When passing by a vending machine, you can’t help but look. The glass case is filled with yummy and familiar treats that catch the eye, only costing a few quarters to tame your cravings. You’re not the only one with these thoughts, which is why vending machines can be a gold mine, especially in the right spot.
In the US, vending machine sales are thought to gross more than $20 billion per year, making them an excellent investment if you know what to look for.
Are vending machines passive income, though? The answer is yes, they can be, and we’re here to tell you how.
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Are vending machines passive income?
Vending machines can count as passive income, though you do have to make sure that you have the proper setup. That means looking for high-quality machines, technology that will help you keep your goodies in stock, and reliable services that can be there to fix your machine in no time.
All of these will help you manage your machines and not worry about them constantly. The goal is to be able to live your everyday life while earning income as customers purchase your vending machine items. You may want to pass by to see if it’s clean and working or to collect your cash, but that’s about it.
How do you make money with vending machines?
Making money with a vending machine is quite simple, though it takes some planning. The first and most important thing that you should consider is location. From there, you should assess what would sell best in the area, whether it’s snacks, toys, or even toiletries. The options are endless.
Once you’re figured out the where and the what of your operation, making money is about keeping things running smoothly. This includes keeping your inventory stocked and your machine running like a well-oiled machine.
You may need to restock some items more often than others or change up items if you think they will sell better, though you can figure that out as you go once you know how things will run and how things will sell.
Most vending machine owners stock their vending machine from Sams Club or Costco. Both locations offer good deals on products to stock in your machines.
Do you have to report vending machine income?
Vending machines these days can deal with both cash and cards. Though some think cash can go left unreported, it shouldn’t, especially when dealing with certain items. Things like foods, snacks, and soft drinks are all considered taxable, while some other items might not be.
Each state has its own requirements for taxes, which is why you should make sure and understand your state’s tax laws. You can work with a tax professional to ensure that you get the most out of your return and ensure you’re reporting earned income correctly.
How much work is a vending machine business?
One of your main jobs when you own a vending machine is keeping things organized and stocked. If you’re unorganized, you could be spending a lot more time doing work that isn’t necessary. Invest in a good machine, automated technologies, and reputable repair services to minimize your workload.
In this way, you can minimize the need to constantly visit your vending machine and ensure that things run smoothly for a longer time. You may need to stop by here and there to make sure your machine is clean and working correctly, but other than that, with the proper setup, you won’t need to do too much.
Work involved with a vending machine business includes:
- Buying product
- Storing product
- Finding vending machine locations
- Moving vending machines
- Setting up payment processing
- Bookkeeping or hiring it to a professional
- Regularly driving to locations for stocking
- Repairing vending machines
Are vending machines a good side hustle?
When it comes to vending machines, location is key. If you have a solid location, then it’s a great side hustle. Essentially, your only job will be to keep it stocked and collect the money from it, doing so as often as needed.
Even if you have a 9 to 5 that takes up most of your time, you can invest in a vending machine and keep the money coming in, even when you’re not around. That’s one of the best things about vending machines, as they allow owners to enjoy their day-to-day lives without much interference.
As time goes on, you finally start to turn a profit. This is when you can start investing in things like vendors that will restock for you, mechanics that will check out your machine, and technologies that will make your customer’s buying experience much more pleasant.
How much money can you make with vending machines?
There are all kinds of vending machines, which makes finding their average difficult. Some machines sell small items can pull in $35 a week or more depending on where it’s at and the demand in the area. Some machines can earn much more, including hundreds to thousands of dollars a month.
While traditional vending machines tend to have snacks and drinks, there are tons of variety these days, including hot beverages, beauty products, tech accessories, and even toiletries. More expensive items might sell less depending on where it’s located, though it could be a way to increase your earning potential.
To find out how much money you can make with a vending machine, you should first consider the items you want to sell, the location you want to sell them, and the amount you have to invest right away. All of these will go into play to help you earn more, so plan a strong strategy before taking off and purchasing.
Summary: Are vending machines passive income?
We’ve all seen vending machines but, we might not have thought about purchasing one to earn passive income. If you’re looking for a way to make more cash than your typical 9 to 5 job, investing in a vending machine could be a great option.
Be sure to scope out locations and brainstorm what will sell the most and the best, considering the demographic. Then, you can keep things stocked and running smoothly, collecting your cash as it comes in and making a great passive income while you’re at it.