Do you remember what it was like walking into a store and seeing the beloved gumball machine as a kid? Maybe you saved up your allowance or asked your parents to spare some change just so you could put in a coin, turn the knob, and hope that your favorite flavor would pop out.
Gumball machines are more than just a slice of nostalgia. They can also be a fantastic financial investment! A kid’s gumball machine business can help you bring in some extra cash and connect with people. With so many different sizes, colors, and styles of gumball machines, you will have no problem finding one that will be popular in your area.
In fact, my dad convinced me to buy a gumball machine when I was about 10 years old! I used the money I had saved from holidays and tips that I’d earned working at our family business to buy the machine. Our family business was an ice cream store located across the street from a high school, so a gumball machine was the perfect little addition.
This post will share everything you need to know about starting a kid’s gumball machine business as an investment and tips on how you can get your kids excited too!
Table of Contents
- Gumballs: A business for kids or a kid’s business?
- How to start a kid’s gumball machine business in 4 easy steps
- How do gumball machines work?
- How much does a gumball machine cost?
- How much money does a kid’s gumball machine business make?
- What can I put in a gumball machine?
- What is the best gumball machine?
- Three popular types of gumball machines
- Where should I put my gumball machine?
- How long does it take to start a kid’s gumball machine business?
Gumballs: A business for kids or a kid’s business?
Gumball machines can be both a business that sells gum to kids as well as a business that can be run by kids! A gumball machine is a perfect introduction to business principles for small kids. At the same time, it is an amazing passive income source for adults!
I started my gumball machine business at just ten years old with the help of my dad. He came up with the idea and helped me purchase the machine, but I was the one who paid for it and collected the profits!
I’m not the only person who started a gumball machine business as a kid. Tori Dunlap, a well-known personal finance expert who is on a mission to empower women, also started her first business by placing vending machines. She started her vending machine business at the tender age of 9 and used the money to help pay for college!
Another person who started a gumball machine business as a young adult is YouTuber Jamie Ibanez. Jamie started his gumball machine business at 18 years old and actually has several vending machines too! Gumball machines are such a great business for beginners because the business processes are so straightforward.
How to start a kid’s gumball machine business in 4 easy steps
- Buy gumball machine
- Place gumball machine in a good location
- Fill the gumball machine up with gum (and prizes!)
- Visit once a month to refill and collect your profits!
It really is that easy! This is such a great learning experience for kids because they do not have to spend hours concentrating on the business. It also teaches them delayed gratification, as they have to wait about a month before collecting money from the machine.
1. Buy a machine
Buying a gumball machine is, of course, the most obvious first step! You can easily purchase a machine on Amazon that will ship to your house (or store location) in just a few days.
The best part about online purchases is that they sometimes have payment plans, so you do not have to part with a lot of cash up front!
There are many different types of machines to choose from, and we will cover the cost and three most popular kinds of machines later in this post. You may want to consider important details like where you will place a machine or what kind of people you think will end up using it. All of this might impact the style of machine you want to purchase.
You can even go around to local businesses and see if they will allow you to place a machine in their store. This might also dictate the style and size of machine you should be using.
My 3 favorite gumball machines
Feel free to purchase from any gumball machine vendor that you like! You can find very competitive prices if you are willing to shop around.
That being said, Amazon is an easy choice as you can easily see their product reviews, shipping & returns are often free, and you can easily find additional add-ons (like prizes!).
1. Triple Pod Standing Dispenser for Commercial Use– $249.97
2. 15 Inch Candy Dispenser– $92.99
3. 4’10” Spiral Gumball Machine– $1,199.99
I included the last machine for two reasons. The first reason is that this is very similar to the gumball machine that I started out with as a kid! If I recall correctly, I spent around $800 for my machine back in 2005.
Accounting for inflation, I think that this is still a relatively reasonable rate. Which brings me to my second point, you are starting a business for under $2,000! While this may seem like a large sum compared to your day to day spending, it is actually quite a reasonable amount to invest in a business. Especially since there really aren’t many other operating or business expenses beyond this initial purchase.
As a final note, I would like to mention that this machine (and most others) often come with payment plans. On Amazon, they currently list the payment amount as $50.92 a month for 36 months with a 10-30% APR. Personally, I think APRs above 15% are criminal and would save the money to pay in full but your mileage may vary.
2. Place gumball machine in a good location
There are three things that make a good location for gumball machines: visibility, family-friendly, and willingness to partner.
First, the location should have a lot of foot traffic or be visible from the street to maximize the number of people who might purchase from the machine. Restaurants located near schools, pizza places, and arcades would be ideal locations. Keep reading to find our extended list of locations you can place a gumball machine!
