Are Vending Machines Profitable?

Whether you’re a business owner trying to earn more income by installing vending machines in space that is currently being wasted, or you want to start your own vending machine run as a side hustle for passive income, you’ve probably heard all about the potential these have to offer.

It sounds great in theory - spend a few thousand dollars on machines, get them set up, and restock them every so often. The cash rolls in on autopilot. But are vending machines profitable still in 2025? Just how profitable are vending machines?

We’re here to help you set your expectations for vending machine business profits. The truth is these can be a gold mine if you choose the right location and offer the right products in your vending machine. Easier said than done, of course.

Follow along for tips on building out and running the most profitable vending machines, or take the next step by exploring our vending machines for sale at Gumball.com. We carry the top brands and offer a price-matching guarantee to help maximize your ROI!

What is a Vending Machine Business?

This fully automated retail operation is a compelling choice for any entrepreneur looking for as passive a business model as possible. Vending machines are also a great choice for existing businesses with a physical location trying to earn more income.

These machines run themselves - albeit with a bit of help restocking and cleaning them now and then. You don’t need staff or your own physical storefront, and you can sell anything from snacks to drinks, toys to personal items, and so much more.

The biggest advantage of vending is convenience - not just for the operator but also the customer. Users get exactly what they need, when they need it. Meanwhile, vending machine owners can earn 24/7 with minimal hands-on involvement.

Your vending machine will continue working around the clock once you’ve placed it in a busy location - be it a hotel, office building, school, gym, airport, laundromat, retail store, restaurant, mall - the possibilities are endless.

Plus, the startup costs are low and it doesn’t take a genius to make this business model work. Anyone can start a vending machine business. But, is it really worth it? Are vending machines profitable?

Are Vending Machines Profitable?

The short answer is yes, they certainly can be. Just how profitable they are, though, is another story. Let’s start by adding up some of the costs associated with running a vending machine business before getting into the revenue and profits you could earn.

Understanding Startup Costs

Part of what may have drawn you to the idea of starting a vending machine business is how low the barrier to entry is. A basic gumball vending machine or candy vending machine is just a few hundred dollars. Even the more sophisticated types of vending machines cost under $10,000.

The specific price you pay for your vending machine depends on the type, the brand, and the technology. There are classic change-based vending machines and more advanced cashless payment systems.

Aside from the machine itself your only other startup cost will be the initial inventory for stocking the vending machine. This could be snacks, candy, drinks, toy capsules, or other products. Budget somewhere between $200 to $1,000 per machine upfront.

You might have to pay rent depending on where you install your vending machine, too. However, many businesses are willing to let you place the machine for free as a convenience to their customers.

If you do have to pay for the privilege to install your machine on a premise, though, it’ll likely come in the form of sales commissions rather than a monthly rental fee. This can be somewhere between 10-20%.

Ongoing Costs of Operation

Once you have your business up and running there will be ongoing costs of operation, mainly in the form of restocking inventory and managing the machine.

Since your biggest cost is going to be inventory, it’s worth buying in bulk to keep profits high. We sell all the essentials here at Gumball.com, ranging from candy to toys. 

You’ll also have to pay someone to stock the machines on your run and keep them clean, but you can handle this yourself at first to keep costs even lower. Professional servicing might be needed every now and then, especially for units that require electricity and/or refrigeration. 

How Much Money Can a Vending Machine Return?

So the costs are low, but what’s the potential return - are vending machines profitable or not? As we’ll explain below, it all comes down to the location you install the unit at and the type of product you sell. There’s no one-size-fits-all answer, but here are some general estimates:

• Low-traffic locations: $20-$100 per month
• Medium-traffic locations: $100-$500 per month
• High-traffic locations: $500-$1,000+ per month

A well-placed snack or drink machine earns $300-$500 monthly, while bulk candy and toy machines generate $30-$150. You can earn more or less depending on your pricing model. 

For instance, a bottle of soda costs $0.50–$0.75 wholesale but you can sell it for anywhere between $1.50-$3.00. You’ll have to play around with prices to find the sweet spot that maximizes income without scaring potential customers away. 

How Profitable Are Vending Machines?

In general, vending machines tend to pay for themselves within 6-18 months - and at that point, you’re earning pure profit. But how profitable are vending machines, exactly? There are four factors that impact your success with this business model.

Location Selection

The #1 thing to consider when starting a vending machine business is location. High-traffic areas like office buildings, schools, gyms, laundromats, and hospitals generate consistent sales. 

In contrast, machines placed in low-traffic areas or poorly chosen locations may struggle to turn a profit. The tricky part is finding a valuable location that doesn’t already have a vending machine. 

After all, you’re not the first person in your city to think about starting a vending machine business - but that doesn’t mean you can’t be successful! You’ll just have to get creative and do some due diligence.

Product Selection

Different products sell faster and at higher profit margins than others. Think carefully about what you want to sell. Snacks and drinks are vending staples because they have high demand and predictable turnover. 

These days, though, customers want healthy options. You might want to stock your vending machine with protein bars, low-sugar drinks, and other alternatives. Choosing combo vending machines ensures you’re offering something for everyone. 

