Recycle Track Systems

Reverse Vending Machines – What Are They and How Do They Work?

reverse vending machine business plan

As the world attempts to reduce its carbon emissions and improve recycling rates , we’re increasingly looking towards technological innovations to help us develop more circular economies . From sophisticated waste tracking through improved recycling facilities to more sustainable products and materials, every stage of the business and consumer journey can be enhanced and streamlined.  

One such method that is increasingly gaining traction in the US is the introduction of reverse vending machines, or RVM systems as they are otherwise known. But what exactly is an RVM and how do they work? This article will look at these innovative machines and explain how they can improve our recycling rates. Read on to learn more.

What Is a Reverse Vending Machine?

A reverse vending machine, often known simply as an RVM, is a specialized device designed to automate the process of collecting and recycling waste, most commonly used beverage containers such as plastic bottles , glass bottles, and aluminum cans . They work to increase recycling rates by providing convenient and accessible deposit return systems that deliver incentives to consumers, helping to reduce glass, metal and plastic waste .  

While today there are a variety of different types in use, they generally work in similar ways, identifying, sorting, and sometimes cleaning used items which are then sent to recycling facilities. Below, we explore how RVMs work in more detail.

How Does a Reverse Vending Machine Work?

Working behind the scenes, reverse vending machines are a blend of cutting-edge technology and innovative engineering that aim to boost recycling rates through incentivisation. They do this by accepting, identifying, and sorting different types of waste and then rewarding or reimbursing the consumer for depositing them.  

  • Consumers insert used containers into the designated slot upon approaching the machine.
  • The machine works using sensors to identify and validate the material, ensuring it meets recycling criteria. This may be done using AI technology or simply by scanning the UPC code or barcode .
  • Once verified, the machine cleans and sorts the material, separating types like plastic, glass, and metal. This ensures clean and sorted materials that minimize contamination.
  • Sorted materials are compressed or compacted for efficient storage and transportation to maximize efficiency and reduce collection frequency.
  • Compacted materials are stored within the machine until it reaches full capacity or scheduled for collection.
  • Users receive an incentive as a reward for their contribution to recycling efforts. This may be in the form of monetary refunds, coupons, or tokens for redemption at participating stores.

Finally, the overall aim of RVMs is to boost recycling rates by creating a positive experience for the end user and rewarding them for these good habits. This incentive-based system not only encourages recycling but also creates a feedback loop for users, reinforcing the importance of recycling and creating a positive impact .

Reverse Vending Machines Make Recycling Fun

If you’ve already read our plastic bottle recycling facts then you’ll know that recycling in the US remains a problematic issue, with rates for municipal solid waste (MSW) stalling at just over 30 % since 2005. In contrast, recycling rates in Germany , are just over 70%—where RVMs have been a fixture of grocery stores and other businesses since 2003.

So, with the successful implementation of RVMs in multiple countries showing the US the way forward, how exactly do they boost recycling rates and what other benefits can they bring? Below, we look at these questions in more detail.

  • Incentivized Recycling — Incentive-based systems where users receive rewards for recycling are a core function of RVMs. This includes incentives such as monetary refunds, coupons, or tokens that can be redeemed at participating stores or online, creating a positive feedback loop that reinforces the habit of recycling. However, the incentives also stretch to the business offering RVM can or b ottle recycling , with sustainability-aware consumers more likely to return to the store hosting the RVM.  
  • Engaging User Experience — RVMs make recycling interactive and engaging, allowing consumers to actively participate in the process of physically inserting products into the machine rather than just throwing them into single-stream recycling bins, or worse still, the trash. This hands-on approach fosters a sense of involvement and responsibility towards the environment by encouraging individuals to be more mindful of their recycling habits and the impact of their actions on the planet. This increased awareness often leads to better recycling practices and a reduction in waste.
  • Education and Awareness — The role played by RVMs as educational tools, especially for children and young adults, should not be understated, since not only do they provide a tangible and visual representation of the recycling process , but they also reinforce and demonstrate good recycling habits. For example, if children witness the regular use of RVMs on weekly shopping trips, they are more likely to practice these habits when adults.
  • Efficient Material Sorting — RVMs utilize advanced technology to identify and validate materials, clean and sort the items, and separating them into different types such as plastic, glass, and metal. This ensures that the recycling process begins with clean and sorted materials, minimizing contamination down the line.
  • Reduced Contamination in Recycling Streams — Efficient sorting also ensures that the materials collected are of higher quality and less likely to be contaminated. This improves the overall recycling process and leads to higher quality recycled materials.
  • Convenience and Accessibility — RVMs are often conveniently located in high-traffic areas, making it easy for individuals to participate in recycling efforts. This accessibility, in shopping malls, supermarket s and grocery stores, and even at the Super Bowl for example, encourages more people to recycle and contributes to higher recycling rates.
  • Environmental Impact — By diverting a significant volume of waste away from landfill and incineration, RVMs play a crucial role in reducing environmental degradation caused by improper disposal of recyclable materials .
  • Job Creation — The implementation and maintenance of RVMs creates employment opportunities in areas such as machine servicing, material handling, and recycling plant operations. This not only benefits the environment, with more jobs contributing to a circular economy , but also contributes to the local economy.
  • Encouraging Innovation and Technological Advancements — The development and deployment of RVMs highlight the way technology and environmental consciousness can encourage sustainable innovation and tech advancements. Continued research and innovation in this field promise even more efficient and sustainable recycling solutions in the future.

What Happens to A Bottle or Can When It Is Recycled

When a bottle or can enters the recycling stream, it undergoes several stages that ultimately transform it into raw materials for manufacturing various products. The metal, glass, and plastic recycling process are all similar, with a few variations dependent on the material. Below we look at the process in more detail.

1. Collection and Transportation

After being deposited into a recycling bin, the bottles and cans are collected by recycling trucks and transported to recycling facilities.

2. Sorting and Cleaning

  • At the facility, the recyclables are sorted based on material type using a combination of manual labor and automated processes. Magnets and conveyor belts may be used to separate metals from non-metals.
  • Once sorted, the items go through a cleaning process to remove any contaminants, such as labels, caps, and residual liquids.

3. Shredding and Crushing

Bottles and cans are then mechanically shredded or sent to a crushe r to reduce the size of the materials and increase storage capacity . This increases surface area and aids in the subsequent processing steps.

4. Melting or Molding

  • For metal cans, the crushed pieces are typically melted down in a furnace. This molten metal can then be molded into new products.
  • For plastic bottles, the pieces are melted and reformed into small pellets. These pellets serve as raw material for the production of a wide range of plastic items.
  • For glass, items are crushed and melted down.

5. Refining and Purification

I n some cases, especially with metals, there may be additional refining processes to remove impurities and achieve the desired quality for manufacturing.

6. Manufacturing New Products

The refined materials are then sent to manufacturers. They use these recycled materials as feedstock to produce new bottles, cans, or other products.

7. Distribution and Sale

The newly manufactured products are distributed to retailers, where consumers can purchase them.

8. Reuse and Recycling Cycle Continues

When consumers finish using these newly manufactured bottles or cans, the cycle can repeat. They can be recycled again and used to create even more products.

The rise of RVMs across the US is perhaps unsurprising given the challenges currently faced by the waste management industry, and their success in other counties can be a real-world example of how they might boost recycling rates. In addition, as the technology develops, it’s likely that smart reverse vending machines will become more advanced, further boosting the number of products that can be recycled, while simultaneously streamlining collection, sorting, cleaning, and diversion of materials.

Finally, as a tangible way to engage individuals in the recycling process, positive feedback loops that foster a culture of environmental responsibility can change attitudes and perspectives towards disposable mindsets—helping to create a more sustainable world for us all.

For more information on RVMs, a deeper look into our Cycle technology , and advice on how your business can improve its sustainability metrics, contact RTS and explore the blog today.

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Reverse Vending Machine Market Size, Share, Competitive Landscape and Trend Analysis Report by Product Type (Non-refillable, Refillable, and Multifunctional), Capacity (Less Than 200 Cans, 200-600 Cans, and More Than 600 Cans), and End User (Supermarkets, Communities, and Utilities): Opportunity Analysis and Industry Forecast, 2021-2030

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  • Report Code: A12784
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The global reverse vending machine market size was valued at $372.0 million in 2020, and is expected to reach $736.9 million by 2030, with a CAGR of 6.6% from 2021 to 2030. 

Reverse vending machine also called as automated recycling machine. Reverse vending machine can be used by consumers to return their empty food containers and drink containers and receive rewards such as cash or refund. Reverse vending machine offers an alternative way to recycle bottled containers in convenient and efficient manner. It is used in various places such as shopping complexes, airports, municipal, and metro stations. Increase in disposable income of individuals, which in turn, rise in spending on food and beverages, which is expected to rise in demand for more reverse vending machine for waste collection effectively, which fuels the growth of the global reverse vending machine. For instance, the disposable income of South African population grew by 5.7% from 4th quarter (September-December) 2018 to 4th quarter (September-December) 2020. 

Reverse-Vending-Machine-Market

The management of waste has emerged as a severe problem due to environmental policy, owing to massive quantities of waste generated every day due to growth in population. An increase in the urban population is expected to drive the global reverse vending machine market growth. For instance, by 2025, the urban population is expected to reach 4.3 billion, generating around 1.42 kg/capita/day of municipal solid waste, which is expected to rise in demand for reverse vending machines and fuels the growth of the global market. 

A government initiative to launch reverse vending machine for airport, metro stations, and railway stations for effective waste management practices, which fuels the growth of the global reverse vending machine market. For instance, Glassglow Airport launched reverse vending machine for effective waste management. This machine can accepts 650 cans, and 320 plastic bottles, which offered by waste management partner company Biffa Plc. 

Major player such as Tomra Sorting GmbH, VendingBox, and others are engaged in offering reverse vending machine for non-refillable containers. For instance, Tomra Sorting GmbH offers T-63 TriSort reverse vending machine that can handle up to three material fractions. It is best suitable for accepting all volumes of non-refillable containers. It has features such as robust, high-end look, and energy efficient. 

Refillable segment is projected to grow at a highest CAGR of 6.9%.

Growth in the foods & beverages industry across the globe, which is expected to rise increase the in amount of waste generated from population, is expected to propel demand for reverse vending machines for to collect and disposable of waste, fuels the growth of the global reverse vending machine market. For instance, the food & beverages industry globally is expected to grow at a rate of 48.1% from 2020 to 2022. However, fluctuation in raw material prices, and high cost of reverse vending machines, are anticipated to restraints for the growth of the global reverse vending machine. Contrary, technological advancements in reverse vending machines such as AI powered machine, touch screen panel, and others, are anticipated to provide lucrative opportunities for the growth of the global reverse vending machine market. 

The global reverse vending machine market is segmented on the basis of product type, capacity, end user, and region. On the basis of product type, the market is divided into non-refillable, refillable, and multifunctional. Non-refillable segment generated the highest revenue in 2020. Based on capacity, the market is divided into less than 200 cans, 200-300 cans, 300-600 cans, and more than 600 cans. More Than 600 cans segment dominated the market in 2020. On the basis of end user, the market is categorized into supermarkets, communities, and utilities. Supermarkets segment generated the highest revenue in 2020. 

More Than 600 Cans segment holds dominant position in 2020

Region wise, the global reverse vending machine market analysis is conducted across North America (the U.S., Canada, and Mexico), Europe (Spain, France, Germany, Italy, and rest of Europe), Asia-Pacific (China, Japan, India, South Korea, and rest of Asia-Pacific), and LAMEA (Latin America, the Middle East, and Africa). In 2020, Asia-Pacific was the highest contributor to the global reverse vending machine market share, and is anticipated to secure a leading position during the forecast period.

Competition Analysis: 

Key players profiled in this report include Sielaff GmbH & CO KG, Ake Environmental Technologies, Envipco Holding N.V., Endlos Innovations Private Limited, Tomra Sorting GmbH, Diebold Nixdorf, RVM Systems, Aco Recycling, Kansmacker Mfg, and Teraoka Seiko Co Ltd.

Asia-Pacific holds a dominant position in 2020 and LAMEA is expected to grow at a significant rate during the forecast period.

Key Benefits For Stakeholders

  • The report provides an extensive analysis of the current and emerging global reverse vending machine market trends and dynamics.  
  • In-depth market analysis is conducted by global reverse vending machine market estimations for the key market segments between 2020 and 2030. 
  • Extensive analysis of the global reverse vending machine market is conducted by following key product positioning and monitoring of the top competitors within the market framework.
  • A comprehensive analysis of all the regions is provided to determine the prevailing opportunities.
  • The global reverse vending machine market forecast analysis from 2021 to 2030 is included in the report.
  • The key market players within market are profiled in this report and their strategies are analyzed thoroughly, which help understand the competitive outlook of the global reverse vending machine industry.

  Reverse Vending Machine Market Report Highlights

Analyst Review

The global reverse vending machine market has witnessed huge demand in Asia-Pacific region followed by LAMEA & Europe. The highest share of the Asia-Pacific market is attributed to the increase in demand for reverse vending machine for effectively collect and recycle the waste collected from municipal and residential sectors.

The reverse vending machine market has witnessed significant growth over past few years, owing to rise in urban population. Moreover, the rise in amount of waste generated from sectors such as food & beverages, medical and healthcare sectors, drive the growth of the global reverse vending machine market. In addition, rising awareness about recycling machine and services among population globally, which fuels the growth of the reverse vending machine market.  An increase in demand for reverse vending machines from commercial and municipal sectors such as supermarkets, airport stations, and metro stations globally is expected to provide the supplements for the growth of the global reverse vending machine market. Furthermore, a rise in environment related concerns fuels the growth of the reverse vending machine market.

However, fluctuation in raw material prices, and high cost of reverse vending machine, are anticipated to restraints for the growth of the global reverse vending machine market. Contrary, technological advancement in reverse vending machines such as AI powered machine, touch screen panel, and others, are anticipated to provide lucrative opportunities for the growth of the global reverse vending machine market.

  • Recycling Machine

The Global reverse vending machine market size was valued at $372.0 million in 2020

Based on product type, non-refillable segment holds the maximum market share of the Global reverse vending machine market in 2020.

The Global reverse vending machine market is projected to reach $736.9 million by 2030.

A rise in amount of waste generated across globally, which is the key trends in the reverse vending machine market.

The product launch is key growth strategy of Global reverse vending machine industry players.

The company profile has been selected on factors such as geographical presence, market dominance (in terms of revenue and volume sales), various strategies and recent developments.

Fluctuation in raw material prices which effects for Global reverse vending machine market.

The application of reverse vending machine system includes supermarkets, communities, logistics, and retail sectors.

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Reverse Vending Machine Market

Opportunity Analysis and Industry Forecast, 2021-2030

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  • Machinery & Equipment

Region : Global | Format: PDF | Report ID: BRI101975 | SKU ID: 21625333

Reverse Vending Machine Market Size, Share, Growth, and Industry Growth, By Type (Non-Refillable Type, Refillable Type, and Multifunction Type), By Application (Supermarkets, Community, and Utilities), Regional Insights, and Forecast To 2031

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Reverse Vending Machine Market REPORT OVERVIEW

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The global reverse vending machine market size is USD 287 million in 2022 and market is projected to touch USD 371.1 million by 2031, exhibiting a compound annual growth rate (CAGR) of 2.9% during the forecast period.

Automated recycling equipment is another name for the reverse vending machine. Customers can return empty food and drink containers to the vending machines to earn rewards like cash or refunds. An alternate, practical method of recycling bottle containers is provided by the machine. It is utilized in a variety of locations, including shopping centers, airports, municipalities, and metro stations. A rise in consumer expenditure on food and beverages, which in turn drives up the need for additional reverse vending to effectively collect waste, is what drives the global reverse vending machine market's expansion.

Substantial demand for various recycling solutions, including the vending machines, has been created by the alarming increase in the amount of untreated garbage. RVMs are used to dispose of waste and recover recycled materials more successfully. They also help make recycling and waste disposal more affordable. These devices use automated systems to collect and classify used containers, and in exchange, they offer cash incentives based on quantity. RVMs assist in promoting recycling, lowering landfill waste, reducing greenhouse gas emissions, and avoiding the use of virgin resources in the production of new goods. Numerous cutting-edge features, like a massive storage capacity, a UPC scanner, and a horizontal in-feed system, are present in these devices.

COVID-19 Impact: Change in Consumer Buying Behavior Hampered Growth

With lockdowns having an effect on the supply chain, the coronavirus pandemic has had a negative impact on the consumer goods business. The effects on food and beverage businesses are expected to be complicated, affecting supply and demand. The need for different consumer goods has increased as a result of a change in consumer behavior, however, and many customers have begun switching between brands. Manufacturers are simultaneously making decisions on how to address potential disruptions in the supply chain and determining how to enhance and satisfy consumer demand.

LATEST TRENDS

" Increasing Waste in Sectors to Surge the Market Growth "

The reverse vending machine market growth is anticipated to be backed by the growing amount of rubbish produced annually around the world. The market has benefited from growing environmental conservation and protection awareness. Additionally, rising government investment in downsizing and recycling plastic is forecasted to significantly fuel the reverse vending machine market growth. Numerous sectors have been drawn to use reverse vending machines owing to their capabilities. Due to the restricted number of landfills, an increasing amount of garbage has caused severe problems with disposal; consequently, recycling is crucial to efficiently manage waste. The existing manual recycling approach discourages users since they must gather the trash in large quantities.

Reverse Vending Machine Market Segmentation

  • By Type Analysis

By type, the market is segmented into refillable type, non-refillable type, and multifunction type.

  • By Application Analysis

Based on application, the market is classified into supermarkets, community, and utilities.

DRIVING FACTORS

" Expanding F&B Industry to Foster the Product Demand "

The demand for reverse vending machines to collect and dispose of waste is likely to expand due to the expansion of the food and beverage industries around the world, which is anticipated to result in a rise in The amount of waste produced by the population. The expansion of the food and beverages industry is predicted to surge growth in the market. Additionally, technological improvements in reverse vending machines, such as AI-powered machines and touch-screen panels, may also create attractive chances for the expansion of the global reverse

" Rising Need for Disposing of Waste Material to Surge Growth in the Market  "

Restricted number of landfills and rise in the amount of garbage causes serious problems with disposing of the bottles made of aluminum, glass, or plastics. Consequently, recycling is crucial to efficiently manage waste. The existing manual recycling approach discourages users since they must gather the trash in large quantities. Because of this, the reverse vending machine is utilized in a variety of applications to give customers a refund by recognizing the value of each container. The installation of new machines and the maintenance of existing ones are expected to drive the global reverse vending machine market growth. To encourage garbage reuse, reduction, and recycling, the government has established new legislation. It is projected that this will increase demand for the product, which is estimated to surge the reverse vending machine market growth. 

RESTRAINING FACTORS

" Fluctuating Price of Raw Material to Hamper Growth in the Market "

Reverse vending machine growth is expected to be constrained by fluctuating raw material prices and the high cost of this equipment. The fluctuations in the price of raw materials is restricting various companies from adopting the product, which may limit the growth of the market.

Reverse Vending Machine Market REGIONAL INSIGHTS

" Europe to Dominate the Market Due to Adoption of an Innovative Waste Recycling Approach  "

Europe is expected to hold about 80% of the reverse vending machine market share due to the innovation and development of resource cycling projects coupled with the rising demand for the product.

North America is forecasted to show significant growth in the global market owing to the steady adoption of self-service technology in the global market.

Asia Pacific is estimated to show sizable growth attributable to the higher product penetration in countries coupled with the rising population in emerging economies such as India, China, and Japan. 

KEY INDUSTRY PLAYERS

" Key Players Focusing on Innovative Technology Development to Grow in Market "

Operators are using a variety of tactics to increase profits, including being in the ideal location with the correct products, buying in bulk, investing in smart vending machines to learn more about their customers, and other methods. For instance, hot food and sandwich vending machines may do well in office settings, academic institutions, and schools. In contrast, hot beverages like coffee, tea, and hot chocolate are in high demand in most public places. Players in the industry compete fiercely with one another because some of them have large customer bases and operate in multiple locations.

List of Market Players Profiled

  • Tomra (Norway)
  • Diebold Nixdorf (U.S.)
  • Sielaff (Germany)
  • Incom recycle (China)
  • Envipco (Netherlands)
  • Trautwein SB Technik Gmbh (Germany)
  • RVM Systems AS (Norway)
  • Kansmacker (U.S.)

REPORT COVERAGE

An overview of the product is provided along with the product description. Numerous industry elements are included in the research. The market insights are prepared by utilizing large sample sizes for data-gathering modules. The study provides in-depth market insights. The stage includes gathering market data or related data using a variety of sources and tactics. It involves going over and organizing all the information gathered during the previous advance. It also covers the investigation of information discrepancies found across various information sources. Market statistical and coherent models are used to assess and estimate market data. 

Frequently Asked Questions

Based on our research, the reverse vending machine market is projected to touch USD 371.1 million by 2031.

The reverse vending machine market is expected to exhibit a CAGR of 2.9% by 2031.

By type, the reverse vending machine market is segmented into refillable type, non-refillable type, and multifunction type. Based on application, the market is classified into supermarkets, community, and utilities.

Expanding the F&B industry to foster product demand and the rising need for disposing of waste material to surge growth in the market are the factors driving the reverse vending machine market.

Tomra, Diebold Nixdorf, Sielaff, Incom recycle, Envipco, Trautwein SB Technik Gmbh, RVM Systems AS, and Kansmacker are the top companies operating in the reverse vending machine market.

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Vending Machine Business Plan Template

Written by Dave Lavinsky

Growthink.com Vending Machine Business Plan Template

Over the past 20+ years, we have helped over 3,000 entrepreneurs and business owners create business plans to start and grow their vending machine businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a vending machine business plan template step-by-step so you can create your plan today.

Download our Ultimate Vending Machine Business Plan Template here >

What Is a Business Plan?

A business plan provides a snapshot of your vending machine as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan

University Vending Machine

Source of Funding for Vending Machines

With regards to funding, the main sources of funding for a vending machine business are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

The second most common form of funding for a vending machine business is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan. Venture capitalists will not fund a vending machine business.

Finish Your Business Plan Today!

Your business plan should include 10 sections as follows:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of vending machine business you are operating and the status; for example, are you a startup, do you have a vending machine business that you would like to grow, or are you operating a chain of vending machine businesses.

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the vending machine industry. Discuss the type of vending machine business you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.

Company Analysis

Vending Items

For example, you might operate one of the following types:

  • Food and snacks : this type of vending machine business typically offers pre-packaged snacks such as chips, cookies, etc., as well as perishable products such as sandwiches, ice cream, and fruit
  • Beverages : this type of vending machine can be for hot drinks (coffee, cocoa), or cold (soft drinks, water)
  • Candy : this type of vending machine is stocked exclusively with candy and gum
  • Other products : this could be healthy food options (granola, fruit, hummus, etc.), or consumer products such as electronics, movies, condoms, souvenirs, etc.

In addition to explaining the type of vending machine you operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

  • When and why did you start the business?
  • What milestones have you achieved to date? Milestones could include sales goals you’ve reached, new machine locations, etc.
  • Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the vending machine business.

While this may seem unnecessary, it serves multiple purposes.

First, researching the vending machine industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy particularly if your research identifies market trends. For example, if there was a trend towards selling advertising on vending machines, it would be helpful to ensure your plan calls for varying ad types and sizes.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your vending machine business plan:

  • How big is the vending machine business (in dollars)?
  • Is the market declining or increasing?
  • Who are the key competitors in the market?
  • Who are the key suppliers in the market?
  • What trends are affecting the industry?
  • What is the industry’s growth forecast over the next 5 – 10 years?
  • What is the relevant market size? That is, how big is the potential market for your vending machine. You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

Vending Machine Gatorade

The following are examples of customer segments: hotels, office buildings, correctional facilities, etc.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of vending machine you operate. Clearly correctional facilities would want different pricing and product options, and would respond to different marketing promotions than office buildings.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve (both the end customers (who purchase items in your vending machines) and the decision-makers (who approve your desire to place a vending machine in their facility).

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

Finish Your Vending Machine Business Plan in 1 Day!

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other vending machines.

Indirect competitors are other options that customers have to purchase from you that aren’t direct competitors. This includes convenience stores, grocery stores, pharmacies and restaurants that offer quick food. You need to mention such competition to show you understand that not everyone who purchases convenience items uses a vending machine every day.

With regards to direct competition, you want to detail the other vending machine businesses with which you compete. Most likely, your direct competitors will be vending machines located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

  • What types of customers do they serve?
  • What products do they offer?
  • What is their pricing (premium, low, etc.)?
  • What are they good at?
  • What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

  • Will you provide superior products?
  • Will you provide products that your competitors don’t offer?
  • Will you make it easier or faster for customers to purchase your products?
  • Will you provide better customer service?
  • Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Vending Machine Missing Items

Product : in the product section you should reiterate the type of vending machine business that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to snack machines, will you offer machines that sell items such as coffee or other consumer products?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the items you offer and their prices.

Place : Place refers to the location of your vending machine. Document your location and mention how the location will impact your success. For example, is your vending machine located inside a heavily trafficked office building, or gym, etc. Discuss how your location might provide a steady stream of customers.

Promotions : the final part of your vending machine marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

  • Making your vending machine clean and visually appealing to attract passing customers
  • Focusing on machine design and technology for a better user experience
  • Placing vending machines in strategic locations

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your vending machine such as procuring products, delivering and restocking, keeping the machines clean, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to place your 10th machine, or when you hope to reach $X in sales. It could also be when you expect to hire your Xth employee or launch a new location.

Management Team

Electronics Vending Planning

Ideally you and/or your team members have direct experience in the vending machine business. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in vending machines and/or successfully running retail and small businesses.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you serve 50 customers per day or 100? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities. For instance, if you spend $100,000 on building out your vending machine business, that will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100.000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a vending machine:

  • Cost of equipment like vending machines, refrigerated delivery trucks, etc.
  • Cost of maintaining an adequate amount of inventory
  • Payroll or salaries paid to staff
  • Business insurance
  • Taxes and permits
  • Legal expenses

Vending Machine Candy

Vending Machine Business Plan Summary

Putting together a business plan for your vending machine business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the vending machine business, your competition and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful vending machine business.

Download Our Vending Machine Business Plan PDF

You can download our vending machine business plan PDF here . This is a business plan template you can use in PDF format.

Vending Machine Business Plan FAQs

What is the easiest way to complete my vending machine business plan.

Growthink's Ultimate Vending Machine Business Plan Template allows you to quickly and easily complete your Vending Machine Business Plan.

Where Can I Download a Vending Machine Business Plan PDF?

You can download our vending machine business plan PDF template here . This is a business plan template you can use in PDF format.

Don’t you wish there was a faster, easier way to finish your Vending Machine business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how a Growthink business plan consultant can create your business plan for you.

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EcoVend

Reverse vending machines

Reverse vending machines swap recyclable materials such as plastic bottles, glass bottles and aluminium cans for special offer vouchers.

What is a reverse vending machine?

Reverse vending machines, or RVMs, are highly efficient recycling machines that are used by the general public to deposit empty, single-use beverage containers in return for a pre-paid deposit or non-monetary reward – for example, vouchers, discounts, credit, or charity donations. Once the machines are full, the compacted bottles and cans are collected for onward recycling. They play an important role in regions that run Deposit Return Schemes (DRS). For retailers, convenience stores, and other shopping locations, you will likely, as part of a DRS, have responsibility for the recycling of plastic, aluminium, and sometimes glass that is put onto the market.

Discover our full range of machines and what waste stream each model can assist with:

Reverse vending machines for can & plastic bottles

The RVM 100 is perfect for businesses that have multiple waste streams because the machine holds a capacity for aluminium cans and plastic bottles.

The RVM 200 is perfect for businesses that have multiple waste streams because the machine is able to sort and segregate aluminium cans and plastic bottles.

The RVM 400 range is perfect for businesses that have multiple waste streams because the machine holds a higher capacity of aluminium cans and plastic bottles.

Reverse vending machines for glass bottles

Our  reverse vending machines are designed to suit the needs of your business. The RVM 1000 is perfect for businesses that have a large quantity of glass drink bottles.

Perfect for large quantities of glass drinks bottles – visit to find out more about the range today.

Reverse vending machines for cans, plastic bottles & glass bottles

The RVM 1450 suits businesses that have multiple waste streams because the machine accepts for aluminium cans, plastic bottles and glass bottles.

The RVM 2000 is perfect for businesses that have multiple waste streams because the machine holds a capacity for aluminium cans, plastic bottles and glass bottles.

