How to Make a Side Income Running a Vending Machine Business

As we continue to make our way through COVID-19, many people are still looking for ways to get items they need without physical contact with another person.

Vending machines serve that purpose — and make money for the machine’s owner.

Owning and operating vending machines is big business, providing passive income without any specialized skills. It’s also called automatic merchandising.

Basically, all you need to get started is some startup money to buy a machine, a good location and the right products.

The Vending Machine Business During COVID-19

Revenue for the vending machine industry was $24.2 billion in 2019, up 3% from the year before.

That data came from the Automatic Merchandiser’s Annual State of the Industry Survey — before the full impact of COVID-19 hit.

There were 2,175,756 vending machines in service in 2019 in a variety of locations including:

  • Manufacturing areas
  • Offices
  • Retail spaces
  • Hotels/motels
  • Schools
  • Hospitals and nursing homes
  • Universities/colleges
  • Correctional facilities
  • Military bases
  • Restaurants, bars and clubs

Cold beverages were the top-selling product category. A majority of vending machines involve food and beverage products including sodas, coffee, snacks and candy.

There are also machines for bulk vending like gumballs, stickers, toys, novelties and more. During COVID-19, machines popped up selling masks and hand sanitizer.

At places like airports, vending machines often sell tech accessories and travel essentials like neck pillows, blankets and eye masks. Laundry rooms in residential buildings often have machines with detergent and fabric softener.

With many offices, businesses and other public spaces closed or restricted due to the coronavirus pandemic, the vending industry is certainly taking a hit.

“We’re in a tough, tough industry right now with COVID-19. A lot of stores don’t want the machines there, they don’t want the kids congregating, they don’t want people touching them,” said Scott Ausmus, director of manufacturing for National Entertainment Network, Inc. and president of the National Bulk Vendors Association.

He grew up in the vending business. The machines he sells and operates are the novelty kind, offering things like stuffed animals, toys and gumballs. Many are in restaurants and entertainment venues like bowling centers.

Many factors make owning a vending machine an attractive business venture.

The startup costs are relatively low, sometimes around $2,000. The work is flexible and often doesn’t require much day-to-day involvement. The risk is comparatively low and there is growth potential.

“There’s a higher profit in the gumball then there is anything else,” Ausmus said. “The cost of goods is low on the gumballs and everybody likes gum, so everybody still purchases a gumball and so that is a winner for a lot of people.”

Starting a Vending Machine Business

While the startup costs are low and the income is often passive, owning vending machines is not without risk. You must be able to understand your own financial situation and how much you can afford to invest.

There is the cost of the machine, the cost of inventory, personnel to keep it stocked, maintenance and more.

The more perishable the product and the busier the area, the more of your time the machine will take.

“If (your machine location has) a big break room and a lot of employees, you would have to be there once a day to fill your machines up because that’s how busy they are,” Ausmus said. Other machines like toys and candy don’t require as much restocking.

One of the first steps in starting a vending machine business is finding your niche and deciding what to sell. That takes a bit of research and knowing who your customer is.

“You gotta buy the right product. If you buy the wrong product, it won’t move and you won’t make any money and you certainly don’t want to throw [product] away,” Ausmus said. “You’ve got to have the variety for people and find out which ones they want and that’s what you restock with, what sells.”

Vending machine businesses are scalable, meaning it’s possible to start small and expand. You don’t have to wait for payments because customers pay when they purchase an item.

Location, Location, Location

To put yourself in the best position to be profitable means finding the right location.

Places with lots of foot traffic are good. Before COVID-19, that meant schools and universities, malls, office parks, etc.

Think about where people need to wait. While waiting, they may get hungry or thirsty. Ausmus’ novelty machines need kids around.

“One of the hardest things to do is to locate a location,” he said.

Location can be about trial and error.

“It’s really not a bad risk to put it in a location and find out that it’s not making enough money. … You can remove it and move it to the next one until you find that right location,” Ausmus said.

When looking for locations, be prepared to approach the owner or landlord with a business plan for the machine.

Also be prepared to:

  • Pay a percentage of sales or other fee for having your machine in their location.
  • Pay for the electricity the machine uses.
  • Ensure the security of the machine. There is money inside a machine as well as inventory. Theft and vandalism are always possible.
  • Research state and local laws and regulations.
  • Pay sales tax on the revenue the machine generates.

Key Purchase: Your Vending Machine

Then you will need an actual vending machine. There are several types, and prices vary depending on what is in the machine, whether it needs refrigeration or heating, and the interactivity.

