the operator will be able to expand revenue streams beyond their existing accounts. Another important need we will fill with our multi-line machines and our equipment, will be price. As we will be competing with existing supplies already in the market, we will price our products to be highly competitive in order to attract clients.
4.3.2 Market Trends
Growth rates in both the vending industry and the restaurant industry remain strong. This growth is fueled by the changes in the workplace and workforce that are causing workers to consume more of their meals away from home. Away from home food sales are expected to increase by 53%, according to NAMA.
As more and more consumers eat away from home, the demand for higher quality is also growing. Vendors are now offering a full line of packaged frozen meals in their machines. Margins will increase as premium prices are being placed on branded, high-quality products.
Demographic trends are affecting the industry. A large group of young adults, who mainly grew up on fast food, have emerged as an economic force. This group’s perceptions on fast food, technology, and vending, will have a positive impact in the vending business. Furthermore, overall population growth rates, and immigration trends particularly, will also have a tremendous economic impact on the vending industry. Much of the growth in both of these areas will be in the Southeast, where Chef Vending is poised to capitalize on these trends.
4.3.3 Market Growth
Studies by Automatic Merchandiser reflect an industry growth rate of approximately 4.8% over the last five years, matching the overall growth of the U.S. economy.
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Vending Machine Financing
If you’re looking to generate passive income, vending machines are one of the best ways to go about it. And to help you jump-start your business without financial stress, we offer simple, affordable vending machine financing plans here at Abunda. Shop now or read more to learn how it works!
Build Passive Income With Simple, Affordable Vending Machine Financing At Abunda
We wholeheartedly believe that everyone should have some sort of side hustle. And if you’ve decided that vending machines will be your path to financial freedom, great choice. These will make you money while you sleep. But getting your business off the ground isn’t easy - even if you start with cheap, entry-level vending machines.
If you were to buy a vending machine outright, you could expect to pay as much as $8,000 - depending on the style and model, of course. And let’s be honest - very few people have that kind of money sitting around just waiting to be invested. Even if you do have that capital to allocate towards this purchase, you are better off financing multiple vending machines at once rather than buying a single unit outright.
Fortunately, we’re here to help. Our vending machine financing plans are the best way to jump-start your business and get the wheels in motion.
On this page, you can browse hundreds of different vending machine units. From snack and beverage machines to small-scale candy machines, we have exactly what you need - and then some! And thanks to our flexible financing terms, you don’t have to stress over the burden of buying these outright. You can pay as little as $10 a month!
What Makes Our Vending Machine Financing Plans So Special?
Here at Abunda, we make it as simple and affordable as possible to finance and rent to own a vending machine. In our catalog, you gain access to a wide range of styles to choose from. Maybe you want a few small quarter candy machines to place in the entry of a restaurant. Or perhaps you own an apartment complex and want to generate supplemental income with a snack and drink vending machine. Maybe you want something more off the wall - like an icee machine or popcorn machine. No matter what you have in mind, you can bring your vision to life here at Abunda.
And once you see how many flexible payment plans we offer, you’ll know you made the right choice. This is thanks to our partnerships with ViaBill, PayPal, Acima, Klarna, and more. The best part? Because we only ever conduct soft credit checks, there is no impact on your credit score whatsoever. If you want to learn more about the financing process or need help getting started, reach out to our helpful customer service team - we’ll work through this together!
Get Your Vending Machine Rent To Own Today!
So, what are you waiting for? It’s time to make your vision a reality and get your vending machine rent to own. Your business is a few clicks away from getting started - don’t delay any longer. And if you need help financing other purchases, we’re here to help with those as well. With over 56,000 happy customers, you can rest assured you’re in good hands at Abunda.
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Vending Machine Business Plan
Vending machines are no longer used to dispose of snacks. From frozen foods to stationery items, you name it and there might be a vending machine selling that product.
And if you want a business that requires less time and is profitable, then a vending machine business might be your thing. It also allows you to get creative with products and packaging.
All you need is a product idea, a little bit of research, and a vending machine business plan to help you get started. Here we’ll give you an insight into the vending machine industry and a few tips to help you set up your business better.
Before you start writing your business plan for your Vending Machine Business, spend as much time as you can reading through some samples of Food, Beverage & Restaurant Business Plans templates .
Our sample Vending Machine Business Plan can help you with writing a well-rounded business plan for your business. It can act as a guide and prevent you from getting stuck in a certain section for too long.
The global vending machine industry stood at a market value of 30.30 billion dollars in 2018 and is expected to grow at a rapid pace in the coming years too.
Vending machines are super convenient and accessible. Hence, their popularity is increasing amongst the working class who always have less time on their hands and want to grab a quick snack or any other merchandise.
Also, as the vending machines require much less space compared to traditional convenience stores they are perfect for offices and other commercial settings. Also, the cashless ways of paying grow vending machines are bound to get more popular as they make such transactions easier.
Things to Consider Before Writing a Vending Machine Business Plan
Pick your niche, select a good location, figure out good packaging and storage techniques, figure out security measures, chalking out your business plan.