What are the benefits of a reverse vending machine?

Reverse vending machines have gained significant popularity in the last five years. Impressive levels of user engagement across Europe have led to up to 97% of beverage container recycling waste in some countries. The machines will accept empty aluminum cans, plastic, and glass bottles, and return a reward. 

Government Deposit Return Schemes (DRS) may vary with different rewards and/or rebates. Without DRS , discounts, promotions and special offers from participating businesses can all be offered including making charitable donations.

How do reverse vending machines work?

A highly efficient recycling machine that is used by the general public to deposit empty single-use beverage containers in return for a monetary or non-monetary reward. Once the machines are filled, the compacted bottles and cans are collected for onward recycling. RVMs provide a simple and effective solution to prevent beverage container waste from polluting our land and oceans.

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Uk deposit return scheme- return, recycle and reward, st george’s school install an ecovend machine, mrw national recycling awards finalists are announced….

reverse vending machine business plan

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Inside reverse vending machines

More than 50 markets across the globe now have deposit return systems up and running, and as these drink container recycling programs have grown in popularity, so too has the use of reverse vending machines (RVMs). Deposit return systems – usually mandated by law – encourage and incentivize recycling by adding a deposit to the price of a drink. This is paid back to the consumer when they return their empty bottle or can to a retailer or collection point for recycling.

RVMs were designed to automate that process, making drink container returns quicker and more efficient for the retailer and consumer than manual handling of containers. Consumers can put drink containers into an RVM and it will do the rest – scanning, sorting, handling and refunding the deposit.

Inside reverse vending machines is where the magic happens, because behind this simple and highly effective concept is a story of decades of innovation, research and development.

Using a reverse vending machine

TOMRA’s reverse vending machines vary in size to suit different requirements, from small convenience stores to hypermarkets (RVMs often located in retail sites) or even large bottle depots. Solutions range from a compact RVM with a footprint of less than 1 square meter, to high-capacity reverse vending systems that can collect more than 100 containers at once and process millions of containers per year. There are also  industrial, bulk solutions for counting and sorting centers.

What’s inside reverse vending machines?

Consumers only see the front end of the reverse vending machine, but that’s just the beginning. What happens behind the scenes is the truly impressive part, says Mickaël Fontaine, Head of Technology at TOMRA Collection. “The consumer-facing part of a reverse vending machine has a fairly simple, easy-to-navigate design, making the process easy and ensuring the user has a great recycling experience.”

This minimalist façade is deceptive – because behind that ‘hole in the wall’ where you insert your containers lies a highly sophisticated system inside the reverse vending machine, packed with cutting-edge technology.

Mickaël Fontaine continues, “Even the smallest machines have an array of intelligent and pioneering tools. The larger machines have all this and more, from high-speed recognition hardware and advanced embedded software, to vast backroom systems for collecting and sorting multiple material types at high volume.”

Identifying drink containers 

Reverse vending machines must quickly and accurately identify the containers that have been inserted. This means the quantity and type of containers can be tracked, allows the correct deposit refund to be paid to the consumer, and ensures only eligible containers from the local deposit return system are accepted. 

The recognition process inside the reverse vending machine begins before the bottle or can has even left the recycler’s fingers, in a tight collaboration between software and electronics/optics hardware. While the object is still in hand, the reverse vending machine detects the container’s barcode and security mark. Once the recycler releases the container, the machine detects its length, weight, shape and material. This instant recognition comes from TOMRA Flow Technology ™ and its 'OneRing' – a system of six cameras, on all sides, in a ring formation, taking up to 1500 photos per second, located just inside the container in-feed cone. An additional seventh camera detects the shape parameters of the container, and is responsible for object tracking while the container is in the in-feed area behind the OneRing.  

The RVM’s software can then understand whether it’s interpreting a barcode or QR code, the brand of the container, and build up a mathematical structure for what kind of container was just inserted – and then search in a database for whether it is a container that can be accepted. Different deposit return systems have different requirements, and the software has multiple extensions and plug-ins for ensuring the RVM technology can be used in different markets, and exchange data with different point-of-sale systems.

All the way on its journey through the reverse vending machine, the drink container is subject to strict object tracking, to ensure accuracy of the deposit refund. The sensor technology knows the shape and size of the bottle, its speed, and when it will arrive at the next location – and can detect if something has changed during that sequence. If a container is slightly dented, it will have a different behavior from the normal sequence, and can have a different arrival time, and as such the software factors in an expected window of time around that. The calculations for how the container will move through the reverse vending machine start as soon as the container is released from the recycler’s hand. Re-calculations are made if the recycler touches the container again or if the sensors detect fraud attempts.   

Mickaël Fontaine explains, “TOMRA’s engineers have spent decades refining and advancing the hardware and software that drive this process, and what they have achieved is incredible.” 

The sensor technology inside TOMRA’s reverse vending machines has advanced significantly. Laser recognition has been introduced, video cameras have been brought in – first for pattern recognition and later for continuous video surveillance, helping to boost accuracy and spot irregularities. 

“An especially pivotal moment for us was the introduction of TOMRA Flow Technology in 2013, and its 360-degree instant recognition. This was a world first, eliminating the need for the reverse vending machine to stop and rotate the container in order to scan the barcode, which saves valuable time and ensures a continuous flow of containers,” adds Mickaël Fontaine.  “Another particularly significant innovation was TOMRA True Vision ™, our crate recognition technology, which is the most advanced technology of its kind. It uses unique and patented optics and light-source systems, providing high-quality images and data to facilitate rapid recognition of entire crates of returned bottles, processing up to 21 crates per minute.” TOMRA True Vision uses stereo imaging to measure the length, width, height and corner properties of crates, and the dimensions of the bottles the crates contain. More recently, in 2019, TOMRA’s innovators rose to the challenge of creating a cutting-edge new machine called TOMRA R1 , a multi-feed reverse vending machine that accepts more than 100 containers at once. Here, consumers pour in entire bags of containers rather than inserting the containers one by one, for a faster and more convenient recycling experience, that also avoids sticky hands.  

TOMRA R1 has been a game-changer when it comes to consumer convenience and further improving the overall recycling experience.

The technology behind this was inspired by TOMRA’s industrial-grade equipment for counting and sorting, which uses a ‘singulator’ to line up containers in single file ready for recognition. This "bulk" technology was adapted to make it consumer-friendly and suitable for a smaller retail space. The multi-feed recycling experience has proven immensely popular and there are now hundreds of TOMRA R1 machines in use worldwide.

Time to sort 

The next crucial stage inside reverse vending machines is sorting the materials that have been collected. Once an RVM has identified the material type, the precise sorting directs the beverage container to a storage area, where there are designated collection bins for different material types. This storage area might be located in a separate "backroom" area behind a wall in a store for a modular reverse vending system, or in the case of a standalone (or "all-in-one") reverse vending machine the storage might be located just below the container in-feed.

Sorting needs vary between different markets, in line with their own deposit return system requirements. For example, some deposit systems require glass, cans, plastic and liquid paperboard to be separated in different storage cabinets in the reverse vending machine. Others allow some materials to be commingled in one storage cabinet.

Some of TOMRA’s RVMs can be equipped with up to seven high-capacity storage cabinets, and the modular design of this backroom container collection area means retailers can configure the storage area to suit their store size and layout (such as bending around walls and posts). 

Some deposit return systems also include refillable containers (such as plastic and glass), and the reverse vending machine’s sorting technology can ensure these are directed to their own separate collection area. When collection of refillable glass containers is required, TOMRA’s RVMs can be fitted with tables or “SoftDrop” areas, to which the containers are separately and gently moved, to avoid breakage and ensure safety.

The software controls the destination for each container. If the hardware detects that that one of the cabinets is open (for example, for emptying of the storage bin), the software can make the decision that re-routing to another destination is temporarily acceptable.

Maximizing capacity

A third key function performed inside reverse vending machines is compaction or crushing of the drink containers. This serves two important purposes.

Firstly, compaction “devalues” the redeemed containers and prevents them from being redeemed a second time, since they no longer have the correct shape and size for container recognition. In high-performing deposit return systems, containers are counted electronically, the transaction is recorded, and the return data is reconciled with the sales information received from beverage producers. Devaluation by the retailer is an essential part of this process, so that they can gain their deposit repayment.

Secondly, compacting containers significantly reduces their size. For example, PET bottles will be 2.5 times smaller and aluminum cans six times smaller once compacted. This means more containers can be stored in the reverse vending machine storage cabinets before changing out the bins, and more containers can be transported (for example, in collection trucks) each time materials are picked up. Not only does this save valuable space, it also reduces transportation costs and greenhouse gas emissions, as fewer trips are required.

Collaboration between hardware and software

It’s not just the hardware inside reverse vending machines that feature advanced technology.

On embedded software, TOMRA reverse vending systems have a distributed controlling system with nodes talking to each other over a standardized bus technology – a high-speed technology to send messages from one hardware part to another. This distributed node system is part of an item tracking system to enable precise image recognition and sorting.

The software powers, for example, the content of the reverse vending machine screen facing the consumer, for different phases in the recycling sequence: the idle screen between consumer recycling sessions, welcome screen when the session begins, and a thank-you screen. The software also does all the calculations of the container deposit refund at the end of a consumer’s recycling session, explains Mickaël Fontaine. 

Today’s RVMs are also online and feature an Internet of Things platform, providing real-time data to the system administrator, operators and regulators. We are always working to advance the capabilities of our RVMs, ensuring they provide maximum value today and in the future.

“Our API (application programming interface) integrations are a great example of this. They enable retailers to integrate their RVMs with their existing digital management system, which helps them to optimize RVM operations and maximize returns. We have also developed a range of digital tools that enable retailers and consumers alike to get the most out of their recycling experience.”

Digital tools inside TOMRA’s reverse vending machines include:

  • Notify+Assist: Providing a real-time overview of daily activity and trends, making it easier for retailers to plan staff’s time and RVM maintenance.
  • Voucher Control: Ensuring deposit refunds are only redeemed once and allowing customers to redeem refunds across the retail chain.
  • Reports: Identifying usage insights, helping to facilitate better management, plan smart staffing and reduce queuing time.

Two additional tools provide added value for the end user as well as the retailer:

  • myTOMRA: Making recycling fun and more convenient through a user-friendly app that helps customers find RVM locations, see the machines' status, track their recycling achievements, and collect their deposit refunds digitally.
  • In-store marketing: Providing additional opportunities for retailers to connect with consumers during the recycling experience: - Displaying marketing material or videos on the RVM screen. - Offering donation programs that allow customers to give their deposit to charity. - Printing promotional vouchers on RVM deposit receipts, so shoppers get savings while retailers encourage return visits.

A culture of innovation inside reverse vending machines

TOMRA’s first RVM was installed in 1972 and since then the company has strived to innovate and future-proof their solutions by continually monitoring market trends and assessing retailer and customer needs.

“TOMRA invests 8% of its yearly revenue in research and development (R&D), backed by a team of talented engineers who are driven by their genuine passion for recycling technology. That’s the reason we are a preferred partner to retailers and why we now have approximately 82,000 reverse vending installations around the world,” concludes Mickaël Fontaine.

The next time you return a bottle or can for recycling, take a minute to think about the impressive technology inside reverse vending machines, which helps to fuel the success of the world’s deposit return systems, making a positive difference across communities, businesses and the planet.

Learn more about TOMRA's reverse vending technology

Sensor technology: how tiny technology makes a big environmental impact, 50 years of tomra's reverse vending innovation, reverse vending machines.

Bottle inside reverse vending machine

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Vending Machine Business Plan: The Ultimate Guide

  • 6 months ago

You’ve looked into the steps of starting a vending machine business, but you haven’t developed business plans. We’ll help you create a vending machine business plan.

Adam Hill has owned and operated Hill Vending since 2014, when he bought a $120 vending route. Now he’s making over $600K in annual sales. He’ll share vending machine tips so you know how to estimate vending machine profits and other costs.

We’ll explain everything you need to know to communicate your business plan. These vending machine business links will send you directly to the section of the blog you want to read:

What Is a Vending Machine Business Plan?

Why you need a vending business plan, how to buy vending machines, vending machine business plan template, executive summary, company analysis, vending machine industry analysis, customer analysis, competitive analysis, marketing plan, operations plan, management team, income statement, balance sheets, cash flow statement, how much are vending machines, how to start a vending machine business, how much does a vending machine make, what do i need to start a vending machine business, write your vending machine business plan.

A vending machine business plan provides a snapshot of where your business is, where it’s going, and how you will achieve the business goals over the next three to 10 years.

Vending business plans will include market research on the vending machine industry, local vending machine associations, a marketing plan, an operations plan, and a financial plan to provide a clear path of how you expect your vending machine company to make money and grow.

Your chances of starting a successful vending machine business double by writing and following a vending machine business plan. Plus, companies that follow their business plans grow nearly 30% faster and get more funding than those without a business plan.

Make sure to update your vending machine business plan annually as your company grows and achieves its goals.

The main ways to buy a vending machine business are personal savings, credit cards, private loans from the current business owner, bank loans, and angel investors.

Private Loans

One of the top ways to get into the vending machine industry is to buy an existing vending machine business. Business owners will often agree to owner financing, where you pay 0-20% down and then pay off the remainder over one to five years.

Banks will want to review your vending machine business plan and decide whether they believe you can accomplish the goals you’ve included. More specifically, a loan officer will want to see a professional vending machine business plan to verify that your financial assumptions are reasonable.

Angel Investors

Another way to fund a vending machine business is by taking a loan or equity deal from angel investors. An angel investor is just a wealthy individual who helps people start businesses in exchange for a share of the profits.

Learn more about buying a vending machine .

You’ll want a business plan template for your vending machine business. Download our free vending machine business plan template below.

You’ll also get our How to Start a Vending Machine Business PDF.

Check out our other business plan templates for more resources or watch our interview with a business owner who started one of the fastest growing franchises in North America to learn how he writes a business plan.

What Should I Include in a Vending Machine Startup Business Plan?

A business plan for a vending machine company should include:

  • Competitor Analysis
  • Vending Machine Marketing Plan
  • Vending Machine Operations Plan
  • Vending Machine Financial Plan

Keep reading to learn what vending machine operators should include in their business plans. We’ll also provide examples of what key parts of a vending machine business plan might look like.

Vending machine operators should start their business plan with an executive summary. All an executive summary does is summarize what the rest of the document is about.

The executive summary should be under a page long and should include a sentence or two about each section so that people can get the main points quickly.

This section of your vending machine business plan should include:

  • An introduction to your company
  • Your company’s mission and values
  • The vending machine services you’ll offer
  • Your competitive advantage

In your industry analysis, you need to provide an overview of the vending machine business. Your research will help you understand the market, improve your strategy to utilize market trends, and prove to readers you know what you’re talking about.

Your vending machine business plan should answer the following questions about the vending industry:

  • How much do vending machines make a month? (Both as an industry and per machine)
  • How much of the industry revenue is in the local market? Use the industry revenue multiplied by your location divided by the U.S. population.
  • Is the market growing or shrinking?
  • Who are the market leaders in the industry?
  • Who are the primary vending machine manufacturers and suppliers of products?
  • What vending machine business trends will impact the industry?
  • What is the vending industry’s 5-10 year growth forecast?

I suggest using the IBIS World report we linked to earlier because it includes all the information about the U.S. vending machine market. You may need to purchase a local plan as well.

Industry Analysis Example

The vending machine industry makes $10 billion per year across 17,739 vending operators in the U.S. That means they make an average of $563,729 per year.

The average monthly revenue of a vending machine is approximately $2,000, which means a company needs 24 machines to earn the average across the industry.

The Las Vegas vending machine business market is approximately $69,343,972.03, and there are 99 vending machine operators , which means each vending machine operator is making approximately $140K per year more than the national average.

The market is expected to slightly decline in revenue, but companies that capitalize on existing trends like Apple Pay, Google Pay, and specialized vending machines are able to see growth by creating new markets in high-traffic areas.

According to ThomasNet , the major vending machine equipment manufacturers and suppliers are:

Adam suggested two manufacturers of vending machines he prefers to use.

In addition, snack foods and drinks are available from stores like:

  • Coke distributors
  • Pepsi distributors
  • Other distributors

Your vending machine business plan should describe the target market you will be providing vending.

Your target market will impact the pricing and product options you carry. Make sure to understand the demographics of the customers in each type of facility you serve. You won’t want to offer the same vending machine products in a gas station as you would a cardiac wing in a hospital.

Analyze customer demographics. You’ll want to discuss the age, gender, location, and income levels of decision-makers, their customers, and where you want to place your vending machines .

You’ll also want to include psychographic profiles, meaning the details of your customers’ wants and needs. You wouldn’t want to offer all candy and soda in a yoga studio vending machine because the students will probably want water and healthier snack choices.

Your vending machine business plan should include a competitive analysis that shows your understanding of the direct and indirect competitors you will be competing with for your target customers.

Direct competitors are limited to vending machine operators in the local area, while indirect competitors are any type of business where your target customers can get the same products.

A vending machine business will have indirect competitors, including grocery stores, convenience stores, delivery apps, pharmacies, and fast food restaurants.

Not mentioning these vending machine competitors may show lenders that you don’t realize there are other places where someone can buy the same products even when in a rush.

You want to describe in greater detail the other vending machine businesses you’ll compete with. Your direct competitors will be other vending machine locations within a mile of your machine.

Create an analysis of each local vending machine company that answers the following:

  • What locations does each business serve?
  • What items do they sell in the vending machines?
  • How do they price each item?
  • What are the machine owners’ competitive advantages?
  • What opportunities do they leave open?

After you’ve done this, you should be able to answer questions like:

  • How can I provide superior products?
  • What products can I offer that competitors do not?
  • How can I create an excellent customer service culture?
  • Can I beat their pricing?

Finding ways to provide better customer service at a similar or lower cost will provide a competitive advantage. Just make sure the pricing is correct for your vending machine business to be successful.

Have you ever heard of the 4Ps of marketing?

Every vending machine business should include them in its marketing plan.

This section of your vending machine business plan should remind the reader what type of vending machine business you are. Make sure to be specific about the products you’ll be offering in your vending machines. You’ll want to keep the product list consistent across vending machines.

You should have already analyzed how other vending machine businesses sell their products. Now it’s time to create your pricing guide. Adam suggests pricing the products at twice what you pay for them.

If you buy a 12-pack of soda from Sam’s Club for $12.99, then your vending machine company should be selling each can for $2.25 if the market will allow it. At the very least, factor in 50 cents profit per item.

Where will you be placing your vending machines? Document every location, the types of vending machines at the location, and how often you’ll need to check it.

You should also explain why each location is a good spot for a vending machine in your vending machine business plan. Learn more about vending machine placement .

The promotion section of a vending machine marketing plan documents how you will help people find your vending machine company and the locations where you have placed a vending machine.

Some promotional methods you might use for a vending machine company include:

  • A vending machine website
  • Adding your branding to your vehicle
  • Creating brochures for business owners
  • Focusing on vending machine experience and user experience (UX)
  • Keeping your vending machines clean and branding them to help people recognize your brand
  • Placing vending machines in strategic locations
  • Providing maps that show where your vending machine business is located
  • Sharing cool features of your vending machines on social media

You could also create a course to help other people learn how to start a vending machine business. That’s one of the ways that Adam has built upon his vending machine business. Check out our free vending machine training .

An operations plan is part of your vending machine business plan that explains your daily operations. Your operations plan should include two sections:

  • Long-term goals
  • Processes for operational excellence

Long-Term Goals

What milestones do you want to achieve in your vending machine company?

Your long-term goals might include the number of machines you want by a certain date, when you want to hire employees, and how much revenue you want within five years.

Make sure to add these details to your vending machine business plan.

Processes for Your Vending Machine Business

Your processes are the steps you will take during the day to keep your vending machine business running smoothly. Your main tasks will include:

  • Buy vending machine products
  • Store vending machine products
  • Deliver machines
  • Restock vending machines
  • Clean vending machines
  • Buy new vending machines
  • Secure contracts for vending machine placement
  • Buy vending machine routes
  • Provide customer service

You should also include your management team and business structure in your vending machine business plan. Planning for a team shows that you have thought through starting a vending machine business and realize that you can’t do everything.

While vending machine businesses are typically able to be run by a single person, that doesn’t mean you won’t need help from other professionals including:

  • Vending Machine Repair Person
  • Sales and Marketing

Hiring people to manage portions of the company you don’t understand will make starting a vending machine business much easier. Emphasize how your leadership team is going to make you more successful by touting their past experience.

Direct experience in the vending machine business is best, but if your team has experience in other areas that are related, it works well, too. An advisory board familiar with vending machines is also an option.

Financial Plan

When you own vending machine business assets, you need a financial plan. Your financial plan should cover one to five years from your vending machine business starting.

Three financial statements should be included with your business plan:

  • Income statement
  • Balance sheet
  • Cash flow statement

A Profit and Loss statement, P&L, or income statement shows your revenues and expenses to show how much money you made or lost.

You’ll have to make some assumptions when you create an income statement. Vending machine owners will need to make and document assumptions that answer the following:

  • How many products will you serve?
  • What will inflation be?
  • How much will revenue grow each year? How?

Example Vending Machines Income Statement

Let’s assume the following:

  • We bought 10 vending machines for $20,000 with $0 down and one year to pay $25K.
  • Revenue is $2K/month per machine .
  • Gross margins are 50% .
  • Taxes are 20% .
  • Marketing costs $1,000 annually .

Note: EBITDA = Earnings before interest, tax, depreciation, and amortization

Balance sheets are used to compare your assets and liabilities. Your balance sheet will show five sections:

  • Current Assets: Cash and items that can be turned into cash within a year, including accounts receivable, inventory, prepaid expenses, and marketable securities.
  • Long-Term Assets: Items that cannot be sold fast, like land, patents, brands, trademarks, goodwill, and vending machine equipment.
  • Current Liabilities: Any debt due within a year, including accounts payable, debt financing, payroll, rent, utilities, and other accrued expenses.
  • Long-Term Liabilities: Any debts that last longer than a year, including bonds payable, deferred taxes, leases, loans, and pensions
  • Shareholder Equity: Shares, reserves, and retained earnings are all parts of owners’ equity

Effectively, you are aiming to balance the equation:

Current Assets + Long Term Assets = Current Liabilities + Long-Term Liabilities + Shareholder Equity

Learn more about balance sheets .

Your cash flow statement shows how much money you need in your business bank account to cover startup costs and operating expenses until you are fully self-sustaining.

Your cash flow statement adjusts the net income to add:

  • Depreciation
  • Decreases in accounts payable
  • Increases in taxes payable
  • Increases in accounts receivable

Then you’ll want to subtract the cost of any inventory to get the cash from operations. You’ll also want line items for any investment or financing you need for the following items:

  • Cost of equipment like vending machines, refrigerated delivery trucks, etc.
  • Cost of maintaining an adequate amount of inventory
  • Payroll or salaries paid to staff
  • Business insurance
  • Taxes and permits
  • Legal expenses

The final part of your vending machine business plan should be an appendix that includes all the supporting documentation for your business plan. You’ll want to include tables, links, and citations so that anyone reviewing your vending machine business plan can verify your facts.

For the sake of brevity, in this Example Appendix, I am only including the formula I used for the Las Vegas Vending Machine Industry calculation.

Vending Machine Business FAQs

Buying a vending machine will cost anywhere from $100 for a small candy vending machine to a few thousand dollars for new and used drink or snack machines. The custom vending machine cost can reach $20,000.

Starting a vending machine business requires:

  • Establishing if the vending machine business will be profitable
  • Creating financial projections
  • Writing a vending machine business plan
  • Forming your vending machine business
  • Buying a vending machine
  • Getting products to fill your vending machine
  • Finding a location for your vending machine
  • Storing vending machine products
  • Maintaining vending machines
  • Restocking and collecting money from your vending machine investment

According to Adam, most vending machines make around $2,000 per month if they are in good locations.

Market research may show that other vending machines can have even better results, but use $2,000 a month per machine in financial projections for your business plan unless you can document that your machines will have better returns.

Of the $2,000, approximately 30% should be profits or wages.

The vending machine business model normally requires a:

  • Vending machine
  • Business license and LLC
  • Location for the vending machine
  • Way to handle refunds

Whether you decide to offer ice cream vending machines, coffee vending machines, or bulk vending machines, a vending machines business plan will help you make the most out of your new venture.

If you haven’t already, don’t forget to download your free business plan.

What will be your vending machines business model?

Brandon Boushy

Brandon Boushy lives to improve people’s lives by helping them become successful entrepreneurs. His journey started nearly 30 years ago. He consistently excelled at everything he did, but preferred to make the rules rather than follow him. His exploration of self and knowledge has helped him to get an engineering degree, MBA, and countless certifications. When freelancing and rideshare came onto the scene, he recognized the opportunity to play by his own rules. Since 2017, he has helped businesses across all industries achieve more with his research, writing, and marketing strategies. Since 2021, he has been the Lead Writer for UpFlip where he has published over 170 articles on small business success.

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Vending Machine Business Plan Guide + Example

reverse vending machine business plan

July 6, 2023

Adam Hoeksema

Welcome to our definitive guide on crafting a robust vending machine business plan, complete with a real-world example to get your entrepreneurial gears turning! Vending machines are silent salespeople that work around the clock, presenting a lucrative business opportunity that often requires minimal upkeep.  In this blog post, we will explore the ins and outs of developing a comprehensive strategy, covering key considerations such as location analysis, product selection, and financial planning. 

After talking to customers who purchased our vending machine financial projection template , we realized that many customers also needed a business plan to be able to present to a potential funder, so I decided to take a deeper dive on the topic. 

Here is what I plan to cover in this article:

  • Why write a business plan for a vending machine business?
  • What to include in a vending machine business plan?
  • Vending machine business plan outline

How to determine what type of vending machine to buy?

  • How to find a good location for a vending machine?
  • How to find a high foot traffic area for a vending machine?
  • How to create financial projections for a vending machine?

Example Vending Machine Business Plan

Vending machine business plan faqs.

With that as a plan, let’s dive in!

Why write a business plan for a vending machine business? 

If there was ever a simple business that didn’t require a strategic business plan it would be a vending machine business right?  You just have to buy a machine, fill it with candy, place it in a high foot traffic location and watch the money roll in right?  What is there to plan?  

If that is your attitude I actually don’t think you are too terribly far off, BUT the real reason to write a business plan for a vending machine startup is because your potential investors or lenders have asked you for projections and a business plan.  If that is the case, then you really just have to get it done right?  

What to include in a vending machine business plan? 

I think a vending machine business plan can really be quite simple.  Below you will find the outline from our free vending machine business plan template . 

Vending Machine Business Plan Outline

  • Executive Summary
  • Company Description
  • Market Analysis
  • Marketing and Sales Strategy
  • Operations and Management
  • Financial Plan

There are at least 10 types of vending machines that you could choose from.  There is also the question of whether you should decide on a location first or decide on a type of vending machine first and then find the right location for that machine.  We are going to take a look at the process for finding the right machine to buy first.   

The best choice for you depends on your budget, target market, location, and your personal preferences. Here are some steps to guide you in making the right decision:

  • Define Your Budget: The first step is to determine how much you're willing to invest in this business. Vending machines come in a range of prices, from a few hundred to several thousand dollars. Your budget will dictate whether you start with used or new machines, as well as the number and type of machines you can afford.
  • Understand Your Target Market: Understanding your customers is key. Conduct a market research to find out what products are in high demand in your desired locations. Are you targeting office workers who'd appreciate a quick snack or drink? Students who might need stationery or school supplies? Understanding the needs and wants of your prospective customers will guide you on the type of vending machine to invest in.
  • Analyze Location: The success of your vending machine business largely depends on where your machines are located. If you're planning to place your machine in a gym or health center, a vending machine selling healthy snacks or drinks would be ideal. For a location with lots of kids, a toy or candy machine could work well.
  • Maintenance and Operation: Certain types of vending machines require more maintenance and restocking than others. Consider how much time and effort you can invest in the maintenance of your vending machines. Some machines, like those selling perishable goods, require more frequent restocking and cleaning.
  • Supplier Relationships: Your choice might also depend on the suppliers you have access to. If you have a good relationship with a supplier of a certain product, it might be profitable to focus on that type of vending machine.
  • Profitability: Lastly, analyze the profitability of each type of vending machine you're considering. Some machines may cost more but have a higher profit margin, while others may be cheaper but have lower returns. Look at both the initial cost of the machine and the potential ongoing income it can generate.

Now that we have decided on a type of machine, we need to find a good location.  

