You sit on your porch with a coffee in hand watching neighbors walking their dogs pass by your house. You see the playful group of kids with an insatiable liking for candies run around the neighborhood,. It might have crossed your mind to put a vending machine outside your house to tap into these micro markets.
After all, having a vending machine outside your house means you don’t have to share your profits with another location owner. Also, you won’t have to make long trips to restock the vending machine. Micro markets, in many cases, are a good sign of the ease of doing business and can still make money. And it begs the question, "can I put a vending machine outside my house?"
Can I Put a Vending Machine Outside My House?
Yes, you can put a vending machine outside your house as long as the local zoning laws allow. Some local governments prohibit retail businesses - including machine outside house - in residential neighborhoods. It is likely that your county and municipality are okay with vending in residential areas. You can confirm this by calling the local office.
If they allow vending machines in residential areas, do the following to start a profitable business properly and remain compliant:
- Acquire necessary business permit. First step, to make it perfectly legal, you will need a vending business license from your state to operate vending machines. Therefore you'll need an LLC as well. Aside from business permit, vending machines require that you sign a food and beverage license from your state.
- Get an Employer Identification Number. After business license, to pay taxes on your own vending machine business earnings, you need an Employer Identification Number, also known as the Federal Tax Identification Number. The Internal Revenue Service (IRS) issues the number.
- Have enough space outside your house. The vending machine outside your house should be in a spacious open area where customers can reach it conveniently. You should also have reasonable space to easily restock, clean, and service the vending machine.
- Ensure the location is free from pests. Residential areas are prone to pest infestations. Machines selling food, snacks, and beverages should be put only in places with no pests.
- Install a reliable electrical outlet. If you don’t have an existing electrical outlet where you want the vending machine to sit, it is essential that you install a safe and reliable one. Vending machines are known to use a fair amount of electricity. Avoid using extension cords as they reduce voltage to the vending machine thus lowering operational efficiency. Extension cords also increase the risk of accidents such as falls and fires.
- Ensure the area is well-lit at night. In addition to having a vending machine with a great lighting system, you should also ensure that the area where the vending machine sits is well lit at night. If the location where you live comes with risks, you may want to get a vending machine security cage or vending machine cameras.
- Check local and federal installation laws. Aside from securing a business permit, please check local and federal laws before you sign off on anything. Also, ensure your vending machines are ADA compliant so that people with disabilities can access your services.
When you comply with all local and federal laws, you won’t have any problem running a vending machine outside your house. Nonetheless, not all vending machines are designed to be outside.
Can Vending Machines Be Outside?
You can put vending machine outside if they are equipped to operate efficiently while exposed to the elements. It is best to get an outdoor vending machine if you want to put a vending machine outside your house or shop. Also, if there are enough sunny days around your area, a solar-powered vending machines would probably be the most lucrative option.
Outdoor vending machines require and often come with added features to protect against, break-ins, and vandalism and the capacity to maintain the desired temperatures even under the widely fluctuating outdoor conditions. Below are the factors to consider when putting your own vending machine outside.
1. The Possibility of Theft, Break-ins and Vandalism
Even if you live on a safe and secure street, you must protect your vending machine services from vandals and thieves. Just as you would if vending machines were places in parks. Some of the security measures you can put in place to protect your vending machine include
- Putting the vending machine in a cage to restrict access from sides and back
- Installing a security camera outside your house, shop, or inside the vending machine
- Placing the vending machine where your neighbors can see it
- Getting insurance coverage against theft and vandalism.
Most vending machines that are to be placed outside your house, have a sturdy construction that can easily deter petty theft - unlike most coffee vending machines. It is best to get such a machine to stay ahead of the criminals.
2. Shelter from the Sun, Rain, and Water
Before you've moved your vending machine outside, it is best to construct a rainproof canopy for your vending machine to protect it from rain damage, overhead sunlight when daylight temperature is at its peak, and other weather damage. Also, put the vending machine on raised ground to protect it from overflowing water.
Machines with modern features such as touch screens and card readers are especially vulnerable to water. Take care to shield such interfaces from direct rainfall.
Some outdoor vending machines are waterproof. You should be able to tell this from the marketing material or product description. A waterproof vending machine will have waterproof electrical systems and triple pane glass. Whenever possible, buy a waterproof vending machine if you want to use it outside.
3. A Vending Machine with Great Insulation
Outdoor temperatures can vary greatly. Without the benefit of controlled indoor temperatures, get a well-reviewed vending machine with proper insulation. Such a vending machine will keep your supplies fresh for longer and save you money in energy costs.
If you live in a state with hot sunny climate, a vending machine’s inbuilt insulation and air conditioning systems may not be enough to preserve your supplies. Consider building a canopy to shield the vending machine from direct sunlight.
Can Vending Machines Be Anywhere?
After asking "Can I put a vending machine outside my house?" it's fair to ask what's next. Indeed, there are many reasons to do so.
You can place a vending machine anywhere as long as you have the permission of the property owner or manager. The exception to this rule is cigarette and vape vending machines which can only be in adults-only establishments.
While you can place a vending machine anywhere, you can only do so after securing the required permits and business license from the local government. Most local governments require at least a food/beverage service license. These licenses are easy to get, and it is unlikely that you will run into problems acquiring one.
It is essential that you install the vending machine at a location where most people with disabilities can easily access it. If your vending machine is outdoors, it is most likely bolted down. All vending machines that are bolted down are within the purview of the Americans with Disabilities Act (ADA). To be compliant, ensure it's not just great for general public, but that all buttons and switches are no lower than 15” from the ground and no higher than 48”.