With people returning to work post the COVID-19 pandemic and contactless services still being in vogue a vending machine business can be an exceptionally profitable one if done right.
Not just that vending machines are easy to use, but they come with a variety of product niches and help you avoid the hassle of showing product after product to customers, who’ll have every option displayed right in front of them with a vending machine.
And though refilling a vending machine and protecting it from theft and vandalism might seem like a boring job, a vending machine business is much more than that.
From vending machines that offer products ranging from granola bars to office supplies to the ones that take orders from apps through artificial intelligence, the vending machine business has gone through a massive change over the decades.
But, one more interesting fact is that there are over 5 million vending machines in the US alone, and if you want to last in such a competitive market you need a proper business plan. So, read on to find out how to write a vending machine business plan.
Why do You Need a Vending Machine Business Plan?
Before we discuss how to write a business plan , it is only fair to tell you about its advantages first. A vending machine business plan will help you decide your product niche, and the location where you can find your targeted customer, it helps you manage your finances, devise a marketing and pricing strategy, and run the operations of your business smoothly.
It also helps you design your brand image, decide on the scale of expansion and become more cost-effective as a business. Thus, a well-written business plan can serve a variety of purposes and help the different facets of your business is flourishing.
This brings us to the central topic of this blog, how to write a vending machine business plan.
How to Write a Vending Machine Business Plan?
Even though you can write a business plan from scratch yourself it is always a good idea to get a little expert help before you start writing one. You can either use a pre-designed template or an online business plan software.
For, writing a good plan always remember, that a plan should be clear, realistic, and customizable. It should not be a dead letter, but a living document that grows with the industry.
Here are a few sections that you can include in your business plan to make it a well-rounded one.
Vending Machine Business Plan Outline
This is the standard business plan outline which will cover all important sections that you should include in your business plan.
- Mission statement
- Vision Statement
- Customer Focus
- Success Factors
- Financial Summary
- 3 Year profit forecast
- Startup cost
- Products and services
- Market Analysis
- Industry Analysis
- Market Trends
- Working Community
- Residential Community
- SWOT Analysis
- Advertising Strategy
- Pricing Strategy
- Financial Plan
- Important Assumptions
- Brake-even Analysis
- Profit Yearly
- Gross Margin Yearly
- Projected Cash Flow
- Projected Balance Sheet
- Business Ratios
What to Include in a Vending Machine Business Plan?
Although your vending machine business plan would keep growing alongside your business there are certain key areas that you must include in your business plan.
1. Executive Summary
The executive summary section sums up your vision, business idea, and strategy. It consists of a summary of all the sections of your business. It is important to write a good executive summary, especially if you are expecting to get funded.
As a vending machine business, you should include your range of products and target audience , preferable locations, financial summary, and pricing strategy in your executive summary.
2. Company Summary
In this section you will summarise all that your company stands for:
- Your target audience, whether they are kids, students, working professionals, or tourists.
- Your niche, if it is beverages, packaged food, health food, stationery, or some other products.
- Your preferred location( select this as per your target audience)
All in all this section defines what your company is.
3. Competitive Analysis
In this section, you should include everything you can find about your direct and indirect competitors. You should note down points that are working for them, strategies that have led to their failure, and what makes you stand out from your competition . Apart from that, you should also see if you are standing out in a positive or negative light.
4. SWOT Analysis
This section is one of the most underrated sections of any business plan because if you carry it out properly writing a business plan and formulating strategies becomes way easier.
While carrying out a SWOT analysis , always try to look at the threats and opportunities of the market first and how your strengths and weaknesses can affect them, later. This would give you a clearer, more niche picture of what the opportunities and threats in the market mean to you.
5. Financial Plan
A financial plan is essential for the success of a vending machine business plan. It helps you decide whether you need funding or not, which are the most viable options for being funded, how much should you spend initially, when your business is ready for an expansion, etc. Therefore, a financial plan is exceptionally helpful and should be included in your business plan.
Vending Machine Business Plan Summary
In conclusion, there are several ways in which a business plan can help your vending machine business. It can help you in selecting the right niche, planning your finances, choose your product category, and also in creating an advertising and pricing strategy.
A business plan would walk you through your business journey and help you overcome obstacles.
After getting started with Upmetrics , you can copy this sample vending machine business plan into your business plan modify the required information, and download your vending machine business plan pdf or doc file. It’s the fastest and easiest way to start writing your business plan.
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The Cornell Daily Sun - Independent Since 1880
The Cornell Daily Sun (https://cornellsun.com/2023/08/23/plan-b-vending-machine-opens-at-cornell-health/)
Julia Nagel/Sun Photography Editor
A vending machine stocked with Plan B, condoms and other pharmacy items sits inside the Ho Plaza entrance of Cornell Health on Aug. 23.
August 23, 2023
Plan b vending machine opens at cornell health, by julia senzon and marisa cefola | august 23, 2023.
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This semester, students will be able to get not only soda and chips from vending machines on campus, but also pharmaceutical products including Plan B, pregnancy tests and condoms. The Cornell Health lobby now hosts a 24/7 pharmaceutical supplies vending machine, which opened on July 21.
