Small Business

The 5 easiest vending-machine businesses to start that can earn entrepreneurs 6 figures or more

Jaime Ibanez poses in front of food and beverages that he will use to stock his vending machines.
Jaime Ibanez's vending-machine business was a launching-off point for his YouTube career. Jaime Ibanez.
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Starting a business isn't easy — it takes a lot of hard work and can be a huge time commitment — but some ventures don't require as much funding, resources, or employees as others.

Vending-machine businesses are gaining popularity because they require minimal investment to get started, are low maintenance, and can eventually generate passive income if you outsource the daily upkeep. 

Some vending-machine entrepreneurs have started businesses for between $1,500 and $3,000.

What you sell in the vending machine can also determine how lucrative your business is. For example, snack-and-beverage machines can yield high profit margins, according to founders who post about their businesses on Instagram and TikTok

Insider gathered insight from past interviews and successful founders who post about their vending machines on social media so that we could research the best products to sell in vending machines that are relatively easy for entrepreneurs to handle.

1. Snacks

Man seated in the back of white van with vending machine products
Ibanez in one his YouTube videos. Jaime Ibanez/YouTube

A snack vending machine is versatile and can generate sales in many types of locations, from office buildings and warehouses to repair shops and schools. The inventory is easy to buy at wholesale stores, and since most snacks are light, they don't require heavy equipment to transport or load. The machines typically need to be restocked on a weekly basis, and you'll need to throw out any inventory that doesn't sell once it expires.

Jaime Ibanez operated 40 vending machines from July 2021 to June 2022 and made $135,000 in revenue in that time, Insider previously reported.

2. Water and ice

Left: Steve Slagle, Right: Everest ice vending machine in Florida condo complex
Steve Slagle and one of his two ice vending machines. Steve Slagle

Water and ice are simple, low-cost products to stock in a vending machine. There's also the advantage that water and ice are often essential products, especially for rest stops and hotels. They do require refrigeration, so that's one more function of the machine you'll need to make sure is always working properly.

Steve Slagle made more than $30,000 in revenue in one year with two ice-and-water vending machines, Insider previously reported.

3. Beverage and combo

two vending machines Marcus Gram and his sister stand on either side
Marcus Gram hired his sister to maintain most of his vending machines. Marcus Gram

Selling soda, energy drinks, and other beverages capitalizes on people's desire for choices based on their tastes and moods. If you get a combo machine, you can sell both snacks and drinks for even more options. Since you're offering so many choices, you'll want to closely monitor which items sell and which don't, then base your restocks on that data. 

Marcus Gram, who owns Joyner Vending, operated 18 vending machines in 2021 and generated more than $307,000 in revenue that year, Insider previously reported.

4. Toys

Harry Potter toy from vending machine.
A Harry Potter toy from a vending machine. Marielle Descalsota/Insider

Claw machines can perform well in public areas with heavy foot traffic, like malls and movie theaters. Since the machine operates as a game, it doesn't guarantee the buyer will receive an item from the machine, thus generating more sales per item. Plus, toys don't expire like food and drinks, so you don't have to refill inventory as often as with other machines.

One YouTuber made $292 in a month of sales from his claw machine.

5. Candy

A gum ball machine.
A gumball machine inside a mall. Ann Matica/Insider

The classic candy machine is a fixture at grocery stores, restaurants, and car washes. While these generate much less profit than other types of machines, they are good for a beginner with minimal startup capital. 

One YouTuber made $450 in one month from a gumball machine he placed in an ice-cream shop. He also said he would relocate any machine that didn't make at least $15 a month.

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Jennifer was a senior retail reporter at Business Insider covering mall brands, fast fashion, retail workers, and resale. Prior to joining the retail team, Jennifer covered entrepreneurship and wrote about the economic, cultural, and political issues facing America's 33 million small businesses. She reported on the many ways the pandemic shaped entrepreneurship today as a path to survival and agency, from retailers who made masks during lockdown and mothers who quit their 9-to-5 jobs, to teachers who gave up the profession and truck drivers who are building wealthShe also dug into the big companies that serve small businesses with investigative stories such as "Small Businesses are Suing Big Banks," "How Major Banks Decided the Futures of America's Small Businesses," and "In a Busy Wedding Year, Vendors Say The Knot Isn't Worth the Cost." Jennifer received her Bachelor of Science in Journalism from Emerson College and is currently based in New York City. If you have a tip or story, email Jennifer at info@jenniferortakales.com.