How to find a good location for a vending machine? 

The location of your vending machine plays a critical role in determining the success of your business. Here's a step-by-step guide on how to find a promising location:

  • Identify High Traffic Areas: A good vending machine location is somewhere with high foot traffic. Look for places where people gather or pass by frequently. These could include shopping malls, office buildings, universities, airports, hotels, and busy street corners. However, remember that high traffic doesn't always mean high sales, as it depends on the needs and preferences of the people frequenting that area.
  • Understand Your Target Market: Knowing who your target customer is will help you choose the right location. If you're targeting office workers, you might want to place your vending machines in or near commercial buildings. If students are your target market, universities and colleges would be ideal.
  • Consider Location Compatibility: The type of products you plan to sell should align with the location. For instance, a vending machine selling protein bars and healthy drinks will likely perform well in or near gyms and health clubs. Likewise, a machine selling toys or school supplies might do well in a family-friendly mall or near a school.
  • Research Existing Vending Machines: Analyze the performance of existing vending machines in potential locations. Are they doing well? If so, similar products might succeed in that location. But be cautious about placing a similar machine too close, as it might lead to fierce competition.
  • Negotiate with Property Owners: Once you've found a potential spot, approach the property owner or manager to discuss installing your vending machine. Some might charge a flat fee, while others may ask for a percentage of the profits. Be ready to discuss why your vending machine would benefit their location, whether it's by providing a service to their customers or staff or offering them a share of the profits.
  • Review Legal and Zoning Requirements: Be sure to understand any legal or zoning requirements for vending machines in your chosen location. Some cities may have restrictions on where machines can be placed, so you'll need to check this out in advance.

Finding the right location takes time, research, and sometimes a bit of trial and error. But with careful planning and consideration, you can find a location that's a great fit for your vending machine business.

How to find a high foot traffic area for a vending machine? 

It can be difficult to find potential high foot traffic areas for your vending machine.  We have a foot traffic report that will allow you to select an address and receive a foot traffic estimate for that specific location.  As an example, I looked up an office building that I used to work at and can see it has roughly 18,000 visitors per month.    

A screenshot of a phoneDescription automatically generated

These reports can be incredibly helpful in identifying potential target locations for your first vending machine.  

How to Create Financial Projections for a Bar Business Plan

Just like in any industry, the vending machine business has its unique factors that impact financial projections, such as location selection, product assortment, and consumer foot traffic. Utilizing a vending machine financial projection template can simplify the process and boost your confidence. Creating accurate financial projections goes beyond showcasing your vending machine's ability to generate sales; it's about illustrating the financial path to profitability and the realization of your business goals. To develop precise projections, consider the following key steps:

  • Estimate startup costs for your vending machine business, including machine acquisition or leasing, product inventory, installation, permits, and initial marketing efforts.
  • Forecast revenue based on projected sales volume, product pricing, average transaction value, and anticipated foot traffic or demand in chosen locations.
  • Project costs related to product sourcing, machine maintenance and repair, and restocking expenses.
  • Estimate operating expenses like machine rental or location fees, utilities, insurance premiums, marketing, and administrative costs.
  • Calculate the capital needed to launch and sustain your vending machine business, covering initial expenses and providing working capital for continued growth and operations.

While financial projections are a critical component of your vending machine business plan, seek guidance from experienced professionals in the industry. Adapt your projections based on real-world insights, leverage industry resources, and stay informed about market trends, consumer preferences, and emerging vending technologies to ensure your financial plan aligns with your goals and positions your business for long-term success.

Below, you will discover the content of our vending machine business plan. For your convenience, you can access and edit this vending machine business plan template in Google Doc format by downloading it from this link. Additionally, we have provided a helpful video walkthrough to guide you in customizing the business plan to suit your unique vending machine concept.

Table of Contents

1. executive summary.

1.1 Organization Overview

1.2. Objectives

1.3. Mission Statement

2. Organization Description

2.1. Organization History

2.2. Legal Structure

2.3. Unique Value Proposition

2.4. Target Beneficiaries

3. Market Analysis

3.1. industry overview.

3.2. Collaborator and Competitor Identification

3.3. Target Beneficiaries

Key Point  1

4. Marketing and Fundraising

4.1. Strategic Plan

4.2. Program or Service Offerings:

4.4. Distribution Channels

4.5. Promotions and Fundraising

Key Point  2

5. Organizational Structure and Management

5.1. Organization’s Facility & Location

5.2. Staffing Plan and Volunteer Management

5.3. Governance, Financial Management, and Accountability

Key Point  3

6. financial plan.

6.1. Startup Costs

6.3. Expense Projections

6.4. profit and loss statement, 6.5. cash flow projections, 6.6. break-even analysis, 7. appendix.

7.1. Supporting Documents

7.2. Glossary of Term

7.3. References and Resources

Key Point  5

 1.1. company overview.

Briefly introduce the company's background, products or services, and target market.

      -  Example: FitFuel is a leading provider of convenient and nutritious snack options in Nashville, Tennessee. Our vending machines offer a wide range of healthier alternatives, including granola bars, nuts, dried fruits, and low-sugar beverages, to individuals seeking wholesome and satisfying on-the-go snacks.

   1.2. Objectives

Outlines the company's short-term and long-term goals.

        - Example: Establish a strong presence in key locations throughout Nashville, securing partnerships with high-traffic areas like office buildings, gyms, schools, and community centers.

    - Example: Long-term: Expand operations to neighboring cities and regions, introducing FitFuel  as a recognized and trusted brand in the healthy snacking industry

  1.3. Mission Statement

 Describes the company's purpose and core values.

        - Example: At FitFuel, our mission is to make nutritious snacks easily accessible to individuals in Nashville, empowering them to make healthier choices in their busy lives. We are committed to promoting wellness, providing exceptional customer experiences, and supporting our local community's health and well-being.

  1.4. Keys to Success

Highlights the factors that will contribute to the company's growth and success.

        - Example:  Our success hinges on offering a diverse range of high-quality, healthier snacks to accommodate diverse dietary needs, strategically placing vending machines in high-traffic areas for maximum convenience.

2. Company Description

   2.1. company history.

Provides context on the company's background and founding story.

        - Example: FitFuel was founded by Jo McClain, an entrepreneur passionate about promoting healthy snacking options. Inspired by personal wellness journeys, Jo established FitFuel in Nashville, Tennessee, to offer a range of nutritious snacks to health-conscious individuals seeking convenient and nourishing choices.

   2.2. Legal Structure

 Describes the company's legal structure (e.g., sole proprietorship, partnership, LLC, corporation).

        - Example: FitFuel operates as a sole proprietorship, with Jo McClain as the owner and responsible for the business's operations and management.

 2.3. Unique Selling Proposition

  Emphasizes the company's competitive advantage or unique offerings.

        - Example: FitFuel sets itself apart by providing a diverse selection of high-quality, healthier snack options that cater to various dietary needs and preferences. With an emphasis on granola bars, nuts, dried fruits, and low-sugar beverages, FitFuel offers a convenient and satisfying snacking experience that supports a healthy lifestyle.

  2.4. Target Market

Defines the company's ideal customer base.

        - Example: FitFuel caters to busy professionals, fitness enthusiasts, students, and anyone seeking wholesome on-the-go snacking options that align with their dietary goals.

  Presents a general overview of the industry, its trends, and growth potential.

        - Example: The healthy vending machine industry is experiencing significant growth, driven by the increasing demand for healthier snack options and a growing emphasis on wellness and nutrition. 

3.2. Competitor Analysis

 Evaluates the company's direct and indirect competitors, as well as their strengths and weaknesses.

        - Example: Direct competitors: Nourish-N-Go: Known for their wide variety of organic and gluten-free snacks, Nourish-N-Go has established a strong presence in the healthy vending machine market.

        - Example: Indirect competitors: Traditional Vending Machines: While not solely focused on healthy snacks, traditional vending machines still pose a competitive challenge by offering a broader range of convenience snacks.

3.3. Target Market Analysis

Explores the company's target customers, demographics, preferences, and pain points.

        - Example: FitFuel's target market comprises health-conscious individuals in Nashville, Tennessee, who prioritize nutritious snacking options. This includes fitness enthusiasts, working professionals, students, and individuals actively seeking healthier alternatives. 

3.4. Market Opportunities

Identifies potential opportunities for the company to grow within the market.

        - Example: FitFuel has several growth opportunities in the healthy vending machine market, including expanding into high-traffic locations, partnering with local health and wellness initiatives, leveraging technology for personalized recommendations, and establishing strategic alliances with local snack manufacturers and suppliers.

reverse vending machine business plan

  • Example 1: Conduct a survey or order a market research report of potential locations to determine the foot traffic and identify high-traffic areas for placing FitFuel vending machines. (e.g., Location A records 500 people passing by every hour during lunchtime, indicating a prime spot for a vending machine)
  • Example 2: Contacting every gym in the area to determine if they have or would be open to having one of our vending machines. Compile that list.
  • Example 3:  Analyze the demand for healthier snack options in the target market by surveying employees in office buildings and educational institutions. (e.g., 80% of surveyed employees express a preference for healthier snacks and beverages in vending machines)

4. Marketing and Sales Strategy

4.1. product or service offerings: .

Describes the company's products or services in detail.

        - Example: FitFuel offers a diverse range of healthy snack options, including granola bars, nuts, dried fruits, and low-sugar beverages. Our products are carefully selected to cater to various dietary needs and preferences, providing customers with convenient and nutritious on-the-go options

4.2. Pricing Strategy

 Outlines the company's approach to pricing its products or services.

        - Example: FitFuel adopts a competitive pricing strategy that reflects the value and quality of our healthier snack offerings. Our pricing is designed to be affordable and accessible to a wide range of customers, encouraging regular purchases and promoting healthier snacking habits.

4.3. Sales Strategy

  Explains how the company plans to generate sales and build customer relationships.

        - Example: FitFuel's sales strategy focuses on establishing strong partnerships with local businesses, gyms, and wellness initiatives to expand our customer reach. Additionally, we prioritize customer satisfaction by maintaining a well-stocked inventory of fresh and enticing snack options.

 Describes the methods through which the company will deliver its products or services to customers.

        - Example: In addition to placing our vending machines in high-traffic areas such as office buildings, gyms, and educational institutions, we also partner with local retailers and wellness centers to make our products easily accessible to a broader audience.

4.5. Promotions and Advertising

 Details the company's promotional efforts and advertising strategies.

        - Example: FitFuel employs a targeted marketing approach that includes social media campaigns, and collaborations with influencers in the health and wellness space. We also implement promotional offers, and strategic partnerships to incentivize customer engagement and attract new clientele to our healthier snack options.

reverse vending machine business plan

  • Example 1:  Partner with local fitness centers, gyms, and wellness events to offer promotional discounts on FitFuel vending machine products, attracting health-conscious customers. (e.g., 200 customers redeem promotional discounts within the first month)
  • Example 2:  Create a list of local gyms that have agreed or opted into housing one of our vending machines.
  • Example 3: Perform a pilot test at a few gyms by selling or giving away the snacks and drinks at a display using the honor system or manning the booth yourself and take note of gym member feedback on the snacks themselves and if they’d like to have a vending machine on site

5. Operations and Management

5.1. vending machine placement:.

Involves identifying suitable locations and securing contracts for the strategic placement of vending machines 

        - Example: FitFuel will strategically acquire and place vending machines in high-traffic areas such as office buildings, gyms, universities, and shopping centers. We will negotiate agreements with property owners to secure prime locations that offer maximum visibility and convenience for our target customers.

5.2. Inventory Management and Restocking:

  Refers to the systems used to monitor and replenish product inventory

        - Example: FitFuel will utilize an advanced inventory management system that tracks product levels in real-time and generates automated alerts for restocking. We will establish strong partnerships with trusted suppliers to ensure a consistent supply of high-quality, healthier snack options.

5.3. Maintenance and Service:

Highlights inspections, repairs, and cleaning to maintain vending machine functionality

        - Example: FitFuel will prioritize the maintenance and upkeep of our vending machines to ensure uninterrupted service. We will implement a proactive maintenance schedule, conducting regular inspections and cleaning to maintain cleanliness and functionality.

reverse vending machine business plan

  • Example: The FitFuel's founding team, led by Jo McClain comprises nutritionists, health professionals, and business experts who collectively possess extensive knowledge of the vending machine industry, nutrition, and customer preferences. This expertise enables FitFuel to curate and offer the most suitable and appealing healthy snack options for its customers.

5.4. Technology Integration and Data Analysis:

Describe the technology and systems that will be utilized to streamline operations and enhance efficiency.

        - Example:  FitFuel will integrate cutting-edge technology into our vending machines, offering cashless payment options, touch-screen interfaces, and remote monitoring capabilities. This will enhance the customer experience and provide valuable insights into machine performance and product popularity.

All of the unique Vending Machine projections you see here were generated using ProjectionHub’s Vending Machine Financial Projection Template . Use PH20BP to enjoy a 20% discount on the template. 

   6.1. Startup Costs

 Provide a detailed breakdown of the total startup costs requirements, and where you plan for those funds to come from. You will also want to break down how the startup costs will be used including working capital to cover losses before the business breaks even.

        - Example: Creating a solid financial plan is crucial, and we are taking the necessary steps to ensure the success of FitFuel. We have already raised $75,000 through a personal investment from the owner and we are working with a financial institution to secure a business loan of around $50,000 to $100,000 for working capital and to purchase a truck. By combining these funding sources, we are confident in our ability to meet the startup cost requirements and establish a strong foundation for FitFuel.

6.2. Revenue Projections

Provides an estimate of the company's future revenue based on market research and assumptions.

        - Example:  FitFuel projects $500,000+ in revenue in year 3 and break –even during year 2. The company anticipates steady growth in revenue over the initial five-year period.

reverse vending machine business plan

 Estimates the company's future expenses, including fixed and variable costs.

        - Example: FitFuels expenses include property lease, accounting, advertising, maintenance, utilities, and fuel costs.

reverse vending machine business plan

Summarizes the company's revenue, expenses, and net income over a specific period.

        - Example: FitFuel  expects to achieve profitability within the first two years of operation.

reverse vending machine business plan

 Outlines the company's projected cash inflows and outflows.

        - Example: FitFuel’s cash flow projections account for seasonal fluctuations in sales and expenses.

reverse vending machine business plan

  Determines the point at which the company's revenue equals its expenses.

        - Example: FitFuel anticipates reaching its break-even point early in year 2 of operation.

reverse vending machine business plan

Watch how to create financial projections for your Vending Machine Business

reverse vending machine business plan

Key Point  4 

reverse vending machine business plan

  • Example 1: Research industry benchmarks for vending machine businesses to estimate projected revenues, expenses, and profit margins. (e.g., The average annual revenue per vending machine in the industry is $10,000, aligning with FitFuel's projected revenue)
  • Example 2: Consider factors such as machine maintenance costs, product spoilage, and product demand fluctuations to create a comprehensive financial projection. (e.g., Accounting for a 10% annual maintenance cost and a 5% spoilage rate in the financial projections)

   7.1. Supporting Documents

 Includes any relevant documentation that supports the information presented in the business plan, such as resumes, financial projections, market research data, and permits or licenses.

   7.2. Glossary of Term

 Provides definitions for industry-specific terms used throughout the business plan to ensure reader comprehension.

   7.3. References and Resources

Lists any sources or resources referenced during the preparation of the business plan, including industry reports, market research data, and relevant publications.

reverse vending machine business plan

  • Example: As the owner and entrepreneur behind FitFuel, Jo McClain has invested a significant amount of personal capital into the business, demonstrating a strong commitment and dedication to its success. By leveraging personal resources and assuming financial risk, Jo showcases a vested interest in the growth and profitability of FitFuel.

How do I start a vending machine business?

To start a vending machine business, identify profitable locations, choose the right vending machine types and products, secure necessary permits and licenses, find reliable suppliers, establish agreements with location owners, monitor inventory and sales, and market your vending business.

What types of products can I sell in vending machines?

Vending machines can sell a variety of products depending on the target market and location. Options can include snacks, beverages (soda, coffee), healthy food options, convenience items, personal care products, electronics, or even specialized products like toys or pet supplies.

How can I find suitable locations for my vending machines?

Finding suitable locations for vending machines involves identifying high-traffic areas such as office buildings, schools, hospitals, shopping centers, and recreational areas. Consider approaching location owners or working with vending machine placement companies to secure locations.

How can I optimize sales and profits in my vending machine business?

To optimize sales and profits, ensure your vending machines are well-stocked and regularly serviced, regularly analyze sales data to understand popular products and adjust inventory accordingly, price products competitively, consider upselling or cross-selling strategies, and provide excellent customer service.

What are the maintenance requirements for vending machines?

Vending machines require regular maintenance, including restocking products, cleaning and sanitizing, performing routine maintenance on the machine's mechanisms, troubleshooting and repairing any malfunctions, and ensuring proper cash handling and accounting procedures.

About the Author

Adam is the Co-founder of ProjectionHub which helps entrepreneurs create financial projections for potential investors, lenders and internal business planning. Since 2012, over 50,000 entrepreneurs from around the world have used ProjectionHub to help create financial projections.

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Vending machines are by no means a novel business idea—they’re basically everywhere, after all. But for those of you looking to start your own business, there is a lot to like about the vending industry. Consider that there are millions of machines in the U.S. alone—and the vending machine industry generates over $23 billion in annual revenue. That's enough reason to explore how to start a vending machine business of your own.

reverse vending machine business plan

How to start a vending machine business in 6 steps

Consider all of your vending machine options: This includes food and drink machines, bulk vending, and specialty vending.

Find the right location for your vending machines: Consider locations where you feel motivated to use a vending machine. Then work out an agreement with the proprietor.

Find your vending machine: Vending machine sellers include manufacturers and wholesalers, secondary market retailers, and online resellers.

Stock your vending machine with inventory: Consider site-specific needs when purchasing inventory for your machine. Also, don't over-order stock in the beginning.

Explore your vending machine business financing options: The best financing options include a short-term loan, equipment financing, and inventory financing.

Make the right investments in vending machine tools: A successful operation requires you to invest in tools that will help you run your business more efficiently, as well as prioritizing customer service.

The vending machine industry is an attractive option for both new and experienced entrepreneurs. Other than its surprising profitability, running a vending machine business is pretty versatile. It can be a great weekend side hustle, a low startup-cost business, or an interesting new way to expand your portfolio.

Ready to make your fortune off grab-and-go snacks and beverages? Here’s everything you need to know about how to start a vending machine business.

Vending machine costs

The majority of the costs to start a vending machine business comes from the vending machines and the stock items. With as little as a $2,000 investment, you can generally get a basic vending machine business up and running. Many vending machine operators recommend buying used or refurbished machines, which you can find between $1,200 and $3,000. A new vending machine will cost anywhere from $3,000 to $10,000, depending on its size and features.

Besides the machine itself, you'll also want to consider the cost of inventory to stock your machines. Depending on how many machines you plan to own and what kind of inventory you'll stock, this could span a few hundred to thousands of dollars.

How much do you need?

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We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

How to start a vending machine business: A step-by-step guide

Any advantage or insight you have on vending machines is a great way to get in on this niche business. For example, if you’ve already identified a need for a snack machine near you, reach out to property owners you know and gauge their interest in placing vending machines at their locations.

But even without personal connections, you can start a vending machine business—and make money doing it. Here's how to start a vending machine business in six steps.

1. Consider your vending machine options

While most people may think vending machines only come in the standard snack-and-soda variety, if you've thought about how to start a vending machine business, you likely know there are more options. In general, there are four different categories of vending machines (which we'll outline below). Consider all four types when choosing the machine whose products would be the biggest hit with your target market.

Whichever type of vending machine you choose, start out with one or two machines with a specific market focus. That way, you can gradually learn about popular stock- and site-specific patterns, and add new machines accordingly.

Food and beverage vending

According to Vending Market Watch’s 2019 annual report, food and beverage vending machines with snacks, soda, and candy make up the majority of the vending market share in the U.S., with beverages alone accounting for nearly a third of vending sales. If you're wondering how to start a vending machine business, you can’t go wrong with this old standard.

Of course, there are variations on this standard—you can get a machine that just offers drinks, snacks, or snack-and-drink combinations. Some vending machine entrepreneurs choose to purchase different types of machines for one location, or place one kind of machine in multiple locations.

Whatever you decide, it’s a good idea for new vending operators to start with a specialty—be it healthy snacks, beverages, or even fresh food—until you learn more about the industry.

To make the most sales, cater your offerings to a specific, location-driven market. For instance, you might stock your food and beverage machine at a gym with protein bars and shakes, or stock a school vending machine with juice and granola bars. You may think of soda and chips when you think vending machine, but there is money to be made offering equally convenient healthy alternatives people want—and will pay for.

reverse vending machine business plan

Bulk vending

Starting a vending machine business with machines that stock gumballs, stickers, or rubber balls—also known as bulk vending—requires very little capital and low maintenance costs.

These typically low-maintenance vending machines might not be glamorous, but the quarters do add up. A refurbished vending machine could cost you less than $50, and bring in as much as $30 per month. The products you’re offering have incredibly low overhead. In the right market—like a school or amusement park—this modest investment offers the potential for a reliable, passive income source.

Most bulk vending machines are mechanical devices and don’t require electricity or battery power to operate, which means the cost of operation is low to nonexistent. That said, many candy and toy vending machines are older, so a used device might require minor repairs before it’s functional.

Specialty vending

You're not just limited to food and drinks when starting a vending machine business. Large public places like arenas, airports, and malls often have machines offering goods like tech accessories, beauty products, or other specialty items. Some of these vending machines use the same technology as standard vending equipment, and some are differentiated as Automated Retail Machines.

Some specialty vending items include:

Hot beverages: Coffee or hot beverage vending is typically most successful in offices, but universities and conference centers are also good locations for this kind of vending machine business. Manufacturers often produce both specialty beverage equipment and traditional machines, so you may be able to combine your purchases.

Retail: Essential travel items like phone chargers, headphones, and neck pillows can be lucrative vending products if you’re able to negotiate a contract with a local transit station, or even an airport. Upscale vending machines in malls and airports often contain luxury skincare products or electronics.

Laundry products: Individually packaged detergent, fabric softener, and dryer sheets make great vending products if you identify the right market for it—like laundromats, apartment complexes, or dormitories.

Tobacco: Tobacco vending is legal in many states , and can be lucrative depending on the state taxes. Even cannabis vending machines are also becoming available, but with a much more limited market.

Franchising options

If you don’t want to build your business from scratch, you may want to consider buying a franchise to start your vending machine business. As a franchisee, you will be able to work within a proven business framework and receive extra support and training to get your vending business set up. You’ll also be able to decide how many or how few machines you want to invest in. However, keep in mind that as a franchisee, you will be responsible for paying a portion of your profits to the franchisor.

2. Find the right location for your vending machine

The type of vending machine you choose is crucial, but where you decide to put that machine is the most important factor in earning a profit from your vending machine business. For instance, an upscale food and beverage vending machine might fail in a strip mall full of restaurants, but that same machine might flourish in an office park.

When starting a vending machine business, think about the locations where you have personally purchased something from a vending machine, as well as the times when people are most likely to purchase a beverage, snack, or other items. There’s a good chance your restaurant selection was limited, you were in a hurry, or you were waiting somewhere like the airport or DMV.

Some other location ideas for your vending machine include:

Hospitals or medical centers

Grocery stores

Airports and shopping malls

Laundromats

Apartment complexes

Manufacturing plants

The next step is securing your location. A good salesperson might feel comfortable cold-calling a property or business owner, or soliciting them in person. This approach can work for smaller locations, especially if you’re a frequent patron or already know the owner.

You can also try visiting your local Chamber of Commerce. They can give you information about major businesses in your area, which might give you some ideas for potential locations. Ideally, try to place your vending machine at companies with at least 100 employees or considerable foot traffic, like a multi-business office park.

If you already have locations in mind, reach out to proprietors, or work on getting contact information for the relevant manager. Talking to prospective partners about location needs can help you get a better understanding of local demand and inform your vending machine and product selection.

Understand state-specific vending laws, regulations, and compliance

Different rules apply to various types of vending machines, and vending regulations vary by state. Before starting a vending machine business and reaching out to prospective location proprietors, find out how your state governs vendors by contacting your local Chamber of Commerce or looking up your state’s small business regulations online.

Also, any vending machine you put in a public place may be subject to certain ADA compliance standards , and it’s a good idea to keep accessibility in mind when considering vending machine options.

Know commission requirements and prepare a proprietor contract

Before pocketing the profits of your vending machine, you’ll need to pay commission to the proprietor who provides the location and the electricity required to operate your machine. Generally, you’ll pay the property owner 10% to 25% of the revenue from your vending machine.

Whether or not you hope to establish an exclusive partnership with a location, draw up a contract with the proprietor stating your agreed compensation rate, contract length, and terms you have with the owner.

Include provisions for breach of contract, too. It’s also smart to include expectations and obligations regarding servicing and restocking your vending machines, vandalism or theft, and the possibility of unprofitability. As always, have a lawyer look over the contract before signing.

3. Find your vending machine

You can't start a vending machine business without first obtaining a machine. Luckily, finding your vending machine can be as simple as an online search. To get an idea of the different vending machine offerings and price points out there, search both locally and from national suppliers. You should also consider the cost of inventory when looking at vending machine prices.

To find the vending machine of your dreams, start your search with these three types of sellers:

Manufacturers or wholesale vending suppliers have the widest selection of vending machines for sale, the newest technology, and the most end-to-end services for delivery, repairs, and training. This is the most expensive option, though—equipment through vending franchises might require a minimum order of multiple machines or other fees that go toward machine servicing and entrepreneur development programs.

Secondary market sellers or specialty online retailers allow you to browse multiple brands and models of vending machines and often have helpful resources for business owners.

Consumer-to-consumer platforms like Craigslist and eBay have thousands of vending machines for sale. Save time by filtering by merchant or owner location, so you don’t have to worry about major shipping costs. This may be the best option for first-time vending entrepreneurs who don’t want to spend thousands on a new or refurbished machine.

As you’ll quickly find once you start your search, vending machines come with a range of features and capabilities, all at different price points.

Some of those special features include:

Snack/drink combination machines

Credit card and large bill functionality

Touch or voice accessibility

Remote monitoring software and low-stock alerts

Branded “wraps” for the front of your machine

Interactive screens

Try not to be too tempted by these special features, though, since they can become costly. Choose the vending machine that best fits the products you want to offer, and what you can afford at the moment.

4. Stock your vending machine with inventory

Once you’ve landed on a vending machine, you're well on your way to starting a vending machine business. Next, you have to stock it with inventory.

Product selection is an excellent opportunity to boost sales. Rather than choosing to stock items based on wider food and beverage trends, pay attention to local, site-specific needs. To stay on the safe side, don’t over-order stock in the beginning, and adjust your offerings based on demand.

If you choose to provide combined food and beverage services in your vending machine business, drinks will make up most of your sales. As the growing refreshments market expands from soda to coffee, flavored water, and healthier beverages like coconut water, it’s worth considering what your location can support in terms of pricier specialty foods and drinks.

Drink size and shapes will affect your range of machine choices, so if you feel strongly about selling cartons or irregularly shaped products, try to find a machine with adjustable product sizing.

5. Explore your financing options

Starting a vending machine business doesn’t require nearly as much startup capital as most other small businesses do—some businesses can cost hundreds of thousands of dollars to start.

Still, a few thousand dollars isn’t exactly pocket change. If you need a loan to purchase your vending machine, consider these two options:

Short-term loan

If you’re already a business owner, and you have the business financial history to prove it, securing a short-term loan to finance your vending machine might be your best course of action.

Like traditional term loans, short-term lenders deposit a lump sum of cash directly into your business bank account, and you’ll repay your loan, plus interest, over a predetermined amount of time. As you can guess based on their name, repayment terms for short-term loans are considerably shorter than their long-term counterparts—usually 18 months or fewer. And interest rates are a bit higher than longer-term loans. For those reasons, though, short-term loans are generally easier to qualify for than long-term loans.

But this is a small business loan, so short-term lenders need to review and approve your business’s financials before agreeing to extend you a loan. If possible, you'll want to bring a good business revenue history and good personal creditworthiness to prove your candidacy.

Equipment financing

You don’t necessarily need tons of capital on hand to start a vending machine business that makes money. But if you need a little help, you can shoot for an equipment financing loan . The terms of these loans depend on the value of your equipment, which also acts as collateral in case you default on your loan payments.