Buying directly from a manufacturer or supplier is one option, as is purchasing on a secondary market. Some companies also rent machines. Ausmus cautioned to make sure there are spare parts and support available for what you buy.

Machines range from about $1,500 for a used or refurbished machine to several thousands for a new, high-end machine with many technical features.

Some machines have:

  • Remote monitoring software: This helps keep track of how the machine is working and notifies the operator if something is wrong.
  • Low stock alerts: Notify the operator when items needs replacing.
  • Vending management systems (VMS): Tracks sales and other data to help owners make better business decisions.
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Running a Vending Machine Business

While owning vending machines does not require any special skills, it is a business.

You will need inventory and someone to keep the machine stocked and maintained. This may require a van or truck.

Perishables need to be stocked more often than other items. Learning some basic maintenance skills could keep you from having to hire someone if there is a problem with the machine.

Different types of machines have different capabilities. Some take only cash while others will process credit or debit cards. Some models have touch screens or voice capabilities.

“Make sure that you have your phone number on the machine, and that the store location knows your phone number,” said Ausmus. “If somebody didn’t get what they wanted, make sure the store can give them a refund and you pay the refund back to that store. Then get out there as soon as you can to fix the machine so that you can continue to make money.”

Automatic merchandising isn’t for everyone, but owning and operating a vending machine can be a good business. Being able to retrieve the money you make and restock your machines easily is the key.

“Then you only work probably three days a month, basically on the whole gig,” said Ausmus. “Three four days a month can make somebody a good little extra income.”

Tiffani Sherman is a Florida-based freelance reporter with more than 25 years of experience writing about finance, health, travel and other topics.

This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.

Source: thepennyhoarder.com

How to File for Pandemic Unemployment Assistance in Every State

Note: This article has been updated to reflect the new programs and provisions in the second stimulus package.

For the first time nationally, independent contractors and gig workers can receive unemployment benefits — through Pandemic Unemployment Assistance. Millions of Americans have relied on this program since it was created by the first stimulus package in March 2020.

Depending on your state, PUA effectively expired on Dec. 26 or 27. At the 11th hour, lawmakers rallied to pass a second stimulus package, extending the program for 11 weeks. However, some states had to pause making PUA payments as they implemented the new rules.

The Penny Hoarder looked at the application process in all 50 states, plus Washington, D.C. when the program was first created. We compiled the information into an interactive map that shows you how to file in each state, then updated the information based on new provisions laid out in the second stimulus package.

This guide will explain everything you need to know about Pandemic Unemployment Assistance.

What Is Pandemic Unemployment Assistance?

  • How the Second Stimulus Package Changes PUA
  • A 50-State Interactive Map to Help You Apply for PUA
  • Documents Needed to File for PUA
  • This $300 boost is known as Federal Pandemic Unemployment Compensation (FPUC).

    [Back to top ↑]

    How the Second Stimulus Package Changes PUA

    Initially, the CARES Act authorized PUA payments for a maximum of 39 weeks. The second stimulus package extended PUA to 50 weeks total — or 11 extra weeks.

    PUA now sunsets on March 14, 2021, unless extended by Congress and the Biden administration. Those who haven’t exhausted their PUA benefits as of March 14, 2021, may continue receiving benefits until April 5, 2021.

    One new and notable limitation: PUA used to be available retroactively as far back as January 2020. The new stimulus law tightens the window for retroactive PUA payments to Dec. 1, 2020, through March 14, 2021.

    All PUA recipients should be expecting to file more paperwork, too. To curb fraud, the second stimulus deal forces current and new PUA recipients to submit documents related to employment or self-employment, according to the DOL.

    The exact documents needed will be determined by your state agency, which is required to notify you. The deadline to file those documents is March 27, 2021. Defer to your state’s deadline if different.

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    How to File for Pandemic Unemployment Assistance, State by State

    Our interactive map includes PUA filing instructions for all 50 states and Washington, D.C.

    Based on The Penny Hoarder’s analysis, 35 states and D.C. process PUA applicants using the same application for general unemployment. Only 15 states have separate PUA applications.

    Here’s how we broke it down on the map.

    General Unemployment

    To determine PUA eligibility, most states funnel applicants through the Unemployment Insurance system first. Those states require you to file two applications: state unemployment first, then PUA.

    In such states, you must get denied Unemployment Insurance (UI) before applying for PUA. Only a handful of states have one streamlined, general unemployment application that determines your eligibility for both PUA or regular benefits.