Next, you should try to place the machine in an area that families frequent. As I’m sure you could guess, your primary customer is a kid who convinces their parent to buy the gum! This is particularly useful if the location tends to host parties for kids, since if one kid gets gum the rest are sure to follow.
Finally, you should focus on a business that is willing to rent you the space. Not all “ideal” locations will be willing to have you place a machine! You can offer a small monthly “rental fee” or a percentage of the profits to help entice them into working with you. If you are lucky, you may even find a friendly owner who will let you place machines in more than one of their businesses!
3. Fill the gumball machine up with gum (and prizes!)
Usually, the company that sells you the gumball machine will include the first bag of gumballs for free. This makes it really easy to get started!
If they don’t give you your first bag for free, have no fear as gumballs are actually pretty cheap. You can get a bag of 450 gumballs for $17.99! A word of caution: always double check that the size of your gumballs fit your machine’s size!
You may also want to consider adding little prizes in plastic gumballs. This can really incentivize people to try their luck by putting money into the machine. You can get 100 capsules pre-filled with toys for 28.99. Personally, I would just worry about getting the machine first and look into this later as a way to increase your earnings.
The key to making prizes work is to make them look obtainable. You can do this by placing them in the middle of the machine where they are visible. Do not place them at the top of the machine or people may feel discouraged!
If you are using money as a prize, be sure to fold it so that the dollar amount is clearly visible. I would only use $1 bills, otherwise, you run into the possibility of people aggressively shaking the machine or even trying to steal it. Keep reading as I will share more information on good prizes to use later in this post!
4. Visit once a month and collect your profits!
You might be surprised to learn that there really is only 4 steps involved in starting your gumball machine business. After you’ve placed your machine, all that you really have to do is check on it about once a month to collect the change and refill the gumballs/prizes.
Of course, you may need to check in more frequently if your machine is doing particularly well. My machine was in a pretty visible location at an ice cream store located across the street from a high school, so I found myself refilling once every two weeks or so.
This was more a matter of choice because I found the machine to look the most appealing when it appeared to be full. It is also good for it to look a bit different each time if you have prizes. This shows returning custmers that others have won!
Check out my post, Are Gumball Machines Profitable? (Earnings & Tips), to learn more about how much money my gumball machine made. I also included case studies of other people’s earnings from their bubble gum/ vending machine businesses!
How do gumball machines work?
Kids gumball machines are simple machines that require little work to obtain your purchase. An individual inserts the appropriate amount of money into the coin slot and turns the crank. Once turned, the crank moves a large metal disk that’s inside the machine. This disk moves the gumballs one by one into the dispenser chute.
Most gumball machines two main compartments. The first is the candy globe, which that can be easily opened from the top for refills. The other compartment is the money chamber, which is where the coins are collected after they have been inserted. You can typically find these at the base of the gumball machine, towards the back.
To help prevent theft, there are two different keys to access these compartments. You will need both of these keys when you service your machine once a month. The best part? Servicing your machine only requires adding more gumballs and counting your earnings!
Gumball machines can vary significantly in type and size. For this reason, your gumball machine may work slightly differently from others. Some machines are statement pieces themselves and others that can fit nicely on the counter of a store. Other gumball machines add to the fun by having a maze that gumballs will go through before being dispensed at the bottom of the machine.
How much does a gumball machine cost?
Ultimately, gumball machine costs can range from $50 to a couple thousand for more unique types. This is especially true if you buy the machine brand new, but the biggest factor in their price is the size and capabilities of the machine. Carefully consider your target buyers, location, and budget before selecting a machine to buy!
One YouTuber, Reyes The Entrepreneur, started his gumball machine business with an $85 machine! This is very similar to how much my gumball machine cost when I started my business almost ten years ago.
As mentioned before, some gumball machines have created a game out of receiving the gumball. These machines can be very elaborate like a pinball machine or simply more visually appealing by having the gumball travel through pulleys and levers.
You can expect to pay much more for this kind of machine, but you will also be able to charge more as well! It is not uncommon to pay up to 50 cents for a gumball from this kind of machine.
Others are more basic and will directly dispense a gumball once the coin is inserted. No spinning or spirals involved! Typically the more simple the machine, the smaller it is.That means that you will likely pay less for the kinds of machines that can fit on top of a counter or in a corner.
How to save money on your kid’s gumball machine business
Second-hand shops or online marketplaces, like Facebook Marketplace, are great options to find used machines that can be just as functional as a new machine. These options can help you save money on the initial start-up costs.
They also give you an opportunity to find a unique antique piece that will really stand out in the room! This can help spark your potential buyer’s interest and convince them to make a purchase. At the end of the day, your kids’ gumball machine success depends on its visibility and how attractive it is!
