How to Start a Smart Vending Business (Step-by-Step Guide)

Jul 23, 2025

Hey everyone — Eric Abrom here, founder of Abrom Vending. If you’re thinking about getting into the vending business, let me stop you right there and redirect you. Don’t go the old-school route with bulky, outdated machines. Instead, let’s talk about starting a smart vending business — a sleek, modern, cashless solution that today’s customers and businesses actually want.

In this post, I’ll walk you through exactly how I launched my smart vending business from scratch — no prior vending experience, just a strong design background and a solid plan.

Watch the video

Why Smart Vending?

Traditional vending machines are big, heavy, and, let’s face it — ugly. They break down easily, require frequent repairs, and usually involve handling cash, which opens the door to theft and safety issues.

Smart vending (or “smart stores”) eliminates all that. These are compact, tech-powered, cashless retail setups that let customers tap a card or phone to unlock the door, grab what they want, and get charged automatically. You’ve seen them at airports and stadiums — now we’re bringing them to gyms, apartment complexes, and co-working spaces.


Step 1: Choose a Business Name + Secure a Domain

  • Come up with a name that feels modern, memorable, and relevant.

  • Search your state’s business entity database to ensure the name is available.

  • Once it’s clear, register the matching .com domain (avoid boutique TLDs like .ai or .io unless necessary).


Step 2: Hire a CPA and Set Up Your LLC

Trying to DIY your legal structure can cost you more in the long run (ask me how I know). A certified CPA can:

  • Set up your LLC

  • File for your EIN

  • Register your S-Corp status

  • Help you obtain a tax-exempt certificate for purchasing inventory

  • Ensure you’re in compliance with state-specific tax laws (especially for unattended retail)

Cost: Around $400–$500, and worth every penny.


Step 3: Open a Business Bank Account

Head to your bank (or open one online) and bring all your documentation: LLC paperwork, EIN, articles of organization, IDs, etc.

Why this matters:

  • Keeps personal and business finances separate

  • Makes taxes and accounting much easier

  • Allows you to build business credit and apply for loans or credit cards


Step 4: Brand Yourself Like a Pro

Your branding matters — a lot. Fortunately, my background in design helped me create:

  • A modern, professional logo

  • Website and domain

  • Brochure and service proposal

  • Product catalog

  • Business cards

  • Service agreement (we use a 90-day trial model instead of a long-term contract)

You can DIY or use tools like Canva, or hire a designer on Fiverr if needed. Just don’t skip this step.


Step 5: Find Distributors and Wholesale Accounts

You’ll need reliable access to snacks, drinks, and other inventory. Here’s where to start:

  • Sam’s Club

  • Costco

  • Local food & beverage distributors

  • National wholesalers (Amazon Business, Walmart Business, etc.)

🧾 Pro Tip: Have your tax-exempt certificate ready so you don’t get taxed twice.


Step 6: Choose Your Smart Vending Hardware Partner

There are many smart store solutions out there — from budget-friendly options to premium machines. Some vendors to explore include:

  • 365 Retail Markets

  • HAHA Vending

  • Mircormart

  • Various kiosk solutions depending on your niche and budget

We opted for a premium model ($9K paid upfront) because it fit high-end spaces like luxury apartments and co-working offices. Leasing is also an option if you qualify.


Step 7: Don’t Buy Anything Without a Location

Seriously — don’t order a machine until you’ve secured your first location.

Here’s why:

  • You don’t want $9K equipment sitting in your garage for months

  • Product selection should be based on actual demand, not personal preference

  • You’ll avoid unnecessary costs for storage and logistics

📍 Find a location first, then:

  • Order your machine

  • Choose inventory based on traffic and demographics

  • Consider sending out surveys after 30–90 days to optimize product offerings


Step 8: Understand Foot Traffic & Profit Margins

Location matters. We use this simple rule:

  • 100+ daily foot traffic? Worth exploring

  • Under 100? Usually not profitable

Smart vending thrives in high-traffic areas like:

  • Gyms

  • Apartment lobbies

  • Corporate breakrooms

  • Co-working spaces

💸 Aim for a 100% markup on your products. That means:

  • $1 item → sell for $2

  • Covers card processing, CPA fees, taxes, and restocking costs

  • Shoot for 30–40% net profit after expenses


Final Thoughts: Your Launch Checklist

Before you start, make sure you have:

✅ Business name + .com domain

✅ LLC + EIN + S-Corp status

✅ Tax-exempt certificate

✅ Business bank account

✅ Branded website, logo, proposal, and service agreement

✅ Distributor accounts (Sam’s, Costco, local)

✅ Clear plan for what type of vending solution fits your market

✅ A confirmed location

🔒 Don’t invest in equipment or inventory until you secure that first location.

Visit www.abromvending.com to explore our smart vending solutions. We’re proud to be Charlotte, NC’s leading provider of premium, tech-enabled vending experiences for apartments, gyms, and office spaces.


Coming Soon: How We Got Our First 2 Locations in 30 Days

We launched with zero contacts in the vending space and still locked down two locations in our first month. I’ll be breaking that down in the next post and video.

Want to make sure you don’t miss it?

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