Have you ever dreamed of starting a mini beauty store? Forget the storefront- beauty vending machines are the hot new trend in the market.
Are you wondering how to start a beauty vending machine business but unsure where to start? Don’t worry; we are here to help you get started, providing a simple step-by-step guide.
You’re in the right place!
A beauty vending machine that sells personal care products such as lipgloss, skin care products, face makeup, eyebrows, fragrance, shampoo, conditioner, lotion, and other items.
You can offer different types of beauty products by installing a vending machine; here are some ideas:
- Makeup and cosmetics
- Skincare products
- Hair care products
- Nail care supplies
- Hygiene and personal care
- Fragrance
- Beauty accessories
- Special beauty products
- Customizable beauty Kit
To become successful in the industry, having a great approach with a clear vision is important; also, pricking the perfect products, finding the right location, buying a machine, understanding the legalities, and a promotional strategy is key to building the business successfully.
According to an analysis report by grandviewresearch.com, the global retail vending market size was valued at 51.91 billion USD in 2021, owing to the increase in the number of customers preferring online shopping to conventional stores.
CAGR growth rate: 10.7% from 2022 to 2030.
Report from: futuremarketinsights.com
With the growing tech innovations, the US beauty and personal care retail vending machine market is growing with a CAGR of 10.5%. The market size was $91.6 million in 2023 and will reach a projected $248.4 million by 2033.
Beauty vending is a new addition to the beauty retailing industry, which has developed an innovative concept of vending machines dispensing various beauty products.
Let’s discuss the process.
Steps to start a Beauty vending machine business
1. Research to understand the market
Before starting the vending machine business, it is crucial to research the market, identify the target audience, know the competition, and gather the necessary details.
- Do proper market research.
- Identify target market
- Recognize your opportunity
- Competitive analysis
Select a target area for your vending machine where you want to install this machine; you should keep some important factors in mind (competition, demand, opportunity), etc.
If there are no beauty-related vending machines in the area, this can increase your chances of success. Also, conducting a SWOT analysis can provide valuable insights and help guide decision-making for your business.
2. Write a vending machine business plan.
The vending machine business is a straightforward startup model, but having a well-researched business plan is essential to success.
You can adequately outline your goals and targets using a simple Excel sheet.
In this business plan, you should cover how to reach the target market, what advertising strategies must be followed, packaging, and the pricing strategy.
Also, you need to know about other factors when creating a business plan; here, we write those points. If you want to write a proper plan for your venture, you must follow those steps.
Beauty vending machine business plan:
When you write a plan for your beauty vending machine business, some important steps you need to include in your plan, such as:
- Executive summary: Write a basic overview of your business, products, mission, goals, service, and market competition.
- Market analysis: Research the market, demographics, preferences, demand, and customers’ buying habits.
- Products and services: Describe your specific product, niche, and beauty products.
- Marketing strategies: Write some easy, free, and best marketing strategies (social media, influencers, banner advertising, etc.).
- Financial plan: Calculate your startup budget, machine cost, inventory expenses, marketing cost, funding, etc.
3. Location: find a suitable location
The next step is to find a place where the machine can be placed.
It is essential to consider potential locations with high foot traffic, such as airports, hotels, or other public spaces, to increase the chances of selling personal care products.
Once you have found the perfect spot, negotiate a favorable rental rate, build a positive relationship with the property owner, and ensure the location complies with local regulations and laws.
Where to put the vending machine?
Your vending machine should be placed near this location, such as:
- Airports
- Hotels
- Shopping malls
- Train stations
- Hospitals
- Schools
- College campuses
- Gymnasiums
- Office buildings
- Movie theaters
- Convenience stores
What type of location should you select:
- There should be more foot traffic
- There should be no competitor
- It would be better if more women were in the same area.
- Beauty products should also be in demand
- There should also be space for rent.
4. Come up with a business name.
A good business name is crucial for creating an online presence, promoting your vending machine, and other marketing efforts.
Determine your competitor, their branding, product type, features, facility, business name, and logo; choose a unique, memorable, attractive, accessible, short, web-friendly, and not copyrighted name for your branding.
A name is essential for every type of business; when you start your vending machine business, choose an attractive and catchy name.
Choosing a unique name can be difficult, but you must research your business industry and check out what name suits your beauty vending.
Once you have chosen a name, you must decide on a logo for the brand.
5. Choose your business legal entity.
Choosing the right legal structure to start your business is important; it determines your liability, taxes, and overall business operations.
You can choose a legal structure according to the business goals, size, and ownership preferences; consult a business attorney or accountant who can provide information about choosing a business structure.
