There has been much debate over the looming recession. Some say it’s coming on the horizon. Others insist we’re already in it. Whichever is true, there’s no denying that times are tough between rising inflation, the high costs of goods and services, and future economic uncertainty. And that’s one of the great things about operating a healthy vending business: It’s essentially recession-proof. Here’s why:
Demand Remains High
The first reason that vending machine businesses are recession-proof is simple. The demand for the products that vending machines provide remains high, even when the economy is in a slump. People want the products found in vending machines, especially healthy ones. Protein bars, trail mixes, salads or other fresh offerings like veggie sticks, healthy chips… the list goes on. People will choose to spend their hard-earned money on healthy and reasonably priced items, no matter what the economy looks like.
Vending Costs Are Low
For vending machine operators, the costs to start the business – and the costs of maintaining it – are low. This is a good thing in slow economic times. Maintaining machine equipment and parts, stocking inventory, and tracking sales are inexpensive, especially when partnering with a healthy vending platform like Naturals2Go.
For customers, vending machine product costs are low, too. And with the convenience of grabbing a healthy snack from a vending machine, the low cost and ease of use make vending machines a viable recession-proof option.
Locations Are Flexible
If a vending operator finds that a certain machine location isn’t producing the way they’d like it to, the solution is simple: Change the location. This is another reason the vending business is recession-proof. If a location isn’t producing revenue, try another one. For example, perhaps your location in an apartment complex isn’t working. Try moving that machine to an office park or a supermarket lobby, and you’ll likely see the numbers rise.
Start Your Vending Journey With Us
Interested in launching your own healthy vending venture? Naturals2Go’s location procurement services and comprehensive training make it easy. Contact our team to learn more and get started.
FAQs
Vending Costs Are Low
For customers, vending machine product costs are low, too. And with the convenience of grabbing a healthy snack from a vending machine, the low cost and ease of use make vending machines a viable recession-proof option.
What business thrives in a recession? ›
15 recession proof businesses
- Health care. ...
- Property management. ...
- Home repair/contractor. ...
- Cleaning services. ...
- Grocery store. ...
- Beauty business (makeup and hair) ...
- Freelancing. ...
- Pet care.
There is no doubt that vending machines can be a very profitable business in 2024. You can make a decent amount of money with little investment and time if you are able to get quality products at good prices to stock the vending machines, and your vending machines are in places that a lot of people go to.
How risky is a vending machine business? ›
It is true that vending machine businesses have a higher success rate than many other types of business. Their success rates are typically above 80% while other businesses have a high risk of failure instead. Are you a good candidate to be a vending machine operator?
What is the average income of a vending machine business? ›
How much does a Vending Machine Business make in California? As of Sep 6, 2024, the average hourly pay for a Vending Machine Business in California is $16.62 an hour.
What is the most profitable item for vending machines? ›
Selections like cheese and peanut butter crackers, roasted peanuts, trail mix and granola bars are not only popular but also have a long shelf life—ideal for maximizing profitability. Don't forget to offer a few sweet options like raisins and fruit snacks, too.
What business to avoid during recession? ›
But certain businesses are more recession-proof than others. Five businesses to avoid starting during a recession include luxury retail, hospitality, manufacturing, construction, and home services. We'll explain why and go into some of the advantages and disadvantages of opening a business during a downturn.
What businesses are hit hardest by a recession? ›
A recession is “a significant decline in economic activity spread across the economy, lasting more than a few months.” Industries affected most include retail, restaurants, travel/tourism, leisure/hospitality, service purveyors, real estate, & manufacturing/warehouse.
What do people still buy in a recession? ›
People tend to continue spending money on their pets, including products, medical services and grooming, even during tough times. People still wear clothes during recessions. Clothing, underwear, socks and shoes wear out. If your business carries necessary clothing items, it will likely do OK in tough times.
What will replace vending machines? ›
Micro Markets: The Modern Solution
Different than vending machines, they come with several distinct advantages: Selection and Variety: Micro markets are not limited to a set number of rows and columns, providing additional space and shelves for a much wider range of product.
With the right placement, a vending machine business can be great to start in 2024. If you're interested in vending that doesn't require inventory, contact us today to learn more about starting an ice and water vending business.
Is it worth buying a vending machine business? ›
Do vending machines make good money? Vending machines can be very profitable. If you can get products to stock machines at low prices, and your vending machine is in a place where a lot of people go, you can make a decent amount of money with little investment and time.
What is a disadvantage of owning a vending machine? ›
Vending machines are not as cheap to purchase and operate as they may appear. The cost of a machine can set you back up to $10,000 and on top of that are the running and maintenance costs. The cost of stocking the machine with products and throwing away and replacing expired products can be a costly ongoing endeavor.
Can you make a living off owning vending machines? ›
Your overall profits depend on how many machines you operate. You typically need quite a few machines to be able to take this business full time. Owning a vending machine business is not a get-rich-quick scheme. Each machine brings in between $5 and $100 per week, on average.
What is the success rate of vending machines? ›
It's impossible to say for certain just how much you can earn from a vending business, or even if you will be successful at all. However, historical data shows that vending machines do have a success rate of more than 80%. This is indeed very promising for anyone who is interested in going into the vending business.
Is it good to invest in a vending machine? ›
Vending machines can be very profitable. If you can get products to stock machines at low prices, and your vending machine is in a place where a lot of people go, you can make a decent amount of money with little investment and time.
Is the vending machine business saturated? ›
Saturated market
Is the vending machine saturated? Not necessarily – but prime locations such as near the entrance of malls or in airports are already taken.
Is there a demand for vending machines? ›
The U.S. vending machine market size was estimated at USD 33.10 billion in 2023 and is predicted to be worth around USD 142.89 billion by 2034, at a CAGR of 14.2% from 2024 to 2034. North America has held the largest revenue share of 45% in 2023.
What is one downside to owning a vending machine business? ›
Con: Not a Hands-off Venture
The work of operating your business does not end just because you set up your machine and stocked it with product. In order to achieve continued success, you may have to move machines from one location to another until you find a spot that works economically.
