The Ultimate Vending Machine Business Start Guide Singapore (2025)
written_by SingSaver Team
updated: May 21, 2025
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While a vending machine business requires relatively low capital, vending profits for yourself depends on several factors.
Vending machines look like the ideal business for lazy entrepreneurs. All you have to do is get a machine, plonk it somewhere where people can see it, fill it up with drinks, snacks, food or other stuff that everyone needs and watch the money flow in.
Well, such an automatic wealth-generating model probably only works if you’re selling supercars to Gen Z trust fund babies using 'their' credit cards for big purchases like you do for public transport.
For the rest of us, things are not quite so straightforward.
Best business credit cards in Singapore (2025)
Want to save some money while setting up your vending machine business?
These big-ticket purchases are definitely investment pieces, since they mostly cost at least S$1,000 and above. To help cushion the cost a little, here are some credit card recommendations to earn rebates with:
Compare credit cards
UOB One Card
UOB Absolute Cashback Card
UOB Preferred Platinum Visa Card
OCBC Rewards Credit Card
For maximum cashback
Product details
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Earn up to 8.33% cashback quarterly with a minimum spending of $500 per month
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Earn up to 10% cashback quarterly with a minimum spending of $2,000 per month
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3.33% base cashback rate with a minimum spending of S$500 per month, for transactions not with selected partners
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Up to 24% savings on fuel at Shell
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Up to 22.66% off petrol purchases at SPC
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Automatic fee waiver in first year
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First supplementary card is free
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Complimentary travel insurance – public conveyance accident coverage up to S$500,000 and COVID-19 emergency assistance, evacuation and repatriation up to S$50,000
SingSaver’s take
If you are intending to make a big-ticket purchase such as a vending machine, the UOB One Card is a great choice as this will allow you to hit the minimum spending easily. While a base cashback of 3.33% applies to spending that’s not with selected partners, vending machine owners can easily qualify for the extra 5% cashback rate by choosing to purchase products from Shopee, Cold Storage, CS Fresh or Grab (all selected partners).
For unlimited cashback with no minimum spend
Product details
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Earn 1.7% unlimited cashback on all qualifying purchases
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Earn 0.3% cashback on local purchases that are typically excluded from cashback rewards, such as rental, insurance premiums and school fees
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No minimum spend required
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Enjoy exclusive promotions for cardholders, including S$7 off with minimum spend of S$80 at Cold Storage every Friday
SingSaver’s take
The UOB Absolute Cashback Card is the perfect choice for earning unlimited cashback, with no need to track your monthly spending. If you foresee your monthly expenditure as a vending machine owner to be low or inconsistent, this card will ensure that you aren’t spending on things you may not need just to hit a minimum spend requirement each month.
For contactless payments
Product details
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Earn up to UNI$10 per S$5 spend (4 mpd) on contactless mobile spend as well as online shopping and entertainment
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UOB$ programme allows cardholders to earn cash rebates all year round at participating merchants
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No minimum spend required
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Card can be used for SimplyGo transactions, eliminating the need for top-ups and multiple cards
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Bonus UNI$ capped at S$1,100 per month
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Enjoy exclusive promotions for cardholders, including S$7 off with minimum spend of S$80 at Cold Storage every Friday
SingSaver’s take
If you want to up your miles game and get rewarded for the purchases you are already making, the UOB Preferred Platinum Visa Card will make a great addition to your wallet. Mobile contactless payments are supported to make shopping a breeze.
For customisation of rewards
Product details
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Earn 15 OCBC$ for every S$1 spend at selected popular retailers (with new ones added every three months)
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Earn 10 OCBC$ (4 mpd) for every S$1 spend in select retail categories (applies to both online and in-store purchases
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2% cash rebate for electronics purchases at BEST Denki
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Accumulated OCBC$ can be exchanged for miles, cash rebates, vouchers, experiences, and more
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Annual fee waiver in subsequent years is subject to a minimum spend of S$10,000 annually
SingSaver’s take
The OCBC Rewards Card is a noteworthy choice for those looking to customise rewards to their choosing. Whether you are after miles, cash rebates or vouchers, you have the flexibility to choose what you want to redeem your OCBC$ for.