Also, they can help you make your decision better and align it with your business needs.
The critical aspects of each business structure:
| Business Structure | Liability | Taxation | Ownership | Flexibility |
|---|---|---|---|---|
| Sole proprietorship | Unlimited | Pass-through | Single owner | High |
| Partnership | Unlimited (general partners), limited (limited partners) | Pass-through | Multiple owners | Medium |
| Limited liability company (LLC) | Limited | Pass-through (most cases) | Members | High |
| Corporation | Limited | Double | Shareholders | Low |
If you want to learn more about business structure, then you can check the SBA Guide.
6. Obtain business licenses and permits.
To start any business, you must comply with state-specific legal requirements and regulations such as business registration (state, local), obtaining necessary licenses and permits, and obtaining appropriate insurance for coverage purposes is essential.
By meeting the legal requirements, you can protect your business.
Depending on location, state, and local, there may be different laws and regulations.
- Licensing and permits
- Sales tax registrations
- Apply for EIN at the IRS website.
- Zoning permits
- Heath and safety certifications
- Insurance for business coverage
Consult a legal advisor to know the proper process and essential formalities.
7. Vending machine business insurance
To run a beauty vending machine, you also need to pay attention to the thieves and upcoming challenges related to property damage.
Business insurance is the solution, which can give you coverage and protection for damages.
Here are some business insurance types:
- General liability protects you if a customer is injured while using your machine.
- Product liability insurance provides coverage in case a customer experiences an allergic reaction or injury from a product.
- Property insurance protects your business assets, such as machines and supplies.
8. Purchase the vending machine
Buying a vending machine is necessary and primary for the business.
Research and purchase a suitable beauty vending machine that fits your product selection.
Define your needs (size, weight, color), location, and budget (machine cost, installation, maintenance, and ongoing inventory), and find a reliable, best-priced product.
Before making a purchase, understand the facilities and working process, compare the pricing of different brands, and choose the best product.
Need to consider when buying a beauty vending machine:
- Check the machine type (standard or refrigerated)
- Consider the size and capacity of the machine
- Payment options (cash, cards, mobile payments)
- There should be good security features
- Inventory tracking capabilities
- Check what are the maintenance requirements
- Customization and branding options
- Warranty and customer support
- Price: choose a machine that fits your budget
Where to buy a vending machine?
Online:
- Vending machine manufacturers – Check products on their websites.
- Online retailers – Such as Amazon, eBay, and Walmart.
- Specialty vending machine websites – Vendstar and US Vending.
Offline:
- Vending machine distributor – connect with distributors and manufacturers to get export advice.
If you want to buy a custom machine, find an appropriate company that manufactures these types of machines, and they will create one for you according to your specifications.
You will need to provide them with dimensions for both the inside and the machine as well as outside dimensions so they can design one specifically for you.
9. Stock your vending machine with products
Once buying a machine, prepare for inventory set up and stock the beauty products.
Choosing a profitable, high-profit margin, and demanding beauty product category is essential when setting up your beauty vending machine business.
Many factors depend on selecting a profitable niche (market demand, target market, competitors, location, trend for vending machines, etc.).
Research the market, popular beauty products, and trends to find out your unique niche that stands out, and it is an important step for new business owners.
These are the five popular categories of beauty products that you can consider. You can also select other categories depending on your target market.
- Skincare products: Facial cleansers, moisturizers, sunscreen, face masks, anti-aging creams.
- Haircare: Shampoo, conditioner, styling products, hairbrushes, hair ties.
- Cosmetics: Lipsticks, eyeliners, mascaras, foundation, blush, makeup brushes.
- Personal hygiene: Feminine hygiene items, hand sanitizers, wet wipes, and deodorant.
- Nail care: Nail polish, polish remover, nail files, cuticle oil, nail art stickers.
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10. Create a website for an online presence
Whether or not a website is essential for your beauty vending machine business depends entirely on your target audience, marketing strategy, and overall business goals.
A website is essential for all businesses, but it is not necessary for vending machine businesses. Still, a website can help you create an online presence.
You can create a website for your business to sell the product online; when you choose a name, buy a domain name with this.
Why a website is essential:
- Online presence: A website can establish your business online.
- Information and marketing: It provides a platform for product details and branding.
- Accessibility: It is available 24/7 to customers, increasing convenience.
- Marketing and SEO: Can improve search engine visibility.
- Customer engagement: Allows interaction and feedback collection.
- Competitive advantage: You can provide unique features that your competitors.
11. Market your vending machine service
When everything is ready, you can think about the marketing and promotion of your vending machine business. Initially, you are new in the market, and probably no one will buy your product (lack of trustworthiness).