Even though you have the freedom to put your vending machine anywhere, profitable businesses find a location with a lot of foot traffic to guarantee enough demand to turn a profit. The best locations to put a vending machine include
- Office buildings. Employees in an office building are great for sales and are a ready market for drinks and snacks. An office vending machines are a great source to grab their favorite snacks without leaving the work premises.
- Industrial parks. Product distribution centers and manufacturing plants have many workers who can make good customers for your vending machine. Even if they already have a vending machine on site, the manager can allow you to install another one if you offer a different product range.
- Streets with restaurants. Streets lined with restaurants attract people ready to grab a bite or drink. They will be more willing to grab something from your vending machine on their way to their favorite eatery or back home.
- College campuses. You can make sales offering students snacks, drinks, and instant food items in schools and colleges. Nowadays, having healthy options instead of just snacks is also up for consideration. If you can tailor your product offering to what they want and can afford (ramen?), you will have a reliable customer base.
- Apartment communities. High-density residential areas such as apartment communities are perfect vending locations. They have people of all ages with varied tastes. A vending machine with a great selection of products will do well in such a location.
- Service providers with waiting lounges. Any service provider with a waiting lounge, such as a dentist, optician, law office, or hospital, will gladly take you on the offer of adding a vending machine to their lounge. Their clients will happily grab a drink or snack as they wait to be served.
- Car dealerships. People spend a lot of time at the dealership either looking at cars, or waiting for sales agent. A vending machine will be handy in such an environment.
- The main street of any town or city. A town’s main street will have a lot of foot traffic. You can negotiate with a location owner along the street to put your vending machine on their property.
- Nursing homes. Dispensing drink and food, possibly with healthy options, to patients, staff, and visitors in nursing homes is a great option.
The two biggest factors to make a vending machine business profitable is location and product selection. If you don’t have the time to scout for a good location, you can outsource the job to a vending locator. Alternatively, you can use our list building service to get a list of potential locations in your area with their contact information. Learn more about this service here.
What’s the Cost of Buying a A Single Vending Machine?
The prices of a new vending machine in the United States ranges from $3,000 to $8,000 depending on specification, with vending machines outside your house being the priciest. Used vending machines are available on reseller sites such as eBay from as low as $300.
- Snack vending machines: first thing to look at. Simple snack machines designed for the indoors are the most affordable. Prices of snack machines range from $3,000 to $6,000.
- Soda vending machines: drinks vending machines start from $3,600 when new. With some companies adding several unique features and payment options to their machines, you will find some soda vending machines retailing for upwards of $6,000.
- Candy machines: candy vending machines start from around $1,500.
- Outdoor vending machines: if you want to put a vending machine outside your house or shop, an outdoor vending machine is the better option. Good ones with sturdy construction and full weather-damage-protection features range from $6,000 to $8,000.
When starting a vending machine business, you must set aside money for various expenses and capitalization requirements. Also, think about the multitude of financing options for your vending machine business. Before you install the vending machine, pay for a license from the local government. The initial cost of stock will also set you back a significant amount.
Where to Buy Used or New Vending Machines
You can find used vending machines on eBay from as low as $300. The prices for used vending machines in excellent condition start from $1,000. Since it is an auction site, other bidders may drive up the prices of good vending machines.
For new vending machines, you can source locally in the United States or get one shipped from China. Manufacturers in China sell directly to consumers via Alibaba and Made-In-China. The minimum order quantity for most sellers is just one. When comparing prices of vending machines from China and one already in the United States, factor the cost of shipping into the price.
Buying a vending machine locally may be the better option if you want to take advantage of generous financing offers. Below are some of the reputable vending machine sellers in the United States:
- eVending has a great selection of snacks, drinks, and combo vending machines. They also do customization and branding. Financing options range from 6 months to 48 months.
- Drop’s Vending sells both new and used vending machines. They also sell some of the best outdoor vending machines on the market. This is a great place to buy refurbished vending machines since all their coin and bill validators come with a one year warranty.
- Sam’s Club has a great selection of vending machines priced from around $3,700 to $6,300. They sell vending machines from Selectivend and Seaga Manufacturing.
- Vending.com supplies vending machines direct from the factory. They have one of the largest selection of vending machines. All the vending machines are manufactured in the United States. Financing options of up to 48 months are available (100 percent finance).
- Discount Vending sells both new and used vending machines. The machines have modern features, including touch screens and mobile payments systems. You can request graphic customization's - they will add your logo and colors to the vending machine.
A vending machine is a significant investment and it won't turn profitable just like that. Do extensive research and compare features and financing terms before you commit to one.
Final Thoughts
You can put a vending machine outside your house if the local government allows vending in residential areas, and the vending machine is not a vape or cigarette vending machine. The law requires vendors to put vape and cigarette vending machines in adults-only establishments such as private clubs and bars.
While you can put a vending machine outside your house, it may not be the best idea to place a vending machine outside your house because of limited foot traffic. If you want to make money off of it, vending machines are most profitable in recreational parks, office buildings, main streets, college campuses, industrial parks, waiting lounges, car dealerships, and other high-traffic locations.
We can help you find such high-traffic locations in your area. We will build a list of these locations and their contact information so that all you have to do is make a call to confirm if they are open to adding a vending machine to their property. Here is how it works.