“24/7 access to self-care supplies, including sexual health products, can help prevent and treat infection and illness and reduce the likelihood of unplanned pregnancy,” Chris Payne, senior director of Cornell Health wrote in an email to The Sun. “Access to care is key in supporting all dimensions of student health and well-being.”
The machine is located just inside the Ho Plaza entrance of Cornell Health and provides 24/7 access to emergency contraception and self-care supplies such as hand sanitizer, tissues and various non-prescription medications. Free COVID-19 antigen tests are also available for students.
A “Read Before You Buy” information sheet posted on the machine includes two QR codes which provide users with information about the different types of emergency contraceptives.
The supplies are available to Cornell students, faculty, staff and visitors. In the near future, Cornell Health plans to also add various self-care products to existing “ Vengo ” machines located in residential spaces across campus and managed by the Cornell Store.
Credit cards, debit cards and Apple Pay are all accepted forms of payment for the machine. Product prices range from free to $45. All available products and prices are listed below.
Each item in the vending machine has been selected based on the likelihood of sale or utilization among the Cornell community, according to the Cornell Health website . Cornell Health offers a survey for community members to offer suggestions or feedback regarding the products available.
At least 39 colleges in 17 states have enacted emergency contraception vending machines on campuses, according to a USA Today report from July 22.
Marley Levy ’24, a member of the Cornell chapter of Planned Parenthood Generation Action at Cornell first got the idea for Plan B vending machines from the machines installed at Boston University .
PPGA decided to advocate for Plan B vending machines in order to provide access to emergency contraception — which is more effective when taken earlier — on campus at all times since Cornell Health has restricted hours and is not open on weekends.
After conversations with Cornell Health, the PPGA decided to collect survey responses to determine community perspectives surrounding potential vending machines.
Over the fall 2022 semester, the PPGA surveyed over 700 members of the Cornell community and found that 53.3 percent of respondents have previously acquired emergency contraception for themselves or others and that 90.3 percent responded that they would feel “somewhat comfortable” or “very comfortable” obtaining emergency contraception, for themselves or others, at a Cornell Health-operated vending machine.
The PPGA — along with Levy and co-presidents of PPGA Katherine Esterl ’24 and Taisa Strouse ’24 — sponsored Student Assembly Resolution 20 which urged the University to implement multi-unit vending machines with nonprescription health care supplies, including contraception.
The resolution was unanimously passed by the S.A. on Thursday, Feb. 9. The University Assembly passed Resolution 5 and the Graduate and Professional Student Assembly passed Resolution 7 as their version of the resolution.
President Martha Pollack approved of Resolution 20 in an email response to the S.A. on March 7.
Esterl ’24 said the resolution was a resounding success due to the collaboration between student groups, the S.A. and Cornell Health.
“When [the idea for the vending machines] began as a conversation a few months ago, [it] was something that seemed like it wasn’t going to be funded very easily,” Esterl said. “But with student advocacy, with [the] Student Assembly and with building relationships with people at Cornell Health, we were able to make it happen. So I think it maybe was a good confirmation for people that working through the Student Assembly can be one way to support positive change for reproductive health care on campus.”
Other Reproductive Healthcare Resolutions
On Feb. 10, President Pollack rejected S.A. Resolution 15 to employ an M.D. gynecologist, arguing that Cornell Health’s primary care clinicians are trained in gynecological services. According to Cornell Health’s website , there are five staffers associated with “GYN/women’s health.”
On May 4, the S.A. unanimously approved Resolution 48 , which proposed that Cornell make medicated abortion, or abortion pills, available to students on campus.
The resolution was inspired by recent New York state legislation requiring all the State University of New York and the City University of New York campuses to provide access to medicated abortions, according to Patrick Kuehl ’24, president of the S.A. The S.A. felt Cornell was part of the SUNY system in some regard and should thus provide similar accessibility, Kuehl said.
President Pollack responded to the resolution by clarifying that although Cornell is not mandated to adhere to the legislation, Cornell sufficiently meets the standards of the policy by providing information about, and referrals to, authorized providers of medication abortion in Ithaca. The level of specialty care required through the legislation exists at Ithaca’s Planned Parenthood, which is accessible from Cornell through TCAT bus routes.
“President Pollack’s response stated that, yes, Cornell students have access to medication abortions, because they have access to Planned Parenthood, which is downtown,” Kuehl said. “That is still kind of an unanswered question for us. And we would like to do more research into whether that’s accurate.”
Kuehl said that he was particularly concerned about whether the number of staff and level of infrastructure at the Planned Parenthood in Ithaca sufficiently meet the demands of the number of Cornell students the location services.
Strouse said that she was excited about the outcome of the Plan B vending machine resolution and hopes the University continues to keep the conversation open regarding greater reproductive health care measures on campus.
“I think the University should continue to make its position [clear] on the idea that reproductive health care is health care, and it should be accessible to everyone,” said Strouse. “And [the University should] not just make that position clear, but also take action to further that position within their own community… It’s a responsibility of the University to make reproductive health care accessible to all of its students.”