Once you have obtained the machine, it is time to fill it up. One of the most cost-effective ways to do this is to buy your gumballs in bulk. It is usually easiest to purchase gumballs from the same vendor who sold you your machine. This helps to ensure that they fit through the dispenser!
How much money does a kid’s gumball machine business make?
You can make great money with gumball machines. Most gumball machines make between $20-$100 per month in profit! Keep in mind that this business is very passive.
The amount of money that a kids’ gumball machine can make varies based on where you place the machine and what you are loading it with. However, there is always an opportunity to make money through gumball machines.
Here is an example of what your earnings could be through a kids’ gumball machine:
- Buy 850 assorted gumballs for $41.95
- Charge $0.25 per gumball
- You will bring in $212.50 as your total earnings
- Once your initial expenses are subtracted ($212.50 – $41.95), you will have a net income of $170.55!
I remember adding gumballs to my machine about once a month. Using the math above, this one machine could earn a little over $2,000 a year! And the best part is that it only took an hour of my time each month.
What can I put in a gumball machine?
You can fill a kids’ gumball machine with more than just gumballs. Any type of candy or prizes can go in the machine, just as long as it fits through the dispenser and it is still cost-effective.
You can purchase hollow plastic balls that are the same size as your gumballs and fill them with whatever prize you’d like. Just make sure you place them somewhere highly visible so that people notice that they could get something extra special!
You want to ensure that you are not losing money on the gumball machine by stocking it with items that are costing you more than you can charge. A good way to ensure you are making more than you are spending is to evaluate how much you can charge in the gumball machine (does it charge $0.05, $0.10, $1.00, etc.) and estimate how much you can fit in the gumball machine.
I’ve covered a few general ideas below, but be sure to check out my post on this topic: What to Put in a Gumball Machine to Make Money!
Gumball Machine Prize Ideas:
- Toy rings
- Removable tattoos
- Stick on earrings
- Small bracelets and necklaces (let’s bring back chokers!)
- Dollar bills (I used these in my machine and they were extremely popular! Just fold so people can see the dollar amount and know it is real!)
- Small action figures
- Other kinds of candy (ie. m&m’s)
One great way to keep people interested is to switch up what you are putting in your gumball machine every time it comes to restock. Maybe start with gumballs but when it comes time to restock, you switch to removable tattoos. This keeps your audience interested and wanting more! You always want to make sure that the machine looks full because it is the colors of the gumballs that attract buyers the most.
I highly recommend having a variety of prizes, including money, because most kids will buy more than one in the hopes of getting the fun prize! You’d be surprised at how much money people will spend on a gumball machine. I’ve seen adults hand over all their spare quarters to their kid because they wanted a particular color from the machine!
The best part about gumball machines is that almost everyone likes gum! So your potential customers are limitless. Depending on how long your potential buyers stay in the area, there is a good chance they will buy more than one. It’s pretty well known that most gumballs lose their flavor quickly, so many people will end up getting another one if they are still in the area.
What is the best gumball machine?
There are multiple factors to consider when thinking of the type of gumball machine to purchase. Here are a few questions you can ask before purchasing:
- Where is my gumball machine going to be located in the store? How much space is there?
- Will the machine be visible from the street?
- What demographic is my target audience for my gumball machine?
- How often am I able to fill up the gumball machine?
- Will I put different kinds of prizes in the machine?
These 5 questions can help you start to think about what type of kids’ gumball machine will serve you best. If you are thinking of placing a gumball machine in a high school, then a larger gumball machine that costs $0.50 per gumball and can hold a large quantity may serve you best.
Whereas, if you are thinking of placing one at a community center where there are many different families coming and going, having a couple of small tabletop gumball machines where you can fill up with multiple varieties may help you bring in more money. Observe your location and find out who frequents it and make your decision from there.
Three popular types of gumball machines
There are many different types of gumball machines but in this article will explore three of the most popular types:
- Spiral gumball machines
- Gumball machines with stands
- Antique or vintage gumball machines
Each of these common types of machines comes with their own pros and cons. Keep reading to find out which one is best for the locations you have in mind!
Spiral gumball machines
The spiral gumball machines are typically stand-alone gumball machines. They have a base with a spiral where kids can watch their gumball whirl down to the dispenser shoot.
This is a great way to keep children engaged. It taps into their sense of play! They will want to keep purchasing more so they can keep watching the gumball travel down the spiral.
This is one of the most common types of kid’s gumball machines. They are easily recognizable as they tend to be larger in size. My first gumball machine was a spiral machine! I loved that it was easy to display prizes to further incentivize potential buyers.
