One of the first questions most people ask when considering starting one of these businesses is, “How much do vending machines cost?” Millions of Americans aspire to be business owners, and the vending machine industry presents excellent opportunities for those seeking both financial success and freedom.
The amount of money made from vending machines varies greatly depending on the goods sold and the location. On average, vending machines generate between $35 and $300 of revenue per machine per month in the US.
Little-experienced vending machine owners frequently make between zero and fifty dollars per month. On the other hand, well-stocked vending machines in prime locations frequently earn more than $1,000 per month. Even more than $10,000 per month can be made by the best vending machines in the best locations (such as a machine located in a hotel or in front of the entrance to a large office building).
Please read on.
Table of Contents
What is the Average Cost of a Vending Machine?
The answer to this question isn’t as simple as you might think, despite the fact that the question itself is simple. The vending machine industry is not a standard one. Calculating the average cost of a vending machine involves a lot of different factors. In actuality, a brand-new, high-end machine that dispenses hot food and beverages costs over $10,000, while a used, decades-old snack vending machine can be purchased for a few hundred dollars on the secondary market.
The average price of a vending machine varies depending on the type of machine you want, the goods you want to sell, and the technology the machine uses to accept payments, dispense goods, and maintain those goods fresh.
In order to assist you in determining your costs, let’s delve deeper. We can say that the average cost of a vending machine is below $10,000 but above $1,500.
The Costs of Running a Vending Machine Business
These are some of the expenses related to operating a vending machine company.
Vending Machine Units
Vending machines are a necessity for starting a vending machine business and will require the biggest initial investment. Depending on the kinds of goods you are selling, vending machine price ranges can change considerably. For instance, the cost of a snack machine is typically lower than that of a machine that serves up prepared meals. An older model machine that only uses standard push-button operation and only accepts cash will be less expensive than a newer machine that is more user-friendly and accepts credit and debit swipes.
The best estimate ranges from $1,500 per machine on the low end to $10,000 per machine on the high end, depending on the goods and vending machine type you’re purchasing. This is because costs can vary greatly.
Restocking Vending Machines
A vending machine needs to be well-stocked. People have nothing to buy from you if you don’t have food or drinks. Finding the ideal combination of goods and stock you keep on hand can take some time. Restocking vending machines requires a continuous investment.
You should be cautious about overstocking items when starting your vending business. Finding your best-selling products and noticing trends in your clientele will take some time. You don’t want to buy too much inventory that you can’t move because some items will sell well in one place but completely fail in another.
If you decide to work with a vending machine business that provides extensive support services, they can typically give you some initial data to get you started so that you’re making decisions that are wise for your budget. A vending machine company that offers franchise benefits will typically sell you goods at wholesale or below-cost prices as well, giving you more room to mark them up and make healthy margins. Your advisors can collaborate with you to choose the appropriate pricing structure for the equipment and locations you secure.
Vending Machine License
Operators of vending machines must obtain business licenses, which are fee-based. It’s crucial to read and comprehend all of the legal requirements in advance because costs will vary depending on the state and municipality where the vending machines will be located.
You will typically need to go to your city or county office to obtain a license. You might also need to get a seller’s permit if you have to collect and pay state sales tax. Health and food permits may also be required for perishable goods. A business license and other permits can cost as little as $10 or as much as several hundred dollars, and depending on your local laws, you may need to renew your license periodically.
Location Placement
Location, location, location is one of the pillars of success when it comes to operating a successful vending machine business. It would be nice if you could place a vending machine wherever you wanted, but you need the consent of the property owner, who frequently wants a cut of your profits (a commission).
In a perfect world, you would negotiate a contract that does not include a commission for the property owner, but it’s frequently a good idea to offer a commission if you want to develop a strong relationship and maintain priority space on their property. When a location generates 100 or more vends per day, commissions amount to just pennies on the dollar, and they have little to no impact on your long-term profits.
Naturals2Go is here to help if you’re new to the vending industry and need assistance locating profitable vending machine locations. You will have access to comprehensive training and help locating a location as a member of our team of entrepreneurs and an owner of our equipment to aid in the development of a successful business.
Read about How Much Does It Cost to Open a Laundromat?
Different Types of Vending Machines and How Much They Cost
As we’ve previously discussed, the price of a vending machine will vary depending on the type of machine you purchase. A machine will cost more than one that does not need refrigeration, for example, if it needs to be refrigerated. The various types of vending machines and some related financial factors are listed below.
