Owning a business is everyone’s dream. Fortunately, it can be a reality for many Australians. Thanks to vending machines. This business model offers endless opportunities for starting entrepreneurs who are both looking for freedom and flexibility as they enter the world of business.
Among the questions most people ask as they start a vending machine business is, “How much does a vending machine cost?”
General Cost of a Vending Machine
Let’s not beat around the bush! While this seems to be a straightforward question, there are a lot of factors that contribute to the price of every vending machine. In fact, the vending machine business isn’t a cookie-cutter process. There are a lot of variables that come to play in figuring out how much does a vending machine cost.
For instance, if you buy a used machine, that will cost you a couple of hundred bucks. On the other hand, a high-end and brand-new machine will easily rack up to thousands of dollars.
Breaking Down Each Type of Vending Machine
As we’ve mentioned earlier, the cost of every vending machine varies based on the type you’ll buy. If the machine has refrigeration and cooling systems, this can cost you more.
Want to know about the cost of every type of vending machine? We will list them down for you, so you’ll be prepared for the financial resources and soon be able to get started.
Soda and Drinks Vending Machines
Soda vending machines are a staple in the industry. They are the earliest types of automats. They are popular because of the convenience they offer. And as a starting entrepreneur, it’s best to capitalise on this type of vending machine.
Typically, a soda or drink vending machines can cost $3000 to $6000. They usually cost a little more than other types of vending machine since they require refrigeration.
Snack Vending Machines
Aside from soda machines, snack vending machines are also extremely profitable. Their grab-and-go feature essentially makes them a go-to choice for busy professionals. Most units start at $2,500 on the low end and can go as high as $8,000 depending on their technology.
Combination Vending Machines
Most business owners want practical options, where both drinks and snacks are available for sale. These versatile glass front vending machines can dispense a variety of products, such as chocolates, chips and drinks, as well as healthy options for drinks and snacks.
What’s more? The dual-zone refrigerated cabinet can be customised for different drink and snack combinations. To own a combination vending machine, you’ll need about $7,000 to $10,000.
Coffee Vending Machines
If you want to own coffee vending machines, you may need to prepare a lot of money for you to get started. They are among the most expensive vending machines to buy and operate.
Other than the standard mechanisms, they require moving parts to dispense hot water, cups, and coffee. All of which must be kept clean both inside and out. This only means that it requires more maintenance than any other vending machine. Even a used coffee vending machine sits at $5000. A newer model can also cost you about $10,000.
If you want to operate a coffee vending machine, you must also factor in the costs associated with running it.
Operational Costs: What Are the Other Expenses?
After buying a vending machine unit, you should also consider all the associated expenses to successfully run your business. Here are some expenses you need to consider before even jumping into the vending machine craze:
Restocking and Inventory
Of course, you need to have well-stocked and properly maintained vending machines. This way, people are encouraged to buy from you. Inventory and restocking vending machines require ongoing investment.
As you begin your vending machine business, always be careful in choosing the right items. Overstocking your machines can translate into lost profits, especially if no one wants to buy your products.
Experiment first, then you can establish which are your best-selling products. It will take a while for you to figure out which items to sell. So, don’t rush the entire process. Stocking products on your vending machine can cost you about $200 to $1000. This also depends on the snacks, drinks, and items you stock in your vending machine.
Renting a Location
No matter what industry you’re in, location is one of the pillars that help your business succeed. It would be great to find a spot for your vending machine that has high foot traffic. Once you found that place, simply ask for permission from the property owners. You can even offer them a portion of your profits instead of renting the property, so you can cut losses when the business is not earning as much as you expect.
Bottom Line: Are Vending Machines Profitable?
Across the globe, there are over 15 million operational vending machines. This number is huge. In Australia alone, there are thousands of vending machines spread in every state. However, this doesn’t always equate to huge profits.
You have to remember that a lot of factors come into play to measure the profitability of a vending machine business. In fact, product offerings and location are just the two factors you need to consider. To generate profits, you need to strategically place the vending machine and price your items right.
Ideally, you can expect an average revenue for a machine is over $75 each week and over $300 per month. However, some vending machines might earn less or more profits depending on your business model and strategy.
For Cost-Effective and Reliable Vending Machines, Trust TCN Vending!
Now that you know how much does a vending machine cost, are you ready to start your own business? If you do, turn to TCN Vending Australia! We have partnered and worked with local retail establishments, educational institutions, and healthcare centres, providing them with quality vending machine solutions and exceptional aftercare service.
Backed by years of experience in the industry, our professional team strives to offer consumer-focused solutions that are innovative and efficient. We collaborate with world-renowned vending machine manufacturers to keep up with the standards and be in the loop for new trends in vending machines.
For more details and information, you can visit us in our Sydney office today. You can also contact us on 1800 959 910 or send an email to enquiries@tcnvending.com.au.