    For simplicity — and because in both instances your first step is filing a general unemployment claim — both methods are categorized as “general unemployment (UI)” on the map, in dark  blue.

    To see if you need to file two applications or one streamlined version, click your state on the map for specific filing instructions.

    PUA

    States marked in light blue have a PUA application separate from the regular Unemployment Insurance system. If you are a resident of one of these states, you can file for PUA directly so long as you meet the eligibility criteria.

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    Documents Needed to File for PUA

    If you’re ready to file for Pandemic Unemployment Assistance, you’ll need to gather several types of identification- and income-related documents.

    Your state may require a few additional documents, but here’s an overview:

    • State-issued ID card.
    • Social Security Number or Alien Registration Number.
    • Mailing and residential address (if different).
    • Bank account information for direct deposit, otherwise your benefits will arrive via a prepaid debit card or check.
    • Tax return: Form 1040, Schedule C, F and/or SE.
    • As many income statements as possible: bank receipts with deposit information, 1099 forms, W-2s, paycheck stubs, income summaries and business ledgers.

    Income statements and related documents are crucial to proving how and when the coronavirus affected your earnings. For freelancers and independent contractors, it may be difficult to compile everything. Include as much as possible.

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    Pro Tip

    Depending on which gig app you use and how much you earned, you may not have received any 1099 income forms in the mail. In that case, log on to the app and download your income statements.

    Expect Delays

    Due to new rules outlined in the second stimulus package, state labor departments are once again scrambling. Hiccups should be expected while applying for, asking about or submitting documents related to PUA. Many gig workers and independent contractors warn of website crashes, unavailable customer service, confusing questionnaires and more.

    Perseverance is key.

    Adam Hardy is a staff writer at The Penny Hoarder. He covers the gig economy, entrepreneurship and unique ways to make money. Read his ​latest articles here, or say hi on Twitter @hardyjournalism.

    This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.

    Source: thepennyhoarder.com

    New PUA Rules: Don’t Miss These Unemployment Deadlines

    The second stimulus package is tightening the rules for millions of gig workers, independent contractors and self-employed workers receiving unemployment aid.

    On Dec. 27, the $900 billion stimulus package extended Pandemic Unemployment Assistance, a critical benefits program for folks who don’t typically qualify for regular unemployment aid. The deal lengthened PUA benefits for at least 11 weeks, but it also created new filing rules that affect current recipients and new applicants alike.

    Chief among the new rules: You will need to submit income documentation to your state’s unemployment agency if you are a gig worker or self-employed worker — or risk losing future benefits and having to return any benefits collected after Dec. 27.

    “I think they are a real pain,” said Michele Evermore, an unemployment policy analyst for the National Employment Law Project, regarding the new PUA filing rules. “Not just for recipients, but for state agencies to collect. Every burden we add to state agencies slows benefit processing for everyone.”

    The new requirements are intended to combat fraud. According to the Department of Labor, more than 7.4 million people are relying on PUA and are subject to the changes.

    New Pandemic Unemployment Assistance Rules and Deadlines

    The new deadlines established by the second stimulus package are different for current PUA recipients and new applicants.

    As a current PUA recipient, you have until March 27 to submit income-related documents to prove your PUA eligibility. If you apply for PUA before Jan. 31, you also have until March 27.

    If you apply for PUA Jan. 31 or later, you will have 21 days from the date of your application to submit income-related documents.

    Need to apply? Our 50-state Pandemic Unemployment Assistance filing guide includes an interactive map and the latest information from the second stimulus deal.

    The Department of Labor requires each state to notify you of your state-specific rules. Your state may have different deadlines. In that case, refer to your state’s instructions. The DOL is also leaving it to each state to determine exactly what documents are required to prove your eligibility.

    Here are some examples of documents your state may ask you to file:

    • Tax forms such as 1099s and W-2s.
    • Ledgers, recent pay stubs and earnings statements from gig apps.
    • Recent bank statements showing direct deposits.

    If you’re self-employed, you may be required to submit:

    • Federal or state income tax documents.
    • A business license.
    • A 1040 tax form along with a Schedule C, F, SE or K.
    • Additional records that prove you’re self employed, such as utility bills, rental agreements or checks.

    If you’re qualifying for PUA because you were about to start a job but the offer was rescinded due to COVID-19 related reasons, you may be asked to submit an offer letter, details about the employer and other information related to the job to verify your claim.

