Vending Machine Profits from Schmeg.com

   

Vending is not a new idea, the origins of vending have been traced back to before America even existed. Vending today is just as profitable as it has ever been, and continues to grow every year. The best part of the vending business is that there is nothing magical about it. Just as with any other business, there are rules in vending. If you understand the rules, there is no reason you cannot reach success.

The rules in vending are simple, but entirely based on the type of machines you own and operate. There are many different types of vending machines to choose from and a lot of decisions to be made.

There are three basic categories in vending; Soda and Snack, Amusement and Small Non-electric Machines (Bulk Candy). Each type of vending has it own truth.

The bottom line in vending, as in any other business, is how much profit can be generated.

The Rules of Vending - What are Realistic Profit Margins?

Because the vending is a numbers business and requires multiple machines, your profit margin will be based on your route's average, not on an individual machine.

Amusement Machines:
Example
If you received 800 customers a month (27 per day) then:

800 X $0.25 = $200

$200 (Gross Profit)
- $100 (location Fee)
$100 net profit a month ($25 a week)

If machine costs $4000.00 - the return on investment would be 40 months.

Soda / Snack Machines:
Example:
If you sold 500 cans of soda a month (17 per day) then:

500 X $0.50 = $250

$250 (Gross Profit)
- $125 (product Cost)
- $25 (location Fee)
$100 net profit a month ($25 a week)

If machine costs $3000.00 - the return on investment would be 30 months.

Bulk Candy Machines:
Example:
If you sold 240 customers a month (8 per day) then:

240 X $0.25 = $60

$60 (Gross Profit)
- $20 (product Cost)
$40 net profit a month

If machine costs $480.00 - the return on investment would be 12 months. No location fee is given, most non-electric machines are placed with a charity association, or as a convenience to the location.

See also: Kids Bulk Candy Machines Vending Machine Costs