Cared for properly, vending machines can last upwards of 10 years, which might help assure lenders. In addition to your own financial information and business plan, you will need equipment quotes for the machine(s) you plan to purchase if you choose to apply for an equipment loan. Additionally, if you need capital to purchase inventory, you may want to consider inventory financing.

6. Make the right investments

With a location selected, machine purchased, and placement terms taken care of, you’re ready to start a vending machine business—now it’s time to focus on making the business profitable.

Invest in a vending management system (VMS)

Depending on the technology in your machine, your vending equipment may come pre-programmed with management software, which you can use to streamline operations, record inventory, and track revenue.

But most standard machines require you to manually manage your inventory, which might be doable if you own just a couple of vending machines. Once you have five to 10 separate vending machines, though, it’s probably a good idea to invest in a vending management system to help you stay on top of your inventory remotely. VMS software allows you to remotely manage your vending machines from an internet-enabled device. Most VMS systems provide real-time inventory updates and reporting tools.

Invest in customer service

Even if you only have one or two vending machines, it’s worthwhile to emphasize customer service from the beginning of this (or any) venture. To make sure your vending machine is optimized for your customers, you just need to follow a few best practices.

Like many location-based businesses, vending operators are often dependent on word-of-mouth referrals and in-person connections. Foster relationships with business owners, look up your state’s vending association , or join local networking groups for entrepreneurs.

Most importantly, ensure that your vending machines are stocked and functioning on a weekly or biweekly basis. You can also consider providing an 800-number for service requests and comments, which is a great way to get useful feedback.

Invest your time

Just like any other venture, starting a vending machine business requires more than just capital investment—you’ll have to invest at least some of your time and attention to your vending machine business, too.

A full-size vending machine might require you to collect money weekly, which is important to keep in mind when determining how much time you can realistically spend traveling to locations. In addition to the time it takes to purchase inventory, visit locations, and restock, operating a vending machine business requires you to spend time researching trends in sales, new products or locations, and talking to peers.

The typical service cycle for bulk vending—think non-perishable candy or stickers—is between four to eight weeks. So, if you can’t get away from your full-time commitments often, bulk vending might be a good way for you to break into the vending machine business without sacrificing too much of your time.

Advantages and disadvantages of starting a vending machine business

With just a few thousand dollars to invest, a vehicle, and determination, you’re completely capable of starting a vending machine business and turning a profit. But starting a vending machine business isn’t all fun and games (though you can vend fun and games in your machine). Like any new venture, there are advantages and disadvantages to consider.

Vending machine business advantages

Easy to scale: Scaling your vending machine business is incredibly easy. You can start off with a few vending machines, and as you become more successful, expand locations.

Variety of choices: These days, there are all types of vending machines. Vending machines now serve healthy foods, gourmet options, and sometimes options completely unrelated to food.

Little to no overhead costs: There are little to no overhead costs of running a vending machine business, especially if you're running the business on your own. Since vending machine businesses don't require many employees or office space, you don't have to worry about making payroll, benefits, or spending thousands on rent.

Vending machine business disadvantages

Time commitment: Operating a vending machine business will require you to commit some time and energy into stocking, servicing, and collecting money from your machines on a regular basis.

Theft and vandalism: Vending machines are an easy target when it comes to theft and vandalism. Ensure that your machine locations are located in secure and safe areas to avoid a loss in profits.

Frequently asked questions

1. are vending machines profitable.

Yes, vending machines can be profitable. The average vending machine earns $35 a week, but vending machines that are well-stocked and placed in safe, high-traffic locations can generate over $400 a month.

2. Do vending machine owners pay rent?

Yes, vending machine owners pay rent or commission to the owner of the building. Vending machine owners generally pay between 5% to 20% of their vending machine sales.

3. Are vending machines taxed?

Yes, vending machines are charged sales tax on the revenue they generate. The amount of sales tax varies depending on your state.

4. Where can you place vending machines?

You can place vending machines in most commercial spaces such as offices, retail shops, bowling alleys, and more. But you'll need to sign a contract with the property owner first.

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The bottom line

The vending machine business drives billions of dollars globally each year. You may be able to break into this lucrative market with less than $1,000, the right market research, informed decision-making, and entrepreneurial energy.

Invest incrementally as you learn about your vending machine’s demand patterns, and start generating a passive income without taking out a massive loan or going into debt. Depending on whether or not you'll continue to work another job, increasing the scope of your vending machine business gradually will allow you to take on more when you’re ready, or scale back if necessary.

No matter where you are financially, the vending industry offers an opportunity to operate your own business, while only risking as much as you’re comfortable investing.

This article originally appeared on JustBusiness, a subsidiary of NerdWallet.

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Vending Machine Business Plan Template

Written by Dave Lavinsky

Vending Machine Business Plan

You’ve come to the right place to create your vending machine business plan.

We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their vending machine companies.

Below is a template to help you create each section of your Vending Machine business plan.

Executive Summary

Business overview.

Healthy Snacks Vending is a startup vending machine company based in the city of Buckeye, Arizona, a growing Phoenix suburb. The company is founded by Chris Garcia, a recent University of Arizona graduate with a Bachelor’s degree in Marketing and Sales. Now that Chris has obtained his degree, he is equipped with the skills and know-how to start his new company, Healthy Snacks Vending. Chris is confident that his ability to effectively communicate the value of his company and network with proprietors will ensure his new vending machine business will be a profitable venture. 

As its name implies, Healthy Snacks Vending will stock healthy options in its vending machines. Chris will target several proprietors in a new commercial development that has just been built in a growing area of town. New developments include an array of corporate offices, a high school, a hospital, and several retail establishments. 

Product Offering

The following are some of the healthy snack products that Healthy Snacks Vending will carry:

  • Bottled Water
  • Fruit Juice
  • Fresh Fruit 
  • Granola Bars
  • Cereal Bars
  • Nuts and Seeds

Customer Focus

Healthy Snacks Vending will target all proprietors in the new Buckeye commercial development. It will target the owners of the commercial buildings as well as the school and the hospital. Healthy Snacks Vending’s end-users will be people in the area looking for a healthy alternative to traditional vending machine options (e.g., soda, candy, and chips).

Management Team

Healthy Snacks Vending will be owned and operated by Chris Garcia. Chris is a University of Arizona graduate with a Bachelor’s degree in Marketing and Sales. Chris has most recently been working as a manager in a local convenience store while pursuing his degree. He has over ten years of experience in the retail industry, working his way up from a sales associate to manager in the first two years. Chris is confident that his skills in management, communications, marketing, and sales will help him establish himself as a successful vending machine owner/operator. Chris will handle all marketing and sales for the company as well as manage the relationships and contracts with business proprietors, source and purchase the vending machines, and continually seek out opportunities for new locations to place vending machines. 

Chris has recruited fellow University of Arizona graduate, Stephen Smith, to manage the vending machine inventory. Stephen has a Bachelor’s degree in Business Administration and is skilled in purchasing, budgeting, and controlling inventory. Chris relies on Stephen’s ability to source the most cost effective healthy snack products as well as his ability to ensure there is the right amount and mix of products available to ensure profitability. 

Success Factors

Healthy Snacks Vending will be able to achieve success by offering the following competitive advantages:

  • First-mover advantage in this new Buckeye development. There are currently no other vending machines in or near these recently built establishments. 
  • Healthy snack options will be offered, giving people a healthier option over typical vending machine snacks. 
  • Healthy Snacks Vending is investing in new vending machines that will take multiple forms of payment including credit cards, debit cards, and contactless payment options to give people more flexibility in the way they can pay. 

Financial Highlights

Healthy Snacks Vending is seeking $100,000 in debt financing to launch its vending machine    business. The funding will be dedicated towards purchasing the initial vending machines and inventory. Funding will also be dedicated towards three months of overhead costs to include payroll, sales, and marketing costs. The breakout of the funding is below:

  • Vending machines: $50,000
  • Inventory:  $10,000
  • Three months of overhead expenses (payroll, sales, and marketing):  $30,000
  • Working capital:  $10,000

reverse vending machine business plan

Company Overview

Who is healthy snacks vending .

Healthy Snacks Vending is a startup vending machine company based in the city of Buckeye, Arizona. The company is founded by Chris Garcia, a recent University of Arizona graduate with a Bachelor’s degree in Marketing and Sales. Chris is confident that his ability to effectively communicate the value of his company and network with proprietors will ensure his new vending machine business will be a profitable venture. 

Healthy Snacks Vending will stock healthy options in its vending machines. Chris will target all proprietors in a new commercial development that has just been built in a growing area of town. New establishments include an array of corporate offices, a high school, a hospital, and several retail stores. 

Healthy Snacks Vending History

Healthy Snacks Vending is a new vending machines business that will be owned and operated by Chris Garcia. Chris is a University of Arizona graduate with a Bachelor’s degree in Marketing and Sales. Chris has most recently been working as a manager in a local convenience store while pursuing his degree. He has over ten years of experience in the retail industry, working his way up from a sales associate to manager in the first two years. Chris is confident that his skills in management, communications, marketing, and sales will help him establish himself as a successful vending machine owner/operator. 

Since incorporation, Healthy Snacks Vending has achieved the following milestones:

  • Registered Healthy Snacks Vending, LLC to transact business in the state of Arizona. 
  • Reached out to multiple proprietors in the area to initiate the process of negotiating contracts to put vending machines in their buildings. 
  • Has secured contracts with two proprietors. 
  • Recruited Stephen Smith to be the Inventory Manager and Kim Miller to be the Accountant. 

Healthy Snacks Vending Services

The following are some of the healthy snacks that Healthy Snacks Vending will provide:

Industry Analysis

The U.S. Vending Machine Operators industry is a $8.9B market in 2022 and is expected to increase by 3.5% this year. Rising per capita disposable income and increased consumer spending have helped drive industry growth. 

The primary challenge for industry operators is high competition. If there are multiple vending machines in a small area, a company’s ability to differentiate its products, pricing, or payment options will be the key to success. 

Changes in consumer behavior have posed a challenge for many industry operators. A growing number of consumers are seeking healthier snack choices. For this reason, vending machines that offer junk food items are seeing less revenue than those offering healthy alternatives. Additionally, less consumers are carrying cash, while a growing number prefer contactless payment options. New vending machines that take card and contactless forms of payment are likely to bring in more revenue for industry operators than cash-based machines. 

Customer Analysis

Demographic profile of target market.

Healthy Snacks Vending will target proprietors in a new commercial development that has just been built in Buckeye, Arizona. Establishments in the area include an array of corporate offices, a high school, a hospital, and several retail stores. 

Healthy Snacks Vending’s end-users will be people in the area looking for a healthy alternative to traditional vending machine options (e.g., soda, candy, and chips).

The precise demographics for Buckeye, Arizona are:

Customer Segmentation

Healthy Snacks Vending will primarily target the following customer profiles:

  • Proprietors of businesses in the area
  • Staff and visitors of corporate offices, the hospital, and retail establishments
  • Students, teachers, and administration staff at the school

Competitive Analysis

Direct and indirect competitors.

Healthy Snacks Vending will face competition from other companies with similar business profiles. A description of each competitor company is below.

Snack Food Vending, LLC

Snack Food Vending, LLC is an established vending machine company that operates in Phoenix, Arizona and surrounding areas. Snack Food Vending, LLC provides a wide variety of snack options in vending machines throughout the region. Most of Snack Food Vending, LLC’s vending machines are located in busy retail locations, schools, and hotels. This vending machine company stocks traditional snacks and healthy snacks. Snacks include soda, water, candy, chips, apples, granola bars, gum, tea, fruit cups, and energy drinks. Most of Snack Food Vending, LLC’s machines have been in service for several years and are cash-based machines. 

SNACKS! Vending 

SNACKS! Vending is a Phoenix-based vending machine company that stocks healthy snack food options including applesauce, sandwiches, tea, water, crackers, and fresh fruit. SNACKS! Vending machines are primarily placed in areas around downtown Phoenix including hospitals, office parks, and shopping malls. SNACKS! Vending has established itself as the reliable source for healthy snack options in the city. 

Healthy Eating Vending Machine Co. 

Healthy Eating Vending Machines Co. offers a wide variety of healthy snacks for patrons on-the-go. Snacks include fresh fruit and vegetables, salads, sandwiches, juice, tea, water, and sunflower seeds. Healthy Eating Vending Machine Co. is a fairly new establishment with just a handful of machines placed in a few commercial locations in Buckeye, Arizona. This vending machine company offers premium healthy snacks at relatively higher prices than competitors. 

Competitive Advantage

Healthy Snacks Vending will be able to offer the following advantages over its competition:

  • All Healthy Snack Vending machines will be the newest models, with multiple payment options including credit, debit, and contactless payment choices. 
  • Healthy Snack Vending will offer patrons a wide range of affordable, healthy alternatives to traditional junk food available in most vending machines. 
  • Healthy Snacks Vending will target all proprietors in the new commercial development in Buckeye, Arizona enabling the company to have the first vending machines placed in these buildings. 

Marketing Plan

Brand & value proposition.

Healthy Snacks Vending will offer the unique value proposition to its customers:

  • The only vending machines offering affordable, healthy snacks in the area. 
  • Multiple forms of payment accepted including credit, debit, and contactless pay for flexibility in payment options. 
  • Moderate pricing that is on par or slightly less than the competition. 

Promotions Strategy 

The promotions strategy for Healthy Snacks Vending is as follows:

Word of Mouth/Referrals

Chris Garcia will leverage his effective communication and word of mouth marketing skills to create interest among local proprietors to get his vending machines placed in their buildings. He has already obtained commitments from two such proprietors who will spread the word to others. 

Professional Associations and Networking

Healthy Snacks Vending will become a member of the local vending association and participate in industry events to network and build relationships with other industry professionals in the area. 

Print Advertising

Healthy Snacks Vending will invest in professionally designed print ads to display in local magazines, newspapers, and direct mailers targeting local business owners that could benefit from putting a vending machine with healthy snacks in their establishments. 

Website/Social Media Marketing

Healthy Snacks Vending will create and maintain an informative website that will list the products that Healthy Snacks Vending is able to provide and the locations of its vending machines. The website will also list their contact information for proprietors that may be interested in putting a Healthy Snacks Vending machine in their establishment. 

In addition to the website, Healthy Snacks Vending will maintain an active social media presence on multiple channels including Facebook, Instagram, Twitter, YouTube, and TikTok to promote its business. 

The pricing of Healthy Snacks Vending will be moderate and on par or slightly below that of competitors to ensure Healthy Snacks Vending won’t be overlooked as being too expensive if other vending machine operators place their machines nearby.  

Operations Plan

The following will be the operations plan for Healthy Snacks Vending.

Operation Functions:

  • Chris Garcia will be the Owner and Marketing Director of the company. He will oversee all marketing and sales efforts as well as manage all contracts and client relations. Chris has spent the past year recruiting the following staff:
  • Stephen Smith – Inventory Manager who will source, purchase, and stock all vending machine inventory. 
  • Kim Miller – Accountant/Bookkeeper who will provide all client accounting, tax payments, and monthly financial reporting for the company. 

Milestones:

Healthy Snacks Vending will have the following milestones complete in the next six months.

7/1/2022 – Finalize contracts with two initial proprietors to place vending machines in their establishments. 

7/15/2022 – Finalize personnel employment contracts for Stephen and Kim. 

8/1/2022 – Purchase initial vending machines for the first two locations. 

8/15/2022 – Install vending machines in the first two locations. 

8/22/2022 – Source products and stock the vending machines. 

Healthy Snacks Vending will be owned and operated by Chris Garcia. Chris is a University of Arizona graduate with a Bachelor’s degree in Marketing and Sales. Chris has most recently been working as a manager in a local convenience store while pursuing his degree. He has over ten years of experience in the retail industry, working his way up from a sales associate to manager in the first two years. Chris is confident that his skills in management, communications, marketing, and sales will help him establish himself as a successful vending machine owner/operator. Chris will handle all marketing and sales for the company as well as manage the relationships and contracts with business proprietors, source and purchase the vending machines, and continually seek out opportunities for new locations for his vending machines. 

Chris has recruited fellow University of Arizona graduate, Stephen Smith, to manage the vending machine inventory. Stephen has a Bachelor’s degree in business administration and is skilled in sourcing and budgeting. Chris relies on Stephen’s ability to source the most cost effective healthy snack products and ensure there is the right amount and mix of products available to increase profitability.

Financial Plan

Key revenue & costs.

The revenue driver for Healthy Snacks Vending is the payment received for each product purchased from one of its vending machines. Prices will range from $1.00-$5.00 per healthy snack item. 

The cost drivers will be the fees paid to proprietors. Each proprietor contract will have its own fee schedule. However, in general, Healthy Snacks Vending will pay between 5%-15% of its revenue per vending machine to the proprietor. The expenses will be the payroll cost, vending machine maintenance cost, and marketing materials.

Funding Requirements and Use of Funds

  • Inventory: $10,000
  • Three months of overhead expenses (payroll, sales, and marketing): $30,000
  • Working capital: $10,000

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

  • Number of Vending Machines in Operation: 10
  • Total Average Revenue from All Machines Per Month: $5,000
  • Average Fees Paid to Proprietors Per Year: $6,000

Financial Projections

Income statement, balance sheet, cash flow statement, vending machine business plan faqs, what is a vending machine business plan.

A vending machine business plan is a plan to start and/or grow your vending machine business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can  easily complete your vending machine business plan using our Vending Machine Business Plan Template here .

What are the Main Types of Vending Machines Businesses?

There are a number of different kinds of vending machines, some examples include: Candy Vending Machines, Snack Vending Machines, Ice Cream Vending Machines, Beverage Vending Machines, Coffee Vending Machines, Specialty Vending Machines, Custom Vending Machines, and Bulk Vending Machines.

Other vending machine businesses include beauty, video game, water, beer and other unique items.

How Do You Get Funding for Your Vending Machine Business Plan?

Vending Machines are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

A well crafted vending machine business plan is essential for securing funding from any type of potential investor.

What are the Steps To Start a Vending Machine Business?

Starting a vending machine business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Write A Vending Machine Business Plan – The first step in starting a business is to create a detailed vending machine business plan that outlines all aspects of the venture. This should include market research on the vending machine industry and potential target market size, information on the services and/or products you will offer, marketing strategies, pricing details and a solid financial forecast.  

2. Choose Your Legal Structure – It’s important to select an appropriate legal entity for your vending machine business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your vending machine business is in compliance with local laws.

3. Register Your Vending Machine Business – Once you have chosen a legal structure, the next step is to register your vending machine business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options – It’s likely that you’ll need some capital to start your vending machine business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location – Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees – There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Vending Machine Equipment & Supplies – In order to start your vending machine business, you’ll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business – Once you have all the necessary pieces in place, it’s time to start promoting and marketing your vending machine business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a vending machine business:

  • How to Start a Vending Machine Business

Where can I get a Vending Machine Business Plan PDF?

You can download our example vending machine business plan PDF here. This is a business plan template you can use in PDF format.

Vending Machine business plan template

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How to Write a Winning Vending Machine Business Plan + Template

Vending Machine Business Plan

Creating a business plan is essential for any business, but it can be especially helpful for vending machine businesses that want to improve their strategy and/or raise funding.

A well-crafted business plan not only outlines the vision for your vending machine company but also documents a step-by-step roadmap of how you are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.

This article provides an overview of the key elements that every vending machine business owner should include in their own vending machine business plan.

Download the Ultimate Vending Machine Business Plan Template

What is a vending machine business plan.

A vending machine business plan is a formal written document that describes your company’s strategy and feasibility. It documents the reasons you will be successful and your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write a Vending Machine Business Plan?

A vending machine business plan is required for banks and investors. The document is a clear and concise guide to your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Vending Machine Business Plan

The following are the key components of a successful vending machine business plan:

Executive Summary

The executive summary of a vending machine business plan is a one-to-two-page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

  • Start with a one-line description of your vending machine business
  • Provide a short summary of the key points in each section of your vending machine business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast among others.

Company Description

This section should include a brief history of your vending machine business. Include a short description of how your company started, the legal structure , and provide a timeline of milestones your company has achieved.

If you are just starting your vending machine business, you may not have a long company history. Instead, you can include information about your professional experience in the vending industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your vending machines business, mention this.

You will also include information about your chosen business model and how, if applicable, it is different from other vending machine businesses in your industry. For example, you will mention the types of vending machines you operate (e.g., snack machines, drink machines) and what type of accounts you serve (e.g., colleges, nursing homes, manufacturing plants, all of the above, etc.).

Industry Analysis

The industry or market analysis is an important component of your vending machine business plan. Conduct thorough market research to determine industry trends and document the size of your market.

Questions to answer include:

  • What part of the vending machine operators industry are you targeting?
  • How big is the market?
  • What trends are happening in the industry right now (and if applicable, how do these trends support the success of your vending machine business)?

You should also include sources for the information you provide, such as published research reports and expert opinions.

Customer Analysis

The customer analysis section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, and interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, a vending machine business’ customers may include:

  • Office workers who need a quick snack or drink during their break
  • Students who want a convenient place to buy snacks and drinks in or near their school
  • People who are looking for a healthier alternative to fast-food restaurants

You can include information about how your customers make the decision to buy from you, as well as what keeps them buying from you.

Develop a strategy for targeting those potential customers who are most likely to buy from you, as well as those that might be influenced to buy your products or vending machine services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will be different from direct competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each of your direct and indirect competitors, list their strengths and weaknesses. Next, determine your areas of competitive differentiation and/or competitive advantages; that is, in what ways are you different from and ideally better than your competitors?

Marketing Plan

This part of the business plan is where you determine and document your vending machine marketing plan . Your plan should be clearly laid out, including the following 4 P’s.

  • Product/Service : Detail your product/service offerings here. Document their features and benefits.
  • Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your direct competition.
  • Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
  • Promotion : How will you reach your target customers? For example, you may develop marketing materials such as flyers and business cards to hand out in person or launch a direct mail campaign. You could also use digital marketing methods including social media, write blog posts, create an email marketing campaign, or use pay-per-click advertising. Or you may promote your vending machine business via word of mouth, or via PR.

Operations Plan

This part of your vending machine business plan should include the following information:

  • How will you conduct business to develop and secure new accounts? For example, will you do it in person or only over the phone?
  • How will you install vending machines in the new locations?
  • What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for a vending machine business include reaching $X in sales. Other examples include installing X number of vending machines or gaining a certain percentage of market share.

Management Team

List your team members here including their names and titles, as well as their expertise and experience relevant to your specific vending machine industry. Include brief biography sketches for each team member.

If you are seeking funding in particular, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute your plan. If you are missing key team members, document the roles and responsibilities you plan to hire in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix).

This includes the following three financial statements:  

Income Statement

Your income statement, also called a profit and loss statement, should include:

  • Revenue : how much revenue you generate.
  • Costs : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
  • Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss

Sample Income Statement for a Startup Vending Machine Business

Balance sheet.

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

  • Assets: All of the things you own (including cash).
  • Liabilities: This is what you owe against your company’s assets, such as accounts payable or loans.
  • Equity: The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Vending Machine Business

Cash flow statement.

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

  • Cash Flow From Operations
  • Cash Flow From Investments
  • Cash Flow From Financing

Below is a sample of a projected cash flow statement for a startup vending machine business.  

Sample Cash Flow Statement for a Startup Vending Machine Business

You will also want to include an appendix section which will include:

  • Your complete financial projections
  • A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
  • Any other documentation which supports what you included in the body of your business plan.

Vending Machine Business Plan Summary

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your vending machine business. It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it.

Be sure to include all the key components discussed in this article and tailor it specifically to your business. And, most importantly, remember that your business plan is a living document; meaning it should be updated regularly as your business grows and changes.

Finish Your Vending Machine Business Plan in 1 Day!

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With our Ultimate Vending Machine Business Plan Template you can finish your plan in just 8 hours or less!

Finish your vending machine business plan today!

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About tmr », reverse vending machine market, reverse vending machine market (product type: metal recycling machines, plastic bottle recycling machines, glass recycling machines, hybrid recycling machines) - global industry analysis, size, share, growth, trends, and forecast, 2023-2031.

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Reverse Vending Machine Market Outlook 2031

  • The industry was valued at US$ 386.9 Mn in 2022
  • It is estimated to grow at a CAGR of 5.2% from 2023 to 2031 and reach US$ 604.1 Mn by the end of 2031
Analysts’ Viewpoint Demand for reverse vending machines is increasing at airports, metro stations, and railway stations to implement effective waste management practices. Increase in concerns associated with untreated waste in developed as well as developing countries is contributing to the reverse vending machine market growth. Leading companies in reverse vending machine market are focusing on the development of smart reverse vending machines based on artificial intelligence and data analytics technologies. Key vendors in the reverse vending machine market are anticipated to invest in R&D to gain new growth opportunities in the near future. They are also collaborating with different companies to expand their product portfolio and global reach as well as to keep their businesses growing across different regions.

Reverse Vending Machine Market

Market Introduction

A reverse vending machine (RVM) is a machine that offers rewards to a person who is inserting an empty glass bottle or a plastic bottle into the machine. RVMs are also conveniently located in public places such as grocery shops, mega malls, schools, and parks, making them easily accessible to users. Several government laws with reference to plastic waste recycling are expected to fuel reverse vending machine market value in the near future.

Rise in Untreated Waste Worldwide

The amount of untreated waste has increased significantly in the last few years. Plastic waste is harmful to the environment. Plastic production and accumulation in the environment are rising at a rapid pace. This is majorly due to the less awareness about recycling. Reverse vending machines offer the recycling of plastic bottles in an efficient manner. Reverse vending machines are gaining popularity due to their simple operation and positive intention of helping the environment.

According to the World Economic Forum, globally 400 million tons of plastic waste is produced on a yearly basis. In the U.S., 40 million tons of plastic waste was generated in 2021, and only 5.0% to 6.0%, or about two million tons was recycled. The total bottle recycling rate for 2020 was 27.2%, down from 28.7% in 2019. About 2.5 million plastic bottles and 110 million glass bottles are thrown away in the U.S. every hour. Thus, demand for reverse vending machines to recycle different types of bottle waste is rising across the region.

Increase in Adoption of Reverse Vending Machines in Public Places

Consumers use over 1.4 trillion beverage containers every year worldwide. The reverse vending machine helps to reduce and recycle waste. A number of unrecycled plastic bottles are scattered across rivers, landscapes, oceans, and landfills. The reverse vending machine is equipment that takes used bottles or cans, and then returns money or incentives in different forms. These incentives can differ based on location. Recyclers can get incentives in the form of cash refunds, metro transit tickets, donations to charity, paid telephone cards, or discount tickets to amusement parks, etc.

Reverse vending machines, or RVMs, are also conveniently placed in public locations such as grocery stores, gas stations, schools, and parks. Several governments are creating awareness about the benefits associated with reverse vending machines.

On 11 January, 2023, Mumbai’s Chhatrapati Shivaji Maharaj International Airport (CSMIA) installed Reverse Vending Machines (RVM) to spread awareness about recycling of plastic bottles. On January 24, 2023, the Government of Indonesia installed reverse vending machines for plastic recycling. Therefore, increase in installation of RVMs in public places is supporting growth of the global reverse vending machine market.

Surge in Demand for Plastic Bottle Recycling Machines

In terms of product type, the plastic bottle recycling machines segment dominated the global market in 2022. It is likely to hold major share of the global business during the forecast period.

Plastic bottles are typically used to store various kinds of liquids such as water, carbonated drinks, cooking oil, and milk. Plastic is one of the most used materials in several industries. Plastic material cannot easily decompose in the environment. This creates the demand for plastic bottle recycling machines in order to protect the environment. The U.S. landfills are overflowing with more than 2 million tons of discarded water bottles. Therefore, demand for plastic bottle recycling machines is expected to increase in the next few years.

Regional Outlook of Reverse Vending Machine Market

According to the analysis of the global reverse vending machine market report, in terms of region, Asia Pacific is likely to account for major share of the global market during the forecast period. Increase in plastic waste in Asia Pacific is a major factor contributing to the market development. India, China, and Indonesia are among the top three countries producing a large amount of plastic waste per year. Therefore, government bodies of these countries are focusing on the installation of reverse vending machines in major states.

On December 9, 2022, plastic reverse vending machines were been installed at 10 busy locations in Ludhiana, India. The market in Asia Pacific is likely to be followed by the market in North America in the near future.

Analysis of Key Players in Reverse Vending Machine Business

Companies in the global market are investing significantly on comprehensive R&D activities, primarily to develop innovative reverse vending machines. Expansion of product portfolios and mergers & acquisitions are key strategies adopted by manufacturers of the reverse vending machine market.

