Start A Cigarette Vending Machine - Business Ideas

Pat Walls

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Updated: September 15th, 2022

Start A Cigarette Vending Machine

Please note that the data provided in this article are estimates and may vary depending on various factors, and should not be considered as perfect or definitive.

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 ➜

Key Stats

market size

$793B

starting costs

$18.9K

gross margin

34%

avg product price

time to build

270 days

Startup Costs

	Min Startup Costs	Max Startup Costs
Equipment & Supply Expenses	$66	$1,200
Retail Business Expenses	$1,250	$11,650
Inventory Expenses	$350	$14,750
Advertising & Marketing Costs	$75	$9,636
Software Expenses	$0	$425
Website Costs	$13	$215
Total Startup Costs	$1,754	$37,876

See all startup costs ➜

Successful Businesses

Business	URL	Rank
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
Altria Group	altria.com	210,745
Scandinavian Tobacco Group	st-group.com	270,717
Tobacco Reporter	tobaccoreporter.com	297,896
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
Smokers Unit	smokersunit.com	664,712
Tobacco Free CA	tobaccofreeca.com	709,348

See all businesses ➜

Pros & Cons

Pros	Description
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.

See all pros ➜

Cons	Description
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.

See all cons ➜

Marketing Ideas

1

Affiliate Program

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.

Learn more about affiliate program ➜
2

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.

Learn more about word of mouth ➜
3

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.

Learn more about social media advertising ➜

See all marketing ideas ➜

Key Stats

Startup Costs

Successful Businesses

163,070

197,400

210,745

270,717

297,896

370,778

400,093

432,773

595,073

664,712

709,348

Pros & Cons

Marketing Ideas

Affiliate Program

Word of mouth

Social Media Advertising