A cigarette is one of the highly in-demand tobacco products. Depending on location, a cigarette vending machine can pay off in the first few months. If you plan to start a cigarette vending business, consider areas where tobacco sales are permitted. To minimize startup costs first purchase the high on-demand cigarette brands. Ensure a competent display of brands and analyze what sells best in your preferred location.
Starting a cigarette vending machine requires a great deal of effort, dedication, and most importantly passion.
If you're interested in how to sell tobacco, or selling tobacco online, you can use this page as a guide for everything you'll need to know.
Want to learn more? You can check out our full guide on how to start a cigarette vending machine ➜
|Min Startup Costs||Max Startup Costs|
|Equipment & Supply Expenses||$66||$1,200|
|Retail Business Expenses||$1,250||$11,650|
|Advertising & Marketing Costs||$75||$9,636|
|Total Startup Costs||$1,754||$37,876|
|Japan Tobacco International – a global tobacco company||jti.com||#163,070|
|TobaccoReviews.com: The largest collection of pipe tobacco reviews on the internet.||tobaccoreviews.com||#197,400|
|Scandinavian Tobacco Group||st-group.com||#270,717|
|Tobacco Pipes, Smoking Tobacco and Pipe Accessories (Huge Selection, Best Prices)||tobaccopipes.com||#370,778|
|Campaign for Tobacco-Free Kids||tobaccofreekids.org||#400,093|
|Tobacco Business Magazine||tobaccobusiness.com||#432,773|
|Tobacco Control Laws||tobaccocontrollaws.org||#595,073|
|Tobacco Free CA||tobaccofreeca.com||#709,348|
Pros & Cons
|Rewarding work||Starting a cigarette vending machine can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.|
|Meaningful business connections||You never know who you will meet as a cigarette vending machine. This could be the start of an incredible business opportunity!|
|Daily physical activity||Cigarette Vending Machine's typically involve a much greater degree of movement than other lines of work. Most days, you will spend your day walking, running errands for your business, and performing a multitude of tasks. This can have a positive impact on energy levels and your overall health.|
|Amazing perks and discounts||Working in the cigarette vending machine comes with its perks! As a seller for these products/services, you typically also get to enjoy industry perks and discounts.|
|You are your own boss!||With starting a cigarette vending machine, you are the one to make decisions for almost all of the operations. Calling the shots can be empowering and liberating!|
|Local Community||One of the best parts of starting a cigarette vending machine is that you can develop a local following by selling your products at craft shows, farmers' markets, or even local storefront businesses! This gives you access to additional revenue streams and loyal customers.|
|Crowded Space||Competition is high when it comes to your cigarette vending machine, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies.|
|Finding The Right Supplier||Most businesses in this space go the supplier/manufacturer route, which isn't a bad thing! However, finding the right supplier can take a lot of time, energy and trial/error. If done properly, this process can save you months (if not years) of time and energy. More on this below in the "finding a supplier" section.|
|Motivation of employees||If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.|
|Low margins||The gross margins for your cigarette vending machine are typically around 34%, which can make it more challenging to incur new expenses and maintain profitability.|
|High employee turnover||In the cigarette vending machine, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.|
|Taxes||As a cigarette vending machine, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.|
Affiliate marketing is a great way to bring in a new revenue stream, especially when you don't sell products or services.
Simply put, an affiliate program is an agreement where a business pays another business or influencer ("the affiliate") a commission for sending traffic and/or sales their way.
The affiliate typically gets a unique link where clicks and conversions can be tracked.
Word of mouth
Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.
Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.
According to Nielsen, 92% of people trust recommendations from friends and family.
Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.
Social Media Advertising
Social media advertising is the use of social media platforms to connect with your audience with the objective to build your brand, increase sales, and drive website traffic.
According to Oberlo, approximately 48% of the global population use social media, and the number is ever-growing.
Therefore, social media allows brands access to cost-effective advertising by enabling them to interact with a large audience.
Hey! 👋 I'm Pat Walls, the founder of Starter Story.
Get our 5-minute email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.