With the rise of vending machines, many people are considering starting a business that sells coffee and other small items.
This is a great idea for anyone who has a lot of free time on their hands or wants to make an extra income while they’re not at work.
If you want to start your own vending machine business, there are some things you should know first.
For example, what is the difference between running a vending machine company and running an ATM?
In this blog post we will discuss the pros and cons of both options so that you can decide which option best suits your needs.
Answer To The Question Which is Better Between a Vending Machine Business and An ATM Business
We can’t move to a snack-less society, but we can eventually move to a cashless society. Although ATM’s may make you more money right now the vending machine business has more of a future.
So if you want more of a short term make money now, type of thing, go with an ATM business. But if you’re looking at a business that probably won’t change much in the next 20 years go with a Vending Machine Business.
As you can see below, google trends is doubling down on what I’m saying. Lets go over all the other factors.
What Is a Vending Machine Business
A vending machine business is a company that sells products from automated machines (vending machines).
Some of the most popular items you’ll find in these businesses are:
-Coffee and tea.
-Sodas, energy drinks, water or other beverages.
-Non-food options such as gum or cigarettes. There are also many more products you can sell in machines.
How Do I Make Money?
It’s very simple to make money with a vending machine business, all you have to do is get a vending machine and fill it with products. After that you simply wait for the money to come rolling in!
What is The Start Up Cost Of A Vending Machine Business?
The start up cost for a vending machine business is going to depend on the type of vending machine and the type of snack you put in side.
You can buy a new or used machine and the costs could range from $500 to $4000.
The snacks that you choose will also impact your start up cost as the higher priced items tend to be more expensive than lower priced ones.
Where Can I Put a Vending Machine?
You can put vending machines just about anywhere and this is one of their biggest advantages over ATM’s which are limited in where they can be put.
You can place vending machines in convenience stores, office buildings, hospitals or any other location that has a large enough space to house it and provides access for customers.
What is an ATM Business
An ATM is an automated teller machine that dispenses money and also provides financial services such as balance inquiries, deposits or withdrawals.
The customer can use a debit card to retrieve cash from the machine without going into the bank itself.
How Do I Make Money With an ATM Business?
You can make money with an ATM business by charging a fee for every transaction.
So instead of snacks all you have to do is fill the machine with money and let the transactions happen.
How Much Does It cost To Start an ATM Business?
A used ATM machine can be between $1,000 to $2,000 and a newer one can be between $2,000 and $7,000.
Vending Machine Business Pros and Cons
Assuming you are asking about the pros and cons of starting a vending machine business, here are some key points to consider:
PROS
- Can be run as a semi-passive business model – once machines are placed, they require relatively little hands-on maintenance.
- Vending machines can be operated in a wide variety of locations, from high foot-traffic areas to more off-the-beaten path spots.
- In some cases, you may be able to secure exclusive rights to place your machines in a particular location.
- Vending machines can be stocked with a wide variety of products, giving customers plenty of choices.
CONS
- Vending machines can be expensive to purchase and stock.
- You will need to secure permission to place your machines in many locations.
- Vandalism and theft can be a problem, especially if you have machines in high-crime areas.
- Competition from other vending machine operators can be tough.
ATM Machine Business Pros and Cons
PROS
- Low start-up costs – You can start an ATM machine business with as little as a few thousand dollars.
- High profit potential – With revenue sharing arrangements, your profits can quickly add up.
- Passive income stream – Once your machines are installed, you can enjoy a stream of residual income with little effort on your part.
CONS
- High competition – The ATM industry is highly competitive, and you’ll need to offer low fees and good service to attract customers.
- Regulatory compliance – There are strict regulations governing the operation of ATM machines, and you’ll need to ensure that your business complies with all applicable laws.
- Security concerns – ATM machines are a target for criminals, and you’ll need to take steps to protect your machines and your customers’ information.
How Are ATM and Vending Machine Businesses Similar?
They both have very similar start up costs:
They may differ slightly in cost buy they both have a low start up cost.
They Both Should Go In High Traffic Locations:
-Both ATM and vending machines should go in high traffic locations in order to make the most money possible.
You Have To Give The Business Owner a Cut:
You don’t always own a locations with high foot traffic or your own office space.
Sometimes you’l have to partner up with a business owner that has the right location for you and in exchange you’ll give those owners a portion of your profit.
They Both Have Extra Costs:
The extra costs for a vending machine business is the snacks.
The cost for someone who owns an ATM business are the processing fees.
Conclusion:
Whichever small business you start whether it’s the vending machine industry or an ATM business, make sure you do market research.
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If you’re interested in starting a vending machine business check out this article with 16 questions you should ask when buying a vending machine
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