Vending machine business startup costs in Singapore
|
Item |
Cost |
|
Vending machine |
Buy: $2,000 to $8,000 per machine Lease: $4,800 to $7,200 per machine |
|
Location rental |
Starting from $2,400 per year |
|
Stocking |
Varies based on type of product and frequency of restock, starting from $2,400 per machine per year (assuming weekly restocks) |
|
Maintenance |
Approximately $1,200 per month, assuming one session per month |
|
Insurance |
Starting from $600 per year |
|
Business registration and license |
$310 to $1,310 |
|
Total: $8,190 to $15,190 |
Starting a vending machine business isn’t particularly costly, all things considered. Depending on the type of machine you need, you may need between S$9,000 to S$16,000 in seed capital.
However, this is assuming your business involves only one machine. Additional machines will obviously increase the capital required. Also, we have not factored in miscellaneous and business support costs, such as marketing, office rental, and labour (in our calculations, we are assuming you are restocking the machine yourself).
You will also need to set aside some capital to pay a supplier or manufacturer for the products you want to sell, unless you manage to work out a consignment deal.
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Step 1: Register your business in Singapore
|
Item |
Cost |
|
Self-registration
|
S$115 |
|
Agency costs |
S$300 to S$1,000 |
|
Vending machine license (for selected food products) |
$195 per year |
The first step is to register your business and obtain the necessary license. Self-registration, which you can do via BizFile, is the cheaper option. It’ll cost you S$115 at the most.
If you require additional services like a virtual address, or prefer to have an experienced party handle the paperwork, you can sign up for a business incorporation package. These will cost you between S$300 to S$1,000, depending on the services offered and the complexity of your application.
Vending machine businesses are pretty straightforward, so you should be able to successfully register your business on your own.
The next thing is to determine whether you will need a license. This depends on the actual product you decide to sell with your machine(s).
|
You will require a license for: |
You do NOT require a license for: |
|
|
Source: https://www.sfa.gov.sg/food-retail/licensing-permits/food-vending-machine
So, if your products fall in the left-hand column of the table above, you’ll need to apply for a Food Vending Machine license from the Singapore Food Agency. It costs S$195 and must be renewed on a yearly basis.
Only one license is required even if you intend to operate multiple machines.
Step 2: Source and stock your machine and products
Now that you have decided on the product(s) you want to stock, let’s take a look at how much it will cost to source and stock. Below is a guide on how much you can expect to pay for your vending machine:
|
Type of vending machine |
Price |
|
Drinks |
To buy: starting from $2,000 To lease: $400 to $600 per month |
|
Packaged snacks |
$2,500 onwards |
|
Hot food |
$8,000 onwards |
|
Multi-purpose |
$3,000 onwards |
The bulk of your cost will come from your vending machines. New machines can cost anywhere from S$2,000 to S$8,000 or more, depending on specifications like capacity, temperature control, design and format.
Take note that if you want any payment systems like contactless and mobile payments, you’ll need to add specialised card readers and hook up your vending machine to the Internet - all of which will cost you. We have estimated the cost per machine to fall between $500 and $1,000.
Used vending machines are also available on marketplaces like Carousell, and if you find a suitable model still in good condition, that’s one way you can reduce your startup cost. Another way to keep your overhead costs low is to go with a rental or lease programme instead of outright buying a machine. You can expect rental costs to be around S$500 per month per machine.
Of course, the type of vending machine you’ll need boils down to the kind of product you’re looking to sell.
|
Product |
Wholesale price |
|
Canned drinks |
S$9 to S$12 for 24 cans |
|
Ice cream |
S$2 to S$6 per serving, depending on brand |
|
Hot food |
Varies according to ingredients, labour, etc. |
|
KN95 face mask |
S$0.15 per piece |
|
Mobile phone case |
S$1.00 per piece |
Canned drinks and snacks are among the cheapest products to sell via a vending machine, and you can approach wholesalers and distributors for merchant prices. As for hot food dishes, you’ll need to work out the per portion cost after factoring in ingredients and labour.