    Another new rule is that you will have to self-certify that you meet one or more of the following PUA eligibility requirements on a weekly basis:

    • You have been diagnosed with COVID-19 or have symptoms and are seeking diagnosis.
    • A member of your household has COVID-19.
    • You are taking care of someone with COVID-19.
    • You are caring for a child or other household member who can’t attend school or work because it is closed due to the pandemic.
    • You are quarantined by order of a doctor or health official.
    • You were scheduled to start employment and don’t have a job or can’t reach your workplace as a result of the pandemic.
    • You have become the breadwinner for a household because the head of household died due to COVID-19.
    • You had to quit your job as a direct result of COVID-19.
    • Your workplace is closed as a direct result of COVID-19.

    Self-certification means that you swear the reason(s) you are on PUA is or are true at the risk of perjury. Previously, PUA applicants had to self-certify only once at the time of their initial application.

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    Evermore says that since current PUA recipients weren’t asked to submit all this information when they were first approved, they might no longer have access to the requested documents.

    “People who were told they don’t need documentation may have lost it, and this will create panic resulting in more stress on people who have already had an unimaginably bad year,” she said.

    The good news, Evermore says, is that states have leniency to waive some of these requirements if you can demonstrate “good cause” for not being able to submit the requested documents. What’s considered “good cause” is also determined on a state-by-state basis.

    “People who got approved for benefits in the past won’t necessarily get cut off from benefits simply because they are unable to produce the requested documentation,” Evermore said. “Just follow all of the agency’s instructions carefully.”

    Adam Hardy is a staff writer at The Penny Hoarder. He covers the gig economy, remote work and other unique ways to make money. Read his ​latest articles here, or say hi on Twitter @hardyjournalism.

    This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.

    Source: thepennyhoarder.com

    How to Build a Photo Scanning and Digitizing Side Gig

    As simple as it sounds — and actually is — most people are overwhelmed by the thought of taking hundreds or even thousands of photos and organizing them into searchable, digital files.

    Then there are the videos filmed on various versions of clunky cameras over the decades.

    Perhaps the most daunting version of unorganized photographic memories are slides. Once the butt of so many jokes about boring dinner parties, now they are covered in dust with no hope of ever seeing the light of a projector again.

    Well, anyone armed with a $229 scanner and a computer can make searchable digital files of photos and slides. To turn videos into digital files, it takes the original camera they were filmed with or a VCR, an $87 adapter and a computer.

    Here’s how to make photo scanning and digitizing your new side hustle.

    Five years ago, professional photo curator Sabrina Hughes decided she could make a business out of helping people organize their photos, videos and slides. Her company, PhotoXO, has a compelling slogan: “Show your photos the love they deserve.”

    Her years as a photographer, plus a graduate degree in art history and experience as a curatorial assistant at the Museum of Fine Arts in St. Petersburg, Fla., combine to make her an astute photo archivist. But all of this expertise and experience is not required.

    “There’s a certain point when I’m not doing anything you can’t figure out on your own,” she said. “A college student or really anyone could do this to make extra money.”

    Hughes offers a self-paced online class called Disaster to Done for $297, which includes lifetime access to course materials. But she’s also sharing her tips with The Penny Hoarder.

    Get the Right Equipment

    • Scanner. There are hundreds of scanners out there, but she prefers the Epson v600, which sells for $229.
    • Video adapter. Hughes uses the Elgato Video Capture for digitizing VHS tapes. It can be bought online for $87.
    • Storage. “When I first started out, I was giving everything back on hard drives,” Hughes said. “I was trying to get away from DVDs, since most computers don’t even play those anymore.” She then offered flash drives filled with the photos. Though they are also becoming less common, this is still probably the best tool for beginners. Hughes now uploads everything to her website, which offers permanent storage.
    • Software. Hughes uses Adobe Lightroom ($119), which enables her to label photos so they can be searched and has photo editing functions. Software isn’t required to organize unlabeled photos into folders, however.
    A stack of old black and white photographs sits on a person's desk.

    Develop and Perfect Your Process

    The first step to starting your photo scanning business is setting aside a space in your home. It can be as small as a corner of your bedroom or a desktop if an actual office or spare room isn’t possible.

    Next, create a storage system for clients’ photos and video tapes while your work is in progress. Of course clear boxes that stack are great, but they come with a cost. Cardboard shipping boxes work just as well. Place white adhesive labels on the ends with the name of the client and the date the work started. You can place new labels over these when one project is done and the next client’s photos go into the boxes.

    To digitize photos and slides, scan each one with the scanner to upload it to your computer. Make files for certain years or topics such as “1970s beach trips” or “kids’ birthday parties.” Drag and drop the photos into the appropriate file.

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