How to Start a Gumball Machine Business

Every entrepreneur hopes to build a business that makes money without any direct involvement. Passive income isn’t just a pipe dream, though. There are plenty of opportunities that return profits while you kick back and relax - like a gumball machine vending business.

For more than 30 years Gumball.com has helped people like yourself figure out how to start a gumball machine business, providing expert insights with the best gumball machine selection online at the lowest prices the industry has to offer.

We’ll walk you through the process of getting your business off the ground below, from choosing the right machines to finding the best locations for maximum profits. You’ll learn all about the little nuances nobody else is telling you about, too.

But first things first - are gumball machines profitable? Let’s talk about the financial side of this business venture before getting into our step-by-step guide. 

Is Starting a Gumball Vending Machine Business a Good Idea?

The short answer is yes - for the right person with the right expectations, that is. The barriers to entry are incredibly low and the upside is very high. There’s almost no upkeep needed other than routine cleaning and restocking. A single quarter turn can provide a 300% ROI.

But are you going to get rich overnight running a gumball vending machine business? Not by any stretch of the imagination. Although we’ve seen 7-figure gumball vending businesses, these are scaled up over time - and the operator usually started small.

We don’t want you to waste your time or money if you’re not in this for the long haul, so let’s get into the pros and cons of this business model to see if it’s right for you.

Pros of Running a Gumball Vending Business

• Low Startup Costs: You can launch a gumball vending business for as little as $100 per machine. It’s one of the most affordable business ventures out there.
• Minimal Overhead: No rent, no electricity costs (for standard machines), and no employees to manage. Your only ongoing expenses are restocking gumballs and occasional maintenance.
• High Profit Margins: A gumball costs about $0.02-$0.05 when bought in bulk but sells for $0.25-$0.50. So while the actual income from a single machine might not be all that impressive, the profit potential is. This leads to the next point… 
• Scalable Business Model: If one gumball machine nets you a few hundred dollars a month, imagine what 10 or 20 gumball machines can do. You can grow at your own pace. Successful operators start small, reinvest profits, and build up to dozens of units.
• Easy to Operate: There’s no complicated technology involved - just a simple, coin-operated mechanism. A machine runs itself with only occasional restocking and cleaning needed once it’s placed.
• Long Shelf Life for Products: Gumballs last years without expiring, so you don’t have to worry about waste like in snack or drink vending.
• Evergreen Demand: Gumball machines appeal to kids, nostalgic adults, and impulse buyers. Nobody with a few quarters will think twice about turning the knob.

Cons of Running a Gumball Vending Business

• Location is Everything: A poorly placed machine won’t make money. Choosing the right spot is the biggest key to success. You need to be careful about getting locked into a long-term lease at a spot that’s a dud. On that note…
• Competition for Prime Locations: Great vending spots are in high demand. Some businesses charge rental fees or request a percentage of profits for machine placement. Trust us, though - it’s worth it when you find a gold mine location!
• Cash-Only System: Gumball machines only accept quarters, so you won’t benefit from credit card or mobile payments as modern vending machines do. As cash becomes less and less prominent you may find revenue dips.
• Requires Regular Restocking: While the workload is light, you still need to refill machines to keep them running - or pay someone to handle it on your behalf, which cuts into profits. High-traffic locations may require weekly restocking.
• Machines Can Be Tampered With: Gumball machines are sturdy, but they’re not theft-proof. You’ll need to make sure you have your machine anchored into the ground in a location with high visibility. Regularly empty the change you earn to avoid losses.

Is it the Right Choice For You?

Ultimately only you can determine if you want to learn how to start a gumball machine business. We believe the pros dramatically outweigh the cons. This is a simple, low-risk venture for anyone who wants a passive income stream with minimal day-to-day work.

This venture can be anything you make it, too. Maybe you have a full-time job but want to earn a few hundred (or a few thousand!) dollars on the side with a few machines. No problem. Or, perhaps you want to scale to the point your gumball machine income replaces your full-time job.