Aco Recycling, EcoVend Reverse Vending, Endlos Innovations Private Limited, Envipco Holding N.V., Kansmacker International, RVM Systems AS, Sielaff GmbH & Co. KG, Tomra Systems ASA, Veolia, and Zeleno are the prominent players operating in the global reverse vending machine market.

Key Developments in Reverse Vending Machine Industry

  • On August 09 , 2022 , Tomra Systems ASA launched TOMRA M1, the smallest three-material reverse vending machine. TOMRA M1 requires just 0.62 square meters of floor space, so that smaller retailers can participate in deposit return systems and contribute to recycling. This company is significantly focused on offering affordable and compact RVM, suitable for convenience/small stores.
  • On November 22 , 2021 , Aco Recycling launched the G-1 Smart Reverse Vending Machine. This machine is AI-driven, and can easily recycle plastic, glass, and aluminum waste. It provides a remote monitoring solution to the user.
  • On June 25 , 2021 , EcoVend Reverse Vending installed its new generation RVM 400 reverse vending machines in one of the largest supermarkets in Portugal. The RVM 400 accepts cans and plastic bottles. Additionally, on August 24, 2021, the company introduced a new RVM 400 reverse vending machine with advanced voice and touchless operation features as well as a large screen for advertising.

Key players have been profiled in the reverse vending machine market forecast report based on parameters such as financial overview, company overview, product portfolio, business strategies, recent developments, and business segments.

Market Snapshot

Frequently asked questions, how big was the global reverse vending machine market in 2022.

The global market was valued at US$ 386.9 Mn in 2022

How is it expected to grow by 2031?

It is expected to grow at a CAGR of 5.2% during the forecast period

What are the key factors driving the industry?

Rise in untreated waste across the globe and increase in adoption of reverse vending machines in public places

Which product type segment contributed largest share in 2022?

The plastic bottle recycling machines segment contributed largest share in 2022

How the Asia Pacific region performing?

Asia Pacific accounted for about 40% share in 2022

Who are the key players in the business?

Aco Recycling, EcoVend Reverse Vending, Endlos Innovations Private Limited, Envipco Holding N.V., Kansmacker International, RVM Systems AS, Sielaff GmbH & Co. KG, Tomra Systems ASA, Veolia, and Zeleno

    1.1. Market Definition and Scope

    1.2. Market Segmentation

    1.3. Key Research Objectives

    1.4. Research Highlights

2. Assumptions

3. Research Methodology

4. Executive Summary

5. Market Overview

    5.1. Market Dynamics

        5.1.1. Drivers

        5.1.2. Restraints

        5.1.3. Opportunities

    5.2. Key Trend Analysis

        5.2.1. Supplier Side

        5.2.2. Demand Side

    5.3. Key Market Indication

        5.3.1. Global Vending Machine Market Overview

    5.4. Industry SWOT Analysis

    5.5. Porter’s Five Forces Analysis

    5.6. Value Chain Analysis

    5.7. COVID-19 Impact Analysis

    5.8. Technology Overview

    5.9. Regulatory Framework and Guidelines

    5.10. Global Reverse Vending Machine Market Analysis and Forecast, 2017- 2031

        5.10.1. Market Value Projections (US$ Mn)

        5.10.2. Market Volume Projections (Thousand Units)

6. Global Reverse Vending Machine Market Analysis and Forecast, by Product Type

    6.1. Global Reverse Vending Machine Market Size (Value & Volume), by Product Type, 2017- 2031

        6.1.1. Metal Recycling Machines

        6.1.2. Plastic Bottle Recycling Machines

        6.1.3. Glass Recycling Machines

        6.1.4. Hybrid Recycling Machines

    6.2. Incremental Opportunity, by Product Type

7. Global Reverse Vending Machine Market Analysis and Forecast, by Capacity

    7.1. Global Reverse Vending Machine Market Size (Value & Volume), by Capacity, 2017- 2031

        7.1.1. Less Than 300 Bottles/Cans

        7.1.2. 300 - 600 Bottles/Cans

        7.1.3. 600 - 900 Bottles/Cans

        7.1.4. More Than 900 Bottles/Cans

    7.2. Incremental Opportunity, by Capacity

8. Global Reverse Vending Machine Market Analysis and Forecast, by Price

    8.1. Global Reverse Vending Machine Market Size (Value & Volume), by Price, 2017- 2031

        8.1.1. Low

        8.1.2. Medium

        8.1.3. High

    8.2. Incremental Opportunity, by Price

9. Global Reverse Vending Machine Market Analysis and Forecast, by Application

    9.1. Global Reverse Vending Machine Market Size (Value & Volume), by Application, 2017- 2031

        9.1.1. Airports & Railway Stations

        9.1.2. Supermarkets & Shopping Malls

        9.1.3. Public Parks

        9.1.4. Universities & Schools

        9.1.5. Others

    9.2. Incremental Opportunity, by Application

10. Global Reverse Vending Machine Market Analysis and Forecast, by Distribution Channel

    10.1. Global Reverse Vending Machine Market Size (Value & Volume), by Distribution Channel, 2017- 2031

        10.1.1. Direct Sales

        10.1.2. Indirect Sales

    10.2. Incremental Opportunity, by Distribution Channel

11. Global Reverse Vending Machine Market Analysis and Forecast, by Region

    11.1. Global Reverse Vending Machine Market Size (Value & Volume), by Region, 2017- 2031

        11.1.1. North America

        11.1.2. Europe

        11.1.3. Asia Pacific

        11.1.4. Middle East & Africa

        11.1.5. South America

    11.2. Incremental Opportunity, by Region

12. North America Reverse Vending Machine Market Analysis and Forecast

    12.1. Regional Snapshot

    12.2. Price Trend Analysis

        12.2.1. Weighted Average Selling Price (US$)

    12.3. Key Supplier Analysis

    12.4. Reverse Vending Machine Market Size (Value & Volume), by Product Type, 2017- 2031

        12.4.1. Metal Recycling Machines

        12.4.2. Plastic Bottle Recycling Machines

        12.4.3. Glass Recycling Machines

        12.4.4. Hybrid Recycling Machines

    12.5. Reverse Vending Machine Market Size (Value & Volume), by Capacity, 2017- 2031

        12.5.1. Less Than 300 Bottles/Cans

        12.5.2. 300 - 600 Bottles/Cans

        12.5.3. 600 - 900 Bottles/Cans

        12.5.4. More Than 900 Bottles/Cans

    12.6. Reverse Vending Machine Market Size (Value & Volume), by Price, 2017- 2031

        12.6.1. Low

        12.6.2. Medium

        12.6.3. High

    12.7. Reverse Vending Machine Market Size (Value & Volume), by Application, 2017- 2031

        12.7.1. Airports & Railway Stations

        12.7.2. Supermarkets & Shopping Malls

        12.7.3. Public Parks

        12.7.4. Universities & Schools

        12.7.5. Others

    12.8. Reverse Vending Machine Market Size (Value & Volume), by Distribution Channel, 2017- 2031

        12.8.1. Direct Sales

        12.8.2. Indirect Sales

    12.9. Reverse Vending Machine Market Size (US$ Mn) (Thousand Units), by Country, 2017- 2031

        12.9.1. U.S.

        12.9.2. Canada

        12.9.3. Rest of North America

    12.10. Incremental Opportunity Analysis

13. Europe Reverse Vending Machine Market Analysis and Forecast

    13.1. Regional Snapshot

    13.2. Price Trend Analysis

        13.2.1. Weighted Average Selling Price (US$)

    13.3. Key Supplier Analysis

    13.4. Reverse Vending Machine Market Size (Value & Volume), by Product Type, 2017- 2031

        13.4.1. Metal Recycling Machines

        13.4.2. Plastic Bottle Recycling Machines

        13.4.3. Glass Recycling Machines

        13.4.4. Hybrid Recycling Machines

    13.5. Reverse Vending Machine Market Size (Value & Volume), by Capacity, 2017- 2031

        13.5.1. Less Than 300 Bottles/Cans

        13.5.2. 300 - 600 Bottles/Cans

        13.5.3. 600 - 900 Bottles/Cans

        13.5.4. More Than 900 Bottles/Cans

    13.6. Reverse Vending Machine Market Size (Value & Volume), by Price, 2017- 2031

        13.6.1. Low

        13.6.2. Medium

        13.6.3. High

    13.7. Reverse Vending Machine Market Size (Value & Volume), by Application, 2017- 2031

        13.7.1. Airports & Railway Stations

        13.7.2. Supermarkets & Shopping Malls

        13.7.3. Public Parks

        13.7.4. Universities & Schools

        13.7.5. Others

    13.8. Reverse Vending Machine Market Size (Value & Volume), by Distribution Channel, 2017- 2031

        13.8.1. Direct Sales

        13.8.2. Indirect Sales

    13.9. Reverse Vending Machine Market Size (US$ Mn) (Thousand Units), by Country, 2017- 2031

        13.9.1. U.K.

        13.9.2. Germany

        13.9.3. France

        13.9.4. Rest of Europe

    13.10. Incremental Opportunity Analysis

14. Asia Pacific Reverse Vending Machine Market Analysis and Forecast

    14.1. Regional Snapshot

    14.2. Price Trend Analysis

        14.2.1. Weighted Average Selling Price (US$)

    14.3. Key Supplier Analysis

    14.4. Reverse Vending Machine Market Size (Value & Volume), by Product Type, 2017- 2031

        14.4.1. Metal Recycling Machines

        14.4.2. Plastic Bottle Recycling Machines

        14.4.3. Glass Recycling Machines

        14.4.4. Hybrid Recycling Machines

    14.5. Reverse Vending Machine Market Size (Value & Volume), by Capacity, 2017- 2031

        14.5.1. Less Than 300 Bottles/Cans

        14.5.2. 300 - 600 Bottles/Cans

        14.5.3. 600 - 900 Bottles/Cans

        14.5.4. More Than 900 Bottles/Cans

    14.6. Reverse Vending Machine Market Size (Value & Volume), by Price, 2017- 2031

        14.6.1. Low

        14.6.2. Medium

        14.6.3. High

    14.7. Reverse Vending Machine Market Size (Value & Volume), by Application, 2017- 2031

        14.7.1. Airports & Railway Stations

        14.7.2. Supermarkets & Shopping Malls

        14.7.3. Public Parks

        14.7.4. Universities & Schools

        14.7.5. Others

    14.8. Reverse Vending Machine Market Size (Value & Volume), by Distribution Channel, 2017- 2031

        14.8.1. Direct Sales

        14.8.2. Indirect Sales

    14.9. Reverse Vending Machine Market Size (US$ Mn) (Thousand Units), by Country, 2017- 2031

        14.9.1. China

        14.9.2. India

        14.9.3. Japan

        14.9.4. Rest of Asia Pacific

    14.10. Incremental Opportunity Analysis

15. Middle East & Africa Reverse Vending Machine Market Analysis and Forecast

    15.1. Regional Snapshot

    15.2. Price Trend Analysis

        15.2.1. Weighted Average Selling Price (US$)

    15.3. Key Supplier Analysis

    15.4. Reverse Vending Machine Market Size (Value & Volume), by Product Type, 2017- 2031

        15.4.1. Metal Recycling Machines

        15.4.2. Plastic Bottle Recycling Machines

        15.4.3. Glass Recycling Machines

        15.4.4. Hybrid Recycling Machines

    15.5. Reverse Vending Machine Market Size (Value & Volume), by Capacity, 2017- 2031

        15.5.1. Less Than 300 Bottles/Cans

        15.5.2. 300 - 600 Bottles/Cans

        15.5.3. 600 - 900 Bottles/Cans

        15.5.4. More Than 900 Bottles/Cans

    15.6. Reverse Vending Machine Market Size (Value & Volume), by Price, 2017- 2031

        15.6.1. Low

        15.6.2. Medium

        15.6.3. High

    15.7. Reverse Vending Machine Market Size (Value & Volume), by Application, 2017- 2031

        15.7.1. Airports & Railway Stations

        15.7.2. Supermarkets & Shopping Malls

        15.7.3. Public Parks

        15.7.4. Universities & Schools

        15.7.5. Others

    15.8. Reverse Vending Machine Market Size (Value & Volume), by Distribution Channel, 2017- 2031

        15.8.1. Direct Sales

        15.8.2. Indirect Sales

    15.9. Reverse Vending Machine Market Size (US$ Mn) (Thousand Units), by Country, 2017- 2031

        15.9.1. GCC

        15.9.2. South Africa

        15.9.3. Rest of Middle East & Africa

    15.10. Incremental Opportunity Analysis

16. South America Reverse Vending Machine Market Analysis and Forecast

    16.1. Regional Snapshot

    16.2. Price Trend Analysis

        16.2.1. Weighted Average Selling Price (US$)

    16.3. Key Supplier Analysis

    16.4. Reverse Vending Machine Market Size (Value & Volume), by Product Type, 2017- 2031

        16.4.1. Metal Recycling Machines

        16.4.2. Plastic Bottle Recycling Machines

        16.4.3. Glass Recycling Machines

        16.4.4. Hybrid Recycling Machines

    16.5. Reverse Vending Machine Market Size (Value & Volume), by Capacity, 2017- 2031

        16.5.1. Less Than 300 Bottles/Cans

        16.5.2. 300 - 600 Bottles/Cans

        16.5.3. 600 - 900 Bottles/Cans

        16.5.4. More Than 900 Bottles/Cans

    16.6. Reverse Vending Machine Market Size (Value & Volume), by Price, 2017- 2031

        16.6.1. Low

        16.6.2. Medium

        16.6.3. High

    16.7. Reverse Vending Machine Market Size (Value & Volume), by Application, 2017- 2031

        16.7.1. Airports & Railway Stations

        16.7.2. Supermarkets & Shopping Malls

        16.7.3. Public Parks

        16.7.4. Universities & Schools

        16.7.5. Others

    16.8. Reverse Vending Machine Market Size (Value & Volume), by Distribution Channel, 2017- 2031

        16.8.1. Direct Sales

        16.8.2. Indirect Sales

    16.9. Reverse Vending Machine Market Size (US$ Mn) (Thousand Units), by Country, 2017- 2031

        16.9.1. Brazil

        16.9.2. Rest of South America

    16.10. Incremental Opportunity Analysis

17. Competition Landscape

    17.1. Competition Dashboard

    17.2. Market Share Analysis % (2020)

    17.3. Company Profiles [Company Overview, Product Portfolio, Financial Information, Business Strategies / Recent Developments]

        17.3.1. Aco Recycling

            17.3.1.1. Company Overview

            17.3.1.2. Product Portfolio

            17.3.1.3. Financial Information

            17.3.1.4. Business Strategies / Recent Developments

        17.3.2. EcoVend Reverse Vending

            17.3.2.1. Company Overview

            17.3.2.2. Product Portfolio

            17.3.2.3. Financial Information

            17.3.2.4. Business Strategies / Recent Developments

        17.3.3. Endlos Innovations Private Limited

            17.3.3.1. Company Overview

            17.3.3.2. Product Portfolio

            17.3.3.3. Financial Information

            17.3.3.4. Business Strategies / Recent Developments

        17.3.4. Envipco Holding N.V.

            17.3.4.1. Company Overview

            17.3.4.2. Product Portfolio

            17.3.4.3. Financial Information

            17.3.4.4. Business Strategies / Recent Developments

        17.3.5. Kansmacker International

            17.3.5.1. Company Overview

            17.3.5.2. Product Portfolio

            17.3.5.3. Financial Information

            17.3.5.4. Business Strategies / Recent Developments

        17.3.6. RVM Systems AS

            17.3.6.1. Company Overview

            17.3.6.2. Product Portfolio

            17.3.6.3. Financial Information

            17.3.6.4. Business Strategies / Recent Developments

        17.3.7. Sielaff GmbH & Co. KG

            17.3.7.1. Company Overview

            17.3.7.2. Product Portfolio

            17.3.7.3. Financial Information

            17.3.7.4. Business Strategies / Recent Developments

        17.3.8. Tomra Systems ASA

            17.3.8.1. Company Overview

            17.3.8.2. Product Portfolio

            17.3.8.3. Financial Information

            17.3.8.4. Business Strategies / Recent Developments

        17.3.9. Veolia

            17.3.9.1. Company Overview

            17.3.9.2. Product Portfolio

            17.3.9.3. Financial Information

            17.3.9.4. Business Strategies / Recent Developments

        17.3.10. Zeleno

            17.3.10.1. Company Overview

            17.3.10.2. Product Portfolio

            17.3.10.3. Financial Information

            17.3.10.4. Business Strategies / Recent Developments

18. Key Takeaways

    18.1. Identification of Potential Market Spaces

        18.1.1. By Product Type

        18.1.2. By Capacity

        18.1.3. By Price

        18.1.4. By Application

        18.1.5. By Distribution Channel

        18.1.6. By Region

    18.2. Preferred Sales & Marketing Strategy

    18.3. Prevailing Market Risks

List of Tables

Table 1: Global Reverse Vending Machine Market Value, by Product Type, US$ Mn, 2017-2031

Table 2: Global Reverse Vending Machine Market Volume, by Product Type, Thousand Units, 2017-2031

Table 3: Global Reverse Vending Machine Market Value, by Capacity, US$ Mn, 2017-2031

Table 4: Global Reverse Vending Machine Market Volume, by Capacity, Thousand Units, 2017-2031

Table 5: Global Reverse Vending Machine Market Value, by Price, US$ Mn, 2017-2031

Table 6: Global Reverse Vending Machine Market Volume, by Price, Thousand Units, 2017-2031

Table 7: Global Reverse Vending Machine Market Value, by Application, US$ Mn, 2017-2031

Table 8: Global Reverse Vending Machine Market Volume, by Application, Thousand Units, 2017-2031

Table 9: Global Reverse Vending Machine Market Value, by Distribution Channel, US$ Mn, 2017-2031

Table 10: Global Reverse Vending Machine Market Volume, by Distribution Channel, Thousand Units, 2017-2031

Table 11: Global Reverse Vending Machine Market Value, by Region, US$ Mn, 2017-2031

Table 12: Global Reverse Vending Machine Market Volume, by Region, Thousand Units, 2017-2031

Table 13: North America Reverse Vending Machine Market Value, by Product Type, US$ Mn, 2017-2031

Table 14: North America Reverse Vending Machine Market Volume, by Product Type, Thousand Units, 2017-2031

Table 15: North America Reverse Vending Machine Market Value, by Capacity, US$ Mn, 2017-2031

Table 16: North America Reverse Vending Machine Market Volume, by Capacity, Thousand Units, 2017-2031

Table 17: North America Reverse Vending Machine Market Value, by Price, US$ Mn, 2017-2031

Table 18: North America Reverse Vending Machine Market Volume, by Price, Thousand Units, 2017-2031

Table 19: North America Reverse Vending Machine Market Value, by Application, US$ Mn, 2017-2031

Table 20: North America Reverse Vending Machine Market Volume, by Application, Thousand Units, 2017-2031

Table 21: North America Reverse Vending Machine Market Value, by Distribution Channel, US$ Mn, 2017-2031

Table 22: North America Reverse Vending Machine Market Volume, by Distribution Channel, Thousand Units, 2017-2031

Table 23: North America Reverse Vending Machine Market Value, by Country/Sub-Region, US$ Mn, 2017-2031

Table 24: North America Reverse Vending Machine Market Volume, by Country/Sub-Region, Thousand Units, 2017-2031

Table 25: Europe Reverse Vending Machine Market Value, by Product Type, US$ Mn, 2017-2031

Table 26: Europe Reverse Vending Machine Market Volume, by Product Type, Thousand Units, 2017-2031

Table 27: Europe Reverse Vending Machine Market Value, by Capacity, US$ Mn, 2017-2031

Table 28: Europe Reverse Vending Machine Market Volume, by Capacity, Thousand Units, 2017-2031

Table 29: Europe Reverse Vending Machine Market Value, by Price, US$ Mn, 2017-2031

Table 30: Europe Reverse Vending Machine Market Volume, by Price, Thousand Units, 2017-2031

Table 31: Europe Reverse Vending Machine Market Value, by Application, US$ Mn, 2017-2031

Table 32: Europe Reverse Vending Machine Market Volume, by Application, Thousand Units, 2017-2031

Table 33: Europe Reverse Vending Machine Market Value, by Distribution Channel, US$ Mn, 2017-2031

Table 34: Europe Reverse Vending Machine Market Volume, by Distribution Channel, Thousand Units, 2017-2031

Table 35: Europe Reverse Vending Machine Market Value, by Country/Sub-Region, US$ Mn, 2017-2031

Table 36: Europe Reverse Vending Machine Market Volume, by Country/Sub-Region, Thousand Units, 2017-2031

Table 37: Asia Pacific Reverse Vending Machine Market Value, by Product Type, US$ Mn, 2017-2031

Table 38: Asia Pacific Reverse Vending Machine Market Volume, by Product Type, Thousand Units, 2017-2031

Table 39: Asia Pacific Reverse Vending Machine Market Value, by Capacity, US$ Mn, 2017-2031

Table 40: Asia Pacific Reverse Vending Machine Market Volume, by Capacity, Thousand Units, 2017-2031

Table 41: Asia Pacific Reverse Vending Machine Market Value, by Price, US$ Mn, 2017-2031

Table 42: Asia Pacific Reverse Vending Machine Market Volume, by Price, Thousand Units, 2017-2031

Table 43: Asia Pacific Reverse Vending Machine Market Value, by Application, US$ Mn, 2017-2031

Table 44: Asia Pacific Reverse Vending Machine Market Volume, by Application, Thousand Units, 2017-2031

Table 45: Asia Pacific Reverse Vending Machine Market Value, by Distribution Channel, US$ Mn, 2017-2031

Table 46: Asia Pacific Reverse Vending Machine Market Volume, by Distribution Channel, Thousand Units, 2017-2031

Table 47: Asia Pacific Reverse Vending Machine Market Value, by Country/Sub-Region, US$ Mn, 2017-2031

Table 48: Asia Pacific Reverse Vending Machine Market Volume, by Country/Sub-Region, Thousand Units, 2017-2031

Table 49: Middle East & Africa Reverse Vending Machine Market Value, by Product Type, US$ Mn, 2017-2031

Table 50: Middle East & Africa Reverse Vending Machine Market Volume, by Product Type, Thousand Units, 2017-2031

Table 51: Middle East & Africa Reverse Vending Machine Market Value, by Capacity, US$ Mn, 2017-2031

Table 52: Middle East & Africa Reverse Vending Machine Market Volume, by Capacity, Thousand Units, 2017-2031

Table 53: Middle East & Africa Reverse Vending Machine Market Value, by Price, US$ Mn, 2017-2031

Table 54: Middle East & Africa Reverse Vending Machine Market Volume, by Price, Thousand Units, 2017-2031

Table 55: Middle East & Africa Reverse Vending Machine Market Value, by Application, US$ Mn, 2017-2031

Table 56: Middle East & Africa Reverse Vending Machine Market Volume, by Application, Thousand Units, 2017-2031

Table 57: Middle East & Africa Reverse Vending Machine Market Value, by Distribution Channel, US$ Mn, 2017-2031

Table 58: Middle East & Africa Reverse Vending Machine Market Volume, by Distribution Channel, Thousand Units, 2017-2031

Table 59: Middle East & Africa Reverse Vending Machine Market Value, by Country/Sub-Region, US$ Mn, 2017-2031

Table 60: Middle East & Africa Reverse Vending Machine Market Volume, by Country/Sub-Region, Thousand Units, 2017-2031

Table 61: South America Reverse Vending Machine Market Value, by Product Type, US$ Mn, 2017-2031

Table 62: South America Reverse Vending Machine Market Volume, by Product Type, Thousand Units, 2017-2031

Table 63: South America Reverse Vending Machine Market Value, by Capacity, US$ Mn, 2017-2031

Table 64: South America Reverse Vending Machine Market Volume, by Capacity, Thousand Units, 2017-2031

Table 65: South America Reverse Vending Machine Market Value, by Price, US$ Mn, 2017-2031

Table 66: South America Reverse Vending Machine Market Volume, by Price, Thousand Units, 2017-2031

Table 67: South America Reverse Vending Machine Market Value, by Application, US$ Mn, 2017-2031

Table 68: South America Reverse Vending Machine Market Volume, by Application, Thousand Units, 2017-2031

Table 69: South America Reverse Vending Machine Market Value, by Distribution Channel, US$ Mn, 2017-2031

Table 70: South America Reverse Vending Machine Market Volume, by Distribution Channel, Thousand Units, 2017-2031

Table 71: South America Reverse Vending Machine Market Value, by Country/Sub-Region, US$ Mn, 2017-2031

Table 72: South America Reverse Vending Machine Market Volume, by Country/Sub-Region, Thousand Units, 2017-2031

List of Figures

Figure 1: Global Reverse Vending Machine Market Value, by Product Type, US$ Mn, 2017-2031

Figure 2: Global Reverse Vending Machine Market Volume, by Product Type, Thousand Units, 2017-2031

Figure 3: Global Reverse Vending Machine Market Incremental Opportunity, By Product Type, 2021-2031

Figure 4: Global Reverse Vending Machine Market Value, by Capacity, US$ Mn, 2017-2031

Figure 5: Global Reverse Vending Machine Market Volume, by Capacity, Thousand Units, 2017-2031

Figure 6: Global Reverse Vending Machine Market Incremental Opportunity, By Capacity, 2021-2031

Figure 7: Global Reverse Vending Machine Market Value, by Price, US$ Mn, 2017-2031

Figure 8: Global Reverse Vending Machine Market Volume, by Price, Thousand Units, 2017-2031

Figure 9: Global Reverse Vending Machine Market Incremental Opportunity, By Price, 2021-2031

Figure 10: Global Reverse Vending Machine Market Value, by Application, US$ Mn, 2017-2031

Figure 11: Global Reverse Vending Machine Market Volume, by Application, Thousand Units, 2017-2031

Figure 12: Global Reverse Vending Machine Market Incremental Opportunity, By Application, 2021-2031

Figure 13: Global Reverse Vending Machine Market Value, by Distribution Channel, US$ Mn, 2017-2031

Figure 14: Global Reverse Vending Machine Market Volume, by Distribution Channel, Thousand Units, 2017-2031

Figure 15: Global Reverse Vending Machine Market Incremental Opportunity, By Distribution Channel, 2021-2031

Figure 16: Global Reverse Vending Machine Market Value, by Region, US$ Mn, 2017-2031

Figure 17: Global Reverse Vending Machine Market Volume, by Region, Thousand Units, 2017-2031

Figure 18: Global Reverse Vending Machine Market Incremental Opportunity, by Region,2021-2031

Figure 19: North America Reverse Vending Machine Market Value, by Product Type, US$ Mn, 2017-2031

Figure 20: North America Reverse Vending Machine Market Volume, by Product Type, Thousand Units, 2017-2031

Figure 21: North America Reverse Vending Machine Market Incremental Opportunity, By Product Type, 2021-2031

Figure 22: North America Reverse Vending Machine Market Value, by Capacity, US$ Mn, 2017-2031

Figure 23: North America Reverse Vending Machine Market Volume, by Capacity, Thousand Units, 2017-2031

Figure 24: North America Reverse Vending Machine Market Incremental Opportunity, By Capacity, 2021-2031

Figure 25: North America Reverse Vending Machine Market Value, by Price, US$ Mn, 2017-2031

Figure 26: North America Reverse Vending Machine Market Volume, by Price, Thousand Units, 2017-2031

Figure 27: North America Reverse Vending Machine Market Incremental Opportunity, By Price, 2021-2031

Figure 28: North America Reverse Vending Machine Market Value, by Application, US$ Mn, 2017-2031

Figure 29: North America Reverse Vending Machine Market Volume, by Application, Thousand Units, 2017-2031

Figure 30: North America Reverse Vending Machine Market Incremental Opportunity, By Application, 2021-2031

Figure 31: North America Reverse Vending Machine Market Value, by Distribution Channel, US$ Mn, 2017-2031

Figure 32: North America Reverse Vending Machine Market Volume, by Distribution Channel, Thousand Units, 2017-2031

Figure 33: North America Reverse Vending Machine Market Incremental Opportunity, By Distribution Channel, 2021-2031

Figure 34: North America Reverse Vending Machine Market Value, by Country/Sub-Region, US$ Mn, 2017-2031

Figure 35: North America Reverse Vending Machine Market Volume, by Country/Sub-Region, Thousand Units, 2017-2031

Figure 36: North America Reverse Vending Machine Market Incremental Opportunity, by Country/Sub-Region, 2021-2031

