Starting a vending business sounds simple: buy a machine, put it somewhere busy, collect the money. In real life, the people who do well are the ones who get a few key things right from the start. This guide walks through them in order.
1. Decide what kind of vending you want to run
Before you spend anything, pick your lane:
- Drinks only. Easy to stock and simple to manage. Cold drinks sell well in warm weather and at workplaces with physical jobs.
- Snacks only. Lower stock cost per item, but you need to watch use-by dates.
- Combo machines. Drinks and snacks in one machine. Great for smaller sites where one machine has to do everything.
- Specialty. Coffee, fresh food, healthy options, PPE or other niche products. These can pay well, but they’re harder to run.
Most new operators start with drinks or a combo machine, because they’re the easiest to keep running.
2. Find your first location before you buy
This is the step people skip, and it’s the most important one. A great machine in a quiet spot earns almost nothing.
Good first locations are usually:
- Warehouses and factories with shift workers
- Offices with 30+ staff and no café nearby
- Gyms, car washes and trade counters
- Apartment buildings with a common area
Ask the site manager how many people are there each day, the hours, and whether there’s already a machine or a café. Read our guide on how to find good vending machine locations for a full checklist.
3. Choose the right machine
Match the machine to the site, not the other way round. Things to think about:
- Size and access. Measure the doorway, the lift and the space. It’s a common mistake to buy a machine that won’t fit through the door.
- Card payments. Most people don’t carry cash anymore. A cashless card reader is a must.
- Fridge type. For drinks, check the machine keeps a steady cold temperature, especially in summer.
- Parts and service. Pick a brand that’s easy to get parts for in Australia.
Our guide on how to choose the right vending machine goes into more detail.
4. Sort out the business basics
- Get an ABN and set up a separate bank account.
- Talk to an accountant about GST and what you can claim.
- Get public liability insurance. Many sites will ask for it.
- Have the machine’s electrics tested and tagged where your site requires it.
- Put a simple agreement in place with the site owner covering power, access, commission (if any) and how either side can end it.
5. Stock smart, not big
Start with proven sellers. Water, popular soft drinks, energy drinks, chips and chocolate bars are a safe base. Then watch your sales for a few weeks and:
- Drop products that don’t move
- Add more of what sells out
- Try one or two new items at a time
Buying from a wholesaler or cash-and-carry keeps your costs down. Track your cost per item so you know your real margin.
6. Set your prices
Look at what the nearest shop or servo charges, and price close to it. People pay a little more for convenience, but not a lot more. Round numbers like $3.00 or $4.50 make card and coin payments easy.
7. Keep it running
A machine that’s empty or broken loses money and trust fast. Set up a regular restock run, and learn the basic fixes yourself, like coin jams, stuck products and card reader resets. Our guide to common vending machine problems and how to fix them is a good place to start.
The short version
Find the location first, buy a machine that suits it, keep it full and keep it working. Grow one site at a time.
Got a busy site but don’t want to run a machine yourself? We connect locations with vending operators who supply and service the machine for free on suitable sites. Check your location.
Frequently asked questions
Do I need an ABN to run vending machines?
If you're running vending as a business, you'll want an ABN. You'll also need to register for GST once your turnover reaches the GST threshold. Talk to an accountant about your situation.
Should I buy a new or second-hand machine?
Second-hand machines cost less upfront but may need more repairs. New machines usually come with a warranty and modern card readers. Many people start with one good refurbished machine and buy new as they grow.
How many machines do I need to make it worth it?
One good machine in a busy spot can be a solid start. Most operators grow slowly, one location at a time, once they know what sells.