With low start-up costs and even lower ongoing costs of operation, this is something anyone can do. You just need to be willing to put in the work to find the right locations. That’s what will make or break your success in this journey. 

So, let’s get into starting a gumball vending machine business below! 

How to Start a Gumball Machine Business: Step-by-Step Guide

The best part about making the decision to start a gumball machine business is how straightforward it is to take the first step. You just need to secure a good location and pick the right gumball machine, fill it up, and let it do all the heavy lifting. It’s that simple!

Notice we said simple - not easy. Picking the right location makes or breaks your success. But we need to actually take a step back and figure out what success with a gumball vending machine business looks like to you.

Determine Your Budget and Business Goals

Like we said earlier, this business can be whatever you want it to. If you only have a few hundred dollars to invest and you don’t want to take on much stress, start with a single tabletop or single-head machine in a local business.

This is a great way to start because you’ll get to test the waters and see how much work running a gumball vending business is (spoiler alert: it’s not much work at all!). This side hustle approach can net a few hundred extra per month.

On the other hand, those with a more substantial amount of capital to invest and loftier goals can start bigger with 3-5 machines. This might cost anywhere from $500-$2,000 depending on the style of machine you go with. 

But, you could scale up much quicker this way and start generating real income that replaces a full-time job. Speaking of different types of gumball machines, let’s help you weigh your options.

Choosing the Right Gumball Machines and Gumballs

There are so many different types of gumball machines, each with its unique appeal. For instance, the tabletop gumball machine is great for placing on the counter at checkout and encouraging an impulse buy with spare change.

On the other hand, a gumball machine on stand or spiral gumball machine are more sophisticated, standalone units that need more space - but they capture attention in a way a tabletop unit cannot. Here’s a breakdown of different machines we recommend starting with:

• Tabletop Gumball Machines ($50-$200): Best for home use or small retail counters.
• Single-Head Machines ($100-$350): Standard vending model, ideal for first-time operators.
• Double & Triple-Head Machines ($200-$600): Let you sell multiple products (gumballs, candy, toy capsules) from one stand.
• Spiral Gumball Machines ($700-$5,000+): High-visibility, interactive machines for malls, movie theaters, and entertainment venues.

Machines aside, you also need to fill your unit with the right gumballs! Buying 1 inch gumballs in bulk will be your best bet as this is the standard size most machines support. Smaller gumballs offer more vends per refill, increasing profits. 

You can leverage brand recognition to draw in more customers, too. For instance, a display showcasing Dubble Bubble gumballs in bulk captures attention way more than something generic would.

Or, you can offer something unique like bulk sugar-free gumballs to capitalize on health-conscious appeal. This would make sense for someone with a double or triple-head setup trying to offer something for every user.

Whatever approach you take, always buy bulk gumballs to maximize profits. You can get prices as low as $0.02-$0.05 per gumball this way, and then turn around and sell them for $0.25-$0.50 each!

Finding a good supplier for your initial machines and your ongoing gumball needs can save you a ton of stress and help set you up for success. That’s where Gumball.com comes in.

Set Yourself Up for Success With the Lowest Prices at Gumball.com

We’ve been the #1 choice for gumball machines and all the supplies that make these work since 1993, earning a reputation for our unbeatable selection, industry-leading prices, and world-class customer service.

Your perfect machine is here in our catalog waiting to be discovered, be it an entry-level model or the best of the best, like a Beaver gumball machine. We have our own private-label Titan Gumball Machines for those trying to maximize value, too.

Our price matching policy states that if you find a better deal somewhere else, we’ll beat it by 10%. The lower your upfront costs, the faster you turn a profit. 

Plus, we have 9 different distribution centers across the country so you can place your order today and get your machine ASAP. Our customer support team is a click or call away if you have questions about which machines/gumballs are right for you, so don’t hesitate to reach out.

