How Much Money Can A Vending Machine Make

how much do vending machines make

As a vending business owner, your machines can earn small or large margins dependent upon your goals. Will you have employees to pay? Will you be in a partnership with your location owners? Rental space? In saying this, you'll have overhead cost, so you will have to make your margins and gross decently every year if you implement these elements in the business.

However, The question you asked is, "How Much Do Vending Machines Make?" There's a couple more factors to consider before you began to make money. These factors pertain to the vending machine itself; shelf space, product placement, pricing and location.

To eliminate cost of running the business, you must take advantage of loopholes to maximize earnings. Don't worry, by changing around your machine then testing customer reactions can determine how successful vending can become. Here's a breakdown of what you must do before you can began to see money coming in:

1. Use Maximum Shelf Space Capacity

Unlike a bubblegum machine that can help you earn a couple hundred dollars per year, a heavy duty dispense vending machine can earn you a lot more. Why? Much bigger machines with more cabinet space will almost guarantee more money earned.

For instance, the company Selectivend's combo vending machine has a Standard capacity of 353 items (94 snack/pastry, 123 candy, 136 beverages) with cooling capabilities.

empty snack vending machine

An empty vending machine once filled with mini snacks

Assortment of snacks such as chips, nuts, packaged snack cakes, candy bars, and sodas/water adds up in positive cash flow. Keep your machine's cabinet stocked from top to bottom consistently.

Observe what sells and what doesn't do so well, then remove those items from your machine and replace them with other items. It's all about testing snacks; check your vending machine every week to keep it stock and full.

2. Choose Good Vending Machine Locations

The trick behind capitalizing big with your machine is accurate placement and location. Look at this business as your own small store; place your machine where a lot of foot traffic exist in some establishment. Here's a few kind of location you might want to consider:

City Malls

Gas Stations

School Gym Rooms

Office Breakrooms

Recreational Parks

Arcade Rooms

Family Fun Restaurants

Beaches

Those locations above are just a couple of suggestions and idea places to place your machine. Contact store owners, managers, etc., and ask about 12X6 rental space to setup your machines. Don't have money yet for rental space? Craft an agreement with location owners for a small cut of the profits until you can afford rental payments.

Notice when you go to the store you'd find a vending machine sitting near the exit. That's not by mistake! People would grab a snack or soft drink before exiting. Some locations aren't maximizing location space/ That is where you come in to help supply an avenue for bare areas with your machines.

Usually you'd see the machine in the form of a beverage, gumball, or the famous stuff toy claw machine. Don't be afraid to follow the blueprint of other vending companies location placements; high traffic and location type equals money.

The key takeaway: Think about the "type" of location, store and would it fit what you are offering through your vending business. Rather its an obscure industry for vending such as jewelry, flip-flops, office supplies, ice cream, off the shelf medicine, or DVDs, make sure the store is somewhat relative and has plenty of traffic.

3. Maximize & Configure Your Cabinet Shelf Space

Pay close attention to what your customers observe first and foremost when encountering your vending machine. With my own personal experience and exchange, my eyes are planted on the mid section although I'm taller than most machines.

Afterwards, I work my way up then down the machine or vise versa. A good method is place your most wanted items in areas of the machine where customers are focused mostly. As the owner, sit back and watch how people interact with your machines then make changes.

Don't forget to maximize your entire shelf space from top to bottom, especially if your location has a large traffic rate. Analyze your location on a weekly basis to obtain a full understanding on when you shall return to restock your machine with more product.

Configure your machine with what sells on a consistent basis. Fill your machine with an diverse assortment of items and keep vending the ones that sell. Those items that are ignored should be immediately be replaced. You want repeat customers to your machine.

4. Pricing, How Much Are You Charging

The coin-operated laundromat, ATM, including vending machines are all convenient mechanisms for the public for non clerical assistance. They are automatic machines that you exchange coins, dollars, debit or use of a credit card for goods and services.

The prices you tag to your products will always be your choice. Perform a test run at one of your new rental spots by starting small. For instance, start charging %30 for each item in the machine. Come back a week later to see how well you've performed.

If your turnout was a positive one, try raising the prices just a bit and keep pushing until you reach a tipping point in which your customer won't buy. Lastly, begin lowering your cost per item to meet the customer in the middle.

The point of this method is to reach a pricing point that majority of your customers will pay and satisfies you. Nonetheless be reasonable, but remember, you serve a convenience to the public.

Golden Rule to Vending Machine Success

The golden rule to success, and for your machine to make money in this business is follow the steps of other successful vending machine business owners. Check out the local malls, Wal-Mart stores and jot down details on how others have setup their machines.

Contact the vending company and work for them or become an intern to gain intellectual information to use in your journey to getting the most out of the vending machine business.

Earnings from a Vending Business

Once you've managed to complete these task, your vending machine could make between $5,000 – $6,000 per year on average based on those factors operating just a single vending machine.

Managed to purchase 5 machines with all 5 locations setup, you are looking at earning $25,000 – $30,000 annually. A machine holding 353 products that earns $0.50 each in profit is $151.50 every week depending on time to restock.

In 4 weeks that adds up to $606.00 in profits alone. In one whole year, one machine could pull in $6,194.00 in profits annually based on size of machine, product sales, and how busy the location may be.

Overall, a vending machine business can make good money, earning a person a pretty decent income overtime if done correctly. Have any thoughts in the subject, leave a comment.