But, toy capsules and bulk candy work well in family-friendly locations. The revenue potential may be lower than full-size vending machines, but the costs are much lower too. These are a good way to dip your toes in the water, so to speak.

Payment Options

Fewer people carry cash today than 10 years ago. That’s a fact. Vending machine businesses are evolving by offering cashless machines with credit card readers and mobile payment options. We’ve seen it said these can boost sales by between 25-40%!

Maintenance and Restocking Frequency

Every moment your machine is out of stock or not working, you’re losing money. Operators who take maintenance and restocking seriously will earn more than those who try to treat this business model as hands-off as possible.

Tips for Running the Most Profitable Vending Machines

So are vending machines profitable? They certainly can be. It’s a simple business model with low startup costs, so you don’t have too much to lose! Here are some tips on running the most profitable vending machines.

Choosing the Right Locations for Maximum Sales

We might be starting to sound like a broken record, but the biggest factor influencing vending machine business profits is location. You need to do your research into the most lucrative opportunities in your area to maximize your chances of success. Our favorite spots include:

• Office buildings & break rooms: Employees need snacks and drinks throughout the workday.
• Schools & universities: Students rely on vending for quick meals and study snacks.
• Gyms & fitness centers: Protein bars, energy drinks, and water are always in demand.
• Laundromats: A waiting audience looking for snacks, drinks, and laundry essentials.
• Hotels & motels: Guests often need late-night snacks and travel necessities.
• Hospitals & medical centers: Long waits create demand for quick, convenient food and drinks.

Think about it like this - what areas in your town have a lot of foot traffic and captive audiences? Jot down places people might be sitting around where they’d be hungry, thirsty, or need something to entertain their kids. 

Then, visit those places and see if there are vending machines in place already. If so, great! It means you’re on the right track - you just need to find a similar business without a vending machine and make your pitch.

If that location doesn’t have a vending machine, you may have found a gold mine.

Stocking Your Machine With the Best-Selling Products

Even with the best location, your vending machine is only as profitable as the products inside. Some products naturally have higher profit margins than others, while certain products move faster than others. You want to strike a balance between high turnover and profits:

• Drinks: Bottled water, soda, energy drinks, iced tea, and sports drinks.
• Snacks: Chips, trail mix, candy bars, granola bars, and popcorn.
• Health-conscious options: Low-sugar drinks, protein bars, nuts, and dried fruit.
• Specialty vending: Laundry detergent, phone chargers, personal care items, and travel essentials.

Think back to where you’re installing the machine and what that audience might need. You probably wouldn’t want to offer candy at a gym - but energy drinks and protein bars make sense. 

In a laundromat vending machine, you might include snacks and drinks but also toys so parents doing laundry can keep their kids busy. It also makes sense to include detergent, dry sheets, etc. in these machines.

You’ll want to keep track of inventory over time and try swapping out slow-moving goods with something else. Anything that isn’t moving in your vending machine is a liability. 

Optimizing Pricing for Maximum Profitability

Pricing is a fickle beast. On one hand, you can earn higher vending machine business profits by charging more. But at a certain point, you’re deterring customers with cost. How do you find the sweet spot? 

To a certain extent you can think about your location. Right or wrong, customers expect to pay more at places like airports, hotels, and hospitals than they would at their own office or a school.

Ultimately, though, it’s a matter of finding a profit margin you’re comfortable with. This could be a markup of 25% or 50% on the products you sell depending on your goals. Our advice is to start at the lower end and raise prices gradually, say, by $0.05-$0.10 at a time. 

More advanced machines give you the ability to use bundled pricing, too. You can offer multi-purchase discounts like, “Buy two, save $0.50” to earn higher revenue. 

How to Reduce Maintenance Costs and Downtime

A broken or empty vending machine is a money drain, like we said earlier. Check and refill your machines on a regular basis to avoid losing customers. Similarly, keep your machines clean - both inside and out. A dirty machine discourages sales as well.

Although there are services that will run your vending machine business for you, they cut into your profits. Let’s face it - this business model is passive enough as is, you can afford to do a bit of the heavy lifting to maximize vending machine business profits!

Set Yourself Up For Success at Gumball.com!

Gumball.com has been helping vending operators succeed for over 30 years by providing top-rated vending machines for snacks, drinks, toys, and bulk candy at unbeatable prices. In fact, we will beat any competitor’s price by 10%!

You’ll also get bulk pricing on the vending products you offer to help maximize your vending machine business profits. Perhaps more importantly, though, you gain access to world-class customer service every step of the way.

Whether you’re looking for a classic gumball machine on stand or a soda vending machine, explore our catalog or get in touch today. Take the next step towards starting a profitable vending machine business!

Final Words on Vending Machine Business Profits

In closing, are vending machines profitable? The right machine installed at the optimal location, stocked with the perfect products, can be an absolute gold mine. 

Be wary of anyone telling you this is a get-rich-quick scheme, though. Anything that sounds too good to be true is. Vending machines won’t turn you into a millionaire overnight, so you need to set your expectations.

That being said, you can supplement your existing income or generate a new source of passive income through vending machines - that is a fact. We’re here to help you get started.

Whether you’re trying to set up profitable gumball machines or profitable candy machines, your search ends here at Gumball.com. Find the perfect machine and see how profitable this venture can be firsthand!