How Much Can You Make a Month from a Vending Machine?
This question is actually tricky because there is a very wide berth of possible answers. It depends on where the vending machine is set, what products it dispenses, and so on. For example, it’s possible for some vending machines to earn less than €20 a month, while others might rake in at least a thousand on just an average month.
Factors That Influence Monthly Profits from a Vending Machine
In order to have an idea of how much your vending machine can earn, you must understand all the factors that play a part. Here are some of those factors and how they influence vending profits.
Location
The most critical factor would be the location. Profits would invariably be higher in places that get plenty of foot traffic like shopping centers, office buildings, and train stations. Busy areas have the potential to make as much as £1500 a month, or even higher.
Products
Staples like snacks and drinks are always in demand and will generate reliable revenue. However, some premium items also sell very well in specific areas. A vape vending machine, for instance, would be a hit in a bar but not so much in a school.
Pricing
As a rule, lower prices attract more customers. This strategy might not generate the biggest profit per item but it will drive sales. In many cases, the volume of sales will more than make up for a lower markup.
How to Compute for Potential Profits from a Vending Machine
Having an idea of how much you can possibly make from a vending machine business can motivate you to work even harder at it. It somehow gives you a target to aim for. But how do you know just what your profit potential is? Following is a simple computation that you can try.
Monthly Revenue
First, you need to estimate the number of items you will be selling in a day. You also need to figure out the average price of your items. Multiplying these two numbers, then multiplying the product by 30 will give you an estimate of your monthly revenue.
For example, let’s say you have a snack vending machine that sells 20 items a day. The average snack sells for £1.50. By multiplying these two numbers, we get a daily revenue of £30. In a month, that would add up to £900, which is not bad at all for passive income.
Operational Costs
However, keep in mind that this is just your gross profits. To get the net profit, you must subtract all operational costs, which include electricity, rent, maintenance, and so on. For illustration purposes, let’s say these costs total £100.
Product Costs
Of course, don’t forget the cost to stock your items. At an average price of £0.75 each, the 20 items you sell per day would have a daily stocking cost of £15, or £450 per month.
Finally, to get your net profit, you will have the following computation:
Monthly net profit: £900 (Monthly revenue) – £100 (Operational Costs) – £450 (Stocking costs) = £350.
This is actually just about the industry average at the moment. It doesn’t sound very exciting, but remember that this is only for one vending machine. You can easily double or triple this amount by investing in more machines. And if you partner with a reputable vending company like Vending-Machines.ie, there’s a very good chance that you will surpass your expectations once your vending machines start operating.