Finding the Right Locations to Install Your Gumball Machines

We said a few times already that the hardest part of starting a gumball machine business is picking the perfect locations for profitability. These are some of the most lucrative opportunities you can explore:

• Retail Stores & Supermarkets: Frequent shoppers = steady sales.
• Restaurants & Fast-Food Chains: Kids love gumball machines while waiting for food.
• Movie Theaters & Arcades: High entertainment value increases sales.
• Laundromats & Car Washes: Captive audience waiting for services.
• Malls & Shopping Centers: A mix of foot traffic and impulse buyers.

Of course, finding a viable location is just step one in how to start a gumball machine business. Then, you need to get the landlord to say yes to your machine. You’ll find that many are willing to let you install your machine just for the sake of offering a better experience for their patrons.

However, you’ll also come across businesses that want you to sign a lease, pay rent, or share a percentage of profits with them. We recommend steering clear of paying a monthly rental fee or getting locked into a contract. Profit-sharing is safer.

If you can, try and test your machine in a location for 60-90 days. If sales are slow, it may be worth moving the machine elsewhere than continuing to settle for abysmal results.

Marketing Your Gumball Machine Business

Even vending needs a little marketing - but not in the sense that you need to run digital ads or local campaigns. Just be sure to use custom decals and branding on your machine that make it pop and captivate users. 

We provide displays with our machines to help with this. But, you can also leverage limited-time gumball flavors or holiday-themed gumballs to keep things fresh. 

Restocking and Maintaining Your Machines

There’s not a whole that goes into running your gumball vending machine business once you find a good location and install the unit. However, regular restocking is essential. Anytime your machine is empty you’re losing money.

High-traffic locations might need to be refilled weekly or biweekly, whereas others might only need to be topped off once a month. You should also make time for regular maintenance which may include:

• Checking for jammed coins or stuck gumballs.
• Cleaning the machine exterior and dispensing area.
• Inspecting coin mechanisms to ensure smooth operation

A little TLC goes a long way in helping you sell more gumballs and protecting your initial investment.

What to Do If Your Machine Isn’t Selling Well

Ideally you’d install your machine, spend a few minutes a week restocking it, and rake in the profits. That isn’t always how it goes when you start a gumball vending machine business of any sort, though. Here are some things to try if sales are trickling in too slowly for your taste:

• Assess the Location: Is low foot traffic holding you back? Move the machine to a busier spot.
• Improve Visibility: Is the machine tucked away? Move it near checkout lines or high-traffic areas.
• Change the Product Selection: Are the gumballs fresh and colorful? Try flavored, oversized, or branded gumballs.
• Test Different Pricing: Some locations do better at $0.50 per vend than $0.25. You might make more or less the same sales but at double the price!
• Check for Mechanical Issues: Customers may walk away if coins aren’t dropping properly. Again, preventative maintenance prevents this. 

A vending machine should never sit idle. If it’s not making money, make a change.

Start Scaling Your Business Higher!

Once your first machine is profitable and stable, it’s time to expand. Reinvest profits to buy more machines and place them in new locations. Or, replace an existing machine with a double or triple head upgrade if you find a home-run location.

You can also scale your business by lowering costs. Try to negotiate better terms with your malls, entertainment centers, and grocery stores you’re set up in. 

Every additional machine increases your passive income, and before long, you’re running a full-time vending business. But you have to start somewhere, and what better time and place than right here, right now at Gumball.com? Take the next step now.

Bringing Our Gumball Machine Business Guide to a Close

That does it for our guide on how to start a gumball machine business. This can be an affordable, low-maintenance, and lucrative opportunity for the right individual. It’s just a matter of getting the right machine, with the right gumballs, installed in the right location.

Whether you’re starting with one machine or scaling to dozens, the potential for steady, hands-off revenue is real. You’ll wish you’d started sooner once you see what’s possible with a gumball vending machine business!

On that note, they say the best time to get started working towards any goal was yesterday. The next best time is today. So, turn quarters into profits with a gumball machine from Gumball.com!