Cooking and preparing the dishes yourself will result in a lower cost, but you can only do so if you don’t yet have high demand. As your orders increase, you’ll need to hire a central kitchen to ensure adequate supply.
Other products such as face masks and mobile phone cases will cost more, depending on their quality and features.
Given how sophisticated vending machines are these days, the sky’s really the limit when it comes to what you can sell. The important thing is finding that sweet spot where your stock sells quickly while providing a decent profit margin.
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Stage 3: Launch and run your business
The hard work doesn’t end once your vending machine business gets into full swing. There are several ongoing costs and concerns you have to attend to.
Because nobody’s going to put their money into a dirty, broken and run-down machine, your machines will need to be cleaned and maintained regularly. Vending machines, being out in public, may also be subject to vandalism, damage from attempted theft, and other such acts. It may be worth your while to protect your investment with a commercial insurance plan to cover repairs and replacements.
In order to increase the rate at which people buy your products, you’ll need to place them in areas with lots of human traffic, such as shopping malls, void decks, schools, sports halls and the like.
These locations are invariably commercial or public areas and, as such, would require a rental fee. You’ll also need to ensure your machine remains well-stocked, which means having to factor in transport and labour costs. Finally, don’t forget to factor in miscellaneous costs, such as marketing and operations.
Here’s a breakdown of the additional costs you can expect to pay:
|
Item |
Cost |
|
Machine maintenance |
S$100 per session |
|
Location rental |
Starting from S$200, depending on location |
|
Transport and labour for machine restocking |
S$30 to S$50 per round |
|
Commercial insurance |
S$500 to S$1,000 per month |
|
Miscellaneous (marketing, operations etc) |
Varies |
Keep in mind that if you are leashing your machine, you may not have to pay for all of these costs. Your rental package may come with maintenance, restocking and insurance.
Is a vending machine business profitable in Singapore?
On the surface, vending machines seem like a pretty simple and straightforward way to make money. But the reality is, like any business, success and profitability depend on a few factors.
Popularity of product(s)
Popular items may enjoy high market demand, but once the fad fades away, so will your earnings. Hence, you have a limited time to sell enough units in order to recoup your capital and turn a profit.
If you choose to go with proven staples, such as face masks, hand sanitisers, mobile accessories, canned drinks or packaged snacks, you are likely to face high competition from owners of other vending machines selling the same things – and maybe even from other nearby shops too.
Number of vending machines
Let’s say you run a vending machine selling ice cream in a neighbourhood mall, which receives a steady stream of business. However, the turnover from one machine is simply too low to cover your overheads, much less earn you a profit.
In that case, you’ll need to invest in more machines in order to increase your revenue. However, that means raising extra capital to do so.
Rental location
Placing your vending machine in a good location is important for success. Nobody’s going to buy from your machine if it’s situated at the end of a long, dark and creepy hallway, but customers are just as likely to pass over your machine if it’s placed next to other, more enticing-looking vending machines.
The ideal location is one relatively far away from competitors, while still enjoying a healthy foot traffic from consumers. It also wouldn’t hurt to have a reasonably secure location, where there is enough surveillance to deter vandals from trashing your machine.
Most locations suitable for vending machines are found in public or commercial spaces, such as schools, sports halls, offices and malls. As such, you’ll have to budget for space rental fees, which can be quite high for particularly lucrative spots.
Profit margin
Another factor that will affect your profitability is the profit margin of what you’re selling. If your profit margin is razor thin after accounting for costs and fees (common in the F&B sector), you will need a high volume of sales to generate enough revenue. This, in turn, may mean more frequent restocking, increased machine maintenance, and maybe even additional vending machines to help increase your customer reach.
On the other hand, if you increase your prices to raise your profit margin, customers may not be willing to buy from you. Don’t forget, with a vending machine, your brand has limited ability to woo customers and convince them to make the purchase, unlike a brick-and-mortar shop with knowledgeable and friendly sales staff.
And, if you’re selling products that can be commonly found or with many substitutions, you’re pretty much stuck following the prevailing market price.
about_the_author
SingSaver Team
At SingSaver, we make personal finance accessible with easy to understand personal finance reads, tools and money hacks that simplify all of life’s financial decisions for you.