Figure 37: Europe Reverse Vending Machine Market Value, by Product Type, US$ Mn, 2017-2031

Figure 38: Europe Reverse Vending Machine Market Volume, by Product Type, Thousand Units, 2017-2031

Figure 39: Europe Reverse Vending Machine Market Incremental Opportunity, By Product Type, 2021-2031

Figure 40: Europe Reverse Vending Machine Market Value, by Capacity, US$ Mn, 2017-2031

Figure 41: Europe Reverse Vending Machine Market Volume, by Capacity, Thousand Units, 2017-2031

Figure 42: Europe Reverse Vending Machine Market Incremental Opportunity, By Capacity, 2021-2031

Figure 43: Europe Reverse Vending Machine Market Value, by Price, US$ Mn, 2017-2031

Figure 44: Europe Reverse Vending Machine Market Volume, by Price, Thousand Units, 2017-2031

Figure 45: Europe Reverse Vending Machine Market Incremental Opportunity, By Price, 2021-2031

Figure 46: Europe Reverse Vending Machine Market Value, by Application, US$ Mn, 2017-2031

Figure 47: Europe Reverse Vending Machine Market Volume, by Application, Thousand Units, 2017-2031

Figure 48: Europe Reverse Vending Machine Market Incremental Opportunity, By Application, 2021-2031

Figure 49: Europe Reverse Vending Machine Market Value, by Distribution Channel, US$ Mn, 2017-2031

Figure 50: Europe Reverse Vending Machine Market Volume, by Distribution Channel, Thousand Units, 2017-2031

Figure 51: Europe Reverse Vending Machine Market Incremental Opportunity, By Distribution Channel, 2021-2031

Figure 52: Europe Reverse Vending Machine Market Value, by Country/Sub-Region, US$ Mn, 2017-2031

Figure 53: Europe Reverse Vending Machine Market Volume, by Country/Sub-Region, Thousand Units, 2017-2031

Figure 54: Europe Reverse Vending Machine Market Incremental Opportunity, by Country/Sub-Region, 2021-2031

Figure 55: Asia Pacific Reverse Vending Machine Market Value, by Product Type, US$ Mn, 2017-2031

Figure 56: Asia Pacific Reverse Vending Machine Market Volume, by Product Type, Thousand Units, 2017-2031

Figure 57: Asia Pacific Reverse Vending Machine Market Incremental Opportunity, By Product Type, 2021-2031

Figure 58: Asia Pacific Reverse Vending Machine Market Value, by Capacity, US$ Mn, 2017-2031

Figure 59: Asia Pacific Reverse Vending Machine Market Volume, by Capacity, Thousand Units, 2017-2031

Figure 60: Asia Pacific Reverse Vending Machine Market Incremental Opportunity, By Capacity, 2021-2031

Figure 61: Asia Pacific Reverse Vending Machine Market Value, by Price, US$ Mn, 2017-2031

Figure 62: Asia Pacific Reverse Vending Machine Market Volume, by Price, Thousand Units, 2017-2031

Figure 63: Asia Pacific Reverse Vending Machine Market Incremental Opportunity, By Price, 2021-2031

Figure 64: Asia Pacific Reverse Vending Machine Market Value, by Application, US$ Mn, 2017-2031

Figure 65: Asia Pacific Reverse Vending Machine Market Volume, by Application, Thousand Units, 2017-2031

Figure 66: Asia Pacific Reverse Vending Machine Market Incremental Opportunity, By Application, 2021-2031

Figure 67: Asia Pacific Reverse Vending Machine Market Value, by Distribution Channel, US$ Mn, 2017-2031

Figure 68: Asia Pacific Reverse Vending Machine Market Volume, by Distribution Channel, Thousand Units, 2017-2031

Figure 69: Asia Pacific Reverse Vending Machine Market Incremental Opportunity, By Distribution Channel, 2021-2031

Figure 70: Asia Pacific Reverse Vending Machine Market Value, by Country/Sub-Region, US$ Mn, 2017-2031

Figure 71: Asia Pacific Reverse Vending Machine Market Volume, by Country/Sub-Region, Thousand Units, 2017-2031

Figure 72: Asia Pacific Reverse Vending Machine Market Incremental Opportunity, by Country/Sub-Region, 2021-2031

Figure 73: Middle East & Africa Reverse Vending Machine Market Value, by Product Type, US$ Mn, 2017-2031

Figure 74: Middle East & Africa Reverse Vending Machine Market Volume, by Product Type, Thousand Units, 2017-2031

Figure 75: Middle East & Africa Reverse Vending Machine Market Incremental Opportunity, By Product Type, 2021-2031

Figure 76: Middle East & Africa Reverse Vending Machine Market Value, by Capacity, US$ Mn, 2017-2031

Figure 77: Middle East & Africa Reverse Vending Machine Market Volume, by Capacity, Thousand Units, 2017-2031

Figure 78: Middle East & Africa Reverse Vending Machine Market Incremental Opportunity, By Capacity, 2021-2031

Figure 79: Middle East & Africa Reverse Vending Machine Market Value, by Price, US$ Mn, 2017-2031

Figure 80: Middle East & Africa Reverse Vending Machine Market Volume, by Price, Thousand Units, 2017-2031

Figure 81: Middle East & Africa Reverse Vending Machine Market Incremental Opportunity, By Price, 2021-2031

Figure 82: Middle East & Africa Reverse Vending Machine Market Value, by Application, US$ Mn, 2017-2031

Figure 83: Middle East & Africa Reverse Vending Machine Market Volume, by Application, Thousand Units, 2017-2031

Figure 84: Middle East & Africa Reverse Vending Machine Market Incremental Opportunity, By Application, 2021-2031

Figure 85: Middle East & Africa Reverse Vending Machine Market Value, by Distribution Channel, US$ Mn, 2017-2031

Figure 86: Middle East & Africa Reverse Vending Machine Market Volume, by Distribution Channel, Thousand Units, 2017-2031

Figure 87: Middle East & Africa Reverse Vending Machine Market Incremental Opportunity, By Distribution Channel, 2021-2031

Figure 88: Middle East & Africa Reverse Vending Machine Market Value, by Country/Sub-Region, US$ Mn, 2017-2031

Figure 89: Middle East & Africa Reverse Vending Machine Market Volume, by Country/Sub-Region, Thousand Units, 2017-2031

Figure 90: Middle East & Africa Reverse Vending Machine Market Incremental Opportunity, by Country/Sub-Region, 2021-2031

Figure 91: South America Reverse Vending Machine Market Value, by Product Type, US$ Mn, 2017-2031

Figure 92: South America Reverse Vending Machine Market Volume, by Product Type, Thousand Units, 2017-2031

Figure 93: South America Reverse Vending Machine Market Incremental Opportunity, By Product Type, 2021-2031

Figure 94: South America Reverse Vending Machine Market Value, by Capacity, US$ Mn, 2017-2031

Figure 95: South America Reverse Vending Machine Market Volume, by Capacity, Thousand Units, 2017-2031

Figure 96: South America Reverse Vending Machine Market Incremental Opportunity, By Capacity, 2021-2031

Figure 97: South America Reverse Vending Machine Market Value, by Price, US$ Mn, 2017-2031

Figure 98: South America Reverse Vending Machine Market Volume, by Price, Thousand Units, 2017-2031

Figure 99: South America Reverse Vending Machine Market Incremental Opportunity, By Price, 2021-2031

Figure 100: South America Reverse Vending Machine Market Value, by Application, US$ Mn, 2017-2031

Figure 101: South America Reverse Vending Machine Market Volume, by Application, Thousand Units, 2017-2031

Figure 102: South America Reverse Vending Machine Market Incremental Opportunity, By Application, 2021-2031

Figure 103: South America Reverse Vending Machine Market Value, by Distribution Channel, US$ Mn, 2017-2031

Figure 104: South America Reverse Vending Machine Market Volume, by Distribution Channel, Thousand Units, 2017-2031

Figure 105: South America Reverse Vending Machine Market Incremental Opportunity, By Distribution Channel,2021-2031

Figure 106: South America Reverse Vending Machine Market Value, by Country/Sub-Region, US$ Mn, 2017-2031

Figure 107: South America Reverse Vending Machine Market Volume, by Country/Sub-Region, Thousand Units, 2017-2031

Figure 108: South America Reverse Vending Machine Market Incremental Opportunity, by Country/Sub-Region, 2021-2031

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How to write the business plan for a vending machine company

vending machine business plan

Are you looking to start a vending machine business or grow an existing one? Writing a business plan is essential for success in this competitive industry.

A well-crafted business plan can help you identify potential opportunities and challenges, establish realistic goals and objectives, and secure financing from investors or lenders.

This guide provides an in-depth look at how to write a comprehensive business plan for your vending machine company.

We cover why it's important to have one, what information you need to include, the components of the plan itself, as well as some useful tools that will make writing your business plan easier.

So, let's get started!

In this guide:

Why write a business plan for a vending machine company?

Information needed to create a business plan for a vending machine company, how do i build a financial forecast for a vending machine company, the written part of a vending machine business plan, what tool should i use to write my vending machine business plan.

There are several reasons to write a vending machine business plan. Below, we cover some of the most important ones!

To draw up a roadmap

Writing a business plan for a vending machine company is an important step for entrepreneurs looking to start or grow their businesses.

A well-crafted business plan will help you identify and set objectives that are achievable over the next 3 to 5 years.

For existing businesses, writing a comprehensive business plan can be beneficial in evaluating current operations and planning to ensure continued success.

Not only does it provide direction and help focus on short-term goals, but it also helps you anticipate future challenges and opportunities so you can adjust accordingly.

To compare financial performance

It also enables you to regularly compare your financial performance against what was initially planned and adjust future financial forecasts accordingly.

This way, you can continually assess whether business finances are headed in the right direction and make adjustments as needed to stay on track with achieving long-term goals.

To raise financing from investors or banks

When looking for financing from an equity investor or a bank to start or grow a vending machine company, it is essential to have a comprehensive business plan.

This document will provide lenders with key information about your company and its prospects for growth and profitability.

The plan should demonstrate that investing in your vending machine business is likely to generate a good return on investment. Lenders will use your financial forecast to calculate metrics and ratios.

It should include details of how you intend to drive sales, manage expenses, manage cash flow and build value over time.

An effective business plan can be the difference between success and failure when seeking funds from investors.

Now that we understand why it is important to write a business plan for a vending machine company, let's look at the information needed to create such a plan.

Create your vending machine business plan online!

Think your vending machine business could be profitable? Find out how with a business plan!

vending machine business plan online

Writing a vending machine business plan requires research so that you can project sales, investments and cost accurately in your financial forecast.

In this section, we cover three key pieces of information you should gather before drafting your plan!

Carrying out market research for a vending machine company

Carrying out market research is an important step before writing a business plan for a vending machine company.

Market research helps identify potential customers, understand their needs and preferences, and accurately forecast revenues.

It can also provide valuable insights into the competitive landscape that will enable you to develop strategies for success.

By carrying out market research, you'll be able to create a realistic financial forecast which is essential when trying to raise financing from investors or banks.

Developing the marketing plan for a vending machine company

Developing an appropriate sales & marketing plan, and budget, for your vending machine company is crucial before writing a business plan.

This will ensure that you have a clear go to market strategy in place, and that you allocate sufficient resources to hit your sales target when you incorporate these numbers in your financial forecast.

The staffing and equipment needs of a vending machine company

When writing a business plan for a vending machine company, it is important to include a thorough recruitment plan and investment strategy.

To do this effectively, you will need to think how the business will operate from a practical point of view. Where will you buy or manufacture the vending machines? How will they be delivered to customers? Who will service them? Etc.

This helps to ensure that you can realistically plan for the cash outflows required to hire personnel and purchase necessary equipment.

After gathering the necessary information to create a business plan for a vending machine company, the next step is to create your financial forecast.

A vending machine financial forecast has three key statements to it: the profit and loss, balance sheet and cash flow forecast. It also has a source and uses a table that details startup costs and expenses.

In the following sections, we explain each one in more detail.

The projected P&L statement

The projected P&L statement of a vending machine business shows how much income it will generate and how profitable it will be in the future.

example of projected profit and loss statement in a vending machine business plan

The projected balance sheet of your vending machine company

A vending machine balance sheet is one of the most important financial documents because it reveals the current financial position of a business.

It is a statement that shows the assets, liabilities, and equity of the company at a specific point in time.

  • Assets, such as cash are owned by the vending machine company and can provide future economic benefits.
  • On the other hand, liabilities represent debts and other obligations the company has to pay in the future.
  • Equity includes capital contributions from owners and retained earnings, which is the profit the company has accumulated since its inception.

The balance sheet is used to assess the financial position of your vending machine company.

It helps to gauge the company’s ability to pay its current liabilities, such as accounts payable and other short-term debts by calculating key metrics such as the current ratio or quick ratio. And to assess its borrowing capacity.

example of projected balance sheet in a vending machine business plan

The projected cash flow statement

A projected cash flow statement is a helpful tool for a vending machine company. It shows how much cash the company expects to generate or consume each month, as well as how much cash it will have left in the bank at any given time.

This helps the company plan ahead and budget its outflows so that it can make sure it has enough cash.

Knowing this information helps you decide when to invest and purchase more vending machines, or when to seek financing to avoid cash shortfalls.

example of projected cash flow statement in a vending machine business plan

The initial financing plan

An initial financing plan, also known as a sources and uses table, is a helpful tool which shows how you will finance the creation (or expansion) of your vending machine business.

vending machine business plan: example of sources and uses of funds

Now that we have discussed the financial forecast of our vending machine company business plan, let's look at the content of the written part of the plan, which provides the context needed to interpret the figures of your forecast.

The written part of a vending machine business plan has seven key sections.

From drafting an executive summary to presenting your financials, let's have a look at each of them!

1. The executive summary

The executive summary of a vending machine company business plan should provide a comprehensive overview of the company's operations, objectives, and strategies.

It should start with a concise description of the business, including its history, growth prospects and competitive advantages.

The market overview should then outline the size, scope and outlook of the vending machine industry, plus any key trends that could affect the business.

Following this, the summary should include a brief overview of key financial information, such as projected revenue and profits, capital requirements, and sources of funding.

2. The presentation of the company

The presentation of a vending machine company's business plan should focus on the structure and ownership, location, and management team of the company.

The structure and ownership part provides an overview of the legal structure, key stakeholders, and any partners or investors. It is important to clearly define each partner's stake in the business.

The location part should give an overview of where the company is implanted and what serviceable area it targets.

The management team should be given special attention in a vending machine business plan. This section should provide an overview of each member of the management team, including their background and experience.

It is also important to emphasize any past successes that the members of the management team have achieved, as this will help potential investors understand why they should trust in their leadership.

3. The products and services section

When writing the products and services section of your vending machine business plan, you should list all of the items that you will offer to customers.

This will depend of whether you are a manufacturer of vending machines or an operator.

If you are an operator, this will includes both food and beverage options as well as any other services or features that may be available to vending machine customers.

Most vending machines store soft drinks, crisps, chocolate and confectionery but yours doesn't have to!

You need to explain how your product offerings differ from those already in the market, so investors can understand why it is worth investing in your business.

If you are a manufacturer you will need to detail the key features of your machines.

customer paying using contactless payment vending machine: pricing section business plan

4. The market analysis

When presenting the conclusion of your market analysis in a business plan, you need to include key aspects such as demographics and segmentation, target market, competition, barriers to entry, and regulation.

Demographics and segmentation are essential factors to consider when analyzing the potential success of a vending machine company. Knowing who your target customers are, how much they can afford to pay and their product preferences can help inform decisions about where to place machines or what type of products should be sold inside them.

Additionally, understanding which segments make up the overall customer base can also be beneficial when crafting marketing campaigns that reach those specific groups.

Knowing who the competition is will also help you shape your strategy for gaining market share. Additionally, researching any existing barriers to entry in the vending machine industry can provide invaluable information on the competitive landscape.

Be sure to also detail any applicable regulations or laws related to the vending machine industry because financier will want to check that your business is compliant with them.

By including these key aspects of your market analysis in your business plan, you can provide readers with a comprehensive understanding of the market conditions in which you operate.

5. The strategy section

A vending machine company should include an effective strategy section in their business plan that outlines pricing, sales & marketing approaches, milestones, risks and mitigants.

When creating a pricing strategy for your vending machines, you should consider the cost of producing machines and the cost of contents inside to help establish competitive prices.

When developing a marketing plan, you should consider where and how to advertise your product to reach the target customers.

The strategy section should also include milestones that can be used as markers of success along the way. Your aim might be to reach your break-even level of output within 6 months of launching the business or entering a new market, for example.

Finally, any potential risks associated with starting the business should be addressed along with specific mitigants for each risk identified.

6. The operations section

The operations section of a vending machine company business plan should detail the staffing team, roles of staff members, and recruitment plan.

The recruitment plan should include information such as the method of advertisement, the expected response rate, and the selection standards that prospective candidates need to meet.

It is also important to specify how many people are needed in each role and the qualifications they need to have.

In addition, the operations section of a vending machine company business plan should include details about the key assets and intellectual property that the business needs to operate.

This could include items such as software, hardware, or even trademarks and patents.

It is important to make sure that these assets are fully protected and that any legal documents are in place before the business starts operating.

Also, list the suppliers that you plan to work with to fill the contents of the vending machine and purchase or manufacture the machine itself. Mention why you chose to work with those suppliers (past relationships with them for example).

7. The presentation of the financial plan

This is where you will present the financial forecast that we talked about earlier in this guide.

Now that you have a better understanding of what should be included in your vending machine business plan, it’s time to look at the solutions that can help you create one.

In this section, we will be reviewing several solutions for creating a business plan for a vending machine company, including using Word and Excel, hiring a consultant to write the plan, and utilizing online business planning software.

Create your vending machine company's business plan using Word or Excel

Using Microsoft Word or Excel to create a business plan for a vending machine company has its pros and cons.

On the one hand, using Word and Excel are cost-effective options as they are widely available and familiar to many business owners.

However, it can take a significant time to create a financial forecast accurately, making it a tedious process. This is because modelling will be spread across hundreds of rows and multiple tabs.

And it is hard not to make mistakes unless you have significant experience in financial modelling.

You'll also need to format the document (on Word) once you are done.

Hire a consultant to write your vending machine company's business plan

Outsourcing the vending machine company business plan to a consultant or accountant can be advantageous and disadvantageous in equal measure.

On the plus side, consultants are used to writing business plans, while accountants have the financial acumen to create accurate financial forecasts without errors.

This can be invaluable in ensuring that investors and banks are presented with a comprehensive and accurate business plan.

However, outsourcing a vending machine company's business plan comes with its own set of drawbacks.

Accountants lack industry expertise to accurately forecast sales figures. Additionally, hiring consultants or accountants will be expensive, and there may be extra costs associated with any updates or modifications that need to be made.

Use an online business plan software for your vending machine company's business plan

Another alternative is to use online business plan software. There are several advantages in doing so.

  • You are guided through the writing process by detailed instructions and examples for each part of the plan 
  • You can be inspired by already-written business plan templates and examples
  • You can easily make your financial forecast by letting the software take care of the financial calculations for you
  • You get a professional document, formatted and ready to be sent to your bank or investors
  • You can easily compare your forecast against your accounting data to make sure you are on track to deliver your plan, or make adjustments if needed

If you're interested in using this type of solution, you can try our software for free by signing up here . 

We hope that this article has helped you to better understand how to write the business plan for your vending machine company. Do not hesitate to contact us if you still have questions!

Also on The Business Plan Shop

  • Practical example of a business plan outline
  • How investors analyse business plans
  • How to do a market analysis for a business plan

Know someone in the vending machine industry? Share this article with them!

Guillaume Le Brouster

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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Vending Machine Business Plan

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Vending machines are no longer used to dispose of snacks. From frozen foods to stationery items, you name it and there might be a vending machine selling that product.

And if you want a business that requires less time and is profitable, then a vending machine business might be your thing. It also allows you to get creative with products and packaging.

All you need is a product idea, a little bit of research, and a vending machine business plan to help you get started. Here we’ll give you an insight into the vending machine industry and a few tips to help you set up your business better.

Before you start writing your business plan for your Vending Machine Business, spend as much time as you can reading through some samples of Food, Beverage & Restaurant Business Plans templates .

Our sample Vending Machine Business Plan can help you with writing a well-rounded business plan for your business. It can act as a guide and prevent you from getting stuck in a certain section for too long.

Industry Overview

The global vending machine industry stood at a market value of 30.30 billion dollars in 2018 and is expected to grow at a rapid pace in the coming years too.

Vending machines are super convenient and accessible. Hence, their popularity is increasing amongst the working class who always have less time on their hands and want to grab a quick snack or any other merchandise.

Also, as the vending machines require much less space compared to traditional convenience stores they are perfect for offices and other commercial settings. Also, the cashless ways of paying grow vending machines are bound to get more popular as they make such transactions easier.

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Things to Consider Before Writing a Vending Machine Business Plan

Pick your niche.

As there are so many options to choose from, it is essential to pick a range of products that you want to sell through your vending machine. You can pick a niche based on a combination of factors including your interests, your area of expertise, and the profitability of the niche. Deciding your niche beforehand comes in handy while doing your research and picking a location as well as getting an idea about your target audience.

Select a good location

A good location is another important factor that influences the success of your business. A vending machine needs to be placed strategically in a way that is accessible and convenient to use for people in a hurry. Also, most of the purchases from a vending machine are impulse buying decisions. You should keep that in mind while deciding a location for your vending machine so the location works in your favor.

Figure out good packaging and storage techniques

Good packaging that makes things easy to pick and carry on the go is one of the best things about a vending machine. Hence, good packaging can make your machine popular and good storage ensures that the items don’t get damaged. Hence, preventing unnecessary losses to your business.

Figure out security measures

Although there are a lot of good things about a vending machine, unfortunately, it is also prone to theft and damage. But taking proper security measures can help you avoid these hassles as much as possible. Hence, figuring out the security requirements before getting started is essential.

Chalking out Your Business Plan

With people returning to work post the COVID-19 pandemic and contactless services still being in vogue a vending machine business can be an exceptionally profitable one if done right.

Not just that vending machines are easy to use, but they come with a variety of product niches and help you avoid the hassle of showing product after product to customers, who’ll have every option displayed right in front of them with a vending machine.

And though refilling a vending machine and protecting it from theft and vandalism might seem like a boring job, a vending machine business is much more than that.

From vending machines that offer products ranging from granola bars to office supplies to the ones that take orders from apps through artificial intelligence, the vending machine business has gone through a massive change over the decades.

But, one more interesting fact is that there are over 5 million vending machines in the US alone, and if you want to last in such a competitive market you need a proper business plan. So, read on to find out how to write a vending machine business plan.

Why do You Need a Vending Machine Business Plan?

Before we discuss how to write a business plan , it is only fair to tell you about its advantages first. A vending machine business plan will help you decide your product niche, and the location where you can find your targeted customer, it helps you manage your finances, devise a marketing and pricing strategy, and run the operations of your business smoothly.

It also helps you design your brand image, decide on the scale of expansion and become more cost-effective as a business. Thus, a well-written business plan can serve a variety of purposes and help the different facets of your business is flourishing.

This brings us to the central topic of this blog, how to write a vending machine business plan.

How to Write a Vending Machine Business Plan?

Even though you can write a business plan from scratch yourself it is always a good idea to get a little expert help before you start writing one. You can either use a pre-designed template or an online business plan software.

For, writing a good plan always remember, that a plan should be clear, realistic, and customizable. It should not be a dead letter, but a living document that grows with the industry.

Here are a few sections that you can include in your business plan to make it a well-rounded one.

Vending Machine Business Plan Outline

This is the standard business plan outline which will cover all important sections that you should include in your business plan.

  • Mission statement
  • Vision Statement
  • Customer Focus
  • Success Factors
  • Financial Summary
  • 3 Year profit forecast
  • Startup cost
  • Products and services
  • Market Analysis
  • Industry Analysis
  • Market Trends
  • Working Community
  • Residential Community
  • SWOT Analysis
  • Advertising Strategy
  • Pricing Strategy
  • Financial Plan
  • Important Assumptions
  • Brake-even Analysis
  • Profit Yearly
  • Gross Margin Yearly
  • Projected Cash Flow
  • Projected Balance Sheet
  • Business Ratios

What to Include in a Vending Machine Business Plan?

Although your vending machine business plan would keep growing alongside your business there are certain key areas that you must include in your business plan.

1. Executive Summary

The executive summary section sums up your vision, business idea, and strategy. It consists of a summary of all the sections of your business. It is important to write a good executive summary, especially if you are expecting to get funded.

As a vending machine business, you should include your range of products and target audience, preferable locations, financial summary, and pricing strategy in your executive summary.

2. Company Summary

In this section you will summarise all that your company stands for:

  • Your target audience, whether they are kids, students, working professionals, or tourists.
  • Your niche, if it is beverages, packaged food, health food, stationery, or some other products.
  • Your preferred location( select this as per your target audience)

All in all this section defines what your company is.

3. Competitive Analysis

In this section, you should include everything you can find about your direct and indirect competitors. You should note down points that are working for them, strategies that have led to their failure, and what makes you stand out from your competition. Apart from that, you should also see if you are standing out in a positive or negative light.

4. SWOT Analysis

SWOT (strength, weakness, opportunity, and threat) analysis is an analytical framework generally used to evaluate any business’ competitive position in the market.

While conducting a SWOT analysis , it is important to initially focus on the market’s threats and opportunities. This will allow you to gain a deeper understanding of how your business’s strengths and weaknesses relate to market opportunities and threats.

Here’s an example of a SWOT analysis prepared for a vending machine business using Upmetrics:

SWOT analysis for vending machine business

5. Financial Plan

A financial plan is essential for the success of a vending machine business plan. It helps you decide whether you need funding or not, which are the most viable options for being funded, how much should you spend initially, when your business is ready for an expansion, etc. Therefore, a financial plan is exceptionally helpful and should be included in your business plan.

Download a sample vending machine business plan

Need help writing your business plan from scratch? Here you go; download our free vending machine business plan pdf to start.

It’s a modern business plan template specifically designed for your vending machine business. Use the example business plan as a guide for writing your own.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

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A business plan software like Upmetrics is the best way to draft your business plan. This incredible tool comes with step-by-step instructions, customizable templates, and 400+ sample business plans to help you get started.

So, whether starting a new vending machine business or planning to grow an existing one, Upmetrics is the tool you need to create a business plan.

So what are you waiting for? Start planning today!

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Frequently asked questions, what is the easiest way to write your vending machine business plan.

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any vending machine business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software .

How do I write a good market analysis in a vending machine business plan?

Market analysis is one of the key components of your business plan that requires deep research and a thorough understanding of your industry.

We can categorize the process of writing a good market analysis section into the following steps:

  • Stating the objective of your market analysis—e.g., investor funding.
  • Industry study—market size, growth potential, market trends, etc.
  • Identifying target market—based on user behavior and demographics.
  • Analyzing direct and indirect competitors.
  • Calculating market share—understanding TAM, SAM, and SOM.
  • Knowing regulations and restrictions
  • Organizing data and writing the first draft.

Writing a marketing analysis section can be overwhelming, but using ChatGPT for market research can make things easier.

How detailed should the financial projections be in my vending machine business plan?

The level of detail of the financial projections of your vending machine business may vary considering various business aspects like direct and indirect competition, pricing, and operational efficiency. However, your financial projections must be comprehensive enough to demonstrate a complete view of your financial performance.

Generally, the statements included in a business plan offer financial projections for at least the first three or five years of business operations.

What's the importance of a marketing strategy in a vending machine business plan?

Marketing strategy is a key component of your vending machine business plan. Whether it is about achieving certain business goals or helping your investors understand your plan to maximize their return on investment—an impactful marketing strategy is the way to do it!

Here are a few pointers to help you understand the importance of having an impactful marketing strategy:

  • It provides your business an edge over your competitors.
  • It helps investors better understand your business and growth potential.
  • It helps you develop products with the best profit potential.
  • It helps you set accurate pricing for your products or services.

About the Author

reverse vending machine business plan

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Home » Sample Business Plans » Wholesale & Retail

A Sample Vending Machine Business Plan Template

Are you about starting a vending machine business like breathalyzer & reverse coffee? If YES, here’s a complete sample vending machine business plan template & feasibility report you can use for FREE . Consumers mostly settle for convenience in their purchases, this means that rather than walk to a retail store for a snack, they would prefer to use a vending machine.

This is especially why most vending machine operators are constantly coming up with niche ideas that would be of convenience to the consumer, while making the operator money in the process.

