Besides a toddler, it is nearly impossible for a person to be unaware of the existence of a vending machine. Unsurprisingly, it has become one of the market’s fastest-growing business niches. Perhaps, you could be three friends away from someone owning a vending machine.
In other words, vending machines are popular. Because of this, there are numerous machine variations on the market. Everything is designed to the highest standards, from the coffee machine to the snack vending machine. Yet, while you have the option of selecting any device, are you sure that it will generate more profit?
So, the real question is: how much money can you make with your vending machine? Let’s find out below.
Income Difference: What Is It?
The income data for all vending machines differ. All data surrounding the devices, including location, foot traffic, etc., is based on market research. For example, owning a vending machine with healthy products in a gym would undoubtedly bring in a lot of money, whereas locating a vending machine in a remote location would result in fewer earnings.
What Does Income Difference Entail?
Think of this scenario: you have already conducted business market research. You know where to place your machine and what product to stock. So, how much money will you make from your chosen vending machine type?
Let’s read below.
How Much Do Vending Machines Make?
It is common knowledge that owning a vending machine can be a lucrative source of income. However, not all generate the same revenue for business owners.
To give you an idea, here are some of the two profitable machines that are becoming increasingly well-known for offering higher profits.
Machine #1: Snack Vending
Snacks are popular with everyone. So, if you own a snack vending machine, you can place it anywhere near heavy foot traffic.
Assume you spend $250 on all of the products on your machine. Then thanks to high foot traffic, you sell 50 snacks daily and make a $0.60 profit per item sold within 30 days. If you do the math, you earn $900 in total. If we deduct it from your $250 product expenses, your monthly net profit would be $650—$400 more than your expenses.
Machine #2: Coffee Vending
Most of us won’t start the day without a cup of coffee, cold or hot. According to statistics, nearly 19 million Australians consume at least one cup of coffee per day. So, think of how much money you’ll make if you own a coffee machine.
Given that you’ve already done your market research, let’s assume your machine is in the right place. It is important to note that most business owners increase the price by at least 200% to 300% over the original price.
Suppose your cup and coffee ingredients total $300 for 50 cups in one day. That works out to $6 per cup. Assume you increase the price by 300%, and your coffee machine buzzes with customers. Hence, you rate each cup at $9. And if your customers buy all 50 cups for one day, you earn $450 a day—a $150 net higher than your expenses.
Are These The Exact Profit Margins For Vending Machines?
No, and you’re probably wondering why. If you are confused, keep reading.
No Precise Amount
The exact number for vending machine income is just a guessing game. It might be given that it’s a good kind of additional revenue, but there is no basis that all vending profits reach success. As mentioned earlier, market research can influence how much money you will make.
Market Strategy
If you follow the right strategy in this industry, there is no doubt that your machines, such as coffee or snacks, will increase in net profit at the same rate as the two examples above. However, while profitable, don’t expect to become as wealthy as Bill Gates by owning just one vending machine. All business owners have to undergo the same revenue factors, such as:
- Machine placement;
- Products;
- Business Expenses; and
- Foot traffic.
Business Plan
In a nutshell, proper planning and strategy are required to ensure financial success for this type of passive business. To be effective, owning a vending machine requires a lot of critical thinking, effort, and time, just like any other business.
Better Business Path with TCN Vending Machine!
TCN Vending Machine in Australia is one of the most profitable vending machine suppliers. Whether you want a single-product or combination vending machine, we have a reliable team to customise your needs. Thus, you are on the right track to success by combining the right business plan and highly engineered machines.
With the right supplier and installer, such as TCN Vending Australia, owning a vending machine should not be a problem. Call us on 1800 959 910 or email us at enquiries@tcnvending.com.au to increase your revenue!
