Vending Machine Business for Foreigner

[banagan]

Does anyone have any experience in the vending machine business here in Thailand?

 

How would a foreigner go about this, would you need a Thai partner?

 

Leasing or buying, any experience?

 

Custom manufacturing. Can it be done here, or best to import from China? (large duty, for sure)

 

Cheers

 

[blackcab]

Our company looked at it, and it was a no-go. Margins are very slim and you cannot compete with 7-Eleven.

 

On top of that, as a foreigner your company must be 51 per cent owned by Thai people (unless you are American).

 

There is one company doing this business at the minute - they have green coloured machines in places like Impact Arena and Ikea (dispensing drinks only). The company is Lawson 108, who are another convenience store retailer. It works for them because they buy in bulk anyway as part of their convenience store business.

 

On top of all this you will need a work permit. To get a permit you must employ 4 Thai people. Your permit will allow you to manage the business, not to restock vending machines or do other manual tasks.

 

If you don't believe me, go to BTS Thong Lo Exit 1. There is a drinks vending machine at the bottom of the stairs. Fantastic location, with literally thousands of people walking past it every day.

 

Sit there, and count how many times the machine vends. It's the best type of market research you will do, and it's free. Let us know the answer.

[banagan]

On 24/03/2018 at 9:35 AM, blackcab said:

Our company looked at it, and it was a no-go. Margins are very slim and you cannot compete with 7-Eleven.

 

On top of that, as a foreigner your company must be 51 per cent owned by Thai people (unless you are American).

 

There is one company doing this business at the minute - they have green coloured machines in places like Impact Arena and Ikea (dispensing drinks only). The company is Lawson 108, who are another convenience store retailer. It works for them because they buy in bulk anyway as part of their convenience store business.

 

On top of all this you will need a work permit. To get a permit you must employ 4 Thai people. Your permit will allow you to manage the business, not to restock vending machines or do other manual tasks.

 

If you don't believe me, go to BTS Thong Lo Exit 1. There is a drinks vending machine at the bottom of the stairs. Fantastic location, with literally thousands of people walking past it every day.

 

Sit there, and count how many times the machine vends. It's the best type of market research you will do, and it's free. Let us know the answer.

Thanks, great reply. 

[johng]

Coin operated washing machines seem to be quite well used...though I don't know how much actual profit they make for the owners after electricity,water,wear and tear,theft,and site rental costs.

[Denim]

I used to work for a vending machine company in the UK. I would not recommend it. The machines were often broken into for the cash and contents and that was in the UK. Here, I would imagine it would be worse.

Then come the repairs. When a printed circuit board burns it might be pricey to replace even if you are doing the work yourself. Also, when new coins are introduced you might have to modify or change the coin mechanism .

 

Finally, as somebody else mentioned , hard to compete with 7/11.

[IMGalaxyMan]

How to start such a business? Is it a good way to have it as a side business?

[cheskakim]

Starting a vending machine business in Thailand as a foreigner can be tricky due to the legal and ownership requirements. You’d likely need a Thai partner to handle the local business licensing and meet ownership rules for foreigners. Leasing machines could be a good option to test the waters before committing to buying, especially if you’re unsure about the market.

 

I’ve worked with VVM vaping vending machines, and they were a great way to enter the vending space because they focus on niche products with consistent demand. Custom manufacturing locally is possible but might limit your options; importing from China could provide more advanced features but comes with higher duties. As a side business, vending can be profitable, but success depends on securing high-traffic locations and managing maintenance and restocking efficiently.

Edited 2 hours ago by cheskakim