What is a Vending Machine?

Simply put; a vending machine business is a retail business that does not require face to face interaction with customers, and can be run for 24 hours a day depending on the location. A vending machine dispenses items such as beverages, snacks, lottery tickets, alcohol, cigarettes, perfumes, toys, candy and so much more.

There are very strict laws regarding the sale of alcohol and cigarettes through vending machines due to concerns regarding underage buyers. In the uk for instance; cigarette vending machines have been banned, and in Japan, Germany and Italy, age verifications have been made mandatory.

What It Takes to Own a Vending Machine Business?

Anyone can possibly start a vending machine business; it isn’t financially tasking to start, as you can purchase a used vending machine even that of a popular brand at a cheap price, and still get the most out of it. The vending machine business doesn’t require any expertise or know-how, and any serious minded entrepreneur is likely to make good profit out of this business.

As a result, for those who own one or few vending machines within the same locality, operating cost will be at a minimal. This means that the owner of a few or even one vending machine can compete with those that have several vending machines in different locations.

The leverage in the vending machine business for any competitor is in strategically placing the vending machine at a location that has the right amount of traffic, as well as ensuring that the vending machine has the right product for the traffic. Starting a vending machine business also requires that you have a business plan in place.

1. Industry Overview

The vending machine business without a doubt has come to stay. This is because of the various ways through which people can be served. According to a market research report on Vending Machine Operators, the industry has revenue of $8 billion to $20 billion, and has an annual growth of 0.7%.

The number of operators in the business were 24,110; with 65,137 people being employed. According to the united states Bureau of Labor Statistics, 70.5% of industry establishments consisting of sole operators, partnerships, small businesses and medium-sized companies employ less than 5 workers. These statistics covers small, medium and large scale operators and franchises.

Those operators who are into generic snack and soda vending machines, have seen their revenue decrease even though beverages and snacks still lead in the vending machine industry, because customers have changed consuming priorities to wanting healthier snacks and products.

An industry survey reports that 83% of vending operators have request from customers requiring healthier products. This customer consuming change will keep the industry from growing as it should, and expanding aggressively.

The vending machine operators in the United States in 2015 have been characterized by a moderate level of market share, with three top operators taking 46% of the market share. Small sized operators on the other hand with a revenue range of under $1million, make up 51% of the industry’s total operations.

According to the National Automatic Merchandising Association (NAMA), only 18% of vending machine operators make between $1 million and $5 million yearly. This is as costs of operation have continued to rise, and the operating environment is more favorable to small and large vending operators, while the medium-sized operators with $5 million to $10 million in sales have lost more of their market share.

In other countries such as Hong Kong, Vending machines were introduced due to high labor cost and limited space, with majority of the machines being stocked with drinks or snacks. Niche ideas have been for mobile phones and camera, umbrellas, and so on.

It is interesting to note that more retail shops especially lager retail outlets have started to include vending services as part of their business offerings. It creates conveniences that appeal to consumers; the average customer would not want to stay longer on queue in a retail shop buying or paying for good purchased.

Majorly the similarity across operators of the vending machine industry is the machine itself, regardless of the peculiar product the machine will dispense. This means that the niche services that will be offered by the machine, depends on the owner of the machines. This is of importance in this trade, especially as it is an industry that is limited only by the ideas from the entrepreneur.

Over and above, the vending machine industry is a profitable industry and it is open for any aspiring entrepreneur to come in and establish his or her business; you can chose to start on a small scale in one or two public facilities or you can chose to start on a large scale with several outlets in key cities. However, if it very important that as you choose to launch out, that you are well versed in the business.

2. Executive Summary

Fizzy ‘n’ Crunchy Vending Company is a business enterprise in the retailing industry that will specialized in leveraging the vending machine retailing model. Although our business will be based in Bay – Orleans, Massachusetts where we were able to secure a 40 by 40 feet warehouse, we have the plans to spread across major cities in the United States and Canada.

Our vending machine business will retail / dispense a wide range of durable goods and non – durable goods at affordable prices from different brands. We will retail goods such as groceries, drinks, snacks, children’s toys, beauty products and cosmetics, fruits, vegetables, handkerchiefs, towels, and flowers et al.

We are aware that there are several large and small retail outlets and businesses all around Bay – Orleans who are into vending machine business as well, which is why we spent time and resources to conduct our feasibility studies and market survey so as to position our vending machines in strategic places in and around Massachusetts and also to offer much more than our competitors will be offering in terms of products and of course customer service.

Much more than selling the goods and products of top brands in the manufacturing industry, our customer care is going to be second to none in the whole of Bay – Orleans, Massachusetts. We know that our customers are the reason why we are in business which is why we will go the extra mile to get them satisfied when they make use of any of our vending machines and also to become our loyal customers and ambassadors.

Fizzy ‘n’ Crunchy Vending Company will ensure that all our customers are given first class treatment whenever they purchase products from our vending machines. We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large the numbers of our customer base may grow to. We will ensure that we get our customers involved in the selection of brands that will be on the racks of our vending machines and also when making some business decisions.

We are aware of the trend in the vending machines cum retail industry and we are not only going to operate a system where our customers would just make purchase from our vending machines without getting useful data from them that will help us serve them better.

We will also go ahead to ensure that we position money changers in some of our busiest vending machines locations so that our customers will not find it difficult looking for change to make purchase from our vending machine.

We have but plans in place to operate a mini but standard call center / customer complaint center that will operate on a 24 hours a day and 7 days a week for the sole purpose of resolving customer’s complaints as fast as we can within the scope of our business.

Fizzy ‘n’ Crunchy Vending Company is a family business that is owned by Rev. George Canton – Freeman and Family. The business will be managed by his son Marco Canton – Freeman a graduate of Business Administration who has extensive experience working with one of the leading retailing outlets with several vending machines in the United States of America.

He will bring his experience and expertise to help build and grow Fizzy ‘n’ Crunchy Vending Company to compete favorably with other leading vending machine business in the United States of America.

3. Our Products and Services

Fizzy ‘n’ Crunchy Vending Company is in the vending machines cum retailing industry for the purpose of making profits and we will ensure we go all the way to make available a wide range of goods and products from top manufacturing brands in the United States and other countries of the world.

We will have available in our vending machines a wide range of durable goods and non – durable goods at affordable prices. Here are some of the goods that will be available in our vending machines;

  • Children’s toys
  • Beauty products and cosmetics
  • Handkerchiefs

4. Our Mission and Vision Statement

  • Our vision is to build a vending machine business that will have active presence all over Bay – Orleans, Massachusetts and other key cities both in the United States of America and Canada
  • Our mission is to establish a vending machines business that will make available a wide range of goods and products from top manufacturing brands at affordable prices to the residence of Bay – Orleans, Massachusetts and other key cities in the United States and Canada

Our Business Structure

Fizzy ‘n’ Crunchy Vending Company do not intend to start a vending machine business whose vending machines can only be find in few outlets in Bay – Orleans; our intention of starting a vending machine business is to build a standard vending machine business with vending machines in strategic position in key cities in Bay – Orleans, Massachusetts and of course other key cities spread across the United States and Canada.

We will ensure that we put the right structure in place that will support the kind of growth that we have in mind while setting up the business.

In putting in place a good business structure, we will ensure that we hire only people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more.

In view of that, we have decided to hire qualified and competent hands that will be able to really carry out the duties that will solve the problems of the people, as well as cause more money to come to us. So, we have hired the following people to occupy the following positions;

  • Chief Executive Officer (Owner)
  • Warehouse / Store Manager

Merchandize Manager

  • Admin and Human Resources Manager

Sales and Marketing Manager

Information Technologist

  • Client Services Executive

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

  • Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
  • Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • Responsible for fixing prices and signing business deals
  • Responsible for providing direction for the business
  • Responsible for signing checks and documents on behalf of the company
  • Evaluates the success of the organization
  • Reports to the board

Admin and HR Manager

  • Responsible for overseeing the smooth running of HR and administrative tasks for the organization
  • Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
  • Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
  • Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
  • Enhances department and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.
  • Defines job positions for recruitment and managing interviewing process
  • Carries out staff induction for new team members
  • Responsible for training, evaluation and assessment of employees
  • Responsible for arranging travel, meetings and appointments
  • Oversees the smooth running of the daily office activities.

Warehouse / Store Manager:

  • Responsible for managing the daily activities in the warehouse
  • Ensures that proper records of goods are kept and our vending machines does not run out of products
  • Ensures that the warehouse facility is in tip top shape and goods are properly arranged and easy to locate
  • Interfaces with third – party suppliers (vendors)
  • Controls goods distribution and supply inventory
  • Manages vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
  • Helps to ensure consistent quality of goods and products on our vending machines
  • Responsible for the purchase of goods and products for the organizations
  • Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
  • Ensures that the organization operates within stipulated budget.
  • Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
  • Models demographic information and analyze the volumes of transactional data generated by customer purchases
  • Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
  • Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
  • Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
  • Develops, executes and evaluates new plans for expanding increase sales
  • Documents all customer contact and information
  • Represent the company in strategic meetings
  • Helps to increase sales and growth for the company
  • Manages the organization vending machine network and website
  • Handles ecommerce aspect of the business
  • Responsible for installing and maintenance of vending machines, computer software and hardware for the organization
  • Manages logistics and supply chain software, Web servers, e-commerce software and POS (point of sale) systems
  • Manage the organization’s CCTV
  • Handles any other technological and IT related duties.
  • Responsible for preparing financial reports, budgets, and financial statements for the organization
  • Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
  • Responsible for financial forecasting and risks analysis.
  • Performs cash management, general ledger accounting, and financial reporting
  • Responsible for developing and managing financial systems and policies
  • Responsible for administering payrolls
  • Ensures compliance with taxation legislation
  • Handles all financial transactions for the organization
  • Serves as internal auditor for the organization

Client Service Executive

  • Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
  • Through interaction with students on the phone, uses every opportunity to build client’s interest in the company’s products and services
  • Manages administrative duties assigned by the school coordinator in an effective and timely manner
  • Consistently stays abreast of any new information on the schools’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to students when they make enquiries

6. SWOT Analysis

Our intention of starting our vending machine business with a dozen vending machine installed in strategic locations around Bay – Orleans, Massachusetts is to test run the business for a period of 3 to 6 months to know if we will invest more money, expand the business and then install 50 vending machines first all – around Massachusetts before spreading to key cities in the United States and Canada.

We are quite aware that there are several vending machines all over Massachusetts and even in the same locations where we intend installing ours, which is why we are following the due process of establishing a business.

We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be well – equipped to confront our threats.

Fizzy ‘n’ Crunchy Vending Company employed the services of an expert HR and Business Analyst with bias in retailing to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives.

This is the summary of the SWOT analysis that was conducted for Fizzy ‘n’ Crunchy Vending Company;

The strategic locations we intend installing our vending machines, the business model we will be operating on, ease of payment, wide range of products and our excellent customer service culture will definitely count as a strong strength for Fizzy ‘n’ Crunchy Vending Company.

A major weakness that may count against us is the fact that we are a new vending machine business and we don’t have the financial capacity to compete with multi – billion dollars retail outlets that also runs a vending machines business when it comes to retailing at a rock bottom prices for all their goods.

  • Opportunities:

The fact that we are going to install our vending machines in some of the busiest streets in Bay – Orleans, Massachusetts, provides us with unlimited opportunities to sell our products to a large number of people.

We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they visit our vending machines locations; we are well positioned to take on the opportunities that will come our way.

Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing power. Another threat that may likely confront us is the arrival of a new retail outlet or new vending machines in same location where ours is located.

7. MARKET ANALYSIS

  • Market Trends

Retailing business has been in existence for as long as human started trading goods, but one thing is certain, the retailing industry is still evolving especially with the advent of technology. The introduction of technology is of course what gave birth to vending machines. In recent time, you can find vending machines designed specifically to dispense several goods ranging from snacks to drinks to groceries and to even cigar et al

It is now a common phenomenon for vending machines companies to leverage on technology to effectively predict consumer demand patterns and to strategically position their vending machines to meet their needs; in essence, the use of technology help vending machines businesses to maximize supply chain efficiencies. No doubt data collected from customers goes a long way to help vending machine businesses serve them better.

Another common trend in the retailing industry of which vending machine falls under is the pricing system. Aside from having varieties of products in a vending machine, one of the easiest ways for vending machines and retail stores to sell the goods on their racks or vending machines as fast as they can and keep re – stocking is to ensure that the prices of their goods are a bit lower than what is obtainable elsewhere.

For example, it is common to see items with prices in this format; $3.99, $99 and $199 et al as against $4, $100 and $200. As smaller as the price difference, consumers are likely going to be swayed to make purchase because of that. Lastly another common trend is that major retail stores are now leveraging on vending machines to sell their products.

8. Our Target Market

We so want to reach those we have set out to meet their needs, hence, we will leave no stone unturned in identifying who they really are. Perhaps the vending machines business / retailing industry have the widest range of customers; everybody on planet earth has one or more things that they would need in a retail shop or from a vending machine. It is difficult to find people around who don’t patronize retail shops or vending machines when they come across one.

In view of that, we have positioned our vending machines in strategic locations to service the residence of Bay – Orleans, Massachusetts and every other location our vending machines will be located all over Massachusetts and other key cities in the United States of America and Canada.

We have conducted our market research and we have ideas of what our target market would be expecting from us. We are in business to retail a wide range of products via our vending machines to the following groups of people;

  • Corporate Executives
  • Business People
  • Sports Men and Women

Our competitive advantage

The competitions that exist in the vending machine line of business is stiff simply because anyone can start a vending machine business; it isn’t financially tasking to start, as you can purchase a used vending machine even that of a popular brand at a cheap price, and still get the most out of it. The vending machine business doesn’t require any expertise or know-how, and any serious minded entrepreneur is likely to make good profit out of this business.

Fizzy ‘n’ Crunchy Vending Company is launching a standard vending machine business that will indeed become the preferred choice of residence of Bay – Orleans, Massachusetts and in every other location where our vending machines will be installed.

One thing is certain; we will ensure that we have a wide range of products available in our vending machines at all times. It will be difficult for customers to visit our vending machines and not see the product that they are looking for. One of our business goals is to make Fizzy ‘n’ Crunchy Vending Company a one stop shop for all our customers.

Our excellent customer service culture, highly competitive prices, reliable and easy to use payment option and the visibility of our vending machines will serve as a competitive advantage for us.

9. SALES AND MARKETING STRATEGY

  • Sources of Income

Fizzy ‘n’ Crunchy Vending Company is established with the aim of maximizing profits in the retailing industry and we are going to go all the way to ensure that we do all it takes to sell a wide range of products to a wide range of customers.

Fizzy ‘n’ Crunchy Vending Company will generate income by retailing the following products via our vending machine;

10. Sales Forecast

It is important to state that our sales forecast is based on the data gathered during our feasibility studies, market survey and also some of the assumptions readily available on the field. One thing is common with vending machine business, if you have your vending machines installed in locations that are prone to high traffic; the easier it is for you to make sales.

So also, the more the variety of the products you have in your vending machines, the more costumers you are going to attract.

This is why we will ensure that within our capacity we make available a wide range of goods from different manufacturing brands in all our vending machine outlets. Below are the sales projections that we were able to come up with for the first three years of operations;

  • First Year-: $100,000
  • Second Year-: $250,000
  • Third Year-: $550,000

N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and or major competitors positioning their vending machines in same locations where ours are. Please note that the above projection might be lower and at the same time it might be higher.

  • Marketing Strategy and Sales Strategy

Before choosing locations for installing our vending machines, we conduct a thorough market survey and feasibility studies in order for us to be able to be able to penetrate the available market and become the preferred choice for residence of Bay – Orleans, Massachusetts. We have detailed information and data that we were able to utilize to structure our business to attract the numbers of customers we want to attract per time.

We hired experts who have good understanding of the vending machine business / retail industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Bay – Orleans, Massachusetts and every other city we intend installing our vending machines.

In other to continue to be in business and grow, we must continue to sell the products that are available in our vending machines which is why we will go all out to empower or sales and marketing team to deliver. In summary, Fizzy ‘n’ Crunchy Vending Company will adopt the following sales and marketing approach to win customers over;

  • Print handbills about our vending machine and its location, and also give our vending machines unique look, by painting them with bright colors or putting a large neon sign on it, so that it is easily recognizable to customers.
  • Advertise on the internet on blogs and forums, and also on social media like Twitter, Facebook, LinkedIn to get our message across, so that those on the social media or those who read blogs can know where to go when they need products that we retail
  • Creating a basic website for our business, so as to give our business an online presence (list the locations of our vending machines)
  • Directly market our vending machine business.
  • Join local vending machine associations for industry trends and tips
  • Provide discount days for our customers
  • Advertise our business in community based newspapers, local TV and radio stations
  • List our business on yellow pages ads
  • Encourage the use of Word of mouth marketing (referrals)

11. Publicity and Advertising Strategy

We are quite aware of the enormous returns a good publicity strategy can bring back to our business. So, despite the fact that our vending machines will be well located, we will still go ahead to intensify publicity for the business. We are going to explore all available means to promote our vending machine business.

Fizzy ‘n’ Crunchy Vending Company has a long term plan of installing our vending machines in various locations in major cities in the United States and Canada which is why we will deliberately build our brand to be well accepted in Bay – Orleans, Massachusetts before venturing out.

As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Fizzy ‘n’ Crunchy Vending Company;

  • Place adverts on both print (community based newspapers and magazines) and electronic media platforms
  • Sponsor relevant community programs
  • Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, et al to promote our brand
  • Install our Bill Boards on strategic locations all around Columbus, Ohio
  • Engage in road show from time to time
  • Distribute our fliers and handbills in target areas
  • Position our Flexi Banners at strategic positions in the location where our vending machines are located.

12. Our Pricing Strategy

Pricing is one of the key factors that gives leverage to vending machine business, it is normal for consumers to go to places (vending machines outlets or retail outlets) where they can get goods at cheaper price which is why big player in the retail industry like Wal-Mart will attract loads of consumers. Products in their store are tagged with the cheapest price you can get anywhere in the United States.

We know we don’t have the capacity to compete with Wal-Mart or any other big retail store, but we will ensure that the prices of all the products that are available in our store are competitive with what is obtainable amongst retail stores within our level.

  • Payment Options

Due to the nature of vending machines, there are no options when it comes to payment for items purchased other than to insert your money in the vending machine and then the machine will dispense what you paid for. We will ensure that we position money changers around our busiest vending machine locations so as to make change available to our customers.

13. Startup Expenditure (Budget)

When it comes to starting a vending machine business the major areas that you look towards spending the bulk of your cash is in the purchase of vending machines and of course renting or leasing warehouse facility. Aside from that, you are not expected to spend much except for paying of your employees and the purchase of vans.

This is the key areas where we will spend our start – up capital;

  • The Total Fee for Registering the Business in Ohio – $750.
  • Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $1,300.
  • Marketing promotion expenses for the grand opening of People’s Choice Retail Store in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
  • Cost for hiring Business Consultant – $2,500.
  • Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
  • Cost for payment of rent for 12 month at $1.76 per square feet in the total amount of $105,600.
  • Cost for the Warehouse remodeling (construction of racks and shelves) – $20,000.
  • Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
  • Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
  • The cost for Start-up inventory (stocking with a wide range of products) – $100,000
  • Storage hardware (bins, rack, shelves, food case) – $3,720
  • The cost for the purchase of 2 fairly used delivery vans- $20,000
  • Cost for store equipment (cash register, security, ventilation, signage) – $13,750
  • Cost of purchase and installation of CCTVs: $10,000
  • The cost for the purchase of vending machines, furniture and gadgets for the office (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al): $50,000.
  • The cost of Launching a Website: $600
  • The cost for our opening party: $7,000
  • Miscellaneous: $10,000

We would need an estimate of $500,000 to successfully set up our vending machine business in Bay Orleans, Massachusetts. Please note that this amount includes the salaries of all the staff for the first month of operation.

Generating Funding / Startup Capital for Fizzy ‘n’ Crunchy Vending Company

Just like every other business that exists in America, we want to spell out the means through which we want to generate our funds. Therefore, Fizzy ‘n’ Crunchy Vending Company is a private business that is solely owned and financed by Rev. George Canton – Freeman and Family. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the start – up capital to 3 major sources.

These are the areas we intend generating our start – up capital;

  • Generate part of the start – up capital from personal savings
  • Source for soft loans from family members and friends
  • Apply for loan from my Bank

N.B: We have been able to generate about $200,000 ( Personal savings $150,000 and soft loan from family members $50,000 ) and we are at the final stages of obtaining a loan facility of $300,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If any of these factors is missing from a business (company), then it won’t be too long before the business close shop.

Fizzy ‘n’ Crunchy Vending Company will ensure that all the factors listed above are reinforced on a regular basis and also we will engage in continuous capacity building of our workforce. As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more.

We will make sure that the right foundation, structures and processes are put in place to ensure that staff welfare is well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

Check List / Milestone

  • Business Name Availability Check:>Completed
  • Business Registration: Completed
  • Opening of Corporate Bank Accounts: Completed
  • Securing Vending machines: In Progress
  • Opening Mobile Money Accounts: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Application for business license and permit: Completed
  • Purchase of Insurance for the Business: Completed
  • Leasing of facility for warehouse and remodeling : In Progress
  • Conducting Feasibility Studies: Completed
  • Generating capital from family members: Completed
  • Applications for Loan from the bank: In Progress
  • Writing of Business Plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents and other relevant Legal Documents: In Progress
  • Design of The Company’s Logo: Completed
  • Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
  • Recruitment of employees: In Progress
  • Purchase of the Needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
  • Creating Official Website for the Company: In Progress
  • Creating Awareness for the business both online and around the community: In Progress
  • Health and Safety and Fire Safety Arrangement (License): Secured
  • Opening party / launching party planning: In Progress
  • Compilation of our list of products that will be available in our vending machines / warehouse: Completed
  • Establishing business relationship with vendors – suppliers of all our needed products and vending machines: In Progress.

More on Wholesale & Retail

Sample Vending Machine Business Plan

Vending machine business plan pdf sample.

Vending machines have been automated to provide vending services to customers. It works only when money is being slotted into it.

Millions of these machines are in the United States and worldwide, each providing a specific range of services.

Some products sold on vending machines include coffee drinks, chocolate bars, and film rental services.

Others include newspaper and book vending machines, and photo booths , among several other uses.

Benefits of a Vending Machine Business

The advantage of having a vending machine is the low cost of operation.

A vending machine eliminates the shopkeeping time, allowing the business owner to do other equally important things with their time, leading to more productivity.

Also, there are lesser cases of mistakes, as the entire system is automated. There are little to no instances of underpaying or overpaying for particular services.

These and so many other benefits are accruable to users of vending machines.

Things to Consider When Starting a Vending Machine Business

As with other businesses, starting a vending machine business requires adequate planning. This is more so with an automated company.

Hence there are several factors to consider before commencing the business. We will start with the following;

  • Ensure it is Compatible with Your Business Idea.

Why so? Because there are business ideas that are not compatible with vending machines. In other words, certain services cannot be offered using vending machines.

Hence, considering if the idea is practicable after bringing up your vending machine business plan is essential.

If it is achievable, then you have satisfactorily answered an important question that can lead to the success of your business idea or its failure.

  • Selecting a Service Niche

Here, it is essential that you carefully consider the niche that most interests you. You cannot start a vending machine business in just about any place.

Randomly choosing a niche that comes to mind may likely lead to failure. This is because by choosing a place of particular interest, you may have good knowledge of how that specific area of vending machine business works.

In a situation where you do not understand things well, learning will be easy as your interest will fuel your zeal to know more. Choosing a niche that comes more naturally to you positively impacts the business.

  • Choose Your Vending Machine Locations

Selecting the locations for your vending machines is an essential criterion for starting this business. Sites have a significant impact on the profitability of vending machines.

Hence, you may want to choose areas with a lot of human traffic. Locating a vending machine in such regions will likely increase patronage/sales. Also, carefully selecting locations for your vending machine business can contribute to the security of the vending machine.

  • Your Products

Product selection is essential. This is similar to having a niche. The only difference, however, is the particular product you may want to vend.

For example, if you want to start a book vending machine business, the book (novel, for instance) will belong to the same niche as the newspaper.

You may want to choose your particular product for your vending machine business to make all your activities streamlined.

Planning your vending machine business out to the minute detail can immensely benefit the company.

  • Low Set Up Cost

By starting a vending machine business, high startup costs are eliminated. These costs are primarily associated with renting/buying a business outlet.

While providing a high-yield business opportunity, the costs associated with starting a vending machine business make it very attractive to investors who do not have the resources to invest in significant portfolios.

  • Freedom of Time

If the human race cherishes anything, it is time to do what they love to do. Starting a vending machine business affords you that opportunity.

The freedom of having to control your own time and destiny is priceless! Being a fully automated business venture, the business owner only needs to load the products into the vending machine and return to collect the money later!

The device does every other work. This is impressive as you could use your spare time to do other things that benefit you.

Vending machine businesses have become attractive ventures to investors the world over. Today, the number of vending machines continues to increase due to this growing popularity in the United States and worldwide.

Also, there is minimal waiting time as there has been immense success in reducing the waiting time.

Customers using vending machines for purchases now spend lesser time waiting for services.

With the advances in innovation, services have become increasingly automated, improving service delivery. The vending machine business is a perfect example of this trend.

It is believed that with the information provided here, significant success will result if these tips are followed.

VENDING MACHINE BUSINESS PLAN EXAMPLE

Here is a sample business plan for starting a vending service business.

Technology has made the world a very comfortable place to live in. As a result, most people will quickly replace any activity that requires some effort with activities that require no effort.

This implies that most individuals will get their drinks and snacks from a vending machine instead of entering a retail store.

This might appear very simple. However, it is very significant. The fact that people would choose convenience over effort means there is a high demand for vending machines.

This, therefore, makes the vending machine business one that is worth going into.

If you want to start a reverse vending machine business, you should know all the requirements by now. Like every other business, a business plan is one of the requirements for starting a vending machine business.

Below is a comprehensive business plan sample for a vending machine business.

How do I start a vending machine business?

Business Name: Jojo and Tata Vending Machine Company

Executive Summary

Our Products and Services

Vision Statement

Mission Statement

Business Structure

  • Market Analysis
  • Sales and Marketing Strategy
  • Financial Plan

Competitive Advantage

Jojo and Tata vending machine Company is a business that dispenses an extensive range of products. It is a business that will be located in Dallas, Texas .

It is owned by Josephine and Taylor, two very prolific businesspeople with over twenty years of experience in the business world. Jojo and Tata vending machine Company already has a relatively large warehouse to house all our machines.

At Jojo and Tata vending machine Companies, we want to make all edibles available to our potential customers. However, we will put more focus on the provision of drinks.

We will ensure that everyone who patronizes us gets a treatment that is second to none.

Jojo and Tata vending machine Company is in this industry to make gains. Although we are looking to make gains, we do not intend to do this at the expense of our customers.

We want to give our customers the best service that can be obtained in the vending machine industry. We want to stock our vending machine with products from some of the top brands in the United States.

Some of the products that we will offer at Jojo and Tata vending machine Companies are;

At Jojo and Tata’s vending machine business, our vision is to set up a company that will be well-known in Texas and the entire United States. Beyond the United States, we also intend to have a strong presence in key cities in Canada.

Our mission at Jojo and Tata vending machine Company is to set up an enterprise providing a broad range of products to those residing in Dallas, Texas.

We intend to also make these products available at prices everyone can afford.

At Jojo and Tata vending machine Companies, we are not just interested in starting a vending machine business; we are interested in becoming one of the biggest in this industry.

We also want to spread the vending business from Texas to other major cities in the United States and beyond.

Unlike being average in this business, being a huge success requires much work. Therefore, to make this happen, we will start by ensuring that we have the needed structures for this to occur.

We will employ only those we consider qualified to run businesses at the highest level. We will also provide a conducive working environment for all our workers.

Market Analysis Market Trend

The retailing industry is not new to anyone.

However, there is rapid innovation in this industry. This rapid innovation is a result of the rapid rise in technology. The increase in technology has brought about the prominence of vending machines in the retail industry.

Vending machines are not just prominent at the moment; they have also come to stay. This is because they make life easier for people and offer lower prices.

This makes people spend less money in the long run.

Our Target Market

The vending machine industry is an industry that caters to the needs of virtually everyone.

This, therefore, means that we can offer our services to almost everyone. However, we have chosen a target market to achieve our aim of starting up this business.

Those that make up our target market include;

  • Business Executives

Here is how to secure contracts in this industry.