To create trust in the market, you must research and adopt a suitable marketing strategy to create a brand. You will get more customers if you have installed the vending machine in a good location.
The best way to do marketing is by creating a profile on social media, word-of-mouth marketing in the local area about the vending machine service, business cards, banners, etc.
Best way to promote your service:
- Location: Promote your vending machine near high-traffic areas (malls, gyms, offices, and hotels).
- Social media: Use social media to connect with local customers (platforms- Instagram, Facebook, YouTube, TikTok).
- Partnerships: Partner with other vending machine owners to learn their strategies and business processes.
- Build online presences: Social media marketing, video promotion, and website creation.
12. Estimate the startup expenses
To start a vending machine business, you may require an investment of $5,000 to $15,000+, including the machine’s cost, beauty product inventory, necessary license and permit, and other expenses.
The price of vending machines is typically around $3,000-$10,000 on Alibaba and other online stores. Also, the cost of the machine depends on size, features, quality, and other necessary facilities.
When you decide to start, consider other factors, such as location (rent cost), security system, licensing, marketing, website setup, etc.
Startup cost and setup requirements:
| Startup expense | Estimated cost |
|---|---|
| Vending machine | $3,000-$10,000 |
| Inventory | $1,000-$5,000 |
| Permits and licenses | $100-$500 |
| Marketing and advertising | $100-$500 |
| Other expenses (e.g., insurance, transportation) | $100-$500 |
The estimation of startup cost is only for your idea; the cost can be different for every individual, depending on inventory, machine cost, and other expenses.
Responsibilities for vending machine
- Provide customers with convenient access to products.
- Ensure that products are in good condition and remove the expiry products.
- Maintain and repair the machines.
- Collect money from the vending machines.
- Stock new beauty products.
- Be a friendly and helpful resource for customers.
- Always upgrade your service quality and product availability.
Are beauty vending machines profitable?
Yes, the beauty vending machine can be profitable or not.
However, with increasing demand for purchasing cosmetics and personal care products online and the trend of vending machines, starting the venture can be a good opportunity.
Still, the answer to “Is the beauty vending machine business profitable?” depends on your targeted location, product brand, and where to install your vending machine.
Beauty vending machines require less overhead than physical stores, making them a cost-effective option for retailers.
You can target a wide range of customers, including those who may not want to visit traditional stores or are too busy to make regular shopping trips.
Profitablities to start a beauty vending business:
- Huge growth and market potential
- Convenient for consumers to serve
- Profitable start for entrepreneurs
- Low overhead and running expenses
- You can create a passive income stream
- Diverse beauty product range available
- Consistent cash flow
- Minimal theft and shoplifting
- Branding and marketing opportunities
- You can easily grow your business.
Advantages and disadvantages of vending machine business
The vending machine business can be lucrative, but it also has its drawbacks. Proper market research is essential to ensure success and avoid failure due to low income.
That is why whenever you invest your money in a vending machine, you must conduct market research and check out the demand and competition.
Pros
- Easy setup process
- Can be managed remotely
- High demand in certain areas
- Minimal staffing requirements
- Be your boss
- Passive income opportunity
Cons
- High competition
- Vandalism and theft
- Maintenance expenses
- Product replacement and fulfillment
- Success depends on the location
Frequently Asked Questions (FAQs)
Where can you buy a vending machine?
Vending machines can be found at:
-Vending machine distributors
-Online retailers (Amazon, eBay)
-Manufacturer websites
-Used vending machine sellers
Choose based on your needs and budget!
What to know before starting a vending machine business?
Before starting a business, you will need to learn about your local area and check the demand, opportunity, and competition; you also need to know the specific requirements of vending machine maintenance.
Is buying a vending machine worth it?
Buying a vending machine can be worth it and profitable; you can make a lot of money by setting up the service in a targeted area.
How much is a vending machine permit?
Depending on your state and local requirements, the vending machine license and permit cost around $200-$500.
What can you sell in a beauty vending machine?
You can sell all types of beauty-related products in a vending machine, such as facial products, creams, lip balms, shampoos, conditioners, toothbrushes, fake nails, eyelashes, fragrances, perfumes, etc. If you want to sell all types of products, make sure all are categories accordingly.
Final Thought
Buy the right products, choose a perfect location, and install your vending machine in a potential location to turn your plan into a profitable business.
The success also depends on your targeted location and the area where you want to install your vending machine. Still, if there is any doubt, ask in the comment.
We hope our blog post can be a part of providing you with some information about the business idea; here are some related questions and answers; let’s check.
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