Soda Machines
The vending machine industry is dominated by soda machines. A strategically placed soda machine can make a sizable profit and can produce a lot of sales. Due to the fact that they need to be refrigerated, their price is slightly higher. Depending on the technology and features you want in your machine, prices can start at $3,600 for an older, basic model and soar to exorbitant levels.
Snack Machines
Grab-and-go snacks are sold by traditional snack vending machines. They can be “junk food” snacks like chips, healthy food snacks like bags of nuts and trail mixes, or some mix of the two. Depending on the technology, these units can range in price from a low of $3,000 to a high of $8,000 or more.
Candy Machines
Candy vending machines can either sell single-serve candy bars and snack-sized bags, or they can sell one item in bulk (like gumballs). The cost of bulk machines is significantly lower than that of conventional vending machines, but the profit margin may be considerably smaller. You probably won’t make as much money as someone who sells full-size candy bars if you’re selling gumballs for a quarter.
Candy vending machines, like other vending machines, can range in price depending on the technology used to dispense items and whether the machine is refrigerated. For a basic or used machine, prices can start as low as $1500 and go up to $8,000 or more on the high end.
Coffee Machines
Some of the most expensive vending machines to buy and run are coffee machines. They require water connections in addition to standard electrical connections, have heating mechanisms and cup dispensers, must be kept clean on the inside and out, and typically need much more frequent maintenance than a machine that dispenses prepackaged beverages. At the low end, the cost of a new machine can be close to $6,000 before you take into account the ongoing expenses related to maintaining each machine.
Are Vending Machines Expensive?
Costs for vending machines can run into the thousands of dollars.
Due to the expensive electronics, steel frame, and refrigeration unit needed to operate a vending machine, the cost of manufacturing one is high.
Are Vending Machines Still Profitable?
Yes, vending machines continue to be a very successful business. Owning a vending machine business has never been more lucrative thanks to the widespread acceptance of credit cards, paywave, and mobile phone payments. Receiving a return on your investment typically takes 12 to 18 months.
Frequently Asked Questions
A Refurbished Or Used Vending Machine is Better Than a New Vending Machine?
In general, buying a used or refurbished vending machine will cost less than buying a new one. The technology offered by newer machines is absent from older ones. Refurbished vending machines will become outdated much more quickly from this perspective.
A compromise might involve buying a used vending machine and upgrading it with a modern system like Wendor Touch.
Where to Buy Vending Machines From?
A careful process must go into selecting the best vending machine supplier for your machines. The benefits of working with a company extend beyond the one-time purchase of vending machines.
The businesses must play a significant role in the equipment installation process as well as periodically checking on the machines to see if they require timely servicing or other repairs. While some businesses offer free servicing, others offer warranties on particular vending machine components.
Vending machines are large, heavy machines, so transporting them can be quite expensive. The price of shipping a machine from an overseas manufacturer may be at least as expensive as the machine itself. Local vending machine manufacturers like Wendor.in offering a wide variety of options to choose from.
Can I Rent a Vending Machine?
The cost of the vending machines alone consumes a sizable portion of the investment. Renting vending machines from a manufacturer or another business owner would be a more viable business option for someone with limited capital.
Even though the profits are split, the business owner can benefit more by installing more vending machines. A vending machine rental ensures less frequent but faster returns.
Last But Not Least
- The most common item sold in vending machines is beverage. Bottled water, soft drinks, and other beverages account for about one-third of all vending machine sales, according to the U.S. Chamber of Commerce.
- A successful vending machine must be placed in the ideal area. Wherever there is a high demand for the goods your machines sell, that is where they should be placed. For instance, protein bars, energy drinks, and other gym accessories will sell perfectly close to a gym, and toys and sweets will sell perfectly close to schools and playgrounds.
- In offices, classrooms, and universities, hot food and sandwich vending machines typically generate the highest profits.
- Vending machines placed in unusual locations with lots of people but no nearby store where you can buy the necessities in that location are one of the most lucrative categories of vending machines. These devices have record-breaking earning potential. Examples of these machines include those that sell snacks and drinks at a swimming pool where there isn’t a restaurant or store, those that sell socks and underwear at an airport or train station where there aren’t any stores that sell those items, and those that sell stationery and drinks next to a big school where there isn’t a static store.
- Luxury cars can be purchased from the priciest vending machine in the world. It is Autobahn Motors, a Singaporean company.
