How to start a vending machine business - a step by step guide by VapeTM

Vending machine businesses are attractive to inventors and entrepreneurs because of the low start-up costs and the passive income generated.  Moreover, the vending machine business is scalable, especially with with robust operations and smart management software .  So, what should I do?  Should I buy a machine and come up with a business plan or should I find a location and then buy a vape vending machine?  Most people wish to mitigate risk and find a location first.  While that may seem to be the most intuitive course of action, it is recommended to learn all aspects of the business--first!  It is much easier to place machines once you see it, touch it, feel it!  I encourage operators to "play" with our software, watch our tutorial videos, and spend time learning our software before going out and getting locations.  The simple act of "playing" and learning is critical to success and makes someone a much better salesman or saleswoman.  So, with that being said, here are the recommended steps to get started in the vape vending business.  

 

1. Set up an LLC and gain a FEIN or Tax ID

2. Set up a business checking account

3.. Purchase a vending machine from VapeTM.com   Note: VapeTM focuses on Vape Vending machines or kiosks but these are essentially just "branded" smart vending machines.  VapeTM will support all types of vending including snacks, candy, pop, cosmetics, CBD, THCA, Delta-8, etc.  Our software creates a plug and play vending machine that will support the sale of all products.  Additionally, we customize coils to fit your product dimensions.  VapeTM offers a 60-day money back guarantee and takes all major credit cards.  If it is not a good fit, VapeTM will send you a RMA or return label to ship the machine back for a full refund!   

Visit VapeTM.com to buy your machine. We accept all major forms of payment, including credit cards.  Our most popular models are the Slim Wall Mount and the Vape Tower, which is a free standing upright machine.

4. Play with the machine and learn the software.  Watch VapeTM training videos and spend 30 minutes with VapeTM Live Support

5. Enter into a placement arrangement with a location.  The best vape vending locations generate over $2,000 in monthly profit. 

How much does it cost to restock inventory in a vending machine? 

The wholesale cost of disposable vapes are around $7-$8 and retail anywhere from $25-$30.  It costs about $640-$800 to refill a vape vending machine. 

On average, a vending machine sells about 2 vapes per day or about 60 vapes per month.  Gross revenue on 60 transactions will be around $1500.  Cost of goods sold (COGS) will be around $500 and after sales tax and credit card fees plus whatever the bar owner makes, profit will be around $700.  

How to pick the best accounts?  The best vape vending accounts are usually college bars or bars that sell a lot of alcohol especially late night hours and weekends have a fairly young (21-40 year old) demographic.  

6. Learn about the license requirements in your state and local jurisdictions. VapeTM.com has plenty of information on this and you can speak with an expert if you contact them.  

 

 

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Jordan

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