How much does a vending machine make?
Here at Royal Vending we aim to provide you with information you can have before entering into the vending industry as a business owner. Many potential business owners are curious to know how much a potential vending machine can make. The gross earnings of an average vending machine is around $730+ AUD per month. You can make around $170+ per week in gross sales, which equates to approximately $8800 a year per vending machine located.
Vending machine earnings are quite consistent once at the right location, which makes a vending business a very viable option accompanied with the low start-up costs.
What you can potentially earn from a vending business is based on a few different factors. This makes it near impossible to predict exactly how much your machines will make during the early stages.
It is important to know how to choose a profitable location for your vending machine.
Just like location matters when purchasing real estate, the same applies to when locating your vending machine. Demographics, customer accessibility, traffic flow, and proximity to other food/drink can all dramatically affect your revenue.
Factors we recommend when choosing a location for your vending machine include but aren’t limited too:
- The total of people onsite daily. Minimum 25+ people are recommended that can be a mix of staff, contractors or customers who are on premises daily. Locations that are popular for vending machines include factories, and warehouses. Where people are restricted by short breaks and normally after a quick “pick me up” snack or drink during their shifts.
- Another popular choice for the placement of a vending machine is office buildings, airports and high flow traffic areas. Areas like lunchrooms tend to have the larger number of people congregating and are normally a safe option when choosing a location.
Vending machines can be a great investment if located correctly. It is fair to say people will likely make back their initial investment after 12-24 months.
There are many advantages to a vending machine business here at Royal Vending we believe there are many perks to having and operating this as a business. As a vending machine business owner, you’ll enjoy many advantages such as: .
- Making extra revenue– Whether it be as a side hustle or a full time business. Vending machines offer the flexibility to cater to those looking for both fulltime and part time revenue. We have created our system for success based on our experience in the industry.
- Retain more of your profits – Compared to many other businesses out there, a vending machine business has a low operating cost. There are not too many other businesses out there that offer the same perks of a vending business. Once your machine is paid off you can retain all your profits.
- Time Flexibility–Having a Vending machine business means flexible hours and working your own time schedule. It can be as little as 1–2 days work a week which means more time to do the things you enjoy and have the work life balance.
What Payment methods can be used on a Vending machine?
High quality Vending machines take payment in 5 different payment methods. This includes, Credit Card, debits card, eftpos, Notes and Coins. The more payment options you offer your clientele the more convenient for them it becomes and the higher the likelihood of them making purchases.
If you’re wondering if Vending machines can be profitable. The short answer is yes, they can. With an average annual earnings of $8800 per year for one machine.
It’s estimated after 12-24 months with an estimated average annual turnover of $8800 your machine will be paid off, allowing you to retain profits and or continue to grow your vending machine business.
With years of experience and expertise and not to mention one of the top Vending Companies Australia wide, Royal Vending offers support, training, and guidance to ensure you hit the ground running with your new Vending machine business.
Once you’ve considered the revenue per month for a vending machine is about $730+ (AUD) . We would deduct the cost of your wholesale stock which would be all the products stocked in the vending machine. Once you deduct the wholesale costs, Net profit would essentially look something like $400(AUD) per machine on average.
How to find the right placement for your vending machine/s? Choosing the best location for your machine is the most important thing that will determine the success or failure of your business.
Here at Royal Vending we take the stress out of siting your Vending machine. We work to find long term secure locations that have the required traffic to place your Vending machines. We don’t just give you solid advice, we really go the extra mile to ensure your vending machines are located in places which have the ability to be profitable and successful.
It is important to understand what products sell in a vending machine. Understanding this is key, to ensure when stocking your vending machines you make choices that best suit your clientele. At Royal Vending we assist you in understanding your customer base and assisting in asking the right questions to ensure you select the right product choices in your vending machines. Also keep in mind it is important to keep your vending machines fresh and exciting by adding new products regularly and switching up placement of products to keep the vending machine appealing to the eye of your customer.
What’s interesting to note is that during the customer acquisition stage, it’s fairly common to see the clientele or staff using the vending machines making requests for healthy snacks and drinks. We always aim to give the customers what they are requesting, so we have no issues with stocking healthy items in moderation.
Here at Royal Vending we see it as important to track current trends. It has definitely been noted that health is a current trend with many clientele either having weight loss or health goals leading them to opt for healthy options. Items such as Sugar free drinks, fruit juices, coconut water, popcorn, tuna, chicken meals, and protein products. We believe in continuing to offer consumers an extensive selection.
However, a quick look at current stats show that general items tend to sell more often than healthier choices.
- Soft Drinks
- Chocolates & Lollies
- Chips
- Energy Drinks (Red Bull, V, Mother)
The most important things to remember to run a profitable and successful vending machine business is:
- Fill your vending machines regularly to ensure popular products and customer favourites are always on hand for purchase.
- Have cashless payment options available, this gives customers the options to purchase even when they don’t have cash on hand. It also means that you have back to base monitoring to have live reporting on what’s being sold and specific product movement. Meaning your customers will never run out of their favourite snacks.
- Respond to enquiries and leads promptly within 24 hours. Strike while the iron is hot and respond punctually to your clients needs which can lead to keeping your current customers content, longevity of locations and potentially growing your vending machine business from referrals.
If you are interested in finding out more about a vending machine business contact one of our friendly team members today!