Financial Plan Source of Startup Capital

We are looking to start our vending machine company on a large scale.

As a result of this, we will need $100,000 to set up our vending machine company. We already have half of this amount. We are looking to get the remaining amount from the bank.

This business has a high level of competition because not very much is needed to start it.

We will stock our vending machines with an extensive range of products to stand out from the crowd. Our prospective customers will always get whatever they need from our vending machine.

This is a vending machine business plan sample for Jojo and Tata vending machine Company. It will be located in Dallas, Texas, and set up with $100,000.

Related posts:

  • Sample Vending Machine Marketing Plan Template
  • How To Start A Coffee Vending Machine Business
  • How to Start a Vending Machine Business in Texas

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Vending Machine Business Plan Sample

APR.23, 2018

Vending Machine Business Plan Sample

Vending machine business plan for starting your own company

Starting a vending machine business is very easy and extremely profitable as well. If you don’t know how to start a vending business , just go through this vending machines business plan . It will guide you through everything which you need to know for starting this venture.

The first thing you should do is to develop a comprehensive plan for your business. The vending machines business plan will not only help you in startup but it will also help you in taking important decisions for your company over the next years. In case you don’t know how to write a good vending machine business plan , we are providing a detailed business plan of a vending machine business startup ‘Crunch & Cool’ to help you avoid the trouble of making a plan yourself.

Executive Summary

2.1 the business.

Crunch & Cool will be a licensed and insured vending machine business whose main office will be located in Downtown Manhattan. The company’s warehouse for storing the products will be at a 10 minutes’ drive from the main office.

2.2 Management

The business will be solely owned and operated by Jack Kith. Jack will hire a small team comprising of sales executives, drivers, technicians and assistants for helping him in his venture.

2.3 Customers

Our customers will primarily be the residential and working-class community living in Manhattan but with time, we also plan to increase our business in other cities as well.

2.4 Target of the Company

Our primary target is to become the best vending machine business in Manhattan within next 3 years of our launch. As per our vending machine business plan example , our secondary target is to achieve the net profit margin of $10k/month by the end of the first year, $15k/month by the second year, and $25k/month by the third year.

Vending Machine Business Plan - 3 Years Profit Forecast

Company Summary

3.1 company owner.

Jack is a business graduate of Harvard University. After completing his Bachelor’s, he worked with a couple of fast-food restaurants business plan at executive positions. He is known for his sharp business acumen and exceptional management skills.

3.2 Why the vending machine business is being started

The main motive behind Jack opening a vending machine business plan  is his intense passion for business. Jack has exceptional business skills and this venture is just his first step into the business world.

3.3 How the vending machine business will be started

The company will buy used vending machines for startup which will then be installed in several regions in Manhattan. Nearly 35% of machines will be located in the residential zone while the remaining will be distributed in the commercial zone as well as near schools, offices, and other institutions. The company’s financial experts have forecasted following costs for the start-up:

Vending Machine Business Plan - Startup cost

The detailed start-up information is as follows:

Services for customers

Before you move to starting a vending machines business plan , you must plan what type of vending machines will you install and what products will they provide to your customers because you can only plan the subsequent things after this stage. Our vending machines will offer following products:

  • Snacks such as chips, cookies, cakes etc.
  • Drinks and beverages including milk
  • Hot served drinks including tea and coffee
  • Frozen foods, chilled drinks and ice creams
  • Cigarettes and lottery tickets

Marketing Analysis of vending machine business

The most important component of effective vending machine business plans is their marketing analysis that’s why Jack acquired the services of marketing experts to help him through this phase. It is only after this stage that a good vending machine marketing strategy for business could have been developed.

After identifying the local market trends in Manhattan, the marketing experts and analysts helped him in developing a brilliant vending machine business model. If you are starting on a small scale then you can carry out a marketing analysis yourself by taking help from this vending machines business plan template.

5.1 Market Trends

The vending industry annually contributes about $30 billion in revenue to the United States. There are more than 7 million vending machines in the United States and nearly 100 million Americans use one of the installed vending machines each day. Considering the convenience they provide to the users, the number of installed vending machines have been increasing during the last few years. In short, this industry has a lot of potential and a business in this industry can yield immense profit provided that you plan it successfully.

5.2 Marketing Segmentation

Our marketing experts have identified following type of target audience which can become our potential customers.

Vending Machine Business Plan - Market Segmentation

The detailed marketing segmentation comprising of the company’s target audience is as follows:

5.2.1 Working Community:

The first category includes the workers and employees who work in the businesses or offices in Manhattan. This group leads a strenuous life, burdened with plenty of work and thousands of matters to think upon. Due to their busy routine, most of the time they can’t go to restaurants and hence use vending machines for grabbing a bite.

5.2.2 Residential Community:

The second group of our target customers will be the residential community. This group comprises of children, teens, adults and senior citizens. They also use vending machines to conveniently get their required products as compared to visiting the stores.

5.2.3 Passers-by:

The third category includes those people who do not work or reside in our target areas but have come to for any business purpose or commercial activity. This group also often tends to stop by vending machines for having a quick snack, beverages or cigarettes. The detailed market analysis of our potential customers is given in the following table:

5.3 Business Target

Our business targets are as follows:

  • To become the best vending machine business in Manhattan within next 3 years of our launch
  • To recover the initial investment within next 1 year of launch
  • To expand the business and install vending machines in 3 other cities within 5 years

5.4 Product Pricing

After considering the market demands, we have priced all our products in the similar ranges as of our competitors.

Highly Efficient Service

Highly Efficient Service! I am incredibly happy with the outcome; Alex and his team are highly efficient professionals with a diverse bank of knowledge.

Sales strategy is an important component of any startup plan hence it must be given proper attention before you think about how to start a vending machine business .

6.1 Competitive Analysis

Vending machine industry is one of the most competitive industries since there are more than 7 million vending machines in the United States so any startup in this industry has a really tough competition. To survive in such competitive environment, you must come up with some competitive advantage before thinking about how to open a vending machine business . Our competitive advantage is that our vending machines will be always full of fresh products and stock. We will make sure our every customer gets everything from our vending machines so that they don’t need to visit stores or other places.

6.2 Sales Strategy

We will install our machines at all those places where there are no prior vending machines installed. We will offer a 10% discount on all products for the first three months of our launch. We will also paint vending machines in various eye-catching themes for the purpose of attracting customers.

6.3 Sales Monthly

Vending Machine Business Plan - Sales Monthly

6.4 Sales Yearly

Vending Machine Business Plan - Sales Yearly

6.5 Sales Forecast

Our forecasted sales pattern is given in the following column chart:

Vending Machine Business Plan - Unit Sales

The detailed sales forecast is given in the following table:

Personnel plan

After deciding the strategy, you must prepare a personnel plan before you start your own vending machine business . The personnel plan of Crunch & Cool is as follows:

7.1 Company Staff

Jack will act as the CEO of the company and will initially hire following people:

  • 1 Warehouse Manager for managing the operations at company’s warehouse
  • 2 Sales Executives responsible for marketing initiatives
  • 15 Assistants for filling vending machines with stock
  • 4 Drivers for transporting products
  • 2 Technicians for ensuring the vending machines keep working perfectly

7.2 Average Salary of Employees

Financial plan.

The final thing to do before you think about how to open a vending machine business plan is to develop a comprehensive financial plan which will cover the detailed costs of startup.

8.1 Important Assumptions

8.2 brake-even analysis.

Vending Machine Business Plan - Brake-even Analysis

8.3 Projected Profit and Loss

8.3.1 profit monthly.

Vending Machine Business Plan - PROFIT MONTHLY

8.3.2 Profit Yearly

Vending Machine Business Plan - PROFIT YEARLY

8.3.3 Gross Margin Monthly

Vending Machine Business Plan - GROSS MARGIN MONTHLY

8.3.4 Gross Margin Yearly

Vending Machine Business Plan - GROSS MARGIN YEARLY

8.4 Projected Cash Flow

The following column diagram shows the projected cash flow.

Vending Machine Business Plan - Projected Cash Flow Diagram

The following table shows the projected cash flow:

8.5 Projected Balance Sheet

The following table shows projected balance sheet:

8.6 Business Ratios

The following table shows data about business ratios:

Download Vending Machine Business Plan Sample in pdf

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ProfitableVenture

Vending Machine Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Retail Industry » Vending Machine

Vending Machine Business

A vending machine business entails owning and operating vending machines that distribute a variety of products such as snacks, beverages, coffee, and other items.

The business owner buys or leases vending machines and positions them in high-traffic areas, such as office buildings, schools, hospitals, or shopping malls, where people can easily access them.

The vending machine collects money from clients, usually in the form of coins, bills, credit cards, or mobile payments, and then dispenses the specified product.

Steps on How to Write a Vending Machine Business Plan

Executive summary.

Go Grab® Vending Machine, Inc. is a vending machine business based in Los Angles, California and with an active presence in key cities all across California. We are well-equipped and trained to serve high-quality products to customers of all ages.

Our target market includes families with young children, college students, and individuals of all ages looking for drinks and snacks on the go.

We plan to operate primarily in offices, hospitals, hotels, residential areas, parks, and popular public facilities to maximize our exposure and customer reach.

To support our business, we have secured fully equipped and customized vending machines, licensed by local authorities and compliant with all health and safety regulations.

Our team consists of experienced and friendly staff who are passionate about creating a memorable experience for our customers. Mildred Merrick is the founder and CEO of Go Grab® Vending Machine, Inc.

Company Profile

A. our products and services.

At Go Grab® Vending Machine, Inc., our menu features a variety of snacks, drinks, and bottled water. We also offer dairy-free and vegan options to accommodate customers with dietary restrictions. To guarantee the quality and freshness of our products, we will work with local suppliers and distributors.

b. Nature of the Business

Our vending machine business will operate the business-to-consumer business model.

c. The Industry

Go Grab® Vending Machine, Inc. will operate in the vending machine and retail industry.

d. Mission Statement

Our mission at Go Grab® Vending Machine, Inc. is to give our customers more accessible food and beverage options while promoting healthy and sustainable lifestyle choices.

e. Vision Statement

Our vision at Go Grab® Vending Machine, Inc. is to become a leading vending machine business in the United States, offering a wide range of snacks, drinks, and bottled water.

f. Our Tagline (Slogan)

Go Grab® Vending Machine, Inc. – Bring Snacks and Drinks to You!

g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)

Go Grab® Vending Machine, Inc. will be formed as a Limited Liability Company (LLC). The reason why we are forming an LLC is to protect our personal assets by limiting the liability to the resources of the business itself. The LLC will protect our CEO’s personal assets from claims against the business, including lawsuits.

h. Our Organizational Structure

  • Chief Executive Officer (Owner)
  • Accountant (Cashier)
  • Vending Machine Operators
  • Truck Driver

i. Ownership / Shareholder Structure and Board Members

  • Mildred Merrick (Owner and Chairman/Chief Executive Officer) 52 Percent Shares
  • Rhodes Morgan (Board Member) 18 Percent Shares
  • George Jason (Board Member) 10 Percent Shares
  • Victor Manson (Board Member) 10 Percent Shares
  • Deborah Daniels (Board Member and Secretary) 10 Percent Shares.

SWOT Analysis

A. strength.

  • Ability to quickly adjust the menu and prices based on customer preferences
  • Low startup costs compared to opening a brick-and-mortar store
  • Ability to serve customers quickly and efficiently, leading to high customer satisfaction
  • The business can be scaled up by adding more machines in new locations.
  • Easy to manage and operate with a small team
  • High mobility and flexibility, allowing the business to move to locations with high customer traffic.
  • Vending machines are incorporating advanced technology such as cashless payment systems and remote monitoring to improve efficiency and customer convenience.

b. Weakness

  • Limited menu options compared to a regular store
  • Fluctuations in sales during certain times of the year, such as during holiday periods and school breaks.
  • The success of the vending machine business relies heavily on the location and foot traffic of each machine.
  • Heavy competition from other vendors, including other vending machines and food trucks.

c. Opportunities

  • Ability to expand the business by securing regular locations at popular public facilities, hospitals, offices, and schools.
  • There are always opportunities to place machines in new locations that can provide a steady stream of revenue.
  • The trend towards healthier food and beverage options provides an opportunity to offer healthier products in vending machines.
  • There is an opportunity to incorporate new technology such as touchless payments and digital screens to enhance the customer experience.
  • With busy lifestyles, there is an increased demand for convenience which can be met through vending machines.
  • Opportunity to introduce new menu items and specialty snacks to attract new customers.
  • Possibility to partner with local businesses or organizations to provide catering services.

i. How Big is the Industry?

The vending machine industry is indeed a big industry. The global vending machine market was valued at $18.28 billion in 2019 and is expected to reach $25.25 billion by 2027, growing at a 6.7% CAGR between 2021 and 2027. From 2019 to 2027, the market is predicted to generate an additional $6.97 billion in sales.

ii. Is the Industry Growing or Declining?

Yes, the vending machine industry is growing and available data shows that more entrepreneurs and even conglomerates are venturing into the vending machine retail business to reach out to a specific target market.

iii. What are the Future Trends in the Industry

As consumers continue to prioritize healthier and more diverse drinks and snack options, vending machines may need to adapt their menus to meet these changing preferences. This could include offering more options. Vending machines may increasingly integrate technology into their operations, such as touchless payments and digital screens to enhance the customer experience.

iv. Are There Existing Niches in the Industry?

Yes, there are existing niches when it comes to vending machine business, and here are some of them;

  • Art vending machines
  • Beauty product vending machines
  • Drinks and snacks vending machines
  • Healthy vending machines
  • Personal protective equipment (PPE) vending machines
  • Pet care vending machines
  • School supplies vending machines
  • Sneaker vending machines

v. Can You Sell a Franchise of Your Business in the Future?

Go Grab® Vending Machine, Inc. has plans to sell franchises in the nearest future and we will target major cities with thriving markets in the United States of America.

  • An economic downturn can lead to a decrease in consumer spending and a reduction in vending machine usage.
  • Changes in consumer preferences and trends can affect the demand for certain products and potentially impact sales.
  • The vending machine industry is highly competitive, and new entrants or existing competitors may impact market share and revenue.
  • The COVID-19 pandemic has highlighted the importance of health and safety, which may affect customer behavior toward vending machines.
  • The vending machine industry is subject to various regulations which can impact business operations and costs.

i. Who are the Major Competitors?

  • Express Vending
  • Farmers Fridge
  • Fresh Healthy Vending
  • Gilly Vending
  • Healthy You Vending
  • Naturals2Go
  • Procter & Gamble
  • SnackNation
  • ZoomSystems
  • 24 Hour Vending.

ii. Is There a Franchise for Vending Machine Business?

Yes, there are franchise opportunities for vending the machine business, and some of them are;

  • American Vending Machines
  • Healthy Cravings Naturals2Go
  • HUMAN Healthy Vending
  • Seaga Manufacturing
  • U-Turn Vending.

iii. Are There Policies, Regulations, or Zoning Laws Affecting Vending Machine Business?

Yes, there are county or state regulations and zoning laws for vending machine businesses in the United States. Before they may operate, many counties and states require vending machine businesses to get a business license. Municipal zoning restrictions may limit the location of vending machines. Vending machines, for example, may be outlawed in residential areas or confined to specific types of commercial zones.

Vending machine firms in some counties or states are required to get permits for each machine they operate. Vending machine firms may be subject to health and safety standards, such as food handling, storage, and temperature control requirements.

Depending on the region and type of products sold, vending machine firms may be liable to sales tax or other taxes. Businesses that sell vending machines must follow the Americans with Disabilities Act (ADA), which requires accessible design for individuals with disabilities.

Marketing Plan

A. who is your target audience, i. age range.

Our target market comprises people of all ages.

ii. Level of Educational

We don’t have any restrictions on the level of education of those who will make use of our vending machines.

iii. Income Level

There is no cap on the income level of those who will make use of our vending machines.

iv. Ethnicity

There is no restriction when it comes to the ethnicity of the people who will make use of our vending machines.

v. Language

There is no restriction when it comes to the language spoken by the people who will make use of our vending machines.

vi. Geographical Location

Anybody from any geographical location is free to use our vending machines wherever they are located.

vii. Lifestyle

Go Grab® Vending Machine, Inc. will not restrict any customer from purchasing drinks and snacks from us based on their lifestyle, culture, or race.

b. Advertising and Promotion Strategies

  • Deliberately Brand All Our Vending Machines with Attractive and Bright Colors.
  • Tap Into Text Marketing.
  • Make Use of Billboards.
  • Share Our Promos in Local Groups and Pages.
  • Turn Our Social Media Channels into a Resource
  • Develop Our Business Directory Profiles
  • Build Relationships with players in the retail industry and the public facility management industry.

i. Traditional Marketing Strategies

  • Marketing through Direct Mail.
  • Print Media Marketing – Newspapers & Magazines.
  • Broadcast Marketing -Television & Radio Channels.
  • OOH Marketing – Public Transit like Buses and Trains, Billboards, Street shows, and Cabs.
  • Leverage direct sales, direct mail (postcards, brochures, letters, fliers), tradeshows, print advertising (magazines, newspapers, coupon books, billboards), referral (also known as word-of-mouth marketing), radio, and television.

ii. Digital Marketing Strategies

  • Affiliate Marketing
  • Content Marketing.
  • Email Marketing.
  • Influencer Marketing.
  • Mobile Marketing.
  • Social Media Marketing Platforms.
  • Search Engine Optimization (SEO) Marketing.

iii. Social Media Marketing Plan

  • Start using chatbots.
  • Create a personalized experience for our customers.
  • Create an efficient content marketing strategy.
  • Create a community for our target market.
  • Regularly update our profiles with a diverse content strategy.
  • Use brand advocates.
  • Create profiles on relevant social media channels.
  • Run cross-channel campaigns.

c. Pricing Strategy

When working out our pricing strategy, Go Grab® Vending Machine, Inc. will make sure it covers profits, insurance, premium, license, and economy or value and full package. In all our pricing strategy will reflect;

  • Cost-Based Pricing
  • Competition-Based Pricing
  • Penetration Pricing
  • Value-Based Pricing.

Sales and Distribution Plan

A. sales channels.

Our sales channel strategy will involve using partners and third parties—such as referral partners, affiliate partners, strategic alliances in the retail industry, the public facility management industry, and freelancers to help refer customers to us.

Go Grab® Vending Machine, Inc. will also use marketing’s four Ps: place, pricing, product, and promotion. We will create visible, in-demand products that are competitively priced and advertised to our clients by carefully integrating all these marketing methods into a marketing mix.

b. Inventory Strategy

The fact that we will need regular supplies of drinks, snacks, and bottled water, means that Go Grab® Vending Machine, Inc. will operate an inventory strategy that is based on a day-to-day methodology for ordering, maintaining, and processing items in our warehouse.

We will prioritize freshness, quality, and timely availability while minimizing waste and optimizing costs. Go Grab® Vending Machine, Inc. will make sure we work with “Just-in-time (JIT) inventory” – (JIT involves holding as little stock as possible, negating the costs and risks involved with keeping a large amount of stock on hand.)

c. Payment Options for Customers

Here are the payment options that Go Grab® Vending Machine, Inc. will make available to her clients;

  • Cash (inserting coins or bills into the machine to make a purchase)
  • Contactless payments
  • Credit/debit cards
  • Mobile payments (such as Apple Pay or Google Wallet, which allows customers to make purchases using their smartphones)
  • Loyalty cards
  • Prepaid cards.

d. Return Policy, Incentives, and Guarantees

At Go Grab® Vending Machine, Inc., our customers are our top priority, hence our vending machine business offers a 30-day return policy for all purchases. If you are not satisfied with your purchase, please contact us within 30 days of the purchase date to arrange a return.

Returned items must be in their original packaging, unused, and in the same condition as when they were received.  Please note that the customer is responsible for the return costs. Go Grab® Vending Machine, Inc. also offers various incentives to our customers, including loyalty programs and discounts for bulk purchases.

For example, customers who make frequent purchases from our vending machines can join our loyalty program, which provides exclusive discounts, special offers, and rewards for their continued business. Additionally, we offer discounts for bulk purchases, such as buying multiple items at once.

e. Customer Support Strategy

Customers’ feedback will be sought as part of our customer service strategy. This will help us provide excellent customer service to our clients. We will work in partnership with stakeholders by using a good CRM platform to do this.

Operational Plan

Our operational plan will cover the day-to-day operations of the business, including procurement, vending machine restocking, equipment maintenance, staffing, and customer service.

a. What Happens During a Typical Day at a Vending Machine Business?

  • Restocking the vending machines
  • Cash Collection from the vending machines
  • Maintenance of vending machines
  • Inventory Management
  • Ongoing Customer Service
  • Administrative Tasks
  • Marketing/website upkeep
  • At the end of the day, the vendor cleans and sanitizes the vending machine, restocks supplies, and secures the equipment for the next day’s service.

b. Production Process

There is no production process for vending machine business.

c. Service Procedure

The service procedure for a vending machine business is focused on maintaining the machines in good working order, keeping them stocked with desirable products, and providing excellent customer service to ensure customer satisfaction and repeat business.

d. The Supply Chain

The supply chain for our vending machine business includes working with suppliers, transportation providers, and distributors to ensure that products are efficiently and effectively procured, loaded into the vending machines, and delivered to customers. Effective communication and planning are essential for managing the supply chain and meeting consumer demand.

e. Sources of Income

Go Grab® Vending Machine, Inc. will make money from selling drinks, water, and snacks.

Financial Plan

A. amount needed to start your vending machine business.

To successfully set up our vending machine in the United States of America, Go Grab® Vending Machine, Inc. would need an estimated $150,000 in funding. Please keep in mind that this figure covers all of our employees’ salaries for the first month of operation.

b. What are the Costs Involved to Open a Vending Machine Business?

  • Business Registration Fees – $750.
  • Legal expenses for obtaining licenses and permits – $1,300.
  • Business Consultant Fee – $2,500.
  • Business registration fee: $750
  • Vending machines: $70,000
  • Initial inventory: $10,000
  • Permits and licenses: $500-$2,000
  • Insurance: $500-$1,000
  • Marketing and branding (logo design, website, social media): $500-$2,000
  • Website: $600
  • Opening party: $3,000
  • Miscellaneous: $2,000

c. Do You Need to Build a Facility? If YES, How Much will it Cost?

Go Grab® Vending Machine, Inc. will not build a new facility for our vending machine business because by nature the vending machine business leverages public facilities to install their vending machines.

d. What are the Ongoing Expenses for Running a Vending Machine Business?

  • Product costs (supplies)
  • Machine maintenance
  • Location fees
  • Transportation
  • Utility bills (internet subscriptions, phone bills, signage, and software renewal fees et al)
  • Salaries of employees
  • Marketing costs.

e. What is the Average Salary of your Staff?

  • Chief Executive Officer – $55,000 Per Year
  • Manager – $45,000 Per Year
  • Accountant – $35,630,000 Per Year
  • Truck Driver – $27,100 Per Year
  • Vending Machine Operators – $26,000 Per Year

f. How Do You Get Funding to Start a Vending Machine Business?

  • Personal savings
  • You can apply for a small business loan from a bank or other financial institution
  • You can use crowdfunding platforms such as Kickstarter or GoFundMe to raise money for your vending machine business.
  • Research and apply for grants that are applicable to your vending machine business.
  • Consider partnering with an investor who can provide funding in exchange for a percentage of ownership in the business.
  • You can also seek funding from friends and family members who are willing to invest in your vending machine business.

Financial Projection

A. how much should you charge for your product/service.

We will usually charge based on the products in stock in our vending machines.

b. Sales Forecast?

  • First Fiscal Year (FY1): $120,000
  • Second Fiscal Year (FY2): $240,000
  • Third Fiscal Year (FY3): $300,000

c. Estimated Profit You Will Make a Year?

  • First Fiscal Year (FY1) (Profit After Tax): $50,000
  • Second Fiscal Year (FY2) (Profit After Tax): $120,000
  • Third Fiscal Year (FY3) (Profit After Tax): $180,000

d. Profit Margin of a Vending Machine Business Product/Service

The ideal profit margin we hope to make for Go Grab® Vending Machine, Inc. will be between 15 and 35 percent depending on the type of products retailed.

Growth Plan

A. how do you intend to grow and expand by opening more retail outlets/offices or selling a franchise.

Go Grab® Vending Machine, Inc. will grow our vending machine business by expanding to major cities in the United States and by selling franchises not just in the United States, but also in Canada and the United Kingdom.

b. Where do you intend to expand to and why?

Go Grab® Vending Machine, Inc. plan to expand to the following cities;

  • Atlanta, Georgia
  • Boston, Massachusetts
  • Chicago, Illinois
  • Dallas, Texas
  • Las Vegas, Nevada
  • Los Angeles, California
  • New York City, New York
  • San Antonio, Texas
  • Phoenix, Arizona
  • San Diego, California.

We are expanding to these cities because, these cities have large populations, a thriving business environment, and a diverse consumer base that may be receptive to new and innovative vending retailing concepts.

The founder of Go Grab® Vending Machine, Inc. Mrs. Mildred Merrick plans to exit the business via family succession. Go Grab® Vending Machine, Inc. has placed structures and processes in place that will help the company achieve its plan of successfully transferring the business from one family member to another and from one generation to another without any difficulties.

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Mi’kmaq Nation will install naloxone vending machine in Presque Isle

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reverse vending machine business plan

The Presque Isle-based Mi’kmaq Nation will soon have Maine’s first naloxone vending machine north of Portland.

The Mi’kmaq Health Department plans to unveil the device on March 1 and will make it available free to anyone in need.

Aroostook had the sixth highest number of overdose deaths among Maine’s counties in both 2022 and 2023, according to University of Maine data. Naloxone, also known by the brand name Narcan, can reverse overdoses  from drugs like heroin, morphine, oxycodone and fentanyl, a synthetic opioid. Mi’kmaq health leaders hope the vending machine will prevent more people from dying.

“We give thousands of kits out each year, but we still think we can reach more people by giving them a way to access this medication that is anonymous,” Mi’kmaq Health Director Katie Espling said. “We want to take down barriers to people getting these life-saving medications.”

Maine saw 723 confirmed and suspected fatal overdoses in 2022, with 47 in Aroostook County, according to the University of Maine’s Margaret Chase Smith Policy Center . In 2023, the number declined to 607 statewide and 39 in The County. More than three-quarters of those overdoses were attributed to fentanyl or fentanyl-type drugs.

Recovery networks regularly host naloxone clinics and education, and a state law passed in June 2023  requires on-duty police officers to carry the medication with them. Maine’s opioid response plan  seeks to increase public availability of naloxone, including over-the-counter sites and through the use of vending machines.  

The vending machine will be set up in the southern vestibule of the Mi’kmaq

Family Health Services building at 8 Northern Road in Presque Isle. The door will be unlocked 24 hours a day, seven days a week. Those needing access to the medication will use a code posted at the site to take a kit from the machine.

Maine has one other machine, located in the jail system in Cumberland County, Espling said.  

Working to reduce harm from addictive drugs is part of the Mi’kmaq Health Department’s strategic plan and focus on healthy living, Espling said.  

The University of Vermont Center on Rural Addiction led efforts to obtain the $12,000 machine, she said. Assistance came from the national Substance Abuse and Mental Health Services Association’s Tribal Opioid Response Grant and the Health Resources and Services Administration.

Located in Burlington, Vermont, the center aims to expand treatment capabilities in rural areas with resources, training and other assistance, according to its website .

People in rural communities often have barriers to obtaining naloxone. Clinics and pharmacies have limited hours, and naloxone can cost more than $40 when purchased over the counter.

“The rural areas are underserved and in need of free, easy access to life-saving medications, and with limited hours to distribute personally, it was clear that a naloxone vending machine would make sense in a rural community,” Espling said.  

The device arrived in January. Health center staff worked with Maine’s Office of Opioid Response and its director, Gordon Smith, on the project as well, to make sure they could make naloxone available safely to all community members, Espling said.

The machine will hold about 300 naloxone nasal spray kits and will also contain Kloxxado, a form of naloxone that is doubled in dose, she said. Contact information for substance abuse resources and educational information will also be available.

This medicine is available to everyone, whether affiliated with a tribe or not, Espling said.  

The Mi’kmaq Nation plans an unveiling ceremony at noon on March 1, with singing, drumming and prayers in native language.

“I think this sets a new standard by which we can offer harm reduction to our whole community,” Espling said. “We here at Mi’kmaq Nation want to provide a proactive, discrete and innovative way to make sure everyone living in Aroostook County has access to naloxone free of charge.”

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