One last thing to note would be the size of these machines. The stand-alone gumball machine tends to be larger, which makes it ideal for catching people’s eyes from afar. This is also the best type of machine if you are looking to include different types of prizes. There is enough space to place them in visible locations at the top of the machine.
Gumball machine with stand
Gumball machines with stands are also stand-alone machines that vary in shape and size. Some of the machines can hold large quantities of large candy while others still have a smaller container.
The great thing about these machines is that they are at an average eye level for children. This makes them easy to spot and easy to use. They also tend to be just as popular with adults. They appreciate not having to wait around for the more elaborate machines to dispense their treat.
Gumball machines that come with a stand also are the most common type of machine. They do not take up a lot of counter space and can be easily moved from room to room. These machines are perfect for arcade spaces or as a standalone in most restaurants.
You can also find these kinds of machines that come with other types of candy dispensers, similar to vending machines. This is great because it gives you more selling opportunities as you can carry things like m&m’s, skittles, etc. I even remember seeing some that dispense small prizes or colorful tattoos!
Antique or vintage gumball machines
These are an ideal purchases for a place where adults may be frequenting more, like a long-term care home, and can help an adult relive their childhood. Many cities also have an “old town” where everything is styled from back when the city was created.
These locations would also be perfect for a gumball machine. There are often fewer standard vending machines to compete with because they break the old-timey illusion!
Antique gumball machines are an amazing option to play into the inner child of an adult. It has a nostalgia factor and reminds them of simpler days going to the candy store and getting a treat.
There are two downsides to this kind of machine. The first is that they do not come with the swirling dispenser built into the stand. Unfortunately, this makes them a lot less fun and visually appealing.
The other issue with this type of machine is that they tend to only work with increments of .25¢ or below. More modern machines can take amounts of .50¢ or higher, which makes it much easier to turn a profit. Even if you were to modify an antique machine, most people would be upset to pay more because part of the nostalgia comes from paying prices from “back in the day”.
Where should I put my gumball machine?
Many local stores would be happy to have you place a machine in their business. Gumball machines are a welcome addition as they attract potential clients (both kids and adults!).
The potential locations are limitless! Just think of the kinds of places where adults take their kids and see if there is room.
You can technically put a gumball machine anywhere.. but some places are going to be particularly good locations for gumball machines! So you’ll want to think carefully about where in your neighborhood is best for your gumball machine.
Think about the location you are hoping to place your gumball machine. Is your location a high-traffic place or is it an area that hardly has people walking by? Will the same people pass by every day? How many new people will see the machine?
Having a variety of people walking by can help you earn more money. There aren’t as many gumball machines these days, so people are often pleasantly surprised to see one. They will buy a gumball just for the nostalgia! You will also find that some people will become regular users of your machine. Once they know where your machine is, they may even go out of their way to buy a gumball!
You can even speak with the business owners before you purchase a machine. This is great because you will know you have a location before you put money into the business. And, if that location is not profitable, you can always easily relocate your machine.
Good places for kid’s gumball machines:
- Restaurants near schools
- Arcades
- Ice cream stores
- Pizza restaurants
- Laundry mats
- Grocery stores
- Malls
- Corner stores or convenience stores (like 7-11)
- Coffee shops
How long does it take to start a kid’s gumball machine business?
It took me less than a month to start my gumball machine business! From the moment my dad explained the concept to me, I knew it was something I wanted to do. It only takes a few hours of research to find a machine that is visually appealing and affordable.
You may have to wait a few extra weeks to have it shipped to you if you have an online provider. For my machine, we went directly to a wholesale location to pick it up. The same location would provide the gumballs in bulk and even offered a discount if I bought multiple gumball refills at once. Usually, you can get your first bag of gumballs for free with the purchase of your machine!
If you follow the steps in this guide, I’m sure you can have your own gumball machine business up and running in no time! I would love to get back into the gumball machine and vending machine business one day as it is still one of the best passive incomes I’ve ever earned.
Are you considering starting a kid’s gumball machine business? What kinds of ways did you earn money when you were little? Let me know in the comments!
Hi! Im 14 and looking to start this. I have the money for it and everything but was wondering: do I have to have a permit? Some people online say that you do have to have business permit but I find this strange. If you could respond that would be great! Thanks!
Hi Willa, thanks for your question! Business permits are typically used to protect your business and are always a good idea. The reasons for this can be everything from legalities like food safety to filing taxes, etc. That being said, many people (especially teens) start off without them. This is not my advice, but rather a statement of reality! It would be best to follow your parent’s advice on this matter and allow them to supervise you